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Monday Night’s Marion City Council meetings, encompassing the Jobs and Economic Development, Finance, and Legislation, Codes, and Regulations Committees, painted a vivid picture of a city grappling with persistent financial instability, deeply entrenched IT system failures, and a growing demand for transparency and accountability from its elected officials and administration. From debates over tax abatements to the alarming state of the city’s payroll system and a vocal call for a forensic IT audit, the August 4th proceedings underscored Marion’s ongoing struggle to right its fiscal ship.
Jobs and Economic Development Committee Approves Fastenol Agreement Amidst Scrutiny
The Jobs and Economic Development Committee, chaired by Councilman Matthew K. Pollock, quickly moved to discuss a Community Reinvestment Area (CRA) agreement with Fastenol, a company looking to relocate within Marion. The proposed agreement offers a 75% tax abatement for 10 years for a new building at 583 West Fairground Street.
Ken Lesa, representing the Regional Planning Commission, clarified the emergency clause attached to the resolution. This clause is necessary to expedite the project due to a relocation involving two potential employee transfers from Upper Sandusky, requiring a 30-day notice to Marion Township and Upper Sandusky’s mayor. The goal is to make the abatement effective immediately upon the mayor’s signature, rather than waiting an additional 30 days after council approval, allowing the project to proceed without delay.
Councilman Jason Schaber, however, expressed skepticism regarding the wording in the resolution, specifically the use of “possibly” and “might” concerning the relocation of Upper Sandusky employees. He emphasized that Fastenol has committed to having 10 employees working at the Marion location within three years, regardless of the exact transfer details. Ken Lesa explained that the cautious wording is a “technicality” to adhere to state laws that trigger different protocols based on employee relocation.
Further scrutiny arose when Council noted that Fastenol’s application indicated a 60% abatement, while the resolution proposed 75%. Ken Lesa clarified that the higher percentage accounts for additional costs Fastenol will incur, including moving expenses and constructing a new building. He also highlighted that the new 6,500 square-foot building on a 2.7-acre lot offers significant room for future expansion, potentially quadrupling its size and leading to more jobs. The builder, New Ohio Regal/Klaus Construction, confirmed their local sub-contracting practices, aiming to keep work within the area. The agreement also includes a clawback provision, requiring Fastenol to repay five previous years of abated taxes if they voluntarily move out, ensuring long-term commitment.
Council inquired about the notification process for Upper Sandusky and Marion Township, confirming it’s a state law requirement for any job movement tied to a tax abatement, regardless of existing agreements in those communities. The committee ultimately voted to approve the resolution and send it to the full city council with a recommendation to approve.
Finance Committee Confronts Audit Delays, Payroll Chaos, and Sanitation Debt
The Finance Committee meeting, chaired by Councilwoman Twila Laing, delved into a series of pressing financial issues, revealing significant operational challenges within the city.
Audit Backlog and Missing Information: The most immediate concern was the delayed 2021 audit. Auditor Miranda Meginness stated it was “still with the state” and she would “email them tomorrow” for an update. However, councilors quickly interjected, revealing they had already received an update that morning: the audit wouldn’t be complete until “at least the middle of the late August,” and the state auditors were still awaiting “any report that Veritas would have sent you along with the detailed list of entries that they asked the city to post related to 2020” from the Auditor’s office. This delay directly impacts the 2022 audit, scheduled for September 30, 2025, pushing back the entire audit schedule. Councilman Jason Schaber questioned the absence of a pre-audit meeting, a standard practice where auditors discuss their focus areas with the council, suggesting a lack of proactive engagement from the Auditor’s office.
Ongoing Penalties and Appeals: The committee briefly touched on IRS penalties and appeals, with Auditor Miranda Meginness confirming no new penalties since late 2023. The focus remains on abating existing penalties dating back to 2018 through 2023.
Opioid Settlement Resolutions: Two emergency resolutions were introduced to accept the terms of new national opioid settlements (Alagen and Purdue). Law Director Mark Russell explained that despite previous attempts to streamline the process with the “One Ohio memorandum of understanding,” the city is still obligated to pass individual ordinances for each settlement, indicating a failure in the intended efficiency of the state-level agreement. Both resolutions were approved and sent to council.
Senior Center Appropriations: The committee approved an appropriation for handicap-accessible vehicles for the Senior Center, funded by an 80% federal grant (5310 grant) and a 20% local share. Director Steve Bish highlighted the importance of these vehicles in expanding services. Additionally, an appropriation was approved for two replacement AC units for the Senior Center, with Director Bish noting the existing units were from 1983.
Financial Housekeeping: Other appropriations included a reimbursement from an early-ended elevator contract and funds for the Insurance Proceeds Fund, which holds money from fire-damaged properties to ensure proper repairs.
Payroll System in Disarray: A critical discussion unfolded regarding the city’s ADP payroll system. Auditor Miranda Meginness admitted the system, originally slated to “go live” on July 3rd, was still not fully operational. The primary hurdle remains the complex wage rates for EMTs and CDL drivers, which require individual manual input. Currently, city employees are using both ADP and paper time cards, a dual process that hinders efficiency. Auditor Miranda Meginness revealed the severe understaffing in her office, stating, “I am one person doing three jobs,” with two positions vacant, one of which will be filled on August 13th. This staffing crisis directly contributes to the payroll delays and overall financial backlog.
Pink Sign Program Success and Sanitation Debt: Councilwoman Twila Laing provided an update on the controversial “Pink Sign Program,” which targets properties with overdue sanitation bills. She reported a significant collection of $63,082.22 in just two months (June and July), with 95% of those funds going directly to sanitation. She noted that many of these properties are not low-income, but rather belong to individuals who “don’t want to pay their bill,” often owning recreational vehicles and boats. Despite this success, the city’s overall sanitation arrears stand at a staggering $5.2 million as of January 2024. This raised alarms and questions within the team at Marion Watch and the entire network.
We received approximately 75 messages inquiring how this happened. We have reached out to some officials, and hope to hear back soon.
Proposed Trash Collection Reform: Building on the sanitation discussion, Councilman Jason Schaber proposed a radical reform: a container-based trash collection system, similar to private companies like Rumpke or Republic. Under this model, residents would be charged based on the number of cans they put out, ensuring fairness and potentially reducing waste. He highlighted that this system would also allow for “tippers on the back of the packers,” saving city employees from manual lifting and reducing worker’s compensation claims. This forward-thinking proposal aims to address both financial efficiency and employee safety.
Legislation, Codes, and Regulations Committee Tackles Development, IT, and Trees
The Legislation, Codes, and Regulations Committee, chaired by Councilman Mike Neff, addressed a diverse agenda, including a liquor license transfer, a significant proposal for a new commercial building department, and an ongoing dispute over damaged trees.
Liquor License Transfer: The committee considered a C1C2 liquor permit transfer for 566 Delaware Avenue (Woody’s Drive-Thru). After confirming no objections from police or fire, the committee voted to take no action, allowing the transfer to proceed.
Commercial Building Department Proposal: A major discussion revolved around a Request for Qualifications (RFQ) for a City Commercial Building Department. Service Director Bodine explained that developers are facing “30, 60, 90 days” waiting times and inconsistent inspections when dealing directly with the state for commercial building permits. The proposed solution is to contract with a third-party company, Safeville (a nationwide firm), to provide 10-day turnaround times for plan reviews and inspections at a net-zero cost to the city (fees paid by developers).
However, Councilman Jason Schaber expressed strong reservations. He noted that only one qualified RFQ response was received, despite his belief that “there’s probably other companies that could also do this.” He urged the administration to “exhaust all the resources that are out there” and suggested posting the RFQ on the Ohio Building Officials Association (OBOA) website for wider reach. He emphasized that while the state code doesn’t change, the provider of enforcement would, and ensuring the best provider is crucial. After extensive discussion, it was agreed that the administration would draft an ordinance to reject the initial RFQ and re-issue a new one, incorporating broader advertising methods like the OBOA website to attract more competitive applications. This decision highlights the council’s commitment to a thorough and transparent procurement process, even if it means delaying a project.
Tall Weeds, Wildflowers, and Property Disputes: A brief, but pointed, discussion arose concerning code enforcement for “tall weeds and grass” vs. “wild flowers” on specific properties. Councilman Jason Schaber raised concerns about a particular “community garden” that was supposed to be wildflowers but was not.
The Aqua Ohio Tree Dispute: The committee heard an update on the ongoing and contentious issue of Miss Yoder’s trees on East Church Street, allegedly damaged by Aqua Ohio’s waterline work. Director Cal confirmed that the city has hired a certified arborist to assess the damage and determine if Aqua Ohio is responsible, as the utility company has been unresponsive. Miss Yoder herself passionately addressed the council, reiterating that her trees were healthy until Aqua Ohio’s digging, which disturbed roots “the size of baseballs.” She expressed frustration with Aqua Ohio’s rudeness and their attempts to shift blame, vowing to continue attending meetings until the issue is resolved and Aqua Ohio is held accountable. Councilman Jason Schaber shared a similar past experience with Columbia Gas, emphasizing the importance of property rights against utility companies.
The “New World” Software and the Call for a Forensic IT Audit: A critical exchange took place regarding the city’s financial software. Marion Watch Investigative Journalist Tina Culwell-Frye directly questioned Auditor Miranda Meginness about the “New World” software, asking if it had been “rebooted and reinstalled properly.” Tina highlighted “complaints all over the country about New World” concerning “safety protocols” and suggested it would be “better off for the city to buy new auditing software.”
She then made a powerful call for an internal IT audit, stating, “I don’t think anybody’s ever going to be able to figure out what’s going on in there until you guys do an internal IT audit. I don’t think you’ll ever be able to figure it out. I think that’s what it’s going to need.” She clarified she meant a forensic IT audit to investigate “who’s been logging into servers and who’s been doing what? Who’s had administrative access? And if it was anybody other than IT, why?”
This direct challenge underscores a critical point: the “New World” software was installed around 2007, long before Robert Landon III’s tenure. Problems with its functionality and reconciliation were known and mentioned by the Ohio Auditor of State and local officials even prior to Landon’s time, leading to his proposal for training in 2019 to address existing issues. The persistent “mess” and inability to reconcile accounts, despite years of effort, strongly suggest that the software’s initial improper installation or configuration, coupled with a lack of proper IT governance and oversight, has created a chaotic environment. This chaos, whether intentional or not, can serve as a concealment tactic to obscure past financial breaches and ongoing irregularities. As seen in other municipalities nationwide (e.g., Atlanta’s struggles with its Oracle ERP system leading to significant financial reporting issues and delayed audits), a flawed or poorly understood IT system can become a perfect smokescreen for fraud, making it nearly impossible to trace illicit activities or hold individuals accountable. The “frustration in obtaining answers from the software developer, New World,” further compounds this, as an uncooperative vendor can significantly hinder investigations and obscure the true nature of system vulnerabilities or deliberate backdoors.
Contextualizing Marion’s Financial and Ethical Landscape: A History of Concerns
Due to the amount of questions we receive regarding the City Auditor’s office, we will look closer at this as briefly as possible.
The discussions at the August 4th City Council meeting regarding financial mismanagement, lack of transparency, and accountability are not isolated incidents but rather symptoms of deeply rooted, long-standing issues within Marion’s governmental operations, particularly concerning the City Auditor’s office and broader political dynamics. Marion Watch’s extensive investigations reveal a pattern of deficiencies stretching back over two decades, challenging the narrative that these problems are recent developments. Our new piece, “Silent Sabotage III” will be released in coming weeks and aims to focus the lens of investigation of this office even wider, going back to 1984. This investigative will encapsulate a time period of 1984-2025, and show point by point reinforcement for supporting a forensic IT audit according to globally recognized IT policies and practices.
The City Auditor’s Office: A Decades-Long Struggle for Fiscal Integrity
While many officials have publicly stated that the Auditor’s financial issues began around 2020, Marion Watch’s in-depth investigation of this office, spanning from 1999 to 2025, offers overwhelming evidence that this did not start in 2020 but rather more than a decade beforehand. These issues were compounded by a confluence of factors, creating a snowball effect that has severely impacted the city’s fiscal health. Marion Watch suspects that this is a pattern in other financial areas, such as the 5 million dollar uncollected account balance in the Sanitation Department.
Key contributing factors to this prolonged financial disarray include:
- Software Misconfiguration and Vendor Issues (circa 2008-2009 onwards): The implementation of the Tyler/New World financial software system around 2007 introduced chronic operational problems. State auditors explicitly cited these software issues as significant contributors to numerous deficiencies, hindering essential operations like bank reconciliation and timely financial reporting. This required extensive staff time in workarounds and troubleshooting, potentially masking deeper procedural or human resource weaknesses. Marion Watch’s “Silent Sabotage II” article details how these “chronic, persistent, and well-documented problems associated with the City’s core financial management software system… were explicitly cited by state auditors… as significant contributing factors to the proliferation… of the numerous audit findings.” This included “documented data integrity issues that corrupted the fundamental reliability of generated financial reports… significant processing delays… disruptive system crashes… inadequate or inflexible standard reporting capabilities… and specific, recurring technical difficulties frequently encountered… in performing accurate and timely bank reconciliations due to perceived system limitations… or lack of adequate vendor support.”
- Lack of Transparency to Incoming Elected Officials by Previous Administrations: A consistent pattern has emerged where known operational or financial problems were allegedly withheld from public view and potentially from incoming administrations. This “silent sabotage” may have served as political leverage against new officials or critics, exacerbating decades-old problems and hindering the success of subsequent administrations. Several former and current officials have confirmed accounts suggesting that numerous individuals departing key positions around 2020 possessed significant understanding of these issues but reportedly remained silent.
- Persistent Internal Control Weaknesses: Audit reports consistently flagged weaknesses in fundamental internal control structures designed to prevent or detect errors and fraud in critical financial processes (e.g., cash handling, payroll, accounts payable, financial reporting). The failure to address these fundamental issues created a fertile ground for errors and mismanagement to persist.
The Robert Landon Misstep: A Case Study in IT and Accountability Failure
A prime example of these compounded issues is the catastrophic error during Auditor Robert Landon III’s tenure (January 2020 – October 2021). Approximately $1,280,000 in federal payroll withholdings were erroneously remitted to the State of Ohio instead of the IRS over seven months (June 2020 – December 2020). Marion Watch’s IT analysis, drawing from internal verbal staff incident reports, proves that this misstep likely could not have happened if global IT standard practices were used. Marion Watch used our internal expertise in the IT field, as well as consulting former colleagues across the nation and in other nations to verify worldwide IT practices regarding financial systems. We have recently learned that it is not the IT staff that controls user permissions, but rather individuals with no IT expertise, and we have also been advised that there is no trouble ticketing system being used. This is yet another breach of globally recognized IT policies. End users, with no IT expertise, may not fully understand permissions to systems and what the end result is if permissions are configured incorrectly. It is highly unusual for an IT department handling a city government of considerable size to not have a ticketing system. User permissions and changes to systems should be logged in ticketing systems or a similar system for reference, accountability, and transparency. This is the globally accepted standard practice in IT.
The detailed incident report from February 2021 by a directly involved staff member (Kimberly S. Hutchison) highlights:
- Inadequate Training and Supervision: The staff member was relatively inexperienced with the payroll system and was performing the process independently for only the second time, without direct supervision during a critical absence of the regular Payroll Specialist.
- Flawed Software Interface and User Error: An inadvertent deletion of the entire federal tax payment account setup within a third-party payment software (“Magic Writer”) occurred while attempting to correct an unrelated payroll batch error. The report notes the close physical proximity of a ‘delete account’ icon to an ‘edit’ button, suggesting poor interface design contributed to user error under pressure. Marion Watch is also concerned about user permission levels in this and other scenarios. Former staff explicitly stated that she was inexperienced in this area, but had sufficient permissions to disable and delete modules.
- Deficient Vendor Support: Potentially flawed or misunderstood guidance was received from the software vendor’s support during the urgent account recreation process, reportedly observed by Auditor Landon and his deputy.
- Critical Communication Breakdowns and Lack of Follow-Through: Despite the staff member observing a discrepancy (the new setup not displaying the expected breakdown between Medicare tax and Federal Income Tax Withholding) and raising it with the vendor support (who allegedly dismissed it) and then with the returning Payroll Specialist, the issue was not investigated or rectified. An assumption was made that it would be handled.
- Absence of IT System Audit Trails: Insufficient IT system audit trail capabilities and safety controls were present, hindering a definitive investigation into initial concerns about potential unauthorized system access.
State auditors explicitly linked the failure to detect this massive error for over six months directly to the long-standing, previously documented, and apparently still unresolved material weakness in the office’s bank reconciliation procedures. This fundamental control, repeatedly flagged as deficient in prior audits under previous leadership, should have identified the anomalies much earlier. The result was a Finding for Recovery of $154,399 against Auditor Landon and his bonding company for IRS penalties and accrued interest, deemed an “unnecessary expenditure that did not serve a proper public purpose.”
Current Auditor’s Accountability Deficit
The current Auditor, Miranda Meginness, has continued this pattern of significant operational difficulties. More alarmingly, she has gone on record admitting to blatantly falsifying documents without being held accountable. Public reports, stemming from her own admissions during official city proceedings or internal communications, indicate she improperly took or utilized city funds and deliberately miscoded at least one expense transaction to conceal the true nature of the payment (an IRS penalty). This alleged act of deliberate concealment through intentional falsification of official accounting records, if substantiated, significantly elevates the concern beyond simple error to potential fraud and intentional deception, undermining legitimate financial oversight and public accountability.
Furthermore, she has faced allegations of falsifying official ordinances and authorizing unauthorized payments, leading to significant new IRS penalties exceeding $84,000 and potential liabilities up to $394,240 related to Affordable Care Act reporting non-compliance. These issues, coupled with a formal 8-to-1 vote of no confidence by the City Council, highlight a severe and public loss of legislative trust in her ability to perform the duties of the office effectively and ethically.
Conclusion: A City at a Crossroads
The August 4th Marion City Council meetings revealed a city grappling with a complex web of financial and operational challenges. From the ongoing struggle to balance the budget and manage IRS penalties, to the critical issues surrounding the city’s payroll system and the deeply flawed “New World” financial software, the need for systemic reform is undeniable. The council’s proactive stance on the Fastenol abatement, their push for transparency in procurement, and especially the urgent call for a forensic IT audit, signal a growing determination to address these long-standing problems head-on. The coming months will be crucial as Marion navigates these complexities, striving to restore fiscal health and rebuild public trust.