Niles council debates latest version of recovery plan

NILES — Facing a mandatory deadline to produce a viable financial recovery plan from fiscal emergency by July 25, Mayor Thomas Scarnecchia unveiled the latest version – the seventh – in a meeting with city council tonight.

Last month, the chairman of the fiscal commission overseeing spending warned the mayor that failure to come up with a plan by July 25 would likely result in the state imposing “the 85 percent rule” cutting the city’s budget by 15 percent.

“The 85 percent rule is unmerciful for everyone,” said council President Robert Marino. He and the mayor sit on the seven-member commission.

City Auditor Giovanne Merlo said the amended plan meets state requirements with projections for positive general fund balances for five years. It contains one potentially controversial change that was met with skepticism by several council members.

It calls for hiring the Regional Income Tax Agency instead of the city’s income tax department to collect revenues. Scarnecchia had opposed the provision early last year because it would eliminate the four-member tax office, but changed his mind.

For the complete story, read Tuesday's Vindicator and Vindy.com