Taylor Declares Fiscal Emergency Status for Village of Leipsic
Putnam County - Auditor of State Mary Taylor today announced a fiscal emergency in the village of Leipsic. The determination was made as a result of a fiscal analysis conducted by the Auditor of State’s Local Government Services section. Village Mayor Kevin Benton requested the fiscal analysis.
“Village of Leipsic officials face tough financial decisions in the weeks and months ahead,” Taylor said. “My office will work with the village as they develop a financial recovery plan.”
A fiscal emergency was declared because the analysis reveals the village had defaulted on three of its Ohio Water Development Authority loans totaling $495,768, and had deficit fund balances of $1,154,265 and $1,092,832 as of December 31, 2009 and May 31, 2010, respectively.
The fiscal emergency declaration will result in the appointment of a seven-member financial planning and supervision commission to help Leipsic regain financial stability. The commission includes members from various state agencies, village officials and residents of the village.
The commission is responsible for approving a financial recovery plan that details solutions for eliminating the fiscal emergency conditions. The plan should also balance the village’s 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 government accounting and auditing field, earning prestigious national honors from the Government Finance Officers Association, the National White Collar Crime Center and the National State Auditors Association.
Deputy Press Secretary