The Van Wert County Courthouse

Thursday, Jul. 19, 2018

Grover Hill in state of fiscal emergency

Submitted information

COLUMBUS — Auditor of State Dave Yost on Thursday placed the Village of Grover Hill in a state of fiscal emergency after a fiscal analysis revealed a fund deficit and treasury deficiencies.

Dave Yost

An analysis performed by the Auditor’s Local Government Services Section (LGS) determined the village meets the criteria for a fiscal emergency due to a deficit in the Sewer Operating Fund totaling $122,916 and $91,192 as of December 31, 2016, and September 30, 2017, respectively.

The analysis, requested by Grover Hill Mayor John Moon, also noted a sizeable deficit in the village’s treasury balance. The deficit exceeded one-sixth of treasury receipts by $126,226 and $117,251 as of December 31, 2016, and September 30, 2017.

“A proactive approach is vital to a swift financial recovery,” Yost said. “I encourage village officials to act sooner rather than later to tackle these financial shortcomings. As always, my office is available to help.”

The village of 402 people will now come under the oversight of a financial planning and supervision commission. Within 120 days of its first meeting, the commission must develop a plan to eliminate the fiscal emergency conditions. The Auditor of State serves as the “financial supervisor” to the commission.

A village is placed in fiscal emergency if any one of the six conditions described in Section 118.03 of the Ohio Revised Code exists.

The six conditions are:

  • Default on a debt obligation.
  • Failure to make payment of all payroll.
  • An increase in the minimum levy of the village which results in the reduction in the minimum levy of another subdivision.
  • Significant past due accounts payable.
  • Substantial deficit balances in village funds.
  • A sizeable deficiency when the village’s treasury balance is compared to the positive cash balances of the village’s funds.

A full copy of the fiscal emergency declaration is available online

POSTED: 01/12/18 at 8:20 am. FILED UNDER: News