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CITY OF WEIRTON SPECIAL COUNCIL MEETING MARCH 18, 2005 MINUTES ATTENDANCE Councilman DeMasis, Councilman Miller, Councilman Moore, Councilman Dorich (Conference call) Councilman Dalrymple, Councilman Veltri, and Councilman Kondik COMMENTS Mayor Miller commented that there was a special meeting on 17 March, with members of the staff, which included himself, John Yeager, Gary DuFour, Brae Bryant, and Rod Rosnick. The Mayor turned it over to Mr. DuFour to comment on the situation saying that, at the top of Overbrook, off of Cove Road, the last house, that is 3103; there is some hillside slippage from above. From what they can tell so far, from the monitoring of the hillside, it does not pose a threat to 11th Street, although it does to one home. The City Code Department has instructed the residence to move from that house. The situation is still being monitored, and they are using surveyors to monitor movement of structures and soil. The City is working with residence in that area and looking potentially at what the City may have to do, in addressing this problem. At this point they are continuing to monitor and work with those residents and keeping them advised. Again, it does not pose a threat to 11th Street, at this point, but it is early in the evolution of this, and we will see what more of our monitoring and studies show. There were no more questions or comments. NEW BUSINESS 1. Resolution Readopting 2005-06 Fiscal Year General Fund and Coal Severance Budgets with Changes in Levy Rates. It was moved by Councilman Moore and second by Councilman DeMasis to accept the changes. Mayor Miller asked if there were any questions on the vote? Councilman Miller asked Valerie Means, Financial Director, to go through each item and explain each one, so that it will be correct to the public. Unencumbered Balance - This is the balance that is left over from the prior fiscal year on anything that were in the budget, for a timing situation, and they were not completed and have to carry over to the new fiscal year. There are dollars that are set aside for contingencies and for unexpected situations that might occur; they get carried over to the next fiscal year. Ad Valorem Tax, A.V. Prior Year, Supplemental Tax, and Tax Penalty & Interest - Ad Valorem and the next three categories are property taxes; all categories of property taxes. Those dollars are specifically allocated and calculated from the county and sent down, and this is our portion of the property taxes that citizens pay. That is the General Funds portion. Gas & Oil - This is a Severance Tax that is allocated from the State and sent up to the City. Excise Utilities Tax - This is the Excise Tax on such things as water, sewer, phone, gas and electric. Business & Occupation Tax - This is an occupation tax on the categories that we currently have, which are utilities, gas, electric, banks, financial institutions, and the new one, which is manufacturing operations. Wine & Liquor Tax - These are State taxes, collected by the State, through the State, and sent to the City. These are sent by the companies to the State and sent back to the City. Hotel Occupancy Tax - This is a newer tax, maybe 3 (three) fiscal years, that was accessed on hotel occupancy within the City, and that is a tax in a very specific, by Ordinance, have to be fixed. It stands for a specific purpose, and right off the bat, half of it has to go to the Local Visitor's Bureau and the other half has to be spent on specific items some of which are Recreation, Parks… Insurance Premium (Volunteer Division) - This is money given to us from the State for your volunteer division of the Fire Department. This money goes specifically to that department. Fines, Fees and Court Costs - These are dollars collected through the City's court processes on any fines or judgments that are held. Again, this is just our portion of this. The County and the State also get a portion of that. Licenses - Are the business licenses. Building Permits - Building Permits have to go through the process in the City. IRP Fees (International Reg. Plan) - These are International Regulation Plan Fees, and these are a type of Ad Valorem that are accessed against trucks. Again, this is an amount collected through the State and sent up to the City. Private Liquor Clubs - This is a State tax, collected through the State and sent to the City. Municipal Service Fee - This is the second year for the $2 a week fee. These dollars are chosen by Council and set aside specifically for Capital projects; most specifically, street paving. Refuse Collection Fees - This is garbage fees and goes directly to the Sanitation Department, and cannot be used for General Revenues. It must go directly to that department and used for those purposes. Police & Fire Service Fee - This is the fee collected from anyone who owns property located within the City limits. These fees go directly to the Police and Fire Departments. They are not for general use. Councilman Dalrymple commented that this fee does not come close to covering what those departments need. Val responded that it is not even half of what is needed by both departments. Val commented on the amounts forecasted for each department, and this fee covers about half of those expenses. Federal Grants - At this point in time, is just Transit. Grants change throughout the year, and we are early in a new budget. The City is not aware of all the grants that we might get from the State, Federal, etc. The more grants we get the better is for the City. Other Grants (fire video lottery, Hancock) Other Grants (fire levy, Brooke) - These are both a type of grant. Both are specific Fire Department money from Hancock and Brooke Counties. Charges to Other - This is basically the General Fund doing a lot of work for other antonymous boards in the City; most pronounced would be Water and Sewer. The Accounting and Finance Departments do a lot of work for them. They are an antonymous board and we charge them for that work. Interest - This is a projection on interest earned on our checking or investment account. Reimbursements - These are amounts that, most specifically, Community Development Block Grant Fund. Reimbursed is the general fund for salaries that are paid to some employees who work on the Community Development Block Grant Project. Those hours are tracked and that reimbursement comes back to the General Fund from that specific fund. It is a small reimbursement of some of those salaries, for those employees. Reimbursements (FTHB) Program - This Grant is a program to help people start out with first time home purchase. Those dollars come right through the General Fund right back out to the individuals. Sale of Fixed Assets - This is a projection. If we have an auction, through the sale of an older vehicle, this is just a projection of what we may get from that sale. Insurance Claims - This is a projection based on prior years claims. As in an insurance claim, if a vehicle was damaged we may get some of that money back. Video Lottery - This is the portion that the City gets from all the Video Lottery establishments in the City of Weirton. Miscellaneous Revenue - Anything that doesn't fit anywhere else goes into this category.. Mayor Miller commented that in the fiscal year of 2004-05, there was $1,300,000, in the budget. We have no bearing for our General Funds to anyway operations of the City. This is pass through money. We are building that situation down to 2005-06, and we thank the Police Department and the Fire Department for submitting a branch in that, because it helps offset the costs to the City. The Mayor is commenting on this because of the criticism that has come through the press on what the City has done. So he asks them (the press and critics) to take a look at the line items and see what the general operating funds that we have to use. He asks them to understand what is in the budget so that the general public could be made aware of what we have. If you take the LVL, which Councilman Dalrymple said it is a joke, $190,000 that comes in because it does not even cover the lighting bill of this City, which is $252,000. With that in mind, get your facts together. Valerie commented that if anyone ever has any questions, please call her office. She will be happy to sit down with anyone. Mayor Miller asked if there were any more questions or comments on Item 1? Valerie read a comment out of the State Code to explain why the budget is being changed a little bit. West Virginia Code 11860 requires that County Commissioners and Municipalities do a reduced rollback levy rate for property tax purposes when an annual appraisal or general evaluation of property would cause an increase in projected property tax revenue for regular current expense levies to be more than 1%. The reduced levy rate is no more than 101% of the previous years projected tax revenue, plus the amount of the percentage to fund the on going work of the Assessor. In other words the Assessor gets a small percentage of that for the work that they do Once rates are reduced they cannot be increased without a Public Hearing being conducted. Our maximum rates right now for authorized by the code for Municipalities are for Class 1 properties 12.5 cents, Class 2 properties 25 cents, and Class 4 properties 50 cents. Class 1 is basically farm properties, Class 2 is residential, and Class 4 is commercial properties. She was proud of the fact that they had passed the budget by March 7th, and ready to sent it to the State. Because the State does the rollback calculations, when she received it back from them, it showed a rollback in the rates. She called the State and found that they were calculating the rates differently for the last nine years. It never made a different in the past, but this year it showed up, because we did have an increase in property evaluations for both Hancock and Brooke Counties this year. It is also a more pronounce increase this year, because of the fact that last year it was such a drop. If you remember how we had to cut the budget last year by $260,000, so because you compare that 1%, you can't gain more than 1% from the previous to the next year. So, the drop we had last year and the increase that we had this year, it resulted into this rollback calculation. She isn't going to get into all of it. But basically what happens is, you take your assessed values, right off the assessment from the county, throw it into the formula and if that number comes back any lower than that 12.5 cents, 25 cents, or 50cents that is demanding that you rollback the levy rates, in other words, your cutting property tax for your city. The difference is that she would combine those counties, by doing a combined calculation. The State calculates each county separately, do the calculations, and then combine them. It was a minuscule amount that we were off, but there calculations resulted in a rollback. The third page shows the actual laying of the levy rate. In the first category instead of 12.5 for Class 1, which is the maximum rate, you have a rollback of 12.4. It's a small amount but it made a difference to the State, and of course it makes a difference to the property owners, because 25 cents for Class 2 went to 24.9 cents, and Class 4 went from 50 cents to 49.8 cents. So all of it resulted in a reduction of $7,591. It wasn't detrimental to the budget but then she reduced the second line item, the Ad Valorem tax and reduced the contingency. She did a calculation that morning and it is a reduction of 10 cents for every $10,000 of appraised real personal property for residents and 20 cents for every $10,000 for appraised commercial property. These are the rates that are going to be laid to coincide with the budget. We then have an advertising period now advertising the budget, and then we come back on the first Tuesday of April, by Law, it has to be on that day, we come back in a special meeting and set the levy rate. The rate will show up in their billing, not next year, but the year after. 2. Resolution to Enter Into Contract for Repairs to Thompson Hill Road Utilizing FEMA Funds. Mayor Miller gave the floor to Mr. DuFour, and explained that this may have to wait as there have been some changes made. Mr. DuFour asks that they not consider this resolution to award contract for Thompson Hill at this special meeting. The City had submitted the results of the bidding, which opened on 14th March, and the lowest one was $187, 025. FEMA has given the City $79,000 to do this entire project. We are asking the State Office of Emergency Services to amend and give us additional dollars and have asked FEMA to do the same, to help meet the cost of this project. We have set a date and asked them to respond to it by 4th April, so that at the next regular Council meeting we could act upon this and make an award of the bid. He is well aware that they need to do this work regardless, but in order to see if we can get those additional dollars from FEMA and the State, it is worth the wait. Mayor Miller asked if there were any comments? Valerie had a comment because it is relevant to what is happening in conversations with the budget. There will be a budget revision coming around in April or May, which is again going to increase the budget, but we have to show that there is FEMA flood dollars. The community needs to look at this as a positive thing. If we are receiving grants that is a positive, because that means the grants will help support what is happening, instead of having to go back to the citizens and raise taxes or do something like that. We will be able to do some of the repairs with those grant dollars. We will have to amend the budget to add those grants. Mr. DuFour commented to Valerie that the budget had not actually grown over the past two years, but reduced, has it not? Meaning the operating costs have reduced? Valerie said that it had reduced, as we have lost employees and we have made reductions. Mayor Miller commented that over the past two years, the City lost 28 employees, knocking out $1.4M out of the budget, and we are bring dollars in through the $2 user fee, and that is going strictly for roads. This is what the mandate was for and that it where it should go, so that the citizens can see some improvements. They need to know what dollars we have to operate under the general fund for the betterment of the City, verses the pass through money. He calls the money hard dollars and soft dollars. The soft dollars just keeps going through the system and we don't see it work; we control it, but it has to be included in the budget. Mayor asked if there were any more comments? There were not. It was moved by Councilman Moore and second by Councilman Dalrymple to adjourn, and it was unanimous. Prayer ADJOURMENT
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