Powell forms task force to study city fi nances

The city of Powell had a rough year financially and now is prepared to enlist the public to take a long, hard look at solutions.

In January, the Delaware County city was one of 28 Ohio cities singled out as being at or near high financial stress.

An Ohio Auditor’s Office report gave the city five “critical” indicators, including a high debt-to-revenue ratio and low cash reserves. The city explained that the high debt was linked solely to loans of more than $10 million it paid to two community authorities five years ago to help neighborhoods build sewer and road systems. The cash eventually would return, city officials said.

Then, in September, it agreed to pay $1.8 million to settle a lawsuit with a Powell developer. The city was responsible for $950,000 taken from its general fund, with its insurer picking up the balance, while also raising future premiums by more than $30,000 annually.

The city on Tuesday appointed an 18-member task force comprised of residents and business leaders to review the city’s needs for road repairs, sewer upgrades, buildings and other capital expenditures. They also will try to identify new funding sources and ways to cut costs.

“Getting the buy-in and feedback and studies ... and reviews is really important,” said Megan Canavan, city spokeswoman.

“The lawsuit was not the (only) impetus of creating this task force,” said Councilman Brian Lorenz. “Paying out a million dollars caused an issue of where we could have used those funds. But even without that lawsuit, we would have been facing a shortfall anyway, like many communities.”

One resident said the solution is simple.

“Due to the crumbling infrastructure, the city finances, the lack of revenue, the Band-Aid approach is no longer gong to be working,” said Janelle Grubbs, who is not a member of the task force. “The only true solution to stop the bleeding is to raise the city income tax. The roads are buckling so bad, I have automatic speed bumps. It’s the streets in front of your house.”

The city’s 0.75 percent income tax is among the lowest in Ohio. About 3,200 of Powell’s 13,000 residents, who work and live in the city, are taxed.

Lorenz said previous attempts to raise the income tax were rejected.

“We need to take care of this before we fall off a cliff,” Lorenz said. “We really need to stay ahead of the curve ... and be prepared for everything.”

The task force will meet at 7:30 p.m. on the fourth Tuesday of every month at Powell City Hall, 47 Hall St. A report of its findings will be presented to the Powell City Council by the end of June.