Taylor Declares Fiscal Emergency Status for Village of New Bavaria
Henry County - Auditor of State Mary Taylor today announced a fiscal emergency in the village of New Bavaria. The determination was made as a result of a fiscal analysis conducted by the Auditor of State’s Local Government Services section. Village Mayor Steve Aelker requested the fiscal analysis.
“Village of New Bavaria officials face tough financial decisions in the weeks and months ahead,” Taylor said. “My office will continue to work with the village to identify potential cost savings to help prevent future deficits.”
A fiscal emergency was declared because the analysis reveals the village has deficit fund balances of $12,851 and $12,686 as of December 31, 2009 and January 31, 2010, respectively. It also states that the treasury deficit exceeds one-sixth of the treasury receipts by $10,985 and $11,755 for the same dates.
When a village is placed in fiscal emergency, a five-member commission is appointed by the state to help the village regain financial stability. The commission is responsible for approving a plan that details solutions for eliminating the fiscal emergency conditions. The plan should also balance the budget and present strategies to avoid future deficits.
The plan must be approved by the village and submitted to the commission within 120 days of the commission’s first meeting.
A copy of the full fiscal analysis is available online.
The Ohio Auditor of State’s office is a leader in the accounting and auditing field, earning prestigious national honors from the Government Finance Officers Association, the National White Collar Crime Center and the National State Auditor’s Association.