The Office of Ohio State Auditor Dave Yost has released the Village of Lakemore in Summit County from fiscal emergency status that they've been under for over six years.
Back on August 31, 2010, the village was placed under fiscal emergency due to five aggregate deficit fund balances totaling $830,450, and a treasury fund deficit of $584,532, as of May 31 of the same year.
The status was lifted because of the efforts of the village to erase more than $1,000,000 in combined debt between the general fund and the treasury fund. In the press release, Auditor Dave Yost said, "After a six-year battle, I'm pleased to see the village has finally defeated its deficits. This is a significant moment because it represents a fresh start for the community."
Read the full release from the State Auditor's office below:
Village of Lakemore Released from Fiscal Emergency
Columbus – Auditor of State Dave Yost today released the Village of Lakemore (Summit County) from fiscal emergency, a status it held for more than six years.
The village was placed in fiscal emergency on Aug. 31, 2010 due to five aggregate deficit fund balances totaling $839,450, in addition to a treasury fund deficit of $584,532, as of May 31, 2010.
“After a six-year battle, I’m pleased to see the village has finally defeated its deficits,” Auditor Yost said. “This is a significant moment because it represents a fresh start for the community.”
Among the steps taken to restore fiscal stability, the village erased an $800,000 general fund deficit, as well as a $584,532 treasury fund deficit, through a 50 percent income tax credit reduction. According to the village, the tax credit will be reinstated following its release from fiscal emergency.
Transfers from the general fund eliminated another $197,000 in deficit balances in the police disability and pension, police facility, capital improvement, and emergency medical services (EMS) funds. Voters also approved a 4.25 mill five-year fire and EMS levy on Nov. 3, 2015, enabling the village to move fire and EMS expenditures from the general fund to the levy fund.
Additional actions taken by the village included curtailing expenditures across the board and removing the village administrator position to generate an extra $60,000 in savings.
The village also had to satisfy the following requirements to be terminated from fiscal emergency:
- Effectively implement a financial accounting and reporting system in accordance with Section 118.10(A) of the Ohio Revised Code;
- Correct or eliminate all fiscal emergency conditions and prevent new ones from occurring;
- Meet the objectives of the financial plan; and
- Prepare a five-year forecast in accordance with standards issued by the Auditor of State; the opinion expressed by the Auditor’s office is “nonadverse.”
A full copy of this fiscal emergency termination is available online.