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Niles City Council isn't happy with latest cost-cutting plan
By Jordan Cohen
NILES
City council is not happy with a new proposal that the mayor and service director say would save the deficit-ridden general fund $80,000.
Judging from the reaction in the packed city council chambers Wednesday, the public appeared equally unenthusiastic.
Mayor Thomas Scarnecchia and Service Director James DePasquale asked council to approve the use of funds from revenue-generating enterprise funds to pay for the transfers of four park and engineering department employees to the street, water and sewer departments. The mayor said the positions could be either temporary or permanent. But that’s not all the administration wants.
DePasquale said the city’s public employees’ union has agreed to the transfers only if money, also from the enterprise funds, is provided for four other permanent positions, including an assistant mechanic in the light department. Presently those positions are open and unfunded.
Council President Robert Marino was quick to question the proposal.
“I have grave concerns about the constant stress on the enterprise funds, [and] this has to be reviewed by our auditor and financial supervisors,” Marino said, adding that the water department, which is an enterprise fund department, has a projected deficit of “a quarter-million dollars.” The council president said he wants to know the plan’s impact on the city’s five-year financial forecast. Because Niles is in fiscal emergency, the city must show a balanced budget and “positive revenues” for each of the next five years.
“You asked us to save money out of the general fund, so that’s $80,000 we’re bringing to you,” DePasquale replied.
When DePasquale tried to justify the need for the additional mechanic by noting the city has to maintain 104 vehicles, Marino pounced.
“We may not need 104 vehicles ... maybe we should eliminate the take-the-car-home program,” the council president said to boisterous applause from the audience. Marino said his suggestion did not include the safety forces.
Council members were not happy with what they heard.
“I don’t like leveraging full-time ongoing jobs for a short-term solution,” said Barry Steffey, D-4th, council finance chairman.
Councilman Steve Mientkiewicz, D-2nd, worried that continuing use of enterprise funds to bail out the general fund could lead to utility rate increases, while Ryan McNaughton, D-at large, was even more blunt.
“This is a shell game,” McNaughton said. “We’re cutting off the head of the dandelion and not cutting out the root.”
Members of the audience appeared to be just as cynical.
“Where does this stop?” asked resident Al Cantola. “This is really insane.”
DePasquale said that if council were to agree, the city still would have a $49,000 general fund deficit. The administration hopes to eliminate it through contract negotiations by having employees pay a portion of their health care premiums each month. Currently the city picks up the entire tab.
Council will meet in special session Wednesday to vote on Scarnecchia’s plan, but the mayor appears to have an uphill battle. No one on council spoke in favor of it.