YOUNGSTOWN — City council will vote next Wednesday on a 4-percent annual sewer rate increase for five years, with a city official saying the hike should be enough to convince a state agency to loan money to Youngstown for improvement work.

City council’s finance committee met Wednesday to discuss the increase as well as a city administration request to increase the pay for a financial consultant from $25,000 to $50,000.

The committee recommended the full council approve both pieces of legislation next week though there was much hesitation over the latter.

The sewer rate increase would begin Jan. 1.

The city needs to raise the rates to cover about $15 million in loans from the state Environmental Protection Agency needed to finish the first phase of a long-term wastewater improvement project.

The EPA cut off loaning additional money to the city earlier this year because Youngstown has refused to increase the sewer rates for more than a year.

Before it stopped letting Youngstown borrow money, the EPA loaned about $62 million to the city for the sewer work.

The EPA hasn’t “signed off on the ($15 million) loan yet, but they’ll consider it after (the rate increase) is approved by council,” said Charles Shasho, deputy director of public works. “I have no reason to believe they will not give us the loan.”

He expects the EPA to approve the loan in January or February.

If the city doesn’t increase the rates and get approval from the EPA for the loans, it will have a $3.4 million deficit in the sewer fund by the end of next year, Michael Abouserhal, its financial consultant, said last month.

Shasho acknowledged Wednesday that his department made errors in calculating the proposed sewer rate increases — figures that were distributed to the public by members of city council and the administration.

The Vindicator had pointed out the miscalculations to city officials and has consistently published the correct amounts.

Sewer customers currently pay $98.91 per 1,000 cubic feet.

Under the proposal, the rate would go to $102.87 Jan. 1, then $106.98 in 2021, $111.26 in 2022, $115.71 in 2023 and $120.34 in 2024.

If the EPA approves the loan, the city’s repayment would begin next year and cost $4.9 million annually over 20 years, Shasho said. That $98 million cost includes $21 million in interest.

CONSULTANT’S PAY

Council members expressed concern about a request from the administration to increase Abouserhal’s pay from $25,000 to up to $50,000.

The board of control canceled an Oct. 17 vote to increase Abouserhal’s pay because Kyle Miasek, interim finance director and a board member, pointed out it would have violated the city’s purchasing policy. The policy allows the board to spend up to $25,000 without city council approval.

But the administration waited until Nov. 13 to request the increase to council while Abouserhal continued to do work related to the wastewater, water and environmental sanitation funds.

Abouserhal is to meet Dec. 19 with the administration to discuss his plan for the water and environmental sanitation funds.

Abouserhal hasn’t billed the city for work past the initial $25,000, but Miasek said Wednesday: “I’m sure he’s used nearly all of the $50,000.”

This drew concern from several members of council.

Councilwoman Lauren McNally, D-5th and chairwoman of the finance committee, said Abouserhal’s work on the water and environmental sanitation funds was “unnecessary.”

Councilman Mike Ray, D-4th, said, “The frustration is after the fact finding things out.”

Councilwoman Basia Adamczak, D-7th, said: “A lot of what he’s provided us is redundant,” and “I haven’t been astounded by what he’s recommended.”

When asked by McNally what would happen if the city didn’t pay the extra $25,000 to Abouserhal, Law Director Jeff Limbian said, “He could sue us.”

City officials have said the plan is to reduce the environmental sanitation fee and raise the water rate, probably by the same amount — $10 a month — so it wouldn’t cost city residents any additional money for those services.

In 2015, the city lowered the water rate for those living in Youngstown by $10 per month and increased the sanitation fee by the same amount to help fund demolition projects.

But the water fund surplus has dropped from about $10 million at the start of 2018 to about $3 million now.

dskolnick@tribtoday.com