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WEIRTON -- While city officials don't believe the pending closure of Cleveland-Cliffs' tin operation in Weirton will have an effect on the current fiscal year, they want to be prepared for any potential fallout in the future.
The Weirton Finance Committee gathered in a special session Wednesday evening, to discuss the mill's closure, announced by Cleveland-Cliffs one week ago, as well as any measures the city can take to preserve municipal services despite potential revenue losses.
"I'm not trying to be the grim reaper here, but I've been through this four times," explained Ward 3 Councilman and Finance Committee Chair Fred Marsh, referring to previous times the mill has changed ownership during his time on Weirton Council.
Marsh said the community, and the municipality, have experienced growth in recent years as a result of new industries coming to the region, and he doesn't want future administrations to be caught unaware in the event difficulties would arise.
"I think we need a backup plan," he said. "We're standing on a fence and I don't know which way we're going to fall."
The committee discussed the possible adoption of a tiered warning system, outlining specific actions to be taken in the event of revenue loss for the municipality. The idea will be brought before the full city council as part of a work session set to take place at 6:30 p.m. today at the Weirton Municipal Building. The work session is open to the public.
Ward 7 Councilman Terry Weigel said it will be important to have input from Finance Director Diana Smoljanovich and City Manager Mike Adams when implementing such a system, if it goes forward.
For her part, Smoljanovich said she doesn't see any need to worry about funding for the remainder of the city's fiscal year, which ends June 30.
"My financial opinion is there's no need for us to panic right now," Smoljanovich said, noting, however, council will have to be more careful when crafting the 2024-25 fiscal budget.
Smoljanovich explained the city has seen Business and Occupation Tax payments declining from Cleveland-Cliffs in recent years, and won't receive revenue from the Municipal Service Fee -- assessing $2 per week for each employee - once the plant is closed down, but Cleveland-Cliffs will still have to pay the city's Police and Fire Service Fee, which is charged to businesses based on the size of their structures.
"Even if they have no workers, they have to pay it," she said. "They're still responsible for it."
Marsh pointed out the loss of Municipal Service Fee dollars will affect the city's paving budget in the future.
Ward 6 Councilman Enzo Fracasso said the city also has to be cognizant of any impact the closure will have on other businesses in the city.
"There's definitely going to be a trickle-down from this," he said.
Council is set to begin reviewing proposals for the 2024-25 budget in the coming weeks, with it being submitted to the state by the end of March. Marsh has suggested having the tiered warning system, if approved, in place before July 1.