June 3, 2010
Finance Chairman Williams Sees Huntington City Council Shifting to Sales Tax
Times Tough for Both Private and Public Entities
By Tony Rutherford
Huntingtonnews.net Reporter
Huntington, WV (HNN) – Councilman Steve Williams, finance committee chairman has scheduled a meeting Monday, June 7 at 6:30 p.m. in City Council Chambers. As of now, no tax issues are on the agenda. However, as leaders grapple with revenue shortfalls, Williams insists upon caution as the city continues “financing its future.”
Williams refers to multiple year agreements, such as leases, which commit annual payments by the city. He pointed to the downturn in rental revenue at Kinetic Park prompting a portion of the city’s C.D.B.G. funds to be allocated for the annual payment of the technology park loan .
Considering the fluctuations in the economy, Williams asked, “I just wonder how wise it is for us to continue to do that? Those are things that wake me up in the middle of the night.”
As for increased revenue choices, Williams senses a shift among council members away from the occupation tax to the one-percent city sales tax. That means “going slower” with possible tax reforms, such as phasing out the business and occupation tax on business gross sales.
Assuming that council were to pass a sales tax in the near future, a 90-day notification period is required by the state. And, it does NOT remove the unpopular $3.00 per week city services fee.
“Regardless of what we would do, [the city] would not see the first dollars of a new occupation tax until October. If we do a sales tax, we won’t see the first dollars of it until January 2011,” Williams said.
SERVICES, NOT JOBS
“Private companies are starting to find profitability with less overhead ,” Williams said, adding that, although the recession has eased the unemployment rate has not drastically dropped. “Folks might not be finding their previous job back, but they can go out and be entrepreneurial creating something themselves or retrain to make themselves more marketable.”
During these “difficult times, the sooner people realize that [ the recession ] effects both public and private entities, the better off we will be.”
DON’T CUT FLOODWALL JOBS
On May 31, administration and council members received an e-mail from Steve Riggs, Superintendant, Floodwall Division and Traffic Engineering. He invited council members, the mayor and interested parties “to tour the Huntington and Guyandotte Local Protection Projects (LPP). I would like for you to see what we really do, besides mow and trim 14 miles of Levee and Floodwall.”
The city has 17 pump stations with 53 pumps and motors which along with sumps , gates and screens which must be maintained. The floodwall system approaches 70 years in age with “45 gates, deteriorating metal and concrete issues,” Riggs wrote. During a recent inspection, “the Corps of Engineers do not see how we manage to maintain things now, with the small number of people” [eight , including Riggs , himself].
He warns “the city would have been flooded twice this year” and “it’s just a matter of time when, not if, we have another flood like 1937, or even 1997” (when the aging equipment was stretched to its limit). “There is no possible way the Floodwall Division personnel can be reduced….”
Click HERE to download PDF on 1997 storms and floodwall assessments and HERE for an assessment of March 2008 floodwall concerns.
WILLIAMS EXPECTS MORE LETTERS
Without examining the consequences and validity of the plea, Williams referred to City Council Chairman Jim Insco’s philosophy that city government is not here to provide to provide jobs, it’s here to provide services. Referring back to textbooks in public administration, Williams stressed “one of the things that government agencies are best at is trying to protect their existence.”
As the calendar moves forward, the passed budget furlough and cuts come closer. Aside from preserving police and fire at the strengths they are now, other city departments are preparing to take fiscal hits. Williams emphasized that council has left the line items for reductions in the hands of the administration. Mayor Wolfe, in turn, has placed cut determinations in the hands of department heads.
The finance chairman anticipates this will be the “first of several pleas to us” which essentially argue, “don’t touch our house.”
Insisting that the overall reaction is to not be hardened toward cuts, Williams stated, “There are legitimate concerns some of us have. We want to make sure the streets are continuing to be paved and we have adequate police and fire protection.
CROSS TRAINING NECESSARY?
“I don’t think it’s necessary to keep certain people on the payroll just to be mowing [grass]. We can contract that out. When we have to react to a flood, can we not cross-train some folks elsewhere in city government, rather than keeping someone on the payroll ten months out of the year [to ensure we have someone there] the two months when we need to put up floodgates?”
Agreeing that more job floating (multi tasking) may be necessary, Williams said “we must more efficiently provide services. The name of the game in business is do more with less.”
Finally, Williams admitted that an inquiry with the Corps of Engineers will be necessary for further input on the conditions and maintenance of the floodwall and local protection projects.
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Finance Chairman Williams Sees Huntington City Council Shifting to Sales Tax
Times Tough for Both Private and Public Entities
By Tony Rutherford
Huntingtonnews.net Reporter
Huntington, WV (HNN) – Councilman Steve Williams, finance committee chairman has scheduled a meeting Monday, June 7 at 6:30 p.m. in City Council Chambers. As of now, no tax issues are on the agenda. However, as leaders grapple with revenue shortfalls, Williams insists upon caution as the city continues “financing its future.”
Williams refers to multiple year agreements, such as leases, which commit annual payments by the city. He pointed to the downturn in rental revenue at Kinetic Park prompting a portion of the city’s C.D.B.G. funds to be allocated for the annual payment of the technology park loan .
Considering the fluctuations in the economy, Williams asked, “I just wonder how wise it is for us to continue to do that? Those are things that wake me up in the middle of the night.”
As for increased revenue choices, Williams senses a shift among council members away from the occupation tax to the one-percent city sales tax. That means “going slower” with possible tax reforms, such as phasing out the business and occupation tax on business gross sales.
Assuming that council were to pass a sales tax in the near future, a 90-day notification period is required by the state. And, it does NOT remove the unpopular $3.00 per week city services fee.
“Regardless of what we would do, [the city] would not see the first dollars of a new occupation tax until October. If we do a sales tax, we won’t see the first dollars of it until January 2011,” Williams said.
SERVICES, NOT JOBS
“Private companies are starting to find profitability with less overhead ,” Williams said, adding that, although the recession has eased the unemployment rate has not drastically dropped. “Folks might not be finding their previous job back, but they can go out and be entrepreneurial creating something themselves or retrain to make themselves more marketable.”
During these “difficult times, the sooner people realize that [ the recession ] effects both public and private entities, the better off we will be.”
DON’T CUT FLOODWALL JOBS
On May 31, administration and council members received an e-mail from Steve Riggs, Superintendant, Floodwall Division and Traffic Engineering. He invited council members, the mayor and interested parties “to tour the Huntington and Guyandotte Local Protection Projects (LPP). I would like for you to see what we really do, besides mow and trim 14 miles of Levee and Floodwall.”
The city has 17 pump stations with 53 pumps and motors which along with sumps , gates and screens which must be maintained. The floodwall system approaches 70 years in age with “45 gates, deteriorating metal and concrete issues,” Riggs wrote. During a recent inspection, “the Corps of Engineers do not see how we manage to maintain things now, with the small number of people” [eight , including Riggs , himself].
He warns “the city would have been flooded twice this year” and “it’s just a matter of time when, not if, we have another flood like 1937, or even 1997” (when the aging equipment was stretched to its limit). “There is no possible way the Floodwall Division personnel can be reduced….”
Click HERE to download PDF on 1997 storms and floodwall assessments and HERE for an assessment of March 2008 floodwall concerns.
WILLIAMS EXPECTS MORE LETTERS
Without examining the consequences and validity of the plea, Williams referred to City Council Chairman Jim Insco’s philosophy that city government is not here to provide to provide jobs, it’s here to provide services. Referring back to textbooks in public administration, Williams stressed “one of the things that government agencies are best at is trying to protect their existence.”
As the calendar moves forward, the passed budget furlough and cuts come closer. Aside from preserving police and fire at the strengths they are now, other city departments are preparing to take fiscal hits. Williams emphasized that council has left the line items for reductions in the hands of the administration. Mayor Wolfe, in turn, has placed cut determinations in the hands of department heads.
The finance chairman anticipates this will be the “first of several pleas to us” which essentially argue, “don’t touch our house.”
Insisting that the overall reaction is to not be hardened toward cuts, Williams stated, “There are legitimate concerns some of us have. We want to make sure the streets are continuing to be paved and we have adequate police and fire protection.
CROSS TRAINING NECESSARY?
“I don’t think it’s necessary to keep certain people on the payroll just to be mowing [grass]. We can contract that out. When we have to react to a flood, can we not cross-train some folks elsewhere in city government, rather than keeping someone on the payroll ten months out of the year [to ensure we have someone there] the two months when we need to put up floodgates?”
Agreeing that more job floating (multi tasking) may be necessary, Williams said “we must more efficiently provide services. The name of the game in business is do more with less.”
Finally, Williams admitted that an inquiry with the Corps of Engineers will be necessary for further input on the conditions and maintenance of the floodwall and local protection projects.
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