TERRA ALTA — The budget crisis in Terra Alta has deepened following a notice from the West Virginia State Auditor’s Office stating the town will not have its levy rates approved for the upcoming fiscal year due to non-compliance with state law.
According to a statement from the West Virginia State Auditor’s Office, Terra Alta is ineligible to propose levy rates because it failed to meet requirements outlined in state code that mandate that all municipalities adopt levy rates on the third Tuesday in April.
The town failed to pass its annual budget and proposed levy rates, which had to be submitted at the end of March to the auditor’s office for approval. The opportunity to file for an extension also was missed. The matters apparently were not even considered until the auditor’s office contacted the town in May.
Interim Mayor James “Monk” Tasker said the only official communication he has received from the state so far confirms the town will not receive funds from levy rates.
The state ”just said we weren’t going to receive our funds,” Tasker said. “I haven’t heard anything else yet.”
Tasker was appointed by the town council after former mayor Dan Hauger stepped down along with the recorder, Mikaela Bernard, following a quick passage of the budget.
The Terra Alta Town Council is scheduled to meet Thursday to address the ongoing budget issues with town employees, Tasker said.
“We are going to update the employees on what could happen,” he said. “We hope it doesn’t happen, but there’s a 50-50 chance it goes one way or it goes the other.”
The council will also review proposed revisions to the 2025-26 budget during the meeting.
“The budget revision has to be in before June 13,” Tasker said. “We’re working on that with our accountant and former clerk and get that back to them [the state].”
Terra Alta’s budget for the current fiscal year shows $153,953 in property tax revenue included in a total revenue estimate of $848,997. Also, town voters approved an excess levy to fund the Terra Alta Public Library. That amount was estimated at $49,894 for 2024-25.
Terra Alta is not the only municipality facing a loss of funds when the new fiscal year begins July 1. According to a press release from the auditor’s office, two other towns’ levy rates were not approved.
Reedy, a town in Roane County, has not submitted any budget or levy documentation, and has been unresponsive to multiple attempts to establish contact, according to the release.
Smithfield, a small municipality in Wetzel County, submitted its budget on time and received conditional approval contingent on formally adopting levy rates by vote. However, the auditor’s office did not receive confirmation that the required meeting took place.
