Treasurer: Not hiding anything in meeting error

LISBON - Columbiana County Treasurer Nicholas Barborak opened Wednesday's meeting of the county Investment Advisory Board by closing the books on the misstep regarding the number of meetings held last year.

The management letter sent to the county in regard to the 2008 state audit of county government finances noted the board responsible for overseeing investments handled by the treasurer's office failed to meet every quarter as required by law. The board met once in 2008.

"I have already taken responsibility for the item in the management letter concerning the frequency of last year's meetings. We didn't meet a few times when we should have. It was a mistake. It has been corrected. That is the end of it," Barborak said in a written statement he read into the record.

He said he felt the need to address what he called a "whisper campaign" from people trying to suggest something illegal or immoral occurred with the county investments, pointing to the lack of meetings and implying that something unscrupulous had occurred.

Barborak specifically referred to a letter to the editor and a thorn on the editorial page of the Salem News, along with comments made during a public meeting by Salem City Auditor Jim Armeni, who unsuccessfully ran against him for county treasurer last year.

In his written statement, he said there were still people trying to "gain political mileage" from the mistake with the number of meetings.

He admitted he'll accept criticism when it's due, but said "I will not tolerate a handful of politically motivated individuals, for the sole purpose of trying to score some cheap political points, denigrate this body or my office by suggesting that something unscrupulous is occurring with the county's investments."

He said it wasn't fair and it was reckless.

"Shame on the individuals who employ fear against the good citizens of this county. They cheapen our system of government by doing so," he said.

Barborak noted the commissioners receive a report on the investment portfolio every month and it's public record - there's nothing to hide. He said the failure to hold the required number of meetings was an oversight and won't happen in the future. The next meeting is set for Dec. 23 and meeting dates will be set for next year's quarterly meetings. The board has met three times this year so far, counting Wednesday.

During the meeting, Barborak said not much has changed for the outlook this year for investment income, saying they're not expecting any windfall. He said they won't hit the projected interest income for this year's general fund.

For last year, the interest income for the general fund was $1,428,511. For this year, they estimated $1.2 million, but they're probably not going to hit $1 million. Through October, the interest income for this year is $726,363.

He said the best rate the county's getting is 2.5 percent on federal agency bonds, but pointed out public funds earn lower rates since the investment has to be collateralized. As a result, some banks no longer accept public funds deposits.

Mary Ann Greier can be reached at mgreier@salemnews.net