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Losing Century Would Be Major Hit to Jackson County
Posted Thursday, January 1, 2009 ; 06:00 AM | View Comments | Post Comment
Updated Monday, January 5, 2009 ; 04:07 PM

Century Aluminum is a major player when it comes to the Jackson County economy.

Story by Mike Ruben
Email | Other Stories by Mike Ruben

RAVENSWOOD -- Century Aluminum is a major player when it comes to the Jackson County economy.

With 650 employees, the plant trails only neighboring Rio Tinto Alcan Rolled Products and the county school system in the number of jobs it provides. The average salary of a Century employee exceeds $50,000, plus benefits, pumping a $34 million payroll into the area's economy.

City of Ravenswood

Mayor Lucy Harbert initiated a Dec. 23 meeting in town that included Gov. Joe Manchin; U.S. Rep. Shelley Moore Capito, R-W.Va.; Plant Manager Jim Chapman and officials from the United Steelworkers of America, American Electric Power and others. Harbert says the meeting was informative and met its goal.

"I wanted people to understand that this is a serious problem," she said. "This plant has been very good to Ravenswood and we've got to give back if there's anything that we can do to help."

Harbert says it was important for residents to know more about the impact Century makes on the local economy.

"They are spending $31 million per month to run that plant and $9 million dollars a month on electricity," she stated. "It's amazing to see what it costs to run that plant. I think people came away realizing they (Century) do put a lot into the local economy."

The Schools

Superintendent of Schools Blaine Hess said Century's input to the county tax base represents approximately 4 percent of the $46 million school budget. The smelter contributes about $2 million to the school system including $900,000 through regular county taxes and $1 million through an excess levy in the county, which provides additional funding for personnel, maintenance, transportation and other expenses.

Without the Century operation, Hess said the schools would lose all of the excess levy money. The state has a program in place, however, that would eventually replace 90 percent of the plant's regular tax contribution.

"It would certainly make an impact," Hess said of a Century closure. "We would have to take a look at our budget and prioritize. We would just have to make it work. We currently have more personnel than is covered by the state formula. Without Century, we may not have that luxury."

Hess says he is more concerned about the overall impact on the county and beyond.

"Looking at the overall picture, this would not just affect the school system," he said. "It's the domino effect that you do not know about at this time. It would certainly have an impact on a lot of people's lives."

County Government

Century Aluminum paid $1.3 million in local taxes during 2007, according to records provided by the Jackson County Commission. That includes $309,000 for the operation of county government, with an additional $101,000 for an ambulance levy and $12,500 for a library levy. In addition, those proceeds help finance organizations such as the fire departments, health department, library, development authority and animal shelter.

Commission President Don Stephens said there's little the county officials can do to help the Century predicament under the current state laws. West Virginia businesses are charged a tax on their inventory as of July 1 each year.

"It would be fairer to the businesses if the tax was on a yearly average instead of one day," Stephens said. "The law needs to change, but it is what it is."

County commissioners meet each summer as the Board of Equalization and Review to listen to requests for tax adjustments. Stephens, a retired educator, said Century is typically among those who make presentations.

"We've granted some (in the past), but there's not a lot that we can do," he said, noting that the inventory tax is based on information supplied by the company to the state. "Legally, I don't know if we can do anything."

In a worst-case scenario, Stephens said county officials would have to make some difficult decisions if Century were no longer a contributor to the local economy and tax base.

"We have to have a balanced budget," he explained. "Everybody would have to make sacrifices if it comes down to that. Some tough decisions would have to be made. We'll have to deal with those issues as it shakes out and make some decisions based on that."

The uncertainty at Century could have an impact on other projects. Stephens said the county had a $1.3 million carryover this fiscal year. He hoped that would put the commission in position to make a $1 million contribution toward a new National Guard Armory facility planned at Millwood. Local contributions are eligible for federal matching funds, which Stephens says would result in a 2,000-seat convention hall and meeting center at the facility.

Development Authority

As director of the Jackson County Development Authority, Mark Whitley said he realizes the tremendous value of having a large employer like Century Aluminum. Attracting a new industry the size of Century is a rarity. Therefore, Whitley says he and others are willing to do everything in their power to keep the plant operating.

"Century provides great paying jobs and they have been a great corporate citizen," Whitley said. "Most everything else has been temporarily set aside to see what we can do to help with this situation. We have been in contact with the Governor's Office and the West Virginia Development Office and with Century."

Whitley says he is optimistic that the aluminum smelter will continue operating.

"This seems to be everybody's No. 1 priority," he said in reference to cooperation at the local, state and national level. "Good things can happen when you have that kind of attention."

Norma Jean Cope is president of the county's development authority and has operated a grocery store in Ravenswood for 56 years.

"We've been here a long time," said Cope. "We were here when the plant opened. I can remember serving Henry J. Kaiser at the $5 dinner (a former annual fundraiser for the local school system.)

Cope said she shares Whitley's optimism.

"The plant is very important to the Ravenswood community," she said. "It affects a lot of people and a lot of businesses in different ways. I believe in (Century). I continue to remain optimistic and I cannot fathom seeing them go out of business. I am hopeful that things will work out."

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