Columbus – Auditor of State Dave Yost today released the City of Massillon (Stark County) from fiscal emergency, a status it held for more than three years.

The city of 32,000 residents was placed in fiscal emergency on Oct. 8, 2013, because of a $518,182 deficit in three funds in December 2012 and a $135,906 deficit in four funds in May 2013.

“City officials faced a number of challenges in managing and balancing municipal finances, but after taking corrective action and improving fiscal policies and controls, they have succeeded in restoring the city’s financial stability,” Auditor Yost said.

To accomplish this, the city temporarily reduced its income tax credit by 25 percent to eliminate a $137,000 general fund deficit, and passed a 0.2 percent income tax levy allowing the city to move $350,000 out of the general fund and into the street fund. Municipal employees also now pay 15 percent of the cost of their health care premiums, saving the city $465,000 annually.

The city eliminated a $39,000 deficit in the police pension fund, a $91,000 deficit in the fire pension fund and a $4,000 deficit in the fire damage fund.

The City of Massillon also met these conditions to be released from fiscal emergency:

1. Adopted and implemented an effective accounting and reporting system; 
2. Corrected or eliminated all fiscal emergency conditions and no new conditions have occurred;
3. Met the objectives of the financial recovery plan; and,
4. Prepared a five-year financial forecast in accordance with standards issued by the Auditor of State, and the opinion expressed by the Auditor of State is “nonadverse.”
    

A full copy of this fiscal emergency termination is available online.

Click here for a downloadable video of Auditor Yost speaking about the district's release from fiscal emergency.

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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.

Contact:
Beth Gianforcaro
Press Secretary
614-644-1111