HAMILTON TOWNSHIP, OH (FOX19) - Multi-million dollar deficit fund balances and treasury deficits prompted Auditor of State Dave Yost to place Hamilton Township in a state of fiscal emergency.
"Hamilton Township needs to take a hard look at its financial situation and take the steps to bring the books back into the black," Yost said. "It won't be easy, but the time to turn things around is now."
Yost initiated the fiscal analysis of the township to determine whether its financial condition justified a fiscal distress declaration. After conducting the analysis, his office determined that the township had deficit fund balances of $2,588,354 and $2,576,119 at December 31, 2012 and December 31, 2013, respectively.
The analysis also confirmed treasury deficits that exceeded one-sixth of treasury receipts by $924,151 and $1,048,081 at December 31, 2012 and December 31, 2013, respectively.
The township will now come under the oversight of a Financial Planning and Supervision Commission. A financial plan must be developed by the board of trustees and approved by the commission within 120 days of its first meeting to address the township's financial crisis.
The Auditor of State's office serves as the financial supervisor to the commission and may provide accounting training and assistance.
A township 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 township which results in the reduction in the minimum levy of another subdivision
- Significant past due accounts payable
- Substantial deficit balances in township funds
- A sizeable deficiency when the township's treasury balance is compared to the positive cash balances of the township's funds.
A full copy of this fiscal emergency declaration may be accessed online at www.ohioauditor.gov.