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Beckleynews.net

City Borrows $280.000 From HURA to Cover Payroll
By Art Harvath

It was almost as if Huntington Urban Renewal chairman Ron Smith came riding into city council chambers on a white horse Wednesday evening.

Council had earlier adjourned a special call meeting after considering a resolution by Mayor David Felinton which would contribute $100,000 to the general fund to help meet Friday’s payroll. The money would come from an account named the Paving and Sewer Assessment Fund.

Before adjourning, councilman Jim Insco asked whether HURA funds could be used to help the city meet the payroll. When council reconvened 2-hours later, assistant city attorney Scott McClure cited section 10.9 of the city charter, which gives the mayor and council the authority to transfer funds.

Section 10.9 states that except as otherwise provided by general law, the Mayor may at any time transfer any unencumbered appropriation balance or portion thereof between general classifications of expenditures within an office, department, division or agency. At the request of the mayor and within the last three months of the budget year, council may, by resolution, transfer any unencumbered appropriation balance or portion thereof from one office, department, division or agency to another.

HURA’s unencumbered funds total over $900,000.

Council wasted no time in voting to transfer $280,000 from HURA to the city’s general fund. The resolution passed 10-0, with councilman Larry Patterson absent.

The question of how HURA would be repaid came up, and Smith told the council the no interest would be charged when the city repaid the money to HURA. However, the charter makes no mention of an obligation to repay the money back, but the resolution passed by
council provides repayment to HURA within 60 days.

The city faces the same dilemma on the upcoming July 5th payroll. The city must also deposit $300,000 into an account at Fifth Third Bank as part of an agreement establishing a $500,000 Workman’s Compensation Fund.

The question is whether the city will again vote to transfer HURA funds. Another question is how this will affect the West Virginia Economic Development Grant Committee’s decision to award $10.6 million to the Pullman Square project.

HURA has dedicated $650,000 for the buyout of Chi Chi’s Restaurant, but even that may be in doubt if the council dips into the board’s funds for the next payroll.