Huntington mayor David Felinton and the city council are again butting heads when it comes to budget matters. In a three hour special call meeting Monday night Felinton questioned the accuracy of council chairman Cal Kent’s projected budget estimate shortfall for B&O taxes, property taxes, parking fees and utility taxes. Council members Mary Neely and George Mallot did not attend the meeting.
Kent has circulated a forecast of Business and Occupation revenue. The Center for Business and Economic Research at Marshall University produced the forecast, which claims to have an error rate of 1.5%. A shortfall of $1.32 million in B&O tax collections is forecast.
Felinton seemed skeptical of the forecast. “I’m just curious where this model (forecast) was in February,” said Felinton. The mayor several times during the meeting expressed his doubt about Kent’s report, especially the complicated formula used in the report.
“This is just a mathematical formula,” said the mayor, “I’m sure I could look around and find someone to write a formula to show the opposite.”
Kent pointed out that the council shouldn’t wait until January to find out they have a financial emergency. He said that the city is facing a $913,000 deficit on the revenue side of the budget and some kind of action needed to be taken now.
Councilman John Daniels pointed out to the mayor the shortfall in B&O taxes predicted in the 01-02 budget and actual taxes collected. “Your budget right here says that you budgeted in 01-02 $13,362,000, and you collected $12,200,000. That’s $1.1 million,” said Daniels. “ you take $1.1 million, add it to the $1.6 (million) that you predicted, that’s $2.8 (million).
The mayor and Daniels then sparred over whose budget it really was. “First of all I’d like to clarify that it wasn’t my budget,” said Felinton. “My budget would certainly have a much different look to it.”
“Whose budget was it mayor?” asked Daniels, “ you’re the one who brought it in here to us.”
Council also discussed the $432,000 shortfall of property tax collections. City Finance Director Bob Wilhelm told the council that was one line item which was out of the administration’s control.
“Property tax is an exact calculation on a spreadsheet that comes from Charleston. We don’t have any leeway of changing that number,” said Wilhelm.
Several other issues came to the floor, including changing insurance carriers and privatization of the garbage collection service. Council took no action on amending the budget.