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Niles: Release from fiscal emergency possible in January
By Jordan Cohen
NILES
The Financial Planning and Recovery Commission learned Wednesday the city’s release from its four-year-long fiscal emergency could come as early as January.
All that remains is completion of a capital-asset evaluation expected by Dec. 15.
In response to an audit finding the city cannot manage its assets because it has never had them inventoried, council voted in September to hire a management firm at a cost of $61,553 to complete the inventory.
Should the evaluation meet commission approval at its next meeting Dec. 20, the city can petition for release from the emergency declaration.
“I don’t believe there will be any issues going forward,” projected Tim Lintner, one of the city’s two state-appointed fiscal supervisors. “I feel like the city is in a good place.”
The final decision will rest with whoever is elected state auditor in Tuesday’s general election. Dave Yost, the current state auditor, is running for attorney general.
The commission unanimously approved the city’s latest recovery plan – its eighth since Yost declared Niles was in fiscal emergency in October 2014 – the first under Mayor Steven Mientkiewicz. The plan projects positive financial balances for five years as required by state law and has the blessings of the supervisors.
Mientkiewicz and council President Barry Steffey are two of the six panel members.
“This is the best plan I’ve seen since coming here,” said Quentin Potter, commission chairman, who was especially pleased with the administration’s reduction of health care costs.
“It really is paying off,” Potter said. “Health care is the No. 1 area of improvement.”
Besides health care, the supervisors’ financial statement shows a substantial jump in revenue since the city began using the Regional Income Tax Agency for its tax collections instead of city employees.
“RITA uncovered one business that owed over $200,000,” Telego told the commission. Afterward, the treasurer told The Vindicator the tax debt will exceed $300,000 with penalties. Telego said the business “self-reported” its failure to pay to RITA.
“RITA’s attorney told us because they self-reported, we are not permitted to identify them,” the treasurer said.
John Davis, a commission member, expressed some concerns about RITA’s tax-collection methods.
“I hope citizens don’t think we’re living in a police state,” Davis said.
Commission members said RITA can only collect back taxes for four years, including this year.
Fiscal Supervisor Nita Hendryx said the auditors constantly examine several conditions to determine if the city is falling short. “I’m confident that won’t happen,” she said, reflecting the optimism that permeated the meeting.
“I feel like I’m looking out the front window instead of the rear view with doom and gloom,” Davis added.