Light at end of the tunnel in Niles not fiscal mirage

In the three years the city of Niles has been under state-declared fiscal emergency, there has been nothing but bad news emanating from City Hall.

Even a change in administrations in 2016 didn’t alter the course of Niles’ financial free-fall. Long-time Mayor Ralph Infante was defeated in his re-election bid by former Councilman Thomas Scarnecchia.

Scarnecchia built his campaign on the promise to provide the needed leadership to turn around the city’s fortunes. But it was easier said than done.

Indeed, we have wondered if we made the right decision in endorsing him for mayor.

Last week, Scarnecchia delivered a statement that certainly seemed odd considering his administration’s repeated failure to develop a recovery plan acceptable to the statutorily mandated Financial Planning and Supervision Commission. The commission must certify the plan that will result in an annual balanced budget for five years.

Ohio Auditor David Yost’s decision to lift the emergency will be based on the commission’s recommendation.

Thus, when the mayor, who sits on the supervision commission, said last week “We’re on the road to recovery,” we questioned if he had lost touch with reality.

In truth, however, Scarnecchia’s statement was triggered by a report from Tim Lintner, one of the two state-appointed fiscal supervisors.

“It’s all wonderful news,” Lintner said last week during a meeting of the commission. “The city has made tremendous strides in rectifying cash balances [and] no department in the general fund exceeded its appropriation.”

In other words, city officials finally got the message that fiscal discipline is necessary if Niles is to shed the yoke of state control.

Lintner made note of the fact that the water fund, which had started the year with a deficit of almost $800,000, now has a balance of more than $214,000.

‘Amazing’

The state supervisor described what has occurred as “an amazing turnaround.”

It is, therefore, understandable that Mayor Scarnecchia would use the words “road to recovery.” He has been waiting a long time to deliver such good news.

That said, the city of Niles faces some challenges – even after state Auditor Yost issues a clean bill of financial health.

For one thing, the $1.2 million rebate the Mahoning Valley Sanitary District promised the city is now before the court of jurisdiction made up of two common pleas judges, Lou D’Apolito of Mahoning County and Ronald Rice of Trumbull County.

Niles and Youngstown, which is in line to receive $3.7 million, are the MVSD’s member cities. The village of McDonald, which also gets its bulk drinking water from the sanitary district, would pocket $100,000.

However, Judges D’Apolito and Rice have questioned the advisability of rebates when the sanitary district is carrying debt and also has some major capital improvement projects that need to be completed.

It appears that the court of jurisdiction may not approve the funneling of money to Youngstown, Niles and McDonald.

Thus, the Scarnecchia administration must avoid falling into the fiscal traps that brought about the emergency.

Another possible minefield for the city involves the expanding criminal investigation of former Mayor Infante, his wife, Judy, and former city Auditor Charles Nader. All three have pleaded not guilty to the criminal charges that amount to government corruption and racketeering.

Infante is accused of pocketing thousands of dollars in bribes in return for handing out city government jobs.

The no-holds-barred investigation is being handled by the Ohio Auditor’s Office. Lawyers on state Attorney General Mike DeWine’s staff will prosecute the Infantes and Nader.

Details contained in court documents that are public describe a climate of corruption in City Hall during Infante’s long tenure.

There are allegations that his willingness to do favors for influential individuals resulted in city government being shortchanged.

It would certainly help Niles’ fiscal recovery if investigators determine how much money is owed and take steps to force payment from those who benefitted from Infante’s being in office.

The city needs a new beginning.