By Steve Kemme
The Cincinnati Enquirer

NORWOOD - By outward appearances, Norwood appears to be thriving.

The Rookwood commercial retail and office centers draw thousands to the city every day. A $47 million office development called the Cornerstone at Norwood is under construction near Interstate 71. And plans for other commercial and office developments are in the works.

But the city is in deep financial trouble - despite its apparent signs of prosperity.

City officials estimate this year's deficit to be between $2 million and $3.5 million. They have expressed concern the state could take over budget operations if cost-cutting measures aren't taken soon.

"We have some really serious financial problems," said Mayor Tom Williams, who took office last month. "We've just got to make some tough decisions and correct the problems. There's no choice."

City officials say they will explore various options with the Ohio Auditor's Office - including having Norwood placed on fiscal watch or fiscal emergency. Under fiscal watch, Norwood would get free financial, technical and support services from the Auditor's Office. Fiscal emergency is a more-serious status that would give the state control over Norwood finances.

"Those are the last things we want to do at this time," said Councilman Joe Sanker, chairman of council's finance committee.

Williams, Sanker and other city officials blame the crisis on overspending the past eight years.

Williams said the city spent money in anticipation of prospective development on the vacant property just west of Montgomery Road on the north side of the Norwood Lateral. Developers of a specialty heart hospital were considering that site. But the project is in doubt because of a federal moratorium on the construction of for-profit, doctor-owned hospitals.

City officials think Norwood's financial picture will brighten once the large planned or under-construction commercial developments materialize. But there's no guarantee when they will start producing revenue.

"We're going to survive," Williams said. "But we're going to go through some tough times."

E-mail skemme@enquirer.com