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Niles ends year with carryover

NILES — The city’s general fund ended 2017 with a $300,000 carryover, which was a result of higher than estimated tax revenue and several other factors, the auditor said.

There was concern last year the general fund could end with a deficit or a zero balance.

“I don’t want anyone to be surprised by that number, but there are a number of things that took place there,” Auditor Giovanne Merlo said.

The books still have to be reconciled for December, so the number is preliminary, Merlo said.

The city generated $1.28 million more in tax revenue than it did in 2015, after voters approved a 0.5 percent income tax increase in March. And, instead of collecting an estimations of $7.19 or $7.030 million, the tax office brought in $7.135 million, according to documents provided by Treasurer Janet Rizer-Jones.

“There are a lot of factors that went into play this year, that’s why we have this (carryover),” Merlo said.

The city also benefited from a one-time $61,000 inheritance tax, Merlo said, adding that it was a rare and unexpected payment. It is likely one of the last the city receives because the state eliminated the inheritance tax and the only payments that are required anymore are for estates of deceased people that haven’t been settled since the tax was removed.

The building and zoning department brought in $80,000 more in permit fees than auditors anticipated in 2016, Merlo said. New businesses and new construction — including a car dealership, assisted living facility, a hotel and the Cafaro Co. headquarters at the Eastwood Mall — contributed to the boon.

Merlo said the decision to stop all non-emergency spending for the last six weeks of the year, except wages and benefits, also saved the general fund money. All city departments were cooperative with cost-cutting measure, Merlo said.

The carryover is sure to be appropriated soon, though. Some of the obligations the city was planning on spending in 2016 didn’t materialize before the end of the year, Merlo said.

That includes the last of the work on the administration building — masonry work and waterproofing, along with interior touch-ups. The cost is being divvied among the city’s different funds based on usage of the building, and the general fund is responsible for about $30,000, Merlo said. The fiscally stable light department is handling the brunt of the cost, according to the legislation passed Jan. 4.

City Council also approved measures that allow the safety service director to enter into contracts with architect-recommended contractors to finish up the work. Architect Bruce Sekanick recommended a $78,000 contract with Alex Restoration and Masonry Repairs in New Castle, Pa. for the masonry work and waterproofing, and a $57,000 contract with Jim Santini Builder Inc. in Washingtonville for the interior work.

Terreri Construction, MA Building and Maintenance, DeSalvo Construction, Angelina Stone and Marble, WR Restoration, Western Waterproofing and Jim Santini Builder Inc. also bid on the masonry work and water repair, according to the bid tabulation prepared by Sekanick’s firm.

DeSalvo Construction, Terreri Construction and Brock Builders bid on the interior work.

Inside the building, crews will replace some drywall and carpeting, do some carpentry work, paint and install insulation, Sekanick said.

All the work could be done by March. The inside will be completed in steps, with the tax and treasury office the first targets to prepare them for tax season, said Safety Service Director Jim DePasquale.

The total project was estimated around $500,000, and included a new roof that came in under budget, as did the interior work. The roof was estimated at $295,000 but cost only $203,000, and the interior work was estimated at $90,000, Sekanick said.

The masonry work came in $18,000 over the estimate, and mold remediation cost about $87,000, Sekanick said. With design and management costs billed to the architecture firm, the total cost comes to about $472,000.

Legislation passed Jan. 4 also allotted $4,000 for any fixtures or furniture the building may need, because some of the old stuff had to be thrown out during mold remediation.

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