First days in office bring challenges for new Niles treasurer

By Jordan Cohen

news@vindy.com

NILES

Interim city Treasurer Janet Rizer-Jones has been on the job only three days in this city in the throes of fiscal emergency. Immediately, she has been confronted with several major problems.

The first and biggest: depositing $154,000 in income-tax checks from businesses and residents that had gone unprocessed since they were delivered by the postal service in April.

Jones and Lisa Smathers, city tax director, confirmed that state-appointed financial supervisors advised them Monday to deposit the funds immediately.

The Ohio Revised Code requires deposits of public money on the “business day next following the day of receipt if the total amount of such moneys received exceeds $1,000.”

By being nearly 30 days late, Niles was out of compliance with state law.

The payments remained untouched while Jones’ predecessor, Robert Swauger, still was in office. Swauger resigned last week, saying his banking career did not leave him enough time to dedicate to the part-time treasurer position he had for three terms.

“Deposits are a priority,” said Jones, adding she completed most of them Tuesday and expects to finish the rest today. “We’re taking things one step at a time,” she said.

Smathers said her department is short two people due to a layoff and an open position that is not being filled.

“It’s physically impossible to get all the mail processed quickly by two people,” Smathers said. “We come in early, stay late and work nonstop.”

Niles is not the only city that does not always meet the deposit deadline.

Warren Tax Administrator Tom Gaffney said his department of six still has some “small receipts” from April’s tax payments.

“It’s not always possible for this to get done, especially in April at tax time,” Gaffney said. “The state auditors usually understand that.”

The influx of money is not expected to reduce the $130,000 general-fund deficit, said city Auditor Giovanne Merlo.

“This is probably anticipated revenue,” Merlo said. “I don’t have any reason to believe this might be a windfall.”

The other major issue for Jones is reconciling the city’s financial records, something Swauger was unable to do, which led to strong criticism from the Financial Planning and Supervision Commission.

The commission, which reviews Niles’ expenditures, requires reconciliation for an accurate picture of city finances.

Jones said help is on the way from state auditors this week thanks to a request from Merlo.

“I will undergo training and assure that more than one person in this office knows how reconciliations can be done,” she promised.

Jones, appointed last week by Mayor Thomas Scarnecchia, revealed she has submitted her resume to the Democratic Precinct Committee, which must select a replacement to fill Swauger’s remaining term within 45 days of his resignation. No date has been set for a vote.

Jones, who was Niles income-tax director for 15 years, meanwhile, is reserving judgment on the status of her department and the city.

“It’s a little premature,” she said. “It’s been a difficult situation the city has gone through, and hopefully we’ll see it turn around.”