Business, Government Legal News from throughout WVHuntington Mayor Kim Wolfe wants $2 hike in user fee

  

HUNTINGTON — Mayor Kim Wolfe has proposed a $2 a week increase in the city's user fee. If approved by City Council the increase would hike the fee from its current $3 a week to a new total of $5 a week.

 

The proposed increase will likely receive an unenthusiastic reception from council. Wolfe floated his proposal Feb. 15 in his annual "State of the City" address. At least two council members who attended the address immediately voiced their opposition.

 

"I don't think the increase is appropriate right now," said Steve Williams, the chairman of council's Finance Committee and an announced candidate for mayor. Williams noted that "this is the third year in a row with proposed tax or fee increases."

 

Councilman Jim Insco pledged to "fight tooth and nail" to kill the increase.

 

Wolfe pictured the proposed fee increase as essential to balancing the city's proposed $43.3 million budget for the new fiscal year that begins July 1.

 

While not commenting specifically on the mayor's proposed fee increase, Mark Bugher, president and CEO of the Huntington Regional Chamber of Commerce, asserted that the city's financial problems are the result of its failure to control its employee benefit costs.

 

"Although the Chamber understands the city's need for additional revenue," Bugher said,  "we maintain that the primary problem with the city's budget continues to be the high cost of employee benefits, which are very out of sync with today's economy.  Although the city admittedly has limited authority to change these benefits, they should be continually approaching legislators for the freedom to set employee benefit packages commensurate with what the city can afford."

 

If approved, the increase in the user fee would come on the heels of a new 1 percent city sales tax that took effect Jan. 1.

 

Huntington's new sales tax is part of a package of tax changes enacted by council. The package includes elimination of the city's business and occupation tax on manufacturers and a 50 percent reduction in the business and occupation tax on retailers and service businesses.

 

Also included in the package as enacted was the elimination of the city's current $3-a-week user fee on all those who work within the city limits and the implementation of a 1 percent occupation tax. However, this step remains in a legal limbo pending the outcome of a Circuit Court challenge filed against it.

 

While Wolfe used his State of the City address to again voice his preference for the occupation tax as opposed to the user fee, he said the city's fiscal woes left him no choice but to propose the increase in the user fee. He called the increase in the user fee the city's "best option" pending a court decision on the occupation tax.

 

"Any conversation about the occupation tax right now is just political rhetoric," said Williams, who predicted the Circuit Court decision undoubtedly would be appealed to the State Supreme Court. "We're not going to see the first dime of the occupation tax," he said.