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WHEELING - Members of Wheeling City Council unanimously approved the city’s fiscal year 2025-26 budget on Thursday - with a General Fund budget topping a record-setting $40 million - and welcomed a new city finance director.
The new fiscal year begins July 1, and the city’s operating budget is expected to be the biggest in Wheeling’s history.
"As is presented today, it’s a $40,270,662 budget," Wheeling City Manager Robert Herron said. "There’s been a thorough review of revenue sources as well as a detailed analysis of expenditures. I appreciate city council’s input on this budget over the past two work sessions."
The budget for the coming fiscal year must be adopted during the month of March and submitted to the West Virginia Auditor’s Office by the end of the month. The state auditor’s office will then approve the budget, and council will need to take action during its April 15 meeting on the laying of the levy amounts for the coming fiscal year.
Spending is expected to be tighter during the next fiscal year, officials have stressed. In fact, no wage increases for city employees have been included in the upcoming budget, and the city manager has suggested that money from the city’s Budget Stabilization Fund - or at least the interest from that account - be used to help balance the budget. The city’s Budget Stabilization Fund had typically carried a balance of around $2 million annually but was bolstered in recent years by federal pandemic relief money from the Coronavirus Aid, Recovery and Economic Security Act. There is currently more than $5 million in that account, and Herron said he expected it to grow to $5.5 million next year with interest earnings.
On Thursday, Herron said the city would only tap into this fund if it is deemed necessary toward the end of the next fiscal year.
"Those funds will be the last funds into the budget," he said. "We’ll only do that if we need to. That will not occur until the end of the fiscal year, and if we can avoid it, we will. "
While officials noted that the city has not had to utilize its Budget Stabilization Fund in the past to actually stabilize the budget, Herron explained that the city has technically tapped into the fund during the fiscal year and reimbursed the account.
"Traditionally, the city has drawn from the Budget Stabilization Fund," he said. "For example, in past years, there has been a $1 million Budget Stabilization transfer to the General Fund for working capital, but by the end of the year, that money is transferred back."
The city typically has a cash carryover at the end of the fiscal year, but this fiscal year’s budget has been particularly challenging, with expenditures running ahead of schedule over the past several months.
WHY EXPENSES HAVE BEEN OVER BUDGET
Spending in Wheeling’s police and fire departments have been over budget this year, and next year’s fiscal year budget figures for those departments have been adjusted to be higher - with $9,724,370 budgeted for police and $10,782,027 budgeted for the fire department.
"The year-to-date on the expenses is still running a little bit high," Herron said on Thursday. "Revenues are exceeding budget. Unfortunately, expenditures are a little bit, as well. Most of that is attributed to the police and fire department."
Herron explained that the staffing issues are being addressed which will not only help with departmental operations but will also rope in personnel expenses.
"For example, part of the problem with the fire department - and this has been corrected actually as of last week - was we had a number of vacancies," Herron said. "And now the fire department with the addition of eight firefighters last Monday - we’re up to speed."
While a looming retirement may create another vacancy, the fire department’s full staffing will help trim down overtime costs that escalated because of so many vacant positions.
"We have a 22-firefighter minimum manning per shift," Herron explained. "When we’re at 27, which is fully staffed, that allows up to four or five firefighters to be off at a time with vacation, etc. We’ve been below that. So what’s been occurring - in order to maintain the 22 firefighter requirement, it’s required additional overtime above and beyond. This is the second year that this is occurring. But with the additional eight firefighters, we are fully staffed. We do anticipate that that overtime number will come down dramatically."
NEW FINANCE DIRECTOR APPOINTED
During Thursday’s council meeting, Wheeling Mayor Denny Magruder moved to appoint city resident Nathan Greene as the new finance director.
"I’m pleased to have Nathan Greene as the city’s finance director," Magruder said. "With his experience in accounting and commitment to fiscal responsibility, Nathan will play a vital role in ensuring the stability and transparency of our city’s finances. I look forward to working with Nathan to ensure a strong and sustainable future for our community."
Greene said he was eager to begin his new job in city government.
"I’m appreciative of the opportunity to serve the people of Wheeling," Greene said. "I look forward to working with city leadership, staff and the members of the community to make a lasting, positive impact on my hometown."
The city of Wheeling’s last official finance director, Seth McIntyre, stepped down from the position nearly two years ago for a new job in the private sector.
"I do want to thank John Carlier for his efforts over the past couple of years as the interim finance director," Herron said. He’s really done a very nice job in continuing the finance department tradition, and I know that when Nathan takes over, John is anxious to work with him and help him as he becomes the finance director. I want to congratulate Nathan Green for his appointment as finance director. I look forward to working with Nathan. It’s an excellent choice."
A graduate of West Virginia University with a bachelor’s degree in accounting and a master’s degree in business administration, Greene has served as a mortgage loan originator, commercial credit analyst and staff auditor for an accounting firm.
The city’s finance director oversees all financial aspects of the municipality, including but not limited to budget and revenue management, financial planning, ensuring compliance with financial regulations and managing finance department staff. The mayor, with the advice and consent of city council, appoints the finance director.
OPTIMIZING SPENDING VS. ‘RUBBER STAMPING’
Wheeling City Councilman Ben Seidler on Thursday clarified remarks he made during previous budget work sessions regarding a desire to trim the city’s contribution to the Ohio County Health Department and re-examine the position of Centre Market manager. In terms of fiscal prudence, Councilman Dave Palmer took issue with Seidler’s comments regarding a city practice of "rubber stamping" routine allocations such as Community Development Block Grant distributions and other annual allocations.
"I had made some recommendations to our budget based on the Health Department allocation and to the position of the Centre Market manager," Seidler said Thursday. "While I believe both of these things are incredibly important, I want to clarify that my remarks are about looking at how we can optimize our spending. There’s no doubt that our Health Department does an incredible service to our community."
Seidler reiterated his position that council should allocate funds "based on need instead of rubber stamping a line item that’s been on our budget for years."
"In terms of the Centre Market manager position, it’s not that we don’t need that position, it’s that I feel like we need to continue to look at the rest of the areas within the city of Wheeling that need that same level of dedicated community development," Seidler said, indicating that a combined position should be considered.
Chairman of the Finance Committee of Council, Palmer responded to the notion that officials "rubber stamp" requests such as those for CDBG funding.
"I think we agree to re-look at things, and I think we did re-look at things on CDBG," Palmer said. "I think it’s unfair to call it a ‘rubber stamp.’ There’s a lot of work and a lot of paperwork that is involved within our departments to acquire CDBG funding and to allocate it. We have looked at different allocations, and things have to qualify. Just in the future, if we can quit using that term ‘rubber stamping.’ Because I don’t think that’s what we do. I think, at the end of the process, we vote on it."