Leipsic is no longer under fiscal emergency, according to State Auditor Dave Yost, after more than seven years under that status.
“Leipsic has spent almost a decade navigating the obstacles of an economic downslide,” Yost said. “The entire community should take pride in what it has accomplished during these challenging years.”
Leipsic was placed in fiscal emergency on Sept. 16, 2010, after state auditors identified deficit balances in five funds and after the village defaulted on three loans.
Since then, the auditor’s office says village government has taken the following steps:
- Lowered expenses by about $137,000 annually by renegotiating loan terms with the Ohio Water Development Authority, extending the repayment period by 10 years.
- Carefully regulated pay increases, freezing salaries during 2011 and limiting pay raises to 1.5 percent in 2012 and 2013, and 2 percent in 2014
- Increased revenue by hundreds of thousands of dollars since 2012 as a result of several rate hikes for water and sewer services
Leipsic is the second area village to be released from fiscal emergency in the last 24 hours; Patterson in Hardin County received similar news on Wednesday.