BUNKER HILL, Ind. (AP): Leaders of a small northern Indiana town say they've avoided having to lay off all its employees thanks to a $32,000 federal tax refund.

Officials in the Miami County town of Bunker Hill blame the troubles on mismanagement by the former clerk-treasurer, such as running up $19,000 in penalties on unpaid bills and paying health insurance premiums for ex-employees long after they left their jobs.

New Clerk-Treasurer Lisa Wilson says a review found the town had overpaid federal taxes since 2007. Wilson tells the Kokomo Tribune that without the refund the town's bank account would have been empty after paying its eight employees next month.

She says the town will have enough money to last until June, when it will receive more than $180,000 in property taxes payments.