City of Niles Placed in Fiscal Emergency
Columbus – Substantial deficit fund balances prompted Auditor of State Dave Yost today to place the city of Niles (Trumbull County) in a state of fiscal emergency.
“The city of Niles faces a dire financial challenge,” Auditor Yost said. “This office stands prepared to help the city conquer it.”
At the request of Mayor Ralph Infante, Jr., a fiscal analysis was performed to determine whether the city’s financial condition justified a fiscal distress declaration. The analysis determined that the city had deficit fund balances of $487,973 and $61,093 at December 31, 2013, and July 31, 2014, respectively.
The city will now come under the oversight of a Financial Planning and Supervision Commission. A financial plan must be developed by the mayor and approved by the commission within 120 days of its first meeting to address the city’s financial crisis. The Auditor of State’s office serves as the financial supervisor to the commission and may provide accounting training and assistance.
A city is placed in fiscal emergency if any one of the six conditions described in Section 118.03 of the Ohio Revised Code exists. The six conditions are: 1) default on a debt obligation; 2) failure to make payment of all payroll; 3) an increase in the minimum levy of the city which results in the reduction in the minimum levy of another subdivision; 4) significant past due accounts payable; 5) substantial deficit balances in city funds; and 6) a sizeable deficiency when the city’s treasury balance is compared to the positive cash balances of the city’s funds.
A full copy of this fiscal emergency declaration may be accessed online.
The Auditor of State’s office, one of five independently elected statewide offices in Ohio, is responsible for auditing more than 5,800 state and local government agencies. Under the direction of Auditor Dave Yost, the office also provides financial services to local governments, investigates and prevents fraud in public agencies and promotes transparency in government.