Trending
WEIRTON -- While Weirton Transit Corp. officials are hoping to have put their issues with the Internal Revenue Service behind them soon, the effect those issues have had on the transit provider's balance sheets may result in some major operational adjustments.
Following a 55-minute executive session during the WTC Board of Trustees' meeting Wednesday night, Transit Manager Phil Gilcrest discussed some of the hardships currently being faced after the board took necessary steps to clear up much of a $125,000 debt owed to the IRS because of non-payment of back taxes, fees and penalties. That included a one-time allotment of $75,000 from Weirton City Council.
"For this month, we couldn't even have a draw-down," Gilcrest explained, noting the process of accessing federal dollars for use by the agency.
Gilcrest reported there currently is $5,181 available to cover operational costs.
"I'm guessing by June we probably won't have any match money," he said, referring to the local funds used to obtain federal transportation funds.
Mark Henne, an ex officio member of the board representing the Brooke-Hancock-Jeffferson Metropolitan Planning Commission, noted those local funds are necessary for the operations of Weirton Transit.
"You can't spend the grant money unless you have match money," Henne said.
Gilcrest explained one additional obstacle is that Follansbee Council recently turned down a request from WTC for financial support, despite a route through the city having been established in recent months. He said he also has been reaching out to the Brooke County Commission, but has not received a response. The Hancock County Commission has not provided funding for the last few years, while the City of Weirton has provided $75,000 per year from the city's general fund, as well as some in-kind services.
Planning and Development Director Mark Miller noted an additional $10,000 could be available from the city's Community Development Block Grant, although he was uncertain when the funds would be disbursed.
"We're leaving money on the table," WTC Board President Flora Perrone noted.
According to the board, monthly expenses typically are in the $40,000 to $45,000 per month range, which include payroll and other operational bills.
Gilcrest said he is looking into options to raise additional funds, including selling advertising on the buses, as well as the possibility of shutting down services temporarily, with the idea to reopen July 1 at the beginning of the next fiscal year.
Perrone said another option could be to establish an operational cooperative agreement with another transit provider, but Gilcrest said such a move would take several months to complete.
Henne cautioned the board not to look at making too many large moves until all of the needed information is available.
"We've got to steady the ship, and Phil is working on it," he said.
The board urged Gilcrest to keep the members informed, explaining a special meeting could be called if needed.
In other business, Gilcrest noted ridership for March was 3,248, and also raised the possibility of WTC establishing a dedicated route to the Marland Heights area of Weirton, noting an increase in demand-response services to those neighborhoods. He explained such a move also would require public hearings and other actions before it could go into effect.