VERMILION — A growing debate over financial oversight and executive spending authority continued Monday night inside Vermilion City Council chambers as council members clashed over a proposed ordinance aimed at limiting the administration’s ability to enter contracts and spend taxpayer money without council approval.
The discussion surrounding this new proposed ordinance marked the latest chapter in an ongoing effort led by Councilman Greg Drew, who said the proposal is designed to increase transparency and accountability in city government.
The ordinance would establish limitations on the authority of the mayor and administrative officers to enter contracts, expend funds and incur financial obligations without prior approval from council.
But Monday’s discussion revealed the proposal may now be evolving into something much larger, potentially requiring a city charter amendment and a future public vote.
Legal questions emerge
“This ordinance was not drafted specific to this administration or the prior administration,” Drew said during the meeting. “I’m concerned about letting the administration spend 80-plus thousand dollars every time without any oversight.”
Drew referenced concerns involving prior EPA agreements and large professional service contracts, arguing council needs clearer authority and stronger checks on executive spending decisions.
Law Director Tony Pecora said council may face legal limitations under both the city charter and Ohio law.
Pecora explained Vermilion’s charter incorporates portions of Ohio’s statutory framework governing municipal budgets, appropriations and spending authority. He specifically pointed to Ohio Revised Code provisions that already grant certain purchasing and spending authority to administrative officials, including the service director.
Because of that, Pecora said portions of the ordinance could require a charter amendment instead of a standard ordinance passed solely by council.
Despite those concerns, council rejected an attempt to table the ordinance Monday night, allowing the legislation to continue moving forward toward a third reading.
Drew said he does not want the issue turning into another legal battle between council and the administration.
“The last thing I want to do is get a piece of legislation passed and then we’re in the same boat as we were at the TIF where the administration and the law department is now suing council and we’ve got attorneys involved,” Drew said.
A TIF, or tax increment financing district, is an economic development tool that allows increases in property tax revenue from new development to be redirected toward infrastructure or project costs. TIFs became a major issue in Vermilion after voters approved a charter amendment requiring public votes on future TIF districts.
That amendment was later blocked by an Erie County judge after the city challenged it in court. Vermilion Daily previously reported on that ruling here: Judge Blocks Vermilion Voter-Approved TIF Rule After City Challenge in Erie County Court
Instead, Drew said he is open to pursuing a charter amendment if that is the proper legal route.
“Send it out to the voters. If they agree with it, it’s great, and then we can come back afterwards and decide what the ordinance will look like,” he said.
Mayor Russ Owens previously raised concerns about the proposal after it was first introduced in April, saying in a written statement that the ordinance had not been discussed with him beforehand and could affect the balance of authority between council and the administration.
In that earlier statement, Owens wrote that while council “rightfully so, has the power of the purse,” he does not believe it should have “the power to impede.”
The ordinance was first publicly discussed during an April legislative committee meeting. Council Reviews Proposal to Limit Mayoral Spending Authority
Concerns focus on larger contracts
Council members also discussed the balance between maintaining council oversight while still allowing the administration flexibility to carry out daily operations efficiently.
Councilman Homer Taft said his concerns focus less on routine purchases and more on larger multi-year agreements and professional service contracts.
“My concern is far more with multi-year, multi-million dollar professional services and other contracts that are not bid in any competitive manner,” Taft said.
Pecora noted Ohio law already places one important limitation on spending authority: money cannot legally be spent unless council has already appropriated it through the budget process.
Council members also noted that the budget process already gives council some control, because money cannot be spent unless it has first been appropriated.
The ordinance is expected to return for additional discussion at a future legislative committee meeting