Hi Billy,
Ranking drops in Google's local packs usually boil down to one of these 3 causes:
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Internal changes to Google's algo or filters that cause results to be re-ordered
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Being surpassed by more active or powerful competitors so that you previous authority is no longer strong enough in comparison to the authority of your competitors
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Negative outcomes of issues like duplicate listings, merges or spammy activity on the part of the business owner suddenly coming into play
I'm stating these three things quite broadly, and while I don't know if there have been any recent changes to Google's algo or filters in your industry/geography, it does sound like you are already aware of the fact that you are lacking in authority (point 2, above). Things like citation inconsistency can definitely drain away your authority and this can become even more apparent as your competitors get their businesses into better shape and begin to surpass you because they are stronger/cleaner/more active. It also sounds like you are aware of some negative issues (point 3, above) like reviewing your own business, which Google would consider to be spammy. Obviously, you shouldn't do things like that, and it's good that you removed the review:)
Likely, your ranking drop is the result of a combination of several different factors. Hopefully, going step by step through the article I linked to in my earlier reply will help you troubleshoot a number of possible issues. Ideally, what you want to shoot for looks like this:
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I'm running the fastest loading, most user-friendly site with the best possible content in my industry/geography.
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My site is well optimized for Local, but is not over-optimized. All of by basics (like title tags, headers, etc.) make sense to human visitors and gently highlight my core terms without going overboard.
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My citations are consistent and clean around the web.
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My Google+ Local page is perfectly optimized and obeys all guidelines. I've chosen the right categories.
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I am not violating any of Google's guidelines by any of my marketing or SEO practices.
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I have checked for possible duplicate and merged Google listings and have none of them.
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I am earning real Google-based reviews at a slow, steady rate, rather than in big, quick chunks. My reviews are in alignment with Google's policies. I have more reviews than my competitors do - but I don't have a TON more. My review profile looks and is natural.
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I'm earning diverse, genuine reviews on other important review sites.
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I'm socially active in the right places, engaging with my customers where it matter to them most.
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I'm earning links naturally, based on merit.
There's more to it than this, of course, but this would be a 10-step rundown of what I'd consider to be a local business doing the right things to earn the kind of authority over time that leads to high visibility in the local packs.
Hope this is helpful!