Pancake's Order Flattens Finance Committee
For HNN by Art Harvath

“We don’t have the money in the long or short run to do this"

The Huntington City Council finance committee met Friday afternoon to discuss several orders of business, including the troublesome issue of the police pension fund..

Earlier this week Circuit Court Judge David Pancake ordered the city to pay over and above its monthly share to make the fund solvent.

“Right now our contribution is $103,000 against a $230,000 payroll,” said city finance director Bob Wilhelm. “The extra cost to the city will be over $100,000 every month …until we get an actuary certification” added Wilhelm. It was pointed out that the state owes about $350,000 to the fund, and it’s projected that it would take about $3 million to balance the fund.

“We don’t have the money in the long or short run to do this,” said councilman Cal Kent. Wilhelm pointed out that the administration will have to come to the city council for another budget revision to make the extra monthly payments.

Several ideas were brought up on how to deal with the looming deficit, including an excess levy, a raise in the municipal fees, and even more city employee layoffs.

The projected liability for all current retirees and active police employees is $46 million.
In other business, the council discussed the Civic Arena’s request for $250,000. Harry Cann, SMG Executive Director of Operations for the arena outlined the reasons for the request. SMG is the company contracted to operate the Civic Arena for the city of Huntington. Police services, higher insurance costs, concert cancelations and the Locomotive’s decision not to play football were major factors cited in the deficit. The projected deficit is $417,000, of which $167,000 has already been paid.

It looks as if the West Virginia Supreme Court may be deciding whether City National Bank will have to pay B&O taxes to Huntington and several other West Virginia cities. Wilhelm said that as far as he knew City National hasn’t yet filed an appeal before the high court, but the bank has filed a letter of disagreement concerning the city’s B&O assessment.