Columbus – Auditor Yost today released the Village of Edgerton (Williams County) from fiscal emergency, a status it held for more than three and a half years.

The village was declared in fiscal emergency on Dec. 17, 2013, after a fiscal analysis by the Auditor’s office identified deficit fund balances totaling $110,452 and $134,364 as of Dec. 31, 2012 and Aug. 31, 2013, respectively.

“Financial know-how alone can’t lift a government out of fiscal distress,” Auditor Yost said. “It also takes steadfast leadership and commitment from both citizens and administrators. I congratulate the community on its success, and I urge its leaders to continue working toward even healthier finances.”

Among the steps taken to remove itself from fiscal emergency, the village of about 2,000 people voted in November 2014 to increase its municipal income tax to 1.75 percent. Collection of the additional .75 percent tax began on Jan. 1, 2015, generating an estimated $485,000 to $525,000 per year through 2021.To assist with tax administration, the village entered into an agreement with the Regional Income Tax Agency to receive collection services beginning this year. 

The village also saved approximately $18,500 over two years by implementing a salary freeze during 2014 and 2015. Additionally, village officials preempted projected deficits in the water and sewer funds by increasing rates, ensuring stability in the funds.

The village also had to satisfy the following requirements to be terminated from fiscal emergency:

1. Adopted and implemented an effective financial accounting and reporting system;
2. Corrected or eliminated all of the fiscal emergency conditions; no new conditions have occurred, and it appears that, based on the five-year forecast, the village will remain out of fiscal emergency during the forecast period,
3. Met the major objectives of the financial recovery plan; and
4. Prepared a five-year 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.

 ###

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:
Dominic Binkley
Public Information Officer
614-644-1111