Youngstown rehires financial consultant

By David Skolnick

skolnick@vindy.com

YOUNGSTOWN

The city’s board of control approved a contract to rehire Michael Abouserhal as a financial consultant to help Youngstown through its struggling financial issues.

The board approved the contract Thursday to pay Abouserhal up to $25,000 through June 30.

Abouserhal, who will be paid $150 an hour, will assess the city’s financial condition, evaluate the proposed 2019 budget, evaluate the long-term budgetary forecast, help with the selection of a finance director and provide advice on what the city will do regarding the possibility of having to pay about $5.5 million from its general fund for money the state auditor’s office said it inappropriately spent from its water, wastewater and sanitary funds for economic-development projects.

Abouserhal, a CPA and a former Ohio Lottery Commission executive director, will evaluate how the questionable use of that money will have a long-term impact on the city’s finances.

Abouserhal was paid $25,000 by the city last year to evaluate its finances. He suggested several proposals – including personnel cuts to the fire department and clerk of courts – to keep the city from having a general-fund deficit. He said in May 2018 that if the city didn’t make significant changes, it would face a $16 million deficit by 2023.

A few of Abouserhal’s recommendations were adopted, including not replacing some employees when they stop working for the city.

Also Thursday, the board of control approved a new medical insurance policy with Anthem that includes a 12-percent reduction in cost.

The reduction will save the city $640,400 this year from its general fund, said Kyle Miasek, interim finance director and a board of control member.

The reduction resulted from less medical claims filed by city employees, Miasek said.