Three years after the state auditor said the city of Youngstown violated state law when it loaned $4.4 million to local businesses, city council voted on a way to settle the matter Wednesday. Since the city had a cushion after only passing a bare-bones budget, those reserves are coming to the rescue.

"(We voted too) move some general fund money back into our water, wastewater, and enterprise sanitation funds," said Fifth Ward Councilwoman Lauren McNally.

Which is where the money that got the city in hot water in the first place came from. But is this a case of having your cake and eating it too? If the city didn't admit any wrongdoing or misuse of funds, why is it taking these millions from the general fund to satisfy the state auditor?

"Oftentimes, civil litigation is resolved, not admitting or suggesting that we're agreeing with the conclusion, but that we recognize that sometimes the wiser course of action is to simply resolve it," said city law director Jeff Limbian.

"We still have our law firm on retainer, so we're still willing to fight this," added McNally. "The auditor was threatening this, that, and the other, but they'd done nothing. And for two years, we've been at a standstill."

McNally says the city finance director told council the auditor's office was satisfied with the move.
Now, with $88 million in federal COVID relief money coming to the city's coffers, council and the mayor's office are confident they can look forward and not over their shoulders.