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City of Alliance Elevated to Fiscal Watch
Columbus – Auditor of State Dave Yost today elevated the City of Alliance (Stark County) to a state of fiscal watch after city officials failed to put forth an acceptable financial recovery plan.
The city of 22,522 people was placed in fiscal caution on Jan. 18 following two straight years of critically low year-end carryover fund balances in more than a dozen funds.
Under state law, the city had until March 19 to approve and submit a plan to correct the deficiencies. At the request of the city, the Auditor’s office granted an April 4 deadline extension, but that deadline was not met.
“The time is now for the city’s elected officials to agree upon an appropriate course of action,” Auditor Yost said. “I believe they are getting close, but time is of the essence with a fiscal emergency looming on the horizon.”
With the declaration of fiscal watch, the city has 90 days to submit an acceptable recovery plan, in addition to a five-year financial forecast.
At the end of calendar year 2016, the city had 17 funds with low carryover balances, four more that it had at the end of 2015. The carryover balances amounted to less than one month of average spending. The city does not have sufficient resources available in other funds to subsidize the endangered funds.
A full copy of the fiscal watch declaration is available online.
The Auditor of State’s office, one of five independently elected statewide offices in Ohio, is responsible for auditing more than 5,900 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.