The new sales tax, material price increases in the town’s water project, and more were considered by the Alderson Town Council on Thursday, November 11.
Approving a sales tax in Alderson has taken months due to the restrictions on the state level, but the task is done.
The tax was first considered as the town debated a business and occupation tax over the past year, looking to make up a budget shortfall. After several business owners objected to a tax that affects their gross income, rather than their profit alone, the sales tax looked a better way to fill the budget hole.
First, the council had to apply for Home Rule status with the West Virginia Home Rule Board, a prerequisite for implementing the one percent sales tax. The application was approved in October, allowing the council to move forward and approve the tax changes.
After the second reading and a public hearing with no speakers, the tax was approved.
“Now, for passing the municipal sales tax, we are required to reduce our B&O in some form or fashion,” explained Mayor Travis Copenhaver. “That having been said, our Homerule status application said that we would reduce the wholesaler rate to four percent and the retailer 0.5 percent … to 0, effective July 1, 2022.
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Copenhaver also provided an update to work on the town’s water system.
“When we worked on this December 3, 2020, the funding [for the project was set at] $2 million in a CDBG grant, IJDC funds at $875,000, soft cost grants were $125,000, and then we got a loan for four years [totaling] $3.6 million. The project was then $6.6 million. The project now is $8.3 million.”
Earlier in the meeting, Copenhaver noted that the cost of “material and equipment has more than quadrupled,” a similar problem projects all over Greenbrier County are currently facing.
In the $8.3 million awarded by Governor Jim Justice in hazard mitigation funds to relocate the water plant out of the flood zone, the project also “provides for us to have an emergency water source on the Muddy Creek that takes us completely off the Greenbrier in times of disaster. That’s in that project.”
However, in looking for additional funds, Copenhaver was met with a request.
Copenhaver explained. “I went to Summers County Commission meeting this week, and asked them to partner with the town for some mitigation funding … so that we can have an emergency interconnected [water system, giving] Big Ben an alternative water source,” Copenhaver said. “The project for interconnectability to Big Ben would be part of the lines project that is now $8.3 million estimated.”
Copenhaver hopes county commissions might be able to provide the municipality relief.
“I’ve asked Thrasher to give us the legs of the project [and they] were able to come back with the costs for the Greenbrier, Monroe and Summers portion. The Summers Commission agreed to look at the Big Ben issue first because it is an emergency issue for connectability for mitigation, but they also agreed they would do their part to try to obtain grant funding to help with what extends into Summers County. … I was pretty pleased with their response. I’ll be asking the same from the Monroe commission and Greenbrier commission as well.”
In other business:
– An annual year end incentive of $500 for each city employee was approved. The 3 to 2 vote preceded a request for a further consideration from Councilmember Charlie Lobban, who said “I’m not against giving a bonus at all, but two months ago we were $75,000 in the hole. I’ve got a few questions I didn’t want to find out the answer to, but I should already know I guess.” Copenhaver responded Lobban was “welcome to come in and found during the week, and we’ll sit down.”
– The council approved “previously identified use of the American Rescue Plan Act (ARPA) funds for infrastructure projects … that we could not afford [and] we previously found were major issues,” Copenhaver said. “Lee Street and Spring Street are two areas that are the first focus. The resolution that you have authorizes me the authority to allocate funds from the ARPA funds … to mitigate found issues. … I, every month at the council meetings, will provide counsel with the amount spent on projects in progress, documentation for project costs will be tracked in accordance with our current process for review. We, as of today, for Spring Street are at about $21,000 in that project.”
– An extensive discussion around the annual Christmas Parade was held with members of the audience, council, and Copenhaver. After more decisions about parade specifics are made, a press release outlining the schedule is expected.
