July 20, 2010
Huntington’s Finance Committee Talks Hiring, Spending Freezes
Mayor Wolfe Suggests Waiting for the Vote on Tax Reform
By Tony Rutherford
Huntingtonnews.net Reporter
Huntington, WV (HNN) – Preliminary revenue reports for the City of Huntington’s Fiscal 2010 prompted some City Council Finance Committee members to discuss hiring and spending freezes with Mayor Kim Wolfe.
“The recession has beat the daylights out of the city,” Finance chairman Steve Williams stated. “The question is, can we keep on ticking?”
As most readers know, one of the hard hit revenue line items in Fiscal 2010 has been a decrease in construction projects. Although some projects for 2011 have been announced, Finance Director Deron Runyon told the Finance Committee, “I don’t think we have bottomed out on construction” B & O .”
Runyon explained that “new projects are out there,” but there’s a lengthy lag time between “in the pipeline” and actually breaking ground. The City would not receive benefit of B & O construction fees or the benefit of temporary employees in the city until work actually started.
The Finance Director that there could be (based on the preliminary draft) as much as a $1.7 million dollar “income received” revenue deficit compared to the projected revenue for 2010. Huntington’s B & O tax went from a projection of $17.4 million to “a little under $16 million,” Runyon explained. “Next year’s B & O projections are a little under what we brought in this year. The number is going to need to be watched.”
Examining a Preliminary 2010 Year to Date Revenue projections, finance chairman Steve Williams analyzed that in Fiscal 2010 , “we collected less [than projected] in 21 of 38 revenue sources.”
Referring to the early action in 2010 by WV Gov. Joe Manchin to keep a strong handle on actual incoming revenue versus projections, Williams reminded those present “that we should have acted sooner” to tighten the city’s fiscal belt in 2010. He proposed that the committee see revenue collections on a month to month basis rather than quarterly.
In addition, Williams proposed that an “aggressive freeze on hiring” and “non-essential spending” be immediately imposed. The committee would re-visit the threshold which triggers council consideration i.e. dropping this from $15,000 to $10,000.
Councilman Nate Randolph agreed asking that lease – purchases be studied with particular scrutiny. He suggested looking at anticipated retirements during Fiscal 2011 and consider not replacing them until the city’s finances have stabilized.
Mayor Wolfe appeared agreeable to the proposals, but did state, “Let’s see what happens with the tax reform package.” However, Williams told HNN that he has not talked specifically with the mayor concerning freeze issues.
Still, the timing of the mayor’s assessment appeared to apply to both lower than anticipated revenue but also to Williams caution concerning the sale of bonds to replace Big Sandy Superstore Arena seats.
“The elephant [in the room] is how do we pay [for them], if we have problems with day to day [expenses],” Williams stressed.
CITY OF HUNTINGTON FOUNDATION LEASE
In other Finance Committee business, the committee will recommend to the full council that the lease by the City of Huntington Foundation be continued. The Foundation leases the upper portion of City Hall, including the Jean Carlo Stephenson Auditorium, and also maintains the City Hall of Fame at the BSSA and works to improve the image of City Hall.
The non-profit foundation also manages special fund raising for the Huntington Police and Huntington Fire Departments, including such programs as “Crimestoppers” and “The Explorers.”
The Foundation’s third component, The Fifth Avenue Theatre Company, produces events which have an economic impact on the area.
Maxine Loudermilk, the director, told the committee the auditorium rents for $375 per day of performance. Since the BSSA Hall of Fame quadrant will be filled after this year’s inductions, Loudermilk indicated that a “new electronic wall” will be initiated next year.
Currently, the City of Huntington Foundation has 25 members. The Charter allows for 50 members.
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Huntington’s Finance Committee Talks Hiring, Spending Freezes
Mayor Wolfe Suggests Waiting for the Vote on Tax Reform
By Tony Rutherford
Huntingtonnews.net Reporter
Huntington, WV (HNN) – Preliminary revenue reports for the City of Huntington’s Fiscal 2010 prompted some City Council Finance Committee members to discuss hiring and spending freezes with Mayor Kim Wolfe.
“The recession has beat the daylights out of the city,” Finance chairman Steve Williams stated. “The question is, can we keep on ticking?”
As most readers know, one of the hard hit revenue line items in Fiscal 2010 has been a decrease in construction projects. Although some projects for 2011 have been announced, Finance Director Deron Runyon told the Finance Committee, “I don’t think we have bottomed out on construction” B & O .”
Runyon explained that “new projects are out there,” but there’s a lengthy lag time between “in the pipeline” and actually breaking ground. The City would not receive benefit of B & O construction fees or the benefit of temporary employees in the city until work actually started.
The Finance Director that there could be (based on the preliminary draft) as much as a $1.7 million dollar “income received” revenue deficit compared to the projected revenue for 2010. Huntington’s B & O tax went from a projection of $17.4 million to “a little under $16 million,” Runyon explained. “Next year’s B & O projections are a little under what we brought in this year. The number is going to need to be watched.”
Examining a Preliminary 2010 Year to Date Revenue projections, finance chairman Steve Williams analyzed that in Fiscal 2010 , “we collected less [than projected] in 21 of 38 revenue sources.”
Referring to the early action in 2010 by WV Gov. Joe Manchin to keep a strong handle on actual incoming revenue versus projections, Williams reminded those present “that we should have acted sooner” to tighten the city’s fiscal belt in 2010. He proposed that the committee see revenue collections on a month to month basis rather than quarterly.
In addition, Williams proposed that an “aggressive freeze on hiring” and “non-essential spending” be immediately imposed. The committee would re-visit the threshold which triggers council consideration i.e. dropping this from $15,000 to $10,000.
Councilman Nate Randolph agreed asking that lease – purchases be studied with particular scrutiny. He suggested looking at anticipated retirements during Fiscal 2011 and consider not replacing them until the city’s finances have stabilized.
Mayor Wolfe appeared agreeable to the proposals, but did state, “Let’s see what happens with the tax reform package.” However, Williams told HNN that he has not talked specifically with the mayor concerning freeze issues.
Still, the timing of the mayor’s assessment appeared to apply to both lower than anticipated revenue but also to Williams caution concerning the sale of bonds to replace Big Sandy Superstore Arena seats.
“The elephant [in the room] is how do we pay [for them], if we have problems with day to day [expenses],” Williams stressed.
CITY OF HUNTINGTON FOUNDATION LEASE
In other Finance Committee business, the committee will recommend to the full council that the lease by the City of Huntington Foundation be continued. The Foundation leases the upper portion of City Hall, including the Jean Carlo Stephenson Auditorium, and also maintains the City Hall of Fame at the BSSA and works to improve the image of City Hall.
The non-profit foundation also manages special fund raising for the Huntington Police and Huntington Fire Departments, including such programs as “Crimestoppers” and “The Explorers.”
The Foundation’s third component, The Fifth Avenue Theatre Company, produces events which have an economic impact on the area.
Maxine Loudermilk, the director, told the committee the auditorium rents for $375 per day of performance. Since the BSSA Hall of Fame quadrant will be filled after this year’s inductions, Loudermilk indicated that a “new electronic wall” will be initiated next year.
Currently, the City of Huntington Foundation has 25 members. The Charter allows for 50 members.
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