YOUNGSTOWN, Ohio - Each customer of the Youngstown Water Department would get an equal share of $1,450,000 if a judge approves the settlement of a lawsuit filed against the city.

The city has revealed some terms of a proposed settlement reached by the city and lawyers for five water customers who filed the class action lawsuit claiming that for an eight-year period, the city improperly used $4 million in surplus water department funds to issue grants and payments to private companies.

According to the lawsuit, the money went toward development of fifteen projects including the Flats at Wick, student housing at Erie Terminal Place and Wick Tower, as well as for the demolition of several buildings.

Court documents say the proposed settlement provides for the issuance of credits totaling $1,450,000 made in an equal amount to each current customer.

Court documents do not give a specific amount to which each customer would be entitled.

However, since the water department has approximately 51,500 accounts, if the $1.4 million was equally distributed, each account would be entitled to a credit of just over $28 dollars each.

Some customers, such as owners of several properties have more than one water department account and would be entitled to a share for each account under their name.

In addition to the approximately 22,500 customers living inside Youngstown city limits, the settlement would also be divided among the 29,000 water department customers in all of Austintown, as well as parts of Canfield Township, Boardman Township, and Liberty Township.

Although customers living outside of the city pay a 40 percent surcharge for Youngstown water, terms of the proposed settlement released by the city do not indicate that suburban residents would get any more compensation that the equal share being distributed to other customers.

A visiting judge has scheduled a hearing in Mahoning County Common Pleas Court at 10 am on March 19, 2018, to consider approval of the settlement.

Water customers and others have until February 28, 2018, to raise any objections to the proposal.

Settlement Notice

Settlement Agreement

Order Approving Class Action

Policy and Procedures