COLUMBIANA COUNTY Investment help to be hired

Commissioners favor the deal but emphasize caution.
By NORMAN LEIGH
VINDICATOR SALEM BUREAU
LISBON -- Hoping to improve the dismal earnings on Columbiana County investments, commissioners say they favor a proposal to hire an investment adviser.
Commissioners met Wednesday with county Treasurer Linda Bolon, who suggested they hire Sky Trust, a Cleveland firm, to help the county find the best deal on its investments.
Bolon noted that the county will fail this year in reaching its goal of earning $800,000 in interest on nearly $15 million of county money invested.
Earnings are likely to be closer to $600,000, Bolon said.
She put blame for the poor investment return on the nation's struggling economy and the resulting low investment rates.
When the $800,000 earnings goal was set, interest hovered around 6 percent, Bolon said. The rates have since plummeted to about 1 percent.
"The picture is very bleak," Bolon said. "We need to make sure we're getting the best value for the county's money," she said, adding that most counties in the state have hired investment advisers.
Mahoning County has used an investment adviser for several years, but Trumbull County handles its investments through the county treasurer's office.
Legal issue
Sky Trust officials, who also attended the meeting, said officials could use the firm's expertise and resources to improve the county's earnings through safe investments.
Commissioners emphasized the need to ensure investments are allowed by Ohio law, which strictly governs how public entities are permitted to invest the public's money.
Commissioners noted that Columbiana County is particularly sensitive to investment issues as a result of the 1993 investment scandal.
The episode entailed the county's being bilked out of about $10 million through illegal investments made by former Treasurer Ardel Strabala through his son, Stephen. Both men served prison sentences as a result.
Strabala, 39, was released from prison earlier this year. He received a year off for good behavior. He still owes the county millions from that fraud.
Ardel Strabala died in May 1999 at age 60.
Bolon and Sky Trust officials assured commissioners that only legal investments will be recommended.
What's next
Bolon noted that Sky Trust will not actually invest the county's money but will only advise the county. Bolon will make the actual investments.
Commissioners said they expect to adopt a contract with Sky Trust once the agreement is reviewed and approved by the county prosecutor's office.
Sky Trust will be paid a portion of the county investment portfolio's market value.
The county will begin by paying the firm $10,000 annually. That amount probably will increase to about $30,000 over the next few years, Bolon said.
Money to pay Sky Trust will come from the investment earnings they help produce, county officials added.