MORGANTOWN — City of Morgantown Finance Director Kevin Tennant had some good news for city council during its most recent regular session.
About $1.1 million worth of good news to be specific.
Tennant explained the finance department has been doing some spring cleaning, tidying up budget numbers heading into the June 30 end of the fiscal year.
“We did a very thorough review of all revenue and expense accounts, projected out our revenues just to see where we were and adjusted some of those accordingly — some up, some down,” he said.
Most notably of those adjustments is an $845,159 increase to projected business and occupation tax collections.
The majority of that amount, $716,000, comes by way of B&O construction taxes, which are generated by construction projects of more than $5 million, and used by the city to fund its own one-time capital improvement expenditures.
“That will be transferred to capital escrow and can be used next year for projects, contingency or grant matches if necessary,” Tennant said. “That was one that I was really pleased with that we had underestimated this year.”
The budget amendment also bumps hotel occupancy taxes up by $108,000 to just over $1 million for the fiscal year.
Half of those funds go to Visit Mountaineer Country Convention and Visitors Bureau. BOPARC and the city’s general fund split the other half.
Further, Tennant said the amount of money coming into the city through coal severance taxes has once again exceeded expectations.
The city has received just over $30,000 per quarter in the current fiscal year.
This additional tax on coal is collected by the state and transferred into a special fund within the state treasurer’s office. Seventy-five percent of the net proceeds is distributed to coal-producing counties. The remaining 25% is distributed to all counties and municipalities of the state based on population.
“I’ve expected it to decrease over the last couple years, so I have been surprised. In 2021 I believe we averaged a little over $15,000. Last year it was a little over $20,000 per quarter and this year, like I said, it’s been over $30,000,” Tennant said, explaining he still expects that number will eventually decline.
“Long-term, yes, I can see it reducing, but the last few years, we’ll take it.”
All coal severance dollars received by the city go to BOPARC.
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