Baptism by fire for new Niles Mayor Scarnecchia

It was a tongue-lashing heard ’round the Mahoning Valley. The recipient was the new mayor of the city of Niles, Thomas Scarnecchia; the lasher, an official of the Ohio Auditor’s Office.

But it was the reason for Jim Armeni’s outburst that grabbed the attention of the residents of the city and of the press.

Armeni, east regional liaison for Ohio Auditor David Yost, attended last Wednesday’s meeting of city council and let loose a verbal barrage aimed at the mayor, who was sworn in at the end of last month.

“If you can’t lead, find someone to follow, and if you still can’t do that, then step aside,” the state official said, directing his comments at Scarnecchia and also at city council. “This is not business as usual.”

At issue is the mayor’s failure to implement the city’s fiscal recovery plan.

“It’s disturbing and disappointing,” Armeni told Scarnecchia. “You cannot stall with the plan.”

But stalling is exactly what the mayor has been doing because he does not agree with some of the provisions of the blueprint designed to pull Niles out of fiscal emergency. The state issued the emergency declaration in October 2014 after it became clear that the city’s operating budget had imploded.

The designation resulted in Niles’ government losing control of its finances to a state-mandated commission. As part of the recovery program, the city was required to develop a five-year plan that would ensure a balanced budget.

The task was completed late last year by then Mayor Ralph Infante, whose re-election bid in 2015 came to a screeching halt after he lost the Democratic nomination to Scarnecchia, and city council. The state fiscal commission subsequently approved the plan.

But even before he was sworn in as mayor, Scarnecchia made his opposition known. He contended that he was not consulted as mayor-elect, and he disagreed with provisions that would result in the elimination of the city income-tax department and the police dispatchers.

Scarnecchia has been trying to come up with the money to keep those operations intact, but reality has reared its ugly head.

CITY FINANCES ‘BLEEDING’

At Wednesday’s council meeting, city Auditor Giovanne Merlo revealed that the carry-over from the 2015 general fund will be $200,000 – not the $700,000 that had been anticipated.

The revelation brought this piece of bad news from Councilman Steve Papalas, D-at large:

“We’re bleeding $92,000 a month more than we’re bringing in, and that’s a hemorrhage.”

Papalas and other members of council criticized the mayor for dragging his feet on implementing the recovery plan and noted that the city’s fiscal condition will only get worse with each passing day.

Scarnecchia, a former member of council, cannot be blind to the fact that there isn’t a pot of gold at the end of the rainbow. Indeed, there isn’t a rainbow.

Last November, voters rejected a 0.25-percent income-tax increase that was put on the ballot at the urging of the state commission.

The tax would have generated $900,000. In the wake of the defeat, city officials talked about layoffs as a real possibility. It has been 27 years since the city increased its income tax to the current 1.5 percent, which is lower than many municipalities.

In recognition of the public’s negative attitude toward government in general, city officials have adopted a different strategy.

In March, voters will be asked to approve a 0.5-percent income-tax increase that will be dedicated to the police and fire departments. Public safety is always a major concern in any community.

If the increase is approved, the general fund will be able to retain some of the money that is now being funneled to the police and fire departments.

Mayor Scarnecchia may be justified in feeling slighted because he was not involved in the development of the fiscal recovery plan, but he should find comfort in the fact that the state commission has given its approval. Members of the commission do not have political axes to grind, and, therefore, deserve the benefit of the doubt as to their intentions.

Niles city government cannot afford to delay the inevitable. The mayor has no choice but to implement the financial recovery plan. Not to do so would be irresponsible and risky.