June 16, 2010
Huntington’s Finances Remain Difficult Challenge
Mayor Stands by Four Day Work Week Decision
By Tony Rutherford
Huntingtonnews.net Reporter
Huntington, WV (HNN) – Communication prevailed, preventing an anticipated showdown at the corral between Mayor Kim Wolfe and frustrated council members.
Various council members had complained about the abrupt announcement without prior council notification of his decision to close City Hall on Fridays beginning in July. Details provided at a Finance Committee meeting a week ago involving anticipated shortfalls for carryover and contingency brought additional concerns.
But, at the Monday, June 14, council meeting Jim Ritter took the responsibility for asking all the tough questions himself. And, he acknowledged, arriving back in the City from vacation to learn of the resurgence of prior issues.
What appeared a trajectory for collision course subsided, when, Finance Director Deron Runyon explained the numbers and that revenue collections were “still trending downward,” particularly B & O revenue from construction projects. In the previous fiscal year, new construction on the Marshall campus helped boost these figures.
Runyon told council that this year’s “existing carryover” will be “a little over $100,000.” Due to the dive in user fee (about $300,000) and construction related B & O (particularly construction) revenues, the carryover does not support “$600,000 needed upfront to pave.” By contrast, last year’s carryover was between $1.4 and $1.5 million.
Since the preparation of the March 2010 budget, “new figures on insurance and workman’s compensation” elevated the budget estimates by $500,000 (2010-2011) and by $200,000 (2009-2010).
Mayor Wolfe backed up the Friday City Hall closing determination by adding “this will provide the best service for citizens and employees” under what he described as “difficult challenges.”
Prior to Wolfe’s statement, Ritter stated that prior to the four day work week announcement, council should have been “brought into the loop.”
(Editor's Note: These statements were made PRIOR to council chairman Jim Insco distributing possible revenue enhancement and tax reform proposals at the conclusion of the council meeting.)
On other matters, Councilman Nate Randolph indicated that the participation by the Huntington Urban Renewal Authority (HURA) at the courthouse tax auction did not go as smoothly as hoped. “I think people do not understand the land bank’s mission,” Randolph told council, explaining that many private entities did not look favorably upon what they perceived as the city bidding on properties.
Randolph explained that he did not continue bidding when private bidders by their competition demonstrated a potential for fully redeveloping the properties. The land bank concept envisions HURA gaining title to dilapidated structures, which, if not redeemed, could then be sold for redevelopment.
Share This Story:
Make HNN Your Homepage (IE Users Only)
Huntington’s Finances Remain Difficult Challenge
Mayor Stands by Four Day Work Week Decision
By Tony Rutherford
Huntingtonnews.net Reporter
Huntington, WV (HNN) – Communication prevailed, preventing an anticipated showdown at the corral between Mayor Kim Wolfe and frustrated council members.
Various council members had complained about the abrupt announcement without prior council notification of his decision to close City Hall on Fridays beginning in July. Details provided at a Finance Committee meeting a week ago involving anticipated shortfalls for carryover and contingency brought additional concerns.
But, at the Monday, June 14, council meeting Jim Ritter took the responsibility for asking all the tough questions himself. And, he acknowledged, arriving back in the City from vacation to learn of the resurgence of prior issues.
What appeared a trajectory for collision course subsided, when, Finance Director Deron Runyon explained the numbers and that revenue collections were “still trending downward,” particularly B & O revenue from construction projects. In the previous fiscal year, new construction on the Marshall campus helped boost these figures.
Runyon told council that this year’s “existing carryover” will be “a little over $100,000.” Due to the dive in user fee (about $300,000) and construction related B & O (particularly construction) revenues, the carryover does not support “$600,000 needed upfront to pave.” By contrast, last year’s carryover was between $1.4 and $1.5 million.
Since the preparation of the March 2010 budget, “new figures on insurance and workman’s compensation” elevated the budget estimates by $500,000 (2010-2011) and by $200,000 (2009-2010).
Mayor Wolfe backed up the Friday City Hall closing determination by adding “this will provide the best service for citizens and employees” under what he described as “difficult challenges.”
Prior to Wolfe’s statement, Ritter stated that prior to the four day work week announcement, council should have been “brought into the loop.”
(Editor's Note: These statements were made PRIOR to council chairman Jim Insco distributing possible revenue enhancement and tax reform proposals at the conclusion of the council meeting.)
On other matters, Councilman Nate Randolph indicated that the participation by the Huntington Urban Renewal Authority (HURA) at the courthouse tax auction did not go as smoothly as hoped. “I think people do not understand the land bank’s mission,” Randolph told council, explaining that many private entities did not look favorably upon what they perceived as the city bidding on properties.
Randolph explained that he did not continue bidding when private bidders by their competition demonstrated a potential for fully redeveloping the properties. The land bank concept envisions HURA gaining title to dilapidated structures, which, if not redeemed, could then be sold for redevelopment.
Share This Story:
Make HNN Your Homepage (IE Users Only)
