City's lawyer asks state auditor to not seek financial recovery

YOUNGSTOWN

A law firm representing the city is urging the state auditor’s office to not issue findings for recovery — that could reach about $4.5 million — for using water, wastewater and sanitation funds for economic-development projects.

The auditor’s office “is currently waiting for a repayment plan from the city” for $4,462,662 it spent in 2017 from those three funds, according to a letter sent by attorneys with Roetzel & Andress, a Cleveland law firm hired by Youngstown to represent the city in negotiations.

The auditor’s office wants the money repaid from the city’s general fund, which had a $629,509 surplus. The city cannot afford to pay the money from that fund, the Roetzel & Andress letter reads.

The city could end up in fiscal emergency if required to pay back the money.

The auditor’s office sent a Nov. 14, 2018, letter to Kyle Miasek, the city’s interim finance director, informing him that office’s review “found expenditures not made in compliance with the purpose of the [three] established funds.”

The Roetzel & Andress letter, sent Feb. 15, states if former Finance Director David Bozanich, who’s under criminal indictment for public corruption, is found guilty the money for the findings for recovery should come from him and others “that participated in the criminal enterprise that abused the city’s water/wastewater grant program – and not innocent taxpayers.”

For the complete story, read Saturday’s Vindicator and Vindy.com