GENERAL CONSIDERATIONS

GROWTH: The Greater Morgantown Area continues to grow at a rate unprecedented in West Virginia. By every measurable statistic, this dynamic is in evidence. Per capita income ($28,050 as of ‘05); unemployment rate (3.3%); new jobs created and maintained (total 61,000 in the MSA); and population increases (total 115,000 population in the MSA) are collectively unmatched anywhere else in the State. These are the fundamentals that create wealth and greatly influence quality of life. The continuing investments in the area economy though need to be carefully attended so as to maximize the positive benefits that they can generate.

With the above written, it has to be quickly added that there are other growth issues to be emphasized. These considerations contend with the underpinning infrastructure required to support new developments while retaining the traditional identity of the urban area. Infrastructure in this sense is not limited to physical structures such as water lines, sewage plants, storm water collection, and roads. It is also needs to include preservation of neighborhoods, public services at large, and intangibles that define the character of the community. In many ways, these issues are more demanding and challenging than the typical, economic development assumptions of growth in general.

Reflecting these points, the proposed City Budget for Fiscal Year 2008-2009 has been assembled. Within its pages though there is one factor that needs to be emphasized. That principal point is that with all of the above noted growth, the City’s budget for the new year reflects only modest growth itself. The reason for this is that the most important revenue item in the budget shows no growth at all. Routine B & O taxes for the past year, this year, and forecasted for next year are almost exactly the same–$9,300,000 (42% of budget). As predicted several years ago, commercial developments outside the City seem to have become a telling influence of growing proportion. This situation will be closely monitored and factored into future considerations.

What follows is a brief summary of the major initiatives and issues that will have significant influences on the proposed budget documents:

GROUND TRANSPORTATION: The recent service fee election clearly documented the importance of this issue in Monongalia County. The public debate and participation in the election was a strong presentation of public sentiment concerning this matter. New remedies to growing transportation concerns need to be quickly put in place. Options range from the traditional (increased Federal and State support) to the creative (new financing tools that reflect the concerns expressed in the election) to the unorthodox (not everyone has to go to work at 8:00 am). Later in this document, these points will be further addressed.

DOWNTOWN MORGANTOWN: The heart and soul of any City is its Downtown. Several years ago, City Council partnered with Downtown businesses and defined an ambitious initiative to install a new streetscape on High Street. Two phases of the project have been completed and the third phase will start construction this spring at a cost of $800,000. It is anticipated that the fourth phase will start next calendar year with a similar budget. Once completed, this $4,000,000 investment should well serve the area for the next forty years. On a related matter, the $400,000 Lower Walnut Street Project should be under construction this year as well.

RIVER FRONT DEVELOPMENT: Over the past ten years, rapid progress has been achieved with this project. The new fiscal year will see another significant development put in place. The Morgantown River Front Event Center will break ground this calendar year with investments totaling $27,000,000. When completed in 2009, it will be perfectly situated to host a wide variety of promotions, entertainments, and special events that will give the facility an important regional popularity. With this addition, approximate $200,000,000 in private, public, and non-profit sector investments will have been made in the River Front area of the City

SUNNYSIDE: Like River Front, Sunnyside has seen remarkable improvements in recent years. Private developers and West Virginia University have cleared entire blocks of blighted properties and initiated redevelopment projects in an attractive, upscale fashion. Because of this progress and the continuing interest in the area, potentially a $10,000,000 Tax Increment Financing project may now be possible to completely reconfigure the public infrastructure in the area. Water, sewer, storm water, streetscapes, parks, trails, landscaping, lighting, and other public amenities would very well serve the area. Coupled with new private sector projects, the area could duplicate the success of River Front and give Morgantown another attractive facet of development.

SQUARE AT FALLING RUN: The first phase of this project has now been completed with an investment of $26,000,000. The next phase is scheduled to start later this year with the ground breaking for a new 500 space garage at a cost of $7,500,000. Most exciting though is the potential of seeing the proposed mixed use development layered around the garage being designed and perhaps financed this year as well. Taken all together, total investments of $250,000,000 in this project, adjacent to West Virginia University’s main campus, remain a viable outcome.

MORGANTOWN AIRPORT: This past year, development of the east side of the Airport has realized important advances. Most recently, Senator Byrd announced a $1,960,000 Federal appropriation to help construct the access road that will serve the area. With additional State support and other assets in hand, construction of the $4,500,000 project could start later this calendar year. Construction of the National Guard Readiness Center ($15,000,000) and the Airport Business Industrial Park (total potential development $50,000,000) could be started in 2009.

ENERGY CONSERVATION: In the new fiscal year, energy conservation measures will be an important part of City operations. It is anticipated that the State Legislature will give West Virginia Cities a new, important tool to support such programs. Energy Conservation Performance Contracting will allow Cities to audit all municipal facilities; identify improvements (both infrastructure and management practices); finance all proposed improvements over a fifteen year period; and manage and monitor results. Preliminary estimates are that Morgantown could save $1,500,000 in energy cost during such a time period and significantly reduce its carbon footprint. Construction of a LEED Certified Fire Station ($3,800,000 project) is also scheduled for this calendar year. Funding for additional hybrid vehicles for the City fleet is also possible along with continuing support for the City’s Green Team.

GENERAL SERVICES: As noted in previous years, the City is hard pressed to match the growth and development of the City with appropriate levels of public services. The City is fortunate though in that it has been able to add twenty two full time employees over the past twelve years without having to increase tax or fee formulas. Additionally, the City has been able to fund cost of living raises, maintain attractive health insurance benefits, provide training, support continuing education, and make available all the tools, vehicles, and equipment necessary to provide good services. This issue will also be further addressed in CITY COUNCIL GOALS AND OTHER HIGHLIGHTS.

In recent years, Morgantown has been recognized by numerous, national authorities as a place of accomplishment. Economic development, quality of life, public safety, and education are only a few of the areas that have been gauged and applauded in prominent publications and municipal data books. The common denominator in achieving these end results is the creative vitality of the larger community, and it is certainly the area’s most valuable asset. To further advance those local government components supporting this drive, the balance of this document recommends the municipal budgets for fiscal year 2008-2009.

CITY COUNCIL GOALS

AND

OTHER HIGHLIGHTS

What follows is a brief description of the proposed budget as per City Council’s goals and an overview of significant, proposed features:

1.         Transportation: As directed, new transportation initiatives will be a City priority in the new fiscal year. Toward this end, $175,000 is proposed to fund the following programs–$65,000 to enhance mass transit route scheduling; $25,000 to fund additional mass transit operating expenses; $35,000 for a pilot bike program on State and City streets; and $50,000 (optimally with up to a $50,000 County match) to fund MPO traffic strategies (reverse lanes at rush hour; park and ride; vehicle storage; bike lanes; employer work schedules; traffic control coordination; and similar initiatives).

2.         Service Fee Increases and Tax Formulas: No recommendations are made to increase any existing service fees or changes in calculating taxes. In the new fiscal year, it is anticipated that recommendations will be presented to increase building permit fees and code enforcement inspection fees to cover part of the additional expenses for these services. A Downtown user fee may also be considered to help fund the cost of late night public services in the area.

3.         Continue the Street Paving Program: Included in the Capital Escrow Account Budget is $400,000 for the 2009 Street Paving Program. As with the past several years, the City will look forward to working with the City of Westover in a joint paving program to maximize cost efficiencies.

4.         Continue the Sidewalk Program: $60,000 is proposed to be added to the $57,171 balance in this program to fund the 2009 program for a total of $117,171

5.         Grant City Employees a Cost of Living Raise: The current rate of the Federal Consumer Price Index is 4 %. The proposed budget recommends a pay increase of 4 %. As well, the budget includes a $.25 per hour increase for the second tier of City employees above the entry level positions (entry level positions were funded a similar increase last year). Special Note: If approved, this will be the sixteenth year in a row that such a raise has been granted. The total cost of this increase is $371,196.

6.         Continue the Capital Improvement Program:

DEPARTMENT                                           ITEMS                                               AMOUNT

Police                                                              Cruisers                                              $150,000

Fire                                                                  Pumper                                               450,000

City                                                                  Municipal Complex                            600,000

Engineering                                                     Traffic Calming                                  25,000

Public Works                                                   Equipment/Vehicles               200,000

Signs & Signals                                   Truck                                      28,000

Code Enforcement                                           Vehicles (hybrid)                                75,000

Information Technology                                  Security & Equipment                        60,000

City Hall                                                          Building Improvements          15,000

Municipal Court                                              Video Conferencing               11,000