Cincinnati's neighborhood services department, which has labored under a cloud of management scandals for most of the year, will start the next one with a new director.

        Beginning Jan. 15, Peg Moertl will take the reins from the city's top fiscal watchdog, who was put temporarily in charge of the department in July.

        Unlike former directors, Ms. Moertl has not risen through the ranks of city bureaucracy.

PEG MOERTL

Moertl     • 44, born in Cincinnati.     • Bachelor's in mass communications and philosophy, Northern Kentucky University.     • Vice president and community reinvestment act manager in southwest Ohio for Bank One.     • Served on various local community development boards, including the Urban League.     • President and co-founder of the Greater Cincinnati Microenterprise Initiative.     • Former executive director of Women Entrepreneurs Inc.     • Helped to write the city's equal opportunity ordinance.

        “I have not been employed by the city,” the 44-year-old Bank One employee said Thursday. “But for several years I have served on community development boards.“

        Since 1996 she has worked as vice president and community reinvestment act manager in southwest Ohio for Bank One, which has become a primary lender for downtown housing. She has served on committees seeking to bolster neighborhood housing and businesses.

        Still, Ms. Moertl says she has “no illusions” about taking over a department that has been singled out in city audits, internal probes and police investigations for its monitoring of taxpayer money.

        In the past year, neighborhood services has been criticized for distributing money to Genesis Redevelopment Inc., the West End Community Council and a West End development group called Owning the Realty, without adequately tracking how those funds were used.

        In July, former neighborhood services director Cheryl Meadows was made director of employment and training. She was replaced by the city's manager of accounts and audits, Francis Wagner, whose stated focus was financial controls, management oversight, staff procedures and monitoring benchmarks.

        “I think I face a huge challenge,” Ms. Moertl said. “We cer tainly owe it to the taxpayers, and I'm one to provide prudent fiscal management.”

        The department's budget is about $35 million, with 40 employees overseeing distribution of federal, state and local money to various social service agencies.

        Ms. Moertl, who was asked to apply for the job by City Manager John Shirey, said one of the department's missions will be strengthening neighborhoods.

        Mr. Shirey, who appointed Ms. Moertl to the $101,000-a-year job, did not return calls Thursday.

        In a press release Thursday, Mr. Shirey described Ms. Moertl as “a seasoned executive” who will provide a fresh perspective in the department.

        It is the second department head Mr. Shirey has hired recently from outside the city. In October, Lockland Village Administrator Evonne Kovach was named the city's Economic Development director.

        “I am very excited,” Ms. Moertl said. “I have a reputation for being an energetic person.”

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