Niles is out of fiscal emergency after four years

NILES

Auditor of State Keith Faber released the city of Niles from fiscal emergency today because of their improved financial practices and elimination of fund deficits.

“The diligence and hard work of the city officials have enabled the community of Niles to emerge from fiscal emergency,” Auditor Keith Faber said. “I encourage the city to continue this positive momentum as they further their efforts toward providing the residents of Niles with a fiscally sound outlook.”

The Auditor’s office placed the city in fiscal emergency because of deficits in seven funds during fiscal year 2014.

To decrease expenses, the city has since upgraded the city auditor’s office from a manual system to an automated system, improved their monthly reconciliation program, and outsourced their income tax collection to RITA, an income tax administration company.

To improve its financial condition, the city reduced expenditures and increased rates to eliminate a $2.7 million dollar deficit in the water fund, and an $118,000 deficit in the sewer fund. The city also reduced healthcare costs by $2 million annually by switching to a new provider. Furthermore, city residents passed a .5 percent increase in the income tax rate that should generate $2 million in additional revenue.