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Posted on: May 31, 2018

City of Alliance Fiscal Watch






May 31, 2018




The Office of Mayor Andreani, Mayor of Alliance


Phone:  330-821-3110








State Auditor Dave Yost has elevated the City of Alliance from Fiscal Caution to Fiscal Watch. This change is the result of the City not adopting a plan within the required timeframe. The City was placed in Fiscal Caution in January and was given sixty (60) days for the Mayor to develop a recovery plan that also required City Council’s approval.


In March, Mayor Andreani presented a plan to City Council that was approved by the State of Ohio Auditor’s Office by a group specializing in fiscal distress. The Mayor’s plan satisfied all the mandated requirements which included the elimination of deficit spending, increasing revenues, reducing expenditures, and restoring acceptable cash reserves. The Mayor’s plan erased a 300K projected deficit in 2018 and established a projected $1.6 million dollar reserve by the end of 2020 according to the 3 year financial forecast included within the plan. City Council voted against this plan by a 4-3 vote in May.


With the passage of the Park levy, one-half of the deficit will be remaining. Council only has three options to overcome the remainder of the deficit:  1) Support a component of the plan reducing expenditures through negotiations with City unions; 2) Additional taxes and increased fees to residents; or 3) lay off employees paid through the General Fund.  The number of General Fund employees has already been decreased to a point where further reductions will severely curtail services in those departments paid through the General Fund. Failure to adopt a plan can lead to designation of a more severe classification including Fiscal Emergency.

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