Council approves $525K for nonprofit assistance
Mayor presents budget; hearings to start March 10
Parkersburg Finance Director Eric Jiles, right, hands a copy of the proposed 2022-23 municipal budget to Councilman Mike Reynolds, who will chair the budget hearings, during Tuesday’s council meeting. (Photo by Evan Bevins)
Parkersburg Area Community Foundation Executive Director Judy Sjostedt Ritchie answered questions about the organization’s proposed administration, with the Bernard McDonough Foundation, of half a million dollars in American Rescue Plan Act funding during Tuesday’s Parkersburg City Council meeting. (Photo by Evan Bevins)
Parkersburg Mayor Tom Joyce discusses the proposed 2022-23 municipal budget during Tuesday’s City Council meeting. (Photo by Evan Bevins)
Members of the Parkersburg South High School state champion boys swim team, and girls team members who competed in the state meet, receive a standing ovation during Tuesday’s Parkersburg City Council meeting. (Photo by Evan Bevins)
Parkersburg Finance Director Eric Jiles, right, hands a copy of the proposed 2022-23 municipal budget to Councilman Mike Reynolds, who will chair the budget hearings, during Tuesday’s council meeting. (Photo by Evan Bevins)
Parkersburg Area Community Foundation Executive Director Judy Sjostedt Ritchie answered questions about the organization’s proposed administration, with the Bernard McDonough Foundation, of half a million dollars in American Rescue Plan Act funding during Tuesday’s Parkersburg City Council meeting. (Photo by Evan Bevins)
Parkersburg Mayor Tom Joyce discusses the proposed 2022-23 municipal budget during Tuesday’s City Council meeting. (Photo by Evan Bevins)
Members of the Parkersburg South High School state champion boys swim team, and girls team members who competed in the state meet, receive a standing ovation during Tuesday’s Parkersburg City Council meeting. (Photo by Evan Bevins)
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PARKERSBURG -- Parkersburg City Council voted Tuesday to allocate $525,000 to a pair of foundations to distribute money to assist nonprofits impacted by the COVID-19 pandemic.
Mayor Tom Joyce presented the proposed fiscal 2022-23 budget, for which hearings are slated to begin at 6 p.m. Thursday, March 10.
The resolution for the nonprofit assistance passed 7-1, with Councilman J.R. Carpenter opposed and Councilwoman Jesse Cottrille absent.
Joyce proposed having the Parkersburg Area Community Foundation and Bernard McDonough Foundation administer the funds from the federal American Rescue Plan Act because of their combined 120 years of experience managing and distributing funds to entities that serve the community.
"This is a one-time deal for us, whereas these folks do it professionally," he said.
Parkersburg resident Sherry Dugan asked multiple questions about the resolution during the public forum, and the issues she raised were echoed by Carpenter and Councilwoman Wendy Tuck before the votes.
In response to a question about an administrative fee, Council President Zach Stanley said $25,000 was going to the Community Foundation for administration. PACF Executive Director Judy Sjostedt Ritchie said that's half of the 10 percent fee they normally charge to manage a pass-through grant.
"Because this is not a permanent charitable fund, we can't expect our private donor funds to be able to subsidize the activities related to it," Ritchie said. "We too exist in this city. We too are a 501(c)3 nonprofit. And so it's helping us through this COVID period as well."
Carpenter asked how the amount was determined.
Joyce said he's been receiving inquiries from nonprofits for months about ARPA funds, for which nonprofits affected by the pandemic are an acceptable use. Allocating $525,000 leaves nearly $2.9 million in the first disbursement to the city for other uses, such as stormwater improvements, he said.
"We never had a committee meeting to discuss this, and we are the stewards of this money," Carpenter said.
Carpenter made a motion to send the resolution to the Finance Committee, but it failed 4-4, with Carpenter, Tuck and Councilmen Mike Reynolds and Chris Rexroad voting for it.
Joyce presented council with a 2022-23 budget that includes a business and occupation tax exemption of $200 per quarter for all filers. If approved by council, it would replace a $500-a-quarter exemption for restaurants and retail establishments, service businesses and those renting or leasing real property that has been offered for the last nine quarters as relief from the effects of the pandemic.
The new exemption would reduce projected B&O revenue by more than $480,000 compared to this year and almost $1 million from the previous year. Joyce noted this is partially offset by rising sales tax revenue, but added that tax "was never intended to be a wholesale replacement for B&O."
Lawmakers in Charleston continue to discuss reducing or eliminating the B&O tax, Joyce said, and cities must be prepared.
"That is not something that's going away," he said. "Cities across West Virginia are going to have to take steps to reduce B&O even further."
The budget includes a proposed 3.2 percent across the board pay increase, as well as longevity pay incentives for civilian employees, similar to the 50-cents-an-hour bumps approved last year for police and firefighters who have served 10, 15 and 20 years.
Joyce said these increases were made possible in part because of progress the city's made on its police and fire pension obligations since closing the existing funds to new hires and changing its payment method in 2017.
"We have started to see some of those gains," he said. "I did not, quite frankly, think that we would see those gains as quickly as we did."