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Kanawha County

Wednesday August 15, 2012
Nitro seeks to build a better image
City leaders say everyone is on the 'same page,' working to bring change to town
by Norman Cannada
For the Daily Mail
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NITRO - City Treasurer John Young remembers his first day on the job on Nov. 2, 2007 - his wife's birthday

The city had $57,000 in the bank, but was $879,000 in debt. An audit of the city's books that first year found 19 violations.

"Bank statements hadn't even been opened," Young recalled. "We were on the verge of going bankrupt."

It took about two years of holding down spending, negotiating payment plans with creditors and getting assistance from the Kanawha County Commission and others to restore the town's financial status. 

The town currently has about $81,000 in payables and $762,000 in the bank. During last week's council meeting, Young said the most recent audit of the city's books found only seven violations and included a statement about how much the city's financial records have improved.

A recent controversy about $58,000 in unauthorized expenditures in police funds has led to several changes regarding how money is spent.

In May, an independent investigation found that officials had bent the rules when they spent the money but had not done anything wrong intentionally. It also cited city officials for a lack of oversight.

Known in the past for division, city leaders say they are united in an effort to improve Nitro.

After a little more than one month in office, Mayor Dave Casebolt said he sees support for a variety of changes.

"We have a 20-year plan with the things we want to get done, and things are getting done," said Casebolt, who served on council before defeating long-time Mayor Rusty Casto in June. "We've got everyone on the same page and are headed toward the same goal."

Last week's council meeting - the third under the new administration - drew a crowd of about 20. Those speaking during the public comment period praised council members for working together to improve the town.

A meeting at the Nitro Convention and Visitors Bureau prior to that was filled with citizens and council members.

"In the past when I came in and saw a large group of people at a council meeting, I would think something was wrong," Councilman Craig Matthews said. "People are coming and want to help the city or give ideas. There seems to be an excitement about moving forward."

Matthews said the new outlook began with the last administration when Casto and the last council began to implement financial improvements and the city began to benefit from revenues from the hotel/motel tax through an expansion at Mardi Gras Casino and Hotel. 

That gives the city and the Convention and Visitors Bureau about $240,000 a year for recreation and park improvements as well as money to make the city more attractive to potential new businesses.  Matthews pointed to improvements at Ridenour Lake such as shelters, a boat ramp and an upcoming new dog park.

Financial stability  

Matthews also remembers how deep the financial crisis was in the city just a few years ago.

"I sat through that first audit review," he said. "Everything was a mess. There was no paperwork to even audit, which meant not knowing where the money was going."

Young said his first two years with the city were difficult. The city was three years behind on payments for pensions for police and fire department employees and also was behind in payments to the state Public Employees Insurance Agency. He said the latter problem nearly led to the loss of health insurance for city employees, but an agreement was reached with the help of the Kanawha County Commission to keep the Nitro employees insured.

During those first two years, every purchase order had to go through Young or the mayor. 

"I wouldn't do anything to cause a safety issue," he said. "But we were in a position that we couldn't spend money."

Young remembered a time when money was tight and former Police Chief Jack Jordan came in asking for a new lock for a bathroom door.

"I went to a hardware store and bought a hook to use as a lock," he said. "I think it cost about 60 cents. "

With a freeze on any non-essential spending, and the debts coming down from new revenues and consistent payment plans with creditors, the city was able to get back to more solid financial ground.  Young said he shopped for a better premium for liability insurance, saving the city about $264,000 a year. 

Nitro did not raise taxes to get out of its financial crisis, he said.

NITRO - City Treasurer John Young remembers his first day on the job on Nov. 2, 2007 - his wife's birthday

The city had $57,000 in the bank, but was $879,000 in debt. An audit of the city's books that first year found 19 violations.

"Bank statements hadn't even been opened," Young recalled. "We were on the verge of going bankrupt."

It took about two years of holding down spending, negotiating payment plans with creditors and getting assistance from the Kanawha County Commission and others to restore the town's financial status. 

The town currently has about $81,000 in payables and $762,000 in the bank. During last week's council meeting, Young said the most recent audit of the city's books found only seven violations and included a statement about how much the city's financial records have improved.

A recent controversy about $58,000 in unauthorized expenditures in police funds has led to several changes regarding how money is spent.

In May, an independent investigation found that officials had bent the rules when they spent the money but had not done anything wrong intentionally. It also cited city officials for a lack of oversight.

Known in the past for division, city leaders say they are united in an effort to improve Nitro.

After a little more than one month in office, Mayor Dave Casebolt said he sees support for a variety of changes.

"We have a 20-year plan with the things we want to get done, and things are getting done," said Casebolt, who served on council before defeating long-time Mayor Rusty Casto in June. "We've got everyone on the same page and are headed toward the same goal."

Last week's council meeting - the third under the new administration - drew a crowd of about 20. Those speaking during the public comment period praised council members for working together to improve the town.

A meeting at the Nitro Convention and Visitors Bureau prior to that was filled with citizens and council members.

"In the past when I came in and saw a large group of people at a council meeting, I would think something was wrong," Councilman Craig Matthews said. "People are coming and want to help the city or give ideas. There seems to be an excitement about moving forward."

Matthews said the new outlook began with the last administration when Casto and the last council began to implement financial improvements and the city began to benefit from revenues from the hotel/motel tax through an expansion at Mardi Gras Casino and Hotel. 

That gives the city and the Convention and Visitors Bureau about $240,000 a year for recreation and park improvements as well as money to make the city more attractive to potential new businesses.  Matthews pointed to improvements at Ridenour Lake such as shelters, a boat ramp and an upcoming new dog park.

Financial stability  

Matthews also remembers how deep the financial crisis was in the city just a few years ago.

"I sat through that first audit review," he said. "Everything was a mess. There was no paperwork to even audit, which meant not knowing where the money was going."

Young said his first two years with the city were difficult. The city was three years behind on payments for pensions for police and fire department employees and also was behind in payments to the state Public Employees Insurance Agency. He said the latter problem nearly led to the loss of health insurance for city employees, but an agreement was reached with the help of the Kanawha County Commission to keep the Nitro employees insured.

During those first two years, every purchase order had to go through Young or the mayor. 

"I wouldn't do anything to cause a safety issue," he said. "But we were in a position that we couldn't spend money."

Young remembered a time when money was tight and former Police Chief Jack Jordan came in asking for a new lock for a bathroom door.

"I went to a hardware store and bought a hook to use as a lock," he said. "I think it cost about 60 cents. "

With a freeze on any non-essential spending, and the debts coming down from new revenues and consistent payment plans with creditors, the city was able to get back to more solid financial ground.  Young said he shopped for a better premium for liability insurance, saving the city about $264,000 a year. 

Nitro did not raise taxes to get out of its financial crisis, he said.

Following the investigation of the unauthorized spending in the police account, control over those funds has been turned over to Young's office.

The city now puts details of its finances online so citizens can see how money is being spent. New policies also have been put in place. Receipts must be presented for reimbursements. Department heads are required to live within their budgets. Purchase orders are required for all expenditures, and either the treasurer or the mayor must approve any purchase for more than $300.

"I am not as tight as I was, but I am still pretty frugal," Young said. "Just because you have money doesn't mean you have to spend it. A lot of times I ask the question, 'Do we really need to spend the money?'"

Ready for change

The June 5 municipal elections brought change with a new mayor and four new city council members. Three of those council members - Al Walls, Laurie Elkins and Andy Shamblin - are serving on council for the first time. 

Brenda Tyler is a former council member who had been out of office in the last term but was elected again this year.   

"The people were ready for a change," Casebolt said. "There was a feeling the weekend before the election that they were ready for something new."

Casebolt's first major change came on July 2, his first day in office. That's when he fired Jordan, who had served as police chief since 2000.

"I appreciated the service of the former police chief, but I felt it was time to move on and go in a different direction," he said. 

Last week, council members selected Brian Oxley to serve as chief. He had been serving as interim chief prior to that.

"Brian had more ideas about reaching the community, which is something I am strong on," Casebolt said.

He praised former Mayor Casto for his commitment to the city.

"To serve 16 years as mayor is a great accomplishment," Casebolt said. "He has been helpful through the whole transition, and he has the resources and relationships we can still utilize."

Good sportsmanship

Even some who lost in the city elections are supporting the direction of the mayor and city council and offering their help.

Jim McKay, a former councilman who lost in his bid to become city recorder in May, credits the new mayor with the changes.

"The key has to do with the mayor," he said. "Leadership affects attitude. Being on the same page is a blessing. It is a whole new atmosphere that we have so far, and I expect it to steamroll to more success for Nitro."

McKay is chairman of the board of the Convention and Visitors Bureau and said the bureau is working with city council and other leaders to bring more opportunities into town. 

He cited a bass tournament on Ridenour Lake and a car show set for Sept. 7-9 as examples of events designed to showcase Nitro. He said future events would likely include more partnerships with the casino.

Marshall Facemeyer, who lost in his bid for the Ward 3 council seat in June, is president of the board of directors of the Nitro Development Board and is credited by Matthews with "re-invigorating" that organization.

"Those of us who did not win still have at heart the interest of the city and a desire to work cooperatively with the mayor and the council," he said.

Leonard Womble, a Nitro resident who lost his bid for an at-large council seat, was among the residents at last week's meeting praising council.

"There is a different mood," Womble said. "People are beginning to bond and work together. "The changes in attitude are a win-win situation for the city.

"We need to be cautious to move without haste, so we don't make mistakes that could jeopardize what we want to do in the future," Womble added. "We need to ensure the overall plan is there first."

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