he city of Newton Falls will be borrowing about $500,000 to make it to the end of the year according to Mayor Ken Kline.

Council members moved forward with several financial matters that are expected to pass after a second reading at the next council meeting.

Council voted to repeal what they are calling illegal contract extensions.

The contract extensions gave large raises to the former city manager, the finance director, council clerk and police chief.

Mayor Kline tells WFMJ News that the raises were above 15 percent, had huge balloon payments upon termination, and had outrageous language that prevented termination for everything except being convicted of a felony.

"You could get a severance for the remainder of the contract three years most of them, averaged about $300,000 severance as well as they couldn't be fired if they didn't come to work, that's all right. If they didn't do this that's alright. Just as long as they didn't commit a felony," said Mayor Kline.

Council also voted that any spending over $25,000 would require prior council approval. That legislation needs one more reading to pass.

Several folks spoke out against smart electric meters being installed saying their electricity was turned off without them being provided notice and without them being home. One lady told city council that her refrigerator no longer works. Others said they were sent letters saying their utility would be turned off if they did not comply. City council says that is not true and believe the independent contractor was responsible for sending the letter out.

City council says installation of smart meters is on pause, however they don't believe they will be able to get out of a contract without it costing money the city says it does not have.

Mayor Kline said people who say they have problems should call the acting city manager and she will talk to the law director just to see who could be responsible when there is a third party involved. He said there should be a policy to follow to fill out forms. But he adds it could be difficult to prove unless you have a newer refrigerator.

21 news has requested the name of the independent contractor that is doing the installation. We want to find out how they are vetted and check out if there are any complaints or lawsuits against the company.

A motion to move forward and sell electrical lines to a company for $4,228,515.40 did not have enough support to move forward.

Although Novemver 2nd voters said yes in favor of a referendum on Ordinance 2021-02 members and the mayor believe the ordinance was misleading since it was called, "The Newton Falls electric rate reduction act."


Several people at the meeting spoke out saying they were misled and through their electric rates would go down, but now believe a one time infusion of cash will help for a short time, then their rates will go back up again.

No council members gave a second for the motion to move forward.

City leaders believe with the future of electronic vehicles the 69 transmission lines will be worth much more in future years and say the one time cash infusion wouldn't be worth losing the transmission lines.