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Niles mayor wants 2 rate increases
By Jordan Cohen
NILES
With the city in the throes of fiscal emergency and its water department deep in deficit, Mayor Thomas Scarnecchia told council’s finance committee Tuesday he will seek to impose two water-related rate hikes on the city as soon as possible.
The mayor said he wants a 5 percent usage rate to $3.13 per cubic feet from the current $2.98. His second increase would impose a $5 capital-improvements fee per individual home and $10 fee for commercial properties that would finance the installation of 5,000 water meters.
“I want everyone to understand that none of this is going for wages,” Scarnecchia said.
The mayor said the 5 percent rate increase would generate $320,000 while the water-meter fees would bring in $852,000. Currently, the city has no funds for meter installation.
“We’ve had those meters sitting around in the [empty] swimming pool,” Scarnecchia said.
When asked how long the increases would stay in effect, Scarnecchia’s response did not sit well with council.
“I’m not sure of the length,” he replied. “It might be forever until we get the whole [financial] mess straightened out.”
“People are hurting [and] they’re already complaining about utility rates,” responded Barry Steffey, D-4th, council finance chairman. Steffey suggested the mayor consider percentage increases instead of fixed rates.
“This is a slap in the face to the citizens,” said Steve Mientkiewicz, D-2nd. “People just cannot afford it.”
Councilman Ryan McNaughton, D-at large, proposed town-hall meetings to discuss the increases with a three- to five-year limit on their length. “I worry about doing [this] in perpetuity,” he said.
Several council members complained the mayor did not discuss a plan to slash spending as demanded by the Financial Planning and Supervision Commission.
“I’m not hearing when we cut expenditures elsewhere,” McNaughton said. Scarnecchia said he was still working on his plan.
“I have to cut the budget by $320,000,” the mayor said.
Council President Robert Marino, who did not attend the meeting, told The Vindicator afterward he has cautioned the mayor against taking action now and suggested including the increases in the revised recovery plan that must be submitted to the commission in December.
“We can’t do this a la carte and fly by the seat our pants,” Marino said.
Because of the city’s fiscal emergency, state-appointed fiscal supervisors have to approve all budgetary items. City Auditor Giovanne Merlo said he was unaware if the supervisors have reviewed the mayor’s proposal.
Steffey indicated council may discuss the matter at tonight’s regular meeting.