The Cost of Chaos: Columbus Faces Financial and Leadership Fallout

A wave of unfounded financial mismanagement, leadership upheaval, and public mistrust has swept over Columbus in recent months, revealing the high cost of chaos within city government.

City leaders have spent hundreds of thousands of dollars on audits, legal fees and severance pay following a string of controversies that culminated in the firing of longtime City Manager Isaiah Hugley. Meanwhile, Columbus's hard-earned reputation as one of the best-run cities in America hangs in the balance.

$400,000 Audit Follows Missing Millions On July 25^th of 2023 the Columbus City Council called for an internal audit of the finance department. In December of that year the internal auditor, Donna McGinnis reported that because of her investigation she found that $45.1 million was unaccounted for across multiple departments.

During the August 29th city council meeting District 7 Councilor JoAnne Cogle called for the hiring of the law firm of Troutman Peeler to assist in the ongoing internal audit of the city’s Finance Department. As the result of their investigation, during their presentation to City Council on January 23, 2024, Charlie Peeler said, “there is no evidence to support the claim that there is $45.1 million of revenue in unbanked, unworked revenue missing.”  

Troutman Pepper’s review did identify at least $5 million in missed revenue. The missing revenue was not, however, due to any criminal activity. It was cited that the missing revenue was the result of unpaid business and alcohol license fees dating back to 2017 of which were being collected.

According to Mayor Skip Henderson the audit, conducted by Troutman Pepper law firm, cost taxpayers $400,000.

Hugley Fired, Severance Unclear Hugley, who served as city manager for nearly 20 years, was terminated because of the following statement from Councilor Charmaine Crabb; “The pattern of sustained dysfunction and operational breakdowns within the departments Mr. Hugley oversees, including the criminal charges stemming from the investigations of the finance department and animal control, have led to the loss of confidence in his leadership,” Crabb said. “We need to restore stability in city operations.

The specific terms of Hugley’s severance have not been disclosed, but in a letter received from his attorney he is seeking $213,278.52. “We believe Mr. Hugley’s termination was in violation of various federal and state laws, including Title VII of the Civil Rights Act of 1964,” states Hugley’s attorney Scott Grubman.

His removal has sparked sharp division on the council, with some members accusing others of acting hastily and without transparency.

Reputational Damage and Economic Impact Recently, Columbus was recognized as one of the best-managed mid-size cities in the country — ranked No. 12 in a national study of city operations. That status is now in jeopardy, according to business leaders and civic groups from both the Black and White community who say the leadership vacuum is eroding confidence in local government.

“This isn’t just about a city manager,” said one business owner, who requested anonymity due to ongoing partnerships with the city. “This is about the perception that Columbus doesn’t know who’s driving the bus. This current city council is out of control with Council members openly being disrespectful to not only staff but citizens as well. The lack of respect and professional decorum has been palpable during city council meetings ”.

City staff turnover has increased, particularly in the finance department. Experienced personnel have left their posts, taking decades of institutional knowledge with them.

The Price of Turmoil While the financial costs are tallied — audits, severance, attorney fees and potential litigation — city residents are left to contend with the more difficult-to-measure consequences: lost trust, lost talent, and a sense of instability.

The cost of chaos, residents and officials say, is far greater than any single audit or firing.

“I moved my family here because this city was known for stability and professionalism,” Cristopher McCormick said. “Now, we’re the punchline. That’s not something you fix overnight.”