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City Borrows $$$ From HURA to Cover Payroll
By Art Harvath
Mystery Fund provides $100,000 to Pay City Employees
The Huntington city council adjourned after meeting for about an hour
at the special call meeting Wednesday. Mayor David Felinton called the
meeting in an attempt to get city council to pass a resolution to borrow
$100,000 from the little known Paving and Sewer assessment fund.
The fund was established in part to allow citizens to repair their sidewalks
with money from the fund, and then repay the city as they could.
Felinton scheduled the meeting for 4 p.m. and after it became apparent
that the mayor was unprepared for the meeting, council voted to adjourn
it until 7:30 p.m. to enable the mayor to bring other city officials to
the meeting.
Before adjourning for a 2-hour break, it was clear that the city would
still be short a quarter of a million dollars even if they passed the
resolution.
“If we do borrow it that’s still not a guarantee we’re
going to make the payroll,” said Finance director Bob Wilhelm. “We’ll
still need about $250,000 to cover the gross (payroll).”
“So this may very well not get us home?” asked councilman Cal
Kent in referring to the resolution before council.
“That could be. You’re correct,” replied Wilhelm.
Councilman Tom McCallister asked why the problem was not brought to council’s
attention at the last finance committee meeting.
“Two weeks ago, we were meeting the payroll two weeks ago, so we
had two more weeks,” said Wilhelm. “I mean, we’ve been
doing this all year. Since January we’ve been up to the fence on
several payrolls. On the last payroll, we had the money on the last day
to cover everything….It’s obvious if you have a $900,000 hole
in your budget, by the end of the year you’re going to start running
out of cash,” Wilhelm said.
A major question is the source of the Paving and Sewer fund’s money.
Several councilmen questioned whether or not the source comes from federal
funds, which raises a legal question of the resolution.
No one in the administration had an answer as to the source of the fund,
whether the fund was created by ordinance or when the fund was established.
Councilman Jim Insco then asked whether or not money from the Huntington
Urban Renewal Authority could be used. This is when council adjourned.
When the body reconvened, assistant city attorney Scott McClure gave the
opinion that the city can use HURA funds, citing Section 10.9 of the City
Charter.
Council then voted to transfer $100,000 from the Paving and Sewer Assessment
Fund and $280,000 from unencumbered HURA funds. The money will be repaid
within 60 days, according to the resolution.
The action by council tonight will ensure that city employees will be
paid on Friday. However, the city faces the same situation on the July
5th payroll. Where the city will get the money for that payroll is unclear.
