Parkersburg mayor outlines city’s 2021-22 spending plan
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PARKERSBURG -- B&O projections are down and sales tax is up in the proposed budget Mayor Tom Joyce submitted this week to Parkersburg City Council.
The $38.2 million spending plan -- a figure that includes the general fund as well as the user fee, parking, parks, sanitation and Memorial Bridge funds -- for the fiscal year starting July 1 will be reviewed in a series of budget hearings slated for 6 p.m. March 8, 10 and 11 in council chambers.
The business and occupation tax remains the largest source of revenue at more than 25 percent of the general fund, despite projected revenue being reduced by $725,000. That's due in part to what city officials have seen over the past year in terms of the effects of COVID-19 on business activities, as well as the expected continuation of a $500-a-quarter B&O exemption for some businesses.
Revenue from the 1 percent municipal sales tax is projected to increase from $5,902,845 to $5,950,000.
"Sales tax receipts have been pretty robust really, even through the pandemic," Joyce said.
Finance Director Eric Jiles described the estimate as "still conservative," so even if there is a decrease from this year, adjustments won't necessarily have to be made.
The $2.50-a-week user fee is projected to bring in $2 million, with the user fee fund budgeted to provide $650,000 each to the Fire and Police departments, plus $1.5 million for street repairs.
The fund is projected to have a nearly $2.7 million balance after the $1.3 million public safety transfers weren't needed the last two fiscal years because of federal C.A.R.E.S. Act reimbursements.
But the future of that revenue is in doubt because of legislation in Charleston that could prohibit cities from collecting such fees.
A 2 percent cost-of-living raise for city employees, excluding elected officials, will cost an additional $216,203, Joyce said.
The budget is being balanced with a $653,472 transfer in from the stabilization fund, which stands at approximately $8.5 million, thanks in large part to C.A.R.E.S. Act reimbursements.
Joyce said the transfer was recommended instead of making cuts because "(we) really didn't want to take a step back on a lot of the infrastructure stuff," such as street repairs, stormwater improvements and the floodwall.
That said, the approximately $600,000 budgeted for stormwater in the proposed budget is about $95,000 less than the 2020-21 budget.
"You don't solve a, what, $250 million problem with one budget, but you certainly don't want to get any further behind than we are," Joyce said.
The budget includes $300,000 for blighted property demolitions, with $150,000 of that allocated to the Urban Renewal Authority to use toward acquisition of properties through eminent domain.
The capital reserve budget includes $220,000 to purchase an end loader, $200,000 for four new police cruisers and the required equipment, $175,000 for a backhoe to replace a 1995 model and $170,000 to replace the north elevator and related equipment at the Municipal Building.
The budget includes $125,000 set aside for a new fire engine. The city is purchasing a new one this year with $500,000 saved over two fiscal years and supplemented with carryover funds, Jiles said.
"This practice has proven beneficial to us as far as knowing we're going to have to buy a new fire truck eventually, so why not start saving for it now," Joyce said during Tuesday's council meeting.
The budget proposes purchasing a packer truck for $180,000. It's the fourth time in the last five years the city will purchase a new sanitation truck.
"They get used five days a week. They have a lot of issues with rust," Joyce said.
Evan Bevins can be reached at ebevins@newsandsentinel.com.
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* The proposed 2021-22 Parkersburg budget can be viewed online at http://parkersburgcity.com/pc/services-2/finance/finance-reports/
* People can review a copy of the budget or purchase one at the Municipal Building. Masks or face coverings are required, and social distancing measures are to be observed.