photo by: File Photo by Eric Ayres
WHEELING CITY MANAGER ROBERT HERRON
WHEELING — The city of Wheeling remains on track with its finances through one third of the current fiscal year, despite slightly skewed revenue figures for last month.
Members of the Finance Committee of Wheeling City Council met recently to review the October financial report with City Manager Robert Herron.
The city manager noted that October closes out the first four months of the current fiscal year, which began on July 1. The city’s revenues and expenditures should be at one third of the annual fiscal year’s budget for 2023-24.
“The cash in the general fund at the end of the month was $2,901,000,” Herron reported. “In October of last year, it was $4.2 million. In the year before, it was $3.3 million and in the year before that, it was $2.9 million.
Herron explained that the figures are “a little bit light, based on some timing issues.” He noted that the latest round of sales tax revenues, in particular, will not appear on the monthly financial statements until November this year, while they happened to appear in October’s report last year.
“From a revenue perspective, revenue appears to be about $672,000 behind the same time last year,” Herron said.
“One primary reason is because the sales tax revenue will show up in the November report as opposed to the October report, which it did last year. Sales tax revenues going into the general fund will be $1,033,000.”
The city only receives sales tax revenues four times per fiscal year. Once that second round of sales tax revenue is included, this will put the city’s sales tax revenues right where they should be for this time of year – at 50%, Herron said. The city manager noted that if the sales tax revenues were included in the October report, that current city revenue shortfall of $672,000 would turn into a gain of $359,000 over the same time last year.
Herron added that the Business and Occupation tax revenues are ahead of the city budget at this point.
“The good news is that B&O tax revenue for the end of the month was about $175,000 ahead of the same time last year,” he said. “Add in the month-to-date for November of $740,000, that puts us at 50 percent of budget, and we still have six weeks to go in this quarter. So that’s positive news there.”
Expenditures seem to be right on track so far this fiscal year, according to the October figures.
“Right now, from an expenditure perspective, we’re at 33% of the budget — and we’re 33% through the year,” Herron said. “Some of the various departments are a little bit higher just because of the way the money is distributed and the way that it’s spent. For example, the Parks and Recreation budget is at 60%, because there are expenditures with playgrounds and expenditures made through the summer that aren’t as great in the spring.”
The same goes with the budget for WesBanco Arena, Herron explained, noting that as cash comes in from the city’s bed tax, the first dollars that go out go toward satisfying a budgeted amount of $332,000 for the arena.
“If you add all that together, it’s at 33%, which is right on the budget,” Herron said.
Members of the Finance Committee of Council also reviewed proposals from auditing firms that were scored by the city’s finance department for upcoming fiscal audits for the city.
Two proposals were received from regional companies, according to Herron, who noted that Perry & Associates performed the city’s audit last year. Another proposal was received from Goff, Backa, Alfera & Company LLC.
“The finance department scored Perry & Associates higher than the other firm,” Herron noted. “Pricing is comparable. Perry & Associates $1,000 less and have one year’s experience with the city.”
Officials noted the latest proposals will be to perform the city’s financial audits for the next two years.
“Historically, we’ve taken the recommendation of the finance department on this,” Councilman Dave Palmer, chairman of the Finance Committee, said.
Committee members moved to approve a recommendation to enter into a contract with Perry & Associates for the city’s audits for the next two years. The recommendation will be forwarded to the full city council for consideration.
