Assignment 5

033011-LAH-Assignment 5
Laura Hatfield
03-30-2011
Mayor Kim Wolfe projects a slight increase in city revenue for the 2012 fiscal year.
The proposed increase is a $379,498 from last year making a one percent increase to the budget. In the State of the City Address, Wolfe said there would be no increase in revenue but then the occupational tax proposal went before the State Home Rule Committee in March which was a one percent change from the 2011 budget.
In order to ensure the city has a million dollar reserve, the city is projecting a $440,000 balance increase.
“The action of adhering to a balanced budget and maintaining consistent reserves is critical to the maintenance of the rating,” Wolfe said.
Although there were several big sources of funding the most funding came from B & O Taxes, Municipal Service Fees, property tax, utility service fees and utility taxes among others.
The expenses for the sources seemed to be flat this year, meaning there wasn’t a big change from the proposed 2011 budget.
The proposed budget for property taxes stayed the same as the proposed budget for 2011, but when the adopted budget came out for 2012, the budget has decreased by $34,778.
The Business & Occupation Tax went up this year by $250,000 is this year’s proposal. The adoption kept the proposed budget making it a 1.5 percent increase from last year.
The proposed budgets for the Utility Tax, City Service Fee and Municipal Service Fees were all adopted. The Utility Tax made a one percent increase from last year. Both the City Service Fee and the Municipal Service Fees made a $50,000 increase also making a one percent increase.
The money in the budget goes to many different businesses in the Huntington area, but the majority of the money goes to the Police Department, Fire Department, insurance programs, streets and grants. Almost 50 percent of the funds are going to the police and fire departments alone.
Wolfe had already proposed a $93,172 decrease from last year but in the adopted budget it was decreased an extra $72,223 making a 1.5% decrease overall.
During the State of the City Address, Mayor Wolfe said despite the hard year financially Huntington had a very successful year. The Police Department had an overall crime reduction for the 3rd year in a row. The Criminal Investigation bureau recovered over $763,000 in stolen property and the department gained over $3.2 million in grant money. The open air drug market that existed on Ninth Ave. and 19th St. has been closed as a result of the Drug Market Intervention program. Since the implementation of the Weed and Seed Program there has been 19 percent increase that feel safe at night.
Wolfe proposed a $90,281 decrease but in the adopted budget the Fire Department was given a $100,281 making a one percent decrease overall. Wolfe said despite the decrease in staff, the fire department had a 13 percent increase in the number of calls responded to for the year.
Money for streets and grants also made a slight decrease. In the 2011 proposed budget streets were given $1,582,240 but this year they only proposed and granted $1,571,954. Grants took a little more of a steep decrease going from $2,617,518 to a total of $200,000. Money for streets goes toward concrete, asphalt, salt, fuel and other supplies to help repair roads. The funds also include paying staff, and necessities such as telephone, utilities, training and others to help keep the offices open. The money for grants helps fund almost all state grants in West Virginia.
Despite the decreases in the top expenditures, insurance programs made a one percent increase going from $7,928,244 in 2011 to 8,045,474 for this fiscal year. Wolfe had originally proposed $8,073,989 but it was adopted for $28,515 less. Money for Insurance Programs includes toward medical claims, prescription claims, unemployment, workers comp and others.
The budget also involves eight layoffs in the city overall. Wolfe said there would be a number of different cuts across all departments but the personnel cuts will affect Finance, Mayor’s Office, Public Works, civilian staff at the Police Department and continued vacancies in the Fire Department. Workforce salaries were reduced by 10 percent since July 2010, a police and fire pension reform occurred in 2009 holidays have been reduced by three in the past three years and health insurance changed for city employees in July 2008.
“And yet with all that we have done and all the cuts that we have made, it has not been enough for us to weather this economic storm, Wolfe said. “We must cut more and ask for even more from our employees and our citizens.”



033011-LAH-Assignment 5
Sidebar
Laura Hatfield
03-30-2011

During the Huntington City budget meeting, March 10, the Fire Department’s budget seemed to be the topic of interest.

The meeting was the last of four sessions to prepare the city's 2011-2012 budget.
Fire Chief, Craig Moore said he found $90,000 that could be pulled from the fire department budget. The city council members voted unanimously to remove the $90,000 from the budget.

The vote came after a motion to move $150,000 but was defeated in a 6-3 vote. Deliberation and discussion about the fire department's budget lasted almost an hour.

Moore said the fire department's retiree payouts were budgeted for $250,000, but once they looked again it only came out to be $190,000. The other $30,000 in savings were due to vacant positions. This year there will be three vacant positions.

The Department has $22,000 is overtime, one-seventh of the budget is dedicated to maintenance in staffing for unscheduled overtime.

Moore suggested the fire department use employees already who were already working to fill in for employees that call off where as right now they call in employees whom were off that day.

Council member, Scott Caserta disagreed with Moore. “When you start pulling your safety officers and your fire marshals to cover overtime, then you take that safety officer and fire marshal out of service," Caserta said. "So you're putting your residents at risk and you're also putting your firemen and the service you provide at risk."

After almost an hour of debate the council voted unanimously to remove the $90,000 from the budget and put it in the street paving budget.

Now that the budget has been adopted, the fire department budget has decreased by one percent since 2009. In 2009 the fire department had a $10,396,405 budget, in 2010 it had an actual budget of $5,552,315 and the estimated budget for 2011 until June 30 is $10,372,117.

Money in the budget helps pay for salaries, workers comp, pension funds, insurance, office materials, and materials for the workers to protect and help supply workers when on the job.


033011-LAH-Assignment 5
Laura Hatfield
03-30-2011

*-Other includes fire fees, alarm fees, court costs, franchise fees, etc.
Source: City of Huntington proposed budget




*-Other includes mayor, city clerk, finance, engineering, planning, etc.
Source: City of Huntington proposed budget


2012 Adopted Huntington City Budget
Revenue Sources Percentage
B & O Tax 38.75%
Other 19.70%
Municipal Service Fee 14%
City Service Fee 11%
Property Tax 10.90%
Utility Tax 5.40%

Adopted 2012 Huntington City Budget
Expendetures Percentage
Police 25.9
Fire 24.4
Other 21.5
Insuarance Programs 19.1
Grants 4.7
Streets 3.7

Fire and Police Depeartment Expenditures 2009-2012
2009 actual 2010 actual 2011 est. thru 6/30/11 2012 proposed difference from 2011-2012 percent difference
Fire 10,396,405 5,552,315 10,372,117 10,272,836 99,281 decrease 0.95% decrease

Police 10,839,725 5,924,378 11,070,353 10,977,181 93,172 decrease 0.84% decrease



Changes in the 2012 Huntington City Budget
Proposed Adopted
Police 10,977,181 10,904,958
Fire 10,362,836 10,272,836
Insurance Programs 8,073,989 8,045,474