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Youngstown council agreed to settle a water and wastewater funds lawsuit
YOUNGSTOWN
A week after failing to pass legislation because not enough members were present, city council approved more than 50 items.
Council voted 7-0 in favor of the items Wednesday at a brief meeting. Last Wednesday, council was one member shy of the number needed to pass the proposals by emergency measure.
A key ordinance approved was authorizing the board of control to settle a lawsuit that questions the legality of using water and wastewater funds for economic development projects.
The ordinance allows the board to decide between issuing $1.45 million in credits to its water customers and transferring that amount of money from the general fund to the water fund. With the general fund projected to have a deficit of $2.5 million to $3 million by the end of 2018, the first option seems more likely.
Other provisions include “that any water grant shall be granted per and subject to a written policy and procedure as agreed to by the parties,” the city will pay all court and litigation costs and “reasonable attorneys’ fees” from the water fund, the complaint will be dismissed, and “there is no admission of liability by either party, and neither party is to be considered the prevailing party.”
The lawsuit, filed last year by four water customers, sought to stop the city from using water and wastewater funds for economic development projects, primarily downtown.
Also, council approved a resolution urging outgoing Mayor John A. McNally from hiring or promoting nonessential positions funded by the general fund through the end of his term, which expires Dec. 31.
The Vindicator reported Nov. 19 that McNally had approved the promotions of four law-department attorneys, including three with raises of more than 10 percent, and promoted another employee to wastewater construction engineer with a 15 percent raise.