Niles mayor warns of drastic cuts next year after low tax collections

NILES

After learning that income-tax revenue for the remainder of this year is well below expectations, Mayor Thomas Scarnecchia warned that major cutbacks are likely in 2017.

“We’re going to make drastic cuts. … I know this,” the mayor told council, all of whom showed up for Tuesday’s finance committee meeting.

Niles has been in fiscal emergency for more than two years, and based upon information disclosed at the meeting, its situation could not be more bleak.

Treasurer Janet Rizer-Jones said income-tax revenue will yield only $7 million this year, well below the $7.19 million that had been projected.

Scarnecchia admitted he does not know if layoffs, services or both will be among the cuts. Council President Robert Marino was unhappy with the timing of the mayor’s statement.

“It’s very dangerous to throw comments out like that,” Marino chastised the mayor. “We don’t want to cause firestorms from putting out bits and pieces of information, [which is] why we need a comprehensive plan.”

“I didn’t know [revenue] was underperforming until now,” Scarnecchia replied. The mayor has been ordered to submit an amended recovery plan to council for approval by Dec. 2 before it is reviewed by the fiscal commission that oversees city spending later next month.

The financial recovery plan is supposed to project positive balances for five years.

City Auditor Giovanne Merlo said with lower revenue and the city’s other spending obligations, including repairs to the 89-year old city hall, “we could be looking at a negative [balance] of $148,000 at the start of next year.”

Read more about the situation in Wednesday's Vindicator or on Vindy.com.