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Budget amendment good news, bad news for Morgantown tax collections

MORGANTOWN — A recent budget amendment passed by Morgantown City Council is a good news, bad news situation.

The good news — the amendment reflects a net general fund increase of $428,000 for the current fiscal year, bolstered by increases in regular B&O collections ($500,000)  and B&O construction collections ($275,000) for the first three quarters of the current fiscal year, FY 2020.

The bad news — the city was projecting an increase between $700,000 and $800,000 for the 2020 fiscal year — which ends June 30. It won’t be until this final quarter is tallied that the impacts of the COVID-19 business lockdown will be fully understood.

“The city was having a strong tax collection year going before COVID-19 shut down businesses in Morgantown and WVU,” Communications Manager Andrew Stacy said, adding “The June 30th quarterly collections in July and August is when the city will see the significant decline in revenues.”

B&O construction taxes were relatively unfazed and  should remain strong as construction was deemed essential, meaning large projects like the WVU Medicine Children’s Hopital, Reynolds Hall, Hodges Hall and others were able to continue.

The amendment also took into account reductions including anticipated court costs, fines and fees ($100,000), user fees ($100,000) and federal grants ($95,000), among others.

Lastly, Interim City Manager Emily Muzzarelli said two city council members, four department heads and seven staff level employees will save the city about $10,000 in this fiscal year by taking voluntary reductions in pay or hours. This program was put forward by the city in an effort to avoid layoffs due to the financial impacts of COVID-19.

In other city news, a project to build a sidewalk along Eighth Street between University and Beechurst avenues will likely get underway in the coming months.

The project will be funded by the Sunnyside TIF. City Engineer Damien Davis said the project will likely cost at least $250,000.

“The road is 26-27 feet wide with no parking, except for six spots down in the Grant Avenue area. So we’re removing those parking spaces and narrowing Eighth Street to 22 feet. So it’ll be two, 11-foot lanes, which is plenty for the traffic going up there.”

The city project will commence once Dominion Hope replaces a gas line running through the area.

Lastly, during it’s most regular session, Morgantown City Council heard two proclamations, one recognizing June as Pride Month and one recognizing the service of longtime BOPARC member Edward Cordwell. Cordwell joined the board on July 1, 1985. He died on April 27.

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