A budget deficit has Alderson Mayor Travis Copenhaver asking Town Council for something he’s “not comfortable asking for.”
During the flood of 2016, the Federal Emergency Management Agency distributed funds to the town to assist in repairs and hazard mitigation. As of 2021, the town still has approximately $200,000 worth of these funds in the bank.
“We’ve been trying to give it back,” Copenhaver explained. “There’s been about seven personnel that are no longer in their positions [at FEMA]. We’re waiting on a close out from FEMA themselves. It’s closing out the project. We’ve had audit issues over this money. The FDIC only insures about $100,000, there’s double that in the bank that’s not insured.”
In order to combat the $110,000 budget deficit created by “unexpected” employee changes, changes to taxing powers by the West Virginia Legislature, and a number of repairs to town systems, Copenhaver asked Town Council to authorize the transfer of $70,000 of these funds to get the town through the shortfall.
“We have not asked to tap these funds but I’m asking you to tap these funds now because of the situation we’re at. You’ll remember that we stopped employee contributions to their retirement, there is absolutely no spending. … We’ve been sitting on accounts payable for two months – we’ve only paid for chemicals for the water plant. This is no secret to you all. … To get us through that I’m asking you to transfer $70,000, that we will pay back. … It is relative to the black hole that I’ve discussed now since April. Right now we are at a deficit. We have been sitting on funds we’ve been trying to give back. … I’m asking for it in the form of a resolution to give me authorization to take that from funds that are due to be paid back from the 2016 flood. We don’t have a line of credit, I can’t go and get a loan, and I’m asking for your permission to transfer those funds until we can get through this financial crisis.
Councilmember Charlie Lobban inquired if Copenhaver has consulted with the town’s legal counsel over the transfer.
Copenhaver responded “you and I both know that we have to put the money back, it’s not a grant. … About eight years ago there was FEMA money that was transferred from an account like this that was used to do upgrades and paving, some of the most paving we’ve ever done. That money was in different types of projects. I’ll tell you now, I’m not comfortable asking for it, but we’re at a point right now where I have no other options. Short of services that we provide not being provided, and things that we do that we could function without.”
The request was unanimously approved by Town Council.
“I will promise you that as soon, and it will be percentages we pay back month,” Copenhaver said. “I want it paid back as quickly as you all do. I appreciate it. I’m sorry that we’re in this spot, but that’s business.”
In order to pay the funds back into the account, Copenhaver pointed to the Business and Occupation Tax previously passed by council. However, the council also took action on this tax.
“I hope that business owners in the group are happy but we’re going to decrease the B&O tax from one percent to half a percent,” Copenhaver said. “It will also take the wholesale tax down to 0.15 percent from where it’s been. … The amendment is effective as of [its passage]. It is decreasing revenue, so it only takes one read and you all think I’m nuts because I just told you how tight the revenue is but we have to decrease revenue.”
The decrease comes as a result of the town’s application for Homerule status, a program that would enable the passage of a sales tax rather than a B&O tax. The difference between the two comes down to a result from local business owners in a previous Town Council meeting – sales tax is paid by customers directly on sales, where a B&O tax is calculated on gross expenditures rather than profits alone.
Specifically, the application requests four authorities for the town:
– “on the spot” code enforcement citations
– the removal of party membership requirements from local parties for election boards
– disposition of equipment or property without public auction
– a 1 percent sales tax and corresponding B&O tax reduction
Copenhaver highlighted that if the town is “approved under Homerule status, there will be no tax on wholesale or retail through the B&O tax. It will be a one percent consumer sales tax. … If the Homerule board does not grant our status, it will remain in effect.”
Until the Homerule status is approved, the town cannot implement a sales tax – this is the primary reason the B&O tax remains in place. If the application is approved, the sales tax could be implemented as soon as July 1, 2022.
The first reading of an ordinance approving the town’s application for Homerule status was approved unanimously by council, the first step towards implementing a sales tax rather than a B&O tax.
Copenhaver thanked the many volunteers who helped get the application in order, explaining that writing the application “has been a chore.”
In other business:
– Angela McGill and Justin Palmer were approved to serve on the Alderson Planning Commission. McGill was also sworn in, with Copenhaver thanking her for her willingness to volunteer to help the town.
McGill is sworn in:
– Council approved the purchase of new pumps for the town’s sanitation system. Over the past few years, the system’s pumps have been clogged by grease, wipes, needles, and more flushed down the toilet. Multiple repair and replacement projects have cost the town thousands – Copenhaver explained the town “spent enough to buy a couple of pumps” in repairs. The new pumps would be the equivalent “of a garbage disposal,” allowing the system to better process the waste. Although the project is costly, totalling around $54,000, to replace the four pumps, leftover funds from building the treatment plant that would have been returned to the West Virginia Infrastructure and Jobs Development Council were approved for the purchase.
– The July Alderson Police Department reported 12 written warnings, 12 charges from written warnings, 14 citations, 20 charges from citations, three property ordinance violation cases, 10 building checks, 22 arrests made, 35 misdemeanor charges, one felony charge, two DUI arrests, six drug arrests, 140 calls for service, four motor vehicle accidents, and eight highway safety program hours.
– Council tabled an action on care for the Little League park field. According to discussion, the Little League could take over mowing for the field in exchange for a fee waiver. However, action was tabled after questions around other daily field duties, such as locking and unlocking the restrooms, were unclear. Council plans to take the issue up again at the next meeting, once an itemized list of duties for the Little League was clear.
– Action on 204 Monroe Street South was tabled pending the Homerule application. The building next to town hall, currently owned by the city, has not been cared for, resulting in a dilapidated structure council slated for destruction in 2020. However Joe Alderson expressed an interest in saving the building and has been working towards it throughout COVID-19. Should the council’s application for Homerule be approved, Alderson could directly buy the building for fair market value. Council approved delaying any sale or demolition of the building until after the town was granted or denied Homerule status.
Alderson Town Council regularly meets on the second Thursday of each month in City Hall.
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