Thefts bring fiscal emergency
ONGOING COVERAGE /
The village of Mount Sterling says its daily operations have not been affected, despite the announcement Thursday that is has been placed on fiscal emergency by the Ohio Auditor’s Office.
A fiscal analysis conducted by the auditor’s Local Government Services Section found deficits totaling $340,491 as of Dec. 31 and $269,437 as of April 30, 2017.
The “heavy financial blow inflicted by corrupt former officials and employees” is responsible, Auditor Dave Yost said in a written statement.
“It’s something we were halfway expecting,” said Mayor Lowell Anderson. Spending cuts and other costsaving measures have allowed the village to continue daily operations without public disruption, he said.
Former Village Administrator Joe Johnson was sentenced in March to 10 years in prison for stealing more than $724,000 from the village to buy a new home, vehicles, auto parts, TVs and other items for his personal use between 2012 and 2016. Victoria Sheets, the village’s former bookkeeper, pleaded guilty to falsification for helping Johnson obtain his state pension benefits early, before investigators could freeze the account.
In April, former Mayor Charles Neff was indicted on similar charges, including theft in office and falsification. Bonnie Liff, a former administrative assistant and utilities clerk, also was indicted in April on charges of theft in office.
When Johnson’s home and items bought with the stolen money are sold, the revenue will help replenish some of the deficits, Anderson said. No date has been set for their sale.
Robert Smith, assistant chief legal counsel for the auditor and special prosecutor for the cases, said the village will now be overseen by a financial planning and supervision commission. Within four months of its first meeting the village must develop a plan to eliminate the emergency conditions.
By state law, a village can be placed on fiscal emergency for such things as defaulting on its debt, failing to make payroll, having past-due accounts or having substantial deficits.
“We’re moving forward and we’re going to whip this thing,” Anderson said.