Herron

WHEELING — The city of Wheeling has received $3 million in CARES Act reimbursements for municipalities, and the relief funding is being used to help bolster different pillars of the city’s fiscal structure as the coronavirus pandemic continues to impact municipal finances.

Members of the Finance Committee of Wheeling City Council met last week to review financial statements for the month of August. Wheeling City Manager Robert Herron noted that the city is two months into the new fiscal year that began in July, and the effects of the COVID-19 pandemic continue to impact different revenue sources for the city.

The CARES (Coronavirus Aid, Relief and Economic Security) Act reimbursements were awarded to the city based on monthly application submission to the state detailing losses sustained as a direct result of the pandemic. The city was awarded and has received a total of $3 million for the months of March, April and May. It is expected that additional applications are to be considered for losses subsequent months.

“We received CARES Act funds to the tune of slightly over $3 million, and they’ve been distributed to the general fund budget, the municipal budget stabilization fund and the projects fund,” Herron said.

The state of West Virginia received a total of about $1.2 billion in federal CARES Act funding to be distributed for different relief programs throughout the state. For municipalities in West Virginia affected by the pandemic, a total of $200 in CARES Act funding from this relief package is being distributed.

Because of losses in revenues associated with economic impacts related to the COVID-19 pandemic, the city had to dip into its municipal budget stabilization fund at the end of the last fiscal year in order to finish the year with a balanced budget.

The CARES Act reimbursements will help replenish this fund, as well as the city’s general fund and project fund — each of which received $1 million from the CARES Act relief funding that has been received so far.

Herron said this brings the municipal budget stabilization fund to $2.376 million and the general fund cash balance to $2.592 million through the end of August.

“The municipal budget stabilization fund at the same time last year was at $1.3 million,” Herron noted. “It would have been at $1.3 million this year but for CARES Act reimbursement of $1 million that went into the budget stabilization fund.”

Last year at the same time, the general fund cash balance was about $1.607 million, the city manager said.

“We would have been very, very close this year to the same time last year, but as you can see, we’re $1 million ahead because of the CARES Act reimbursement that went into the general fund,” Herron said.

In terms of expenditures so far this fiscal year, the city’s disbursements are at about 20 percent, according to Herron, explaining that less money is being spent so far this year.

“We’re actually below from where we were at the same time last year by about $700,000,” he said.

Revenues are down particularly in the areas of Business and Occupational Tax revenues and Hotel/Motel Tax revenues.

“Looking at what’s going on with the economy as it relates to COVID-19, our B&O tax revenues are about $175,000 behind compared to the same time as last year,” Herron said. “The bed tax is down significantly as well by about $73,000. Half of that impact is on the city’s general fund, and the other half goes to the Convention and Visitors Bureau.”