CHARLESTON, W.Va. -- A budget analysis by City of Charleston Finance Director Joe Estep shows the city's budget turning up about $500,000 short of what was expected, according to City Manager David Molgaard.
A budget amendment was passed at Monday night's City Council meeting that allowed $540,000 of unassigned funds to be transferred to the city's stabilization account, a decision Molgaard described as "prudent" should revenue continue to decline.
Last year, the city chose to use its unassigned funds for across-the-board raises for its employees, Molgaard said
While Estep's budget projections showed an increase in revenue for this fiscal year, the numbers aren't showing through.
"In the face of declining revenue compared to last year and raising the budget this year, we've obviously created a shortfall," Estep said.
In addition to low general revenue, Molgaard said the city's business and occupation tax has brought in fewer funds this year when compared to April through June of 2012.
Estep said it is down about $144,000 by comparison.
"At the same time, it's down $591,000 compared to the current budget," Estep said.
B&O taxes are paid by individuals and entities, which do business in the city, and make up about half the city's $87 million budget, according to Estep.
The amount collected is based on gross revenue, Estep said. If business isn't booming, neither is B&O revenue.