The Docket · Government Meeting · DKT-2026-000645

On the agenda: Morgantown meeting — Flock camera (Sep 1)

Past ⚠ Agenda Watch Morgantown, West Virginia · Tuesday, September 1, 2026 — 1 month ago

About this record

The published agenda for the September 1, 2026 meeting contains: "Flock camera", "facial recognition". The meeting has passed. The agenda stays here as a permanent public record.

WhenTuesday, September 1, 2026
Check the agenda document for the meeting time.

WhereMorgantown, West Virginia

Money$87,017,913 was at stake

On the record“Flock camera”“facial recognition”

The agenda, word for word

Government public record — the full text of the published document, archived August 28, 2026. Gold highlighting of key terms is ours, not the original’s. Read the original document ↗

207 pages · scroll to read

Page 1 of 207

MORGANTOWN
CITY CLERK

304-284-7439

Morgantownwv.gov
389 Spruce St.
Morgantown, WV 26505

AGENDA
CITY REGULAR MEETING
City Hall Council Chambers, 389 Spruce Street, 2nd Floor, Morgantown, WV 26505
Tuesday, September 01, 2026, at 7:00 PM
This meeting will be broadcast live via YouTube at City of Morgantown - YouTube
(https://www.youtube.com/@CityofMorgantown/streams)

1. PLEDGE:
2. CALL TO ORDER:
3. ROLL CALL:
4. APPROVAL OF MINUTES:
A. August 25, 2026, Special Meeting Minutes
B. August 25, 2026, Work Session Meeting Minutes
C. August 25, 2026, Regular Meeting Minutes
5. CORRESPONDENCE:
A. Partner Update: Community Coalition for Social Justice
B. FY25 Audit Report Presentation
6. REPORT OF PROCLAMATIONS:
A. West Virginia Council of International Programs Day 2026 Proclamation
B. Young Eagles Day Proclamation
7. PUBLIC HEARINGS:
8. UNFINISHED BUSINESS:
A. Boards and Commissions
9. PUBLIC PORTION WHICH SHALL BE SUBJECT TO RULES ESTABLISHED BY
COUNCIL AND ADOPTED BY RESOLUTION:
10. SPECIAL COMMITTEE REPORTS:

Page 2 of 207

11. CONSENT AGENDA:
A. Consideration of APPROVAL of A Resolution Amending the FY 2026-2027 Budget
Revision for the Morgantown General Fund (Revision #2)
12. NEW BUSINESS:
A. City Council 2027 Meeting Calendar
13. CITY MANAGER'S REPORT:
14. REPORT FROM CITY CLERK:
15. REPORT FROM CITY ATTORNEY:
16. REPORT FROM COUNCIL MEMBERS:
17. EXECUTIVE SESSION:
A. Discussion of acquisition or development of real estate in the Evansdale neighborhood
(It is anticipated that Council will discuss this matter in executive session pursuant to
W. Va. Code 6-9A-4(b)(9))
B. Discussion of appointment to vacant Council seat (It is anticipated City Council will
discuss this item in executive session pursuant to WV State Code Section 6-9A4(b)(2)(A))
C. Pursuant to WV State Code Section 6-9A-4(b)(2)(A) to discuss personnel matters for
Boards and Commissions
18. ADJOURNMENT:
For accommodations please call or text 304-288-7072

Page 3 of 207

City of Morgantown

Item 4A.

SPECIAL MEETING MINUTES
August 25, 2026
Special Meeting August 25, 2026: The Special Meeting of the Common Council of the City of
Morgantown was held at City Hall Council Chambers on Tuesday, August 25, 2026, at 6:03 p.m.
Present: Mayor Danielle Trumble, Deputy Mayor Mark Downs, Council Members, Joe AbuGhannam, Louise “Weez” Michael, Jodi Hollingshead, Jenny Selin, and Brian Butcher.
EXECUTIVE SESSION: Pursuant to West Virginia Code Section 6-9A-4(b)(2) (A) to discuss
personnel matters arising from the employment of public officers or employees related to the annual
evaluation for the Municipal Judge.
Motion by Councilor Selin, second by Deputy Mayor Downs, to go into executive session. Motion
carried by acclamation. Present: City Council. Time: 6:04 p.m.
Adjournment:
There being no further business, motion by Deputy Mayor Downs, second by Councilor Michael,
to adjourn the meeting. Time: 6:31 p.m.

___________________________
City Clerk, Christine Wade

___________________________
Mayor, Danielle Trumble

Page 4 of 207

City of Morgantown

Item 4B.

CITY COUNCIL
WORKSHOP MEETING MINUTES
August 25, 2026
Workshop Meeting August 25, 2026: The Workshop Meeting of the Common Council of the City
of Morgantown was held at City Hall Council Chambers on Tuesday, August 25, 2026, at 6:39 p.m.
Present: City Manager Jamie Miller, Assistant City Manager Emily Muzzarelli, City Clerk Christine
Wade, Mayor Danielle Trumble, Deputy Mayor Mark Downs, Council Members, Joe Abu-Ghannam
and Brian Butcher.
Public Portion:
Deputy Mayor Downs declared the Public Portion open.
There being no appearances, Deputy Mayor Downs declared the Public Portion closed.
New Business (Enhanced Connectivity):
City Manager Miller provided a summary of information and ideas received during the July 28,2026,
public input session related to this topic area.
Deputy Mayor Downs facilitated the discussion, identification and prioritization of topics related to
enhanced connectivity.
Executive Session: None
Adjournment:
There being no further business, motion by Mayor Trumble, second by Councilor Abu-Ghannam, to
adjourn the meeting. Time: 6:49 p.m.

____________________________
Christine Wade, City Clerk

___________________________
Danielle Trumble, Mayor

Page 5 of 207

City of Morgantown

Item 4C.

MINUTES
REGULAR MEETING
August 25, 2026
Regular Meeting: August 25, 2026: The regular meeting of the Common Council of the City of Morgantown was held in the City Hall
Council Chambers on Tuesday, August 25, 2026, at 7:01 pm.
The meeting was called to order by Mayor Trumble.
Present: City Manager Jamie Miller, Assistant City Manager Emily Muzzarelli, City Clerk Christine Wade, City Attorney Ryan Simonton,
Mayor Danielle Trumble, Deputy Mayor Mark Downs and Council Members: Joe Abu-Ghannam, Jodi Hollingshead, Louise “Weez”
Michael, Jenny Selin and Brian Butcher.
Approval of Minutes: August 11, 2026, Regular Meeting Minutes were approved by consensus.
Correspondence:
Community Development Manager Caitlyn Lewis presented information on a recently funded City of Morgantown MOSAIC Program
project.
Mayor Trumble presented a West Virginia Municipal League 2026 All Star Community Award for the City of Morgantown MOSAIC
Program to Development Services Director Rickie Yeager and Community Development Manager Caitlyn Lewis. This item was moved
up from the last position on the Correspondence section of the agenda.
City Manager Miller provided details of the award presentation and details.
Rick Bebout presented information about the upcoming 2026 Urban Deer Hunt.
Erick Carlson provided a partner update regarding MUB’s progress on the Morgan’s Run Water Project.
Public Hearing: An Ordinance Providing for the Establishment of Hart Field Road in the City Street System
Mayor Trumble declared the Public Hearing Open.
There being no appearances, Mayor Trumble declared the Public Hearing closed.
Public Hearing: An Ordinance Amending Articles 929 and 1705 related to Stormwater and Building Permitting
Mayor Trumble declared the Public Hearing Open.
There being no appearances, Mayor Trumble declared the Public Hearing closed.
Public Hearing: An Ordinance Reauthorizing Transfer of Greenbag Road Property to DOH
Mayor Trumble declared the Public Hearing Open.
There being no appearances, Mayor Trumble declared the Public Hearing closed.
Unfinished Business:
Boards and Commissions-None
Public Portion:
Mayor Trumble declared the Public Portion open.
Ace Parsi, Suncrest, spoke in opposition to the use of Flock cameras in the local area.

Page 6 of 207

City of Morgantown

Item 4C.

There being no further appearances; Mayor Trumble declared the Public Portion closed.
Special Committee Reports: None
Consent Agenda:
Consideration of Approval of (Second Reading) of An Ordinance Providing for the Establishment of Hart Field Road in the City
Street System (First Reading August 11, 2026)
Consideration of Approval of (Second Reading) of An Ordinance Amending Articles 929 and 1705 related to Stormwater and
Building Permitting (First Reading August 11, 2026)
Consideration of Approval of (Second Reading) of An Ordinance Reauthorizing Transfer of Greenbag Road Property to DOH
(First Reading August 11, 2026)
Motion by Councilor Selin, second by Councilor Michael, to approve the above-entitled items. Motion carried 7-0.
New Business:
An Ordinance of the City of Morgantown Amending the Plan Review and Permitting Fee Schedule: This Ordinance was presented
for first reading.
City Manager Miller explained. After discussion, motion by Councilor Michael, second by Deputy Mayor Downs, to approve the aboveentitled ordinance to second reading. Motion carried 7-0.
City Manager’s Report: commended the success of the Ruby Summer Concert Series, highlighting the community spirit and the hard
work of staff, particularly Vincent's team. They announced the final concert featuring 38 Special and encouraged attendance. Upcoming
events include a neighborhood walkthrough for the Evansdale Neighborhood Association, organized by Councilor Swing. Speaker 1 also
praised the Morgantown Police Department for hosting a tour with the WVU Country Roads Program for individuals with intellectual
and developmental disabilities. Lastly, they reminded the community to provide items of interest for the upcoming legislative season
preparation.
Report from City Clerk: reported that City Council is accepting applications to fill a vacant council seat in the Seventh Ward, with
interviews scheduled for September 1 or 15, 2026, and a vote on September 29, 2026. The Ward Boundary Commission will discuss the
city's ward map on August 31, 2026. The Fire Civil Service Commission is conducting promotional exams for captain and lieutenant
positions, with five candidates for captain and 34 for lieutenant. The Police Civil Service Commission will hold an entry-level police
officer exam on October 24, 2026. Five new police officers were sworn in. Municipal Government Week activities include a mock City
Council meeting on October 8, 2026, and various community events.
Report from City Attorney: thanked Councilor Butcher for his service and provided updates on the Greenbag Road transfer,
confirming DOH's commitment to deliver payment by September 14th. The City Manager's Office and the Engineering and Public
Works Department have been collaborating with DOH District 4 to consolidate maintenance agreements into a single, clear document.
An updated draft was recently received, and further collaboration is anticipated. Additionally, Attorney Simonton mentioned upcoming
amendments to ADUs to be introduced at the September 15th council meeting and invited any further comments on the draft.
Before Council Member reports, Mayor Trumble presented a proclamation honoring Councilor Brian Butcher for his service on
City Council and to the Morgantown Community in commemoration of the end of his service tenure.
Report from Council Members:
Councilor Abu-Ghannam: addressed the Democrats' congressional candidate Ace Parsi and Dr. Goodnow's concerns about facial
recognition technology on city property, noting ongoing work on an ordinance to be discussed in September. He also announced the
rescheduling of a neighborhood meeting to September 28th at M Tech due to Jack Roberts Park not being completed. Councilor AbuGhannam thanked Councilor Butcher for his support since joining the council, recalling his encouragement to run and his role in the
community, and congratulating him on his new home.
Councilor Michael: focused on the cleanup efforts in Morgantown, and mentioning the recent work on Don Knotts Boulevard, which
was challenging due to heavy rain. Upcoming events include a city cleanup on September 19th, organized by Caitlyn, with a meetup at
6

Page 7 of 207

City of Morgantown

Item 4C.

the courthouse. They are also working on cleaning up Willey Street, which will require road closures. Collaboration with student
government and fraternities is being facilitated by Colin to organize cleanups. Additionally, there are plans to address issues on Exit 155.
Councilor Michael also congratulated Brian on his new home and job, thanking him for his service in the city.
Councilor Hollingshead: congratulated the South Park Association of Neighbors and its new officers for successfully hosting their first
yard sale, highlighting the community-building aspect of the event and expressing gratitude towards the Greenmont Neighborhood
Association for their participation. She also expressed appreciation for Brian, who provided significant support during her first fight and
acknowledged his ongoing guidance.
Mayor Trumble: shared that the MCR met recently to discuss hosting a warming shelter at Hazel's House, pending adequate funding
from Catholic Charities, private donors, and the Mon County Commission, with an anticipated opening on November 15. Applications
for boards and commissions have been received, but interviews will be delayed until October due to City Council candidate interviews
in September. Mayor Trumble commended Councilor Butcher for his thorough background work and thoughtful approach, expressing
admiration and a desire for his continued involvement in boards and commissions.
Councilor Selin: discussed the need for Public Works to mow and trim weeds around certain intersections and islands on University
Avenue to enhance the town's appearance. She also attended a dog splash event at Marilla Pool, which was well attended despite another
event being canceled. A site visit to the campus connector between Grant Avenue and Evansdale campus was productive. Councilor
Selin also attended the West Virginia Botanic Garden's annual fundraiser, which featured a Blanche Lazell exhibit. Additionally, she
highlighted working with Councilor Butcher with neighborhood association activities, including a fairy garden in Turtle Park and pie
days in the park, noting a shift to celebrations.
Deputy Mayor Downs: expressed gratitude to Brian for his inspiration and influence on their approach to public service, highlighting
his commitment to responsibility, accountability, and compassion. He also thanked Anna, Jordan, and Quinn for their service to the city,
acknowledging the challenges of holding public office. Despite the challenges, Deputy Mayor Downs shared that he appreciates the
friendship and mentorship he received from Councilor Butcher who has made a significant positive impact on Morgantown.
Councilor Butcher: expressed appreciation for Dolly Parton and concern over facial recognition and AI tracking, emphasizing the need
for council action. He acknowledged mentorship from Don Spencer and support from Ixia Vega and his wife. He recounted a memorable
moment of camaraderie with fellow councilors and the challenges of public scrutiny, including personal illness. He advised new council
members to rely on moral intuition, city staff, and to seek justice. Reflecting on their tenure, Councilor Butcher acknowledged his
limitations and expressed hope for future councilors to do greater things.
EXECUTIVE SESSION:
Discussion of appointment to vacant Council seat pursuant to WV State Code Section 6-9A-4(b)(2)(A)).
Discussion of acquisition or development of property in the Sabraton area pursuant to WV State Code Section 6-9A-4(b)(9)).
Motion by Councilor Selin, second by Councilor Butcher, to go into executive session. Motion carried by acclamation. Time: 8:11 pm.
ADJOURNMENT: There being no further business, there was a motion by Councilor Butcher, second by Councilor Hollingshead, to
adjourn the meeting. Time: 8:57 pm.

________________________________________
Christine Wade, City Clerk

_________________________________________
Danielle Trumble, Mayor

Page 8 of 207

Item 5A.

City Council
Agenda Item Summary
Council Meeting Date: September 1, 2026
Item:
Department:
Requested By:
Strategic Goal:

Municipal Equality Index (MEI) 2025 Score Celebration
N/A
Sheila Rye, Community Coalition for Social Justice
Safe and Welcoming

Recommended Motion: N/A. Presentation item only.

Item Summary: The Community Coalition for Social Justice (CCSJ) will participate in a
community celebration recognizing the City’s 100% score on the 2025 Municipal
Equality Index (MEI), which was released in 2026. Morgantown’s score was among the
highest in the country and reflects the City’s commitment to equality and inclusive
municipal policies.
The event will be held on Wednesday, October 7, 2026, at 7:00 p.m. at the WVU Gluck
Theatre in the Mountainlair. The event will be free and open to the public, with a
webinar/Zoom option anticipated to allow for broader community participation.
The event is currently advertised with the following community members expected to
participate as speakers: Annie Cronan Yorick, who prepared the MEI report, Andrew
Schneider, Executive Director of Fairness West Virginia, and Julia Myers of the WVU
Center for Community, Connections, and Culture. Kym Scott will direct a choir
performance as part of the celebration. The CCSJ is working with Javier McCoy,
Director of the Center for Community, Connections, and Culture, and Julia Myers to
coordinate the event.
Sheila Rye, Community Coalition for Social Justice, will provide a brief overview.
Fiscal Impact: The event is free and open to the public, with partial financial support
provided by the City of Morgantown.

Page 9 of 207

Item 5B.

City Council
Agenda Item Summary
Council Meeting Date: 09/01/2026
Item:
Department:
Requested By:
Strategic Goal:

FY25 Audit Report Presentation
Finance
Jennifer Street, Assistant Finance Director
Excellent and Responsible

Recommended Motion: No Motion Required

Item Summary:
Each year, the City has an audit of the financial statements completed by an
Independent Auditor. For the Year July 1, 2024 – June 30, 2025, bhm cp group, inc. was
the auditing firm.
They have completed the audit which is attached. Jennifer Street, Assistant Finance
Director, will present the FY25 Audit Report.
Fiscal Impact: N/A

Page 10 of 207

bhm cpa group, inc.

RFP: 24-306
Monongalia County

Item 5B.

CE R TIFIE D PUBLI C A CCOUN T AN T S

CITY OF MORGANTOWN
MONONGALIA COUNTY, WEST VIRGINIA
SINGLE AUDIT
For the Year Ended June 30, 2025
Fiscal Year Audited Under GAGAS: 2025

Locations throughout Ohio, Kentucky, Michigan, West Virginia • Phone: 614-708-4648 • www.bhmcpagroup.com
10

Page 11 of 207

Item 5B.

City of Morgantown, West Virginia
Table of Contents
For the Fiscal Year Ended June 30, 2025
TITLE

PAGE

Introductory Section
City Officials ..................................................................................................................................................I
Index of Funds...............................................................................................................................................II
Financial Section
Independent Auditor’s Report........................................................................................................................1
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position .........................................................................................................................5
Statement of Activities..............................................................................................................................7
Fund Financial Statements:
Balance Sheet – Governmental Funds ......................................................................................................9
Reconciliation of the Balance Sheet – Governmental Funds to the
Statement of Net Position ....................................................................................................................10
Statement of Revenues, Expenditures and Changes in Fund
Balances – Governmental Funds..........................................................................................................11
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities ...............................................12
Statement of Net Position – Proprietary Funds.......................................................................................13
Statement of Revenues, Expenses and Changes in Fund
Net Position – Proprietary Funds .........................................................................................................15
Statement of Cash Flows – Proprietary Funds........................................................................................16
Statement of Fiduciary Net Position – Fiduciary Funds .........................................................................18
Statement of Changes in Fiduciary Net Position – Fiduciary Funds ......................................................19
Notes to the Financial Statements ................................................................................................................20
Required Supplementary Information
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget
And Actual (Budgetary Basis) – General Fund .................................................................................136
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget
And Actual (Budgetary Basis) – Coal Severance Tax Fund...............................................................138
Schedule of Proportionate Share of the Net Pension Liability - WVPERS...............................................139
Schedule of City Contributions – WVPERS..............................................................................................140
Firemen’s Pension and Relief Fund –
Schedule of Changes in the Net Pension Liability and Related Ratios – Multiyear................................141
Schedule of the Net Pension Liability - Multiyear ..................................................................................142
Policemen’s Pension and Relief Fund –
Schedule of Changes in the Net Pension Liability and Related Ratios – Multiyear................................143
Schedule of the Net Pension Liability - Multiyear ..................................................................................144

Page 12 of 207

Item 5B.

City of Morgantown, West Virginia
Table of Contents
For the Fiscal Year Ended June 30, 2025
TITLE

PAGE

Employee Retirement and Relief Fund –
Schedule of Changes in the Net Pension Liability and Related Ratios – Multiyear................................145
Schedule of the Net Pension Liability - Multiyear ..................................................................................146
Other Post Employee Benefits –
Schedule of Changes in the Net OPEB Liability and Related Ratios – Multiyear ..................................147
Schedule of Employer Contributions ......................................................................................................148
Supplementary Information
Combining Fund Balance Sheets – Nonmajor Governmental Funds ........................................................149
Combining Statement of Revenues, Expenditures and Changes in Fund
Balances – Nonmajor Governmental Funds ...........................................................................................150
Combining Fund Balance Sheets – Nonmajor Governmental Funds – Special Revenue Funds...............151
Combining Statement of Revenues, Expenditures and Changes in Fund
Balances – Nonmajor Governmental Funds – Special Revenue Funds..................................................152
Combining Fund Balance Sheets – Nonmajor Governmental Funds – Capital Project Funds..................153
Combining Statement of Revenues, Expenditures and Changes in Fund
Balances – Nonmajor Governmental Funds – Capital Project Funds.....................................................154
Combining Statement of Net Position – Fiduciary Responsibilities..........................................................155
Combining Statement of Changes in Net Position – Fiduciary Responsibilities.......................................156
Schedule of Expenditures of Federal Awards............................................................................................157
Notes to the Schedule of Expenditures of Federal Awards .......................................................................158
Schedule of Passenger Facility Charges – Cash Basis ..............................................................................159
Notes to the Schedule of Passenger Facility Charges – Cash Basis .........................................................160
Accompanying Information
Independent Auditor’s Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Required by Government Auditing Standards.......................................160
Independent Auditor’s Report on Compliance with Requirements Applicable to The Major Federal
Program and on Internal Control Over Compliance Required by the Uniform Guidance ......................162
Independent Auditor’s Report on Compliance with Requirements Applicable to the Passenger
Facility Charges Program and on Internal Control over Compliance .....................................................165
Schedule of Findings 2 CFR § 200.515 .....................................................................................................167
Corrective Action Plan 2 CFR § 200.511(c)..............................................................................................169

Page 13 of 207

Item 5B.

CITY OF MORGANTOWN, WEST VIRGINIA
MUNICIPAL OFFICIALS
For the Fiscal Year Ended June 30, 2025

OFFICE

NAME

TERM

Elective
Mayor

Danielle Trumble

07/01/23 – 06/30/27

Deputy Mayor

Brian Butcher

07-01-23 / 6/30/27

Council Members

Jodi Hollingshead
M. Joe Abu Ghannam
Louise Michael
Jennifer Selin
Mark Downs

07/01/25 – 06/30/29
07/01/23 – 06/30/27
07/01/23 – 06/30/27
07/01/25 – 06/30/27
07/01/25 – 06/30/29

City Manager

Jamie Miller

City Clerk

Christine Wade

Staff Attorney

Ryan Simonton

Page 14 of 207

Item 5B.

CITY OF MORGANTOWN, WEST VIRGINIA
INDEX OF FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025
GOVERNMENTAL FUND TYPES
MAJOR FUNDS
General
Special Revenue Funds
Coal Severance Tax
Life and Health Fund
Municipal Sales and Use Tax Fund
American Rescue Plan Fund
Capital Projects Funds
Capital Reserve Fund
Debt Service Funds
Tax Increment Financing Debt Service
PROPRIETARY FUND TYPES
Enterprise Funds
Airport
DISCRETELY PRESENTED COMPONENT UNITS
Special Revenue Funds
Morgantown Public Library
Library Expendable Trust Fund
Enterprise Funds
Parking Authority
Municipal Building Commission
Morgantown Utility Board
Land Reuse and Preservation Agency
NONMAJOR FUNDS
GOVERNMENTAL FUND TYPES
Special Revenue Funds
Economic Development Grant
Community Development Block Grant
Police Forfeiture
Special Grants
Local Law Enforcement Grants
I.C. White Coal Severance
OPEB Trust
Metropolitan Theater
Sidewalks
Woodburn Property
Arts and Culture Fund
Court Technology
Hazel Ruby McQuain Park
Retirement Fund
Opioid Fund
II
14

Page 15 of 207

Item 5B.

CITY OF MORGANTOWN, WEST VIRGINIA
INDEX OF FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2025

Discretely Presented Component Unit
Board of Parks and Recreation
Capital Projects Funds
Business Improvement District
Tax Increment Financing
Airport Access Road
Discretely Presented Component Unit
Capital Projects – Clay Battelle Branch
FIDUCIARY FUND TYPES
Policemen’s Pension and Relief
Firemen’s Pension and Relief
Employee’s Retirement and Benefit
Discretely Presented Component Unit
Library Nonexpendable Trust
Library Endowment Fund

III
15

Page 16 of 207

Item 5B.

bhm cpa group, inc.
CE R TIFIE D PUBLI C A CCOUN T AN T S

Independent Auditor’s Report
To the Honorable Mayor and Council
City of Morgantown
389 Spruce Street
Morgantown, West Virginia 26505
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business-type activities,
each major fund, and the aggregate remaining fund information of the City of Morgantown, West
Virginia (the City) as of and for the year ended June 30, 2025, and the related notes to the financial
statements, which collectively comprise the City’s basic financial statements as listed in the table of
contents.
In our opinion, based on our audit and the reports of other auditors, the financial statements referred
to above present fairly, in all material respects, the respective financial position of the governmental
activities, the business-type activities, the aggregate discretely presented component units, each major
fund, and the aggregate remaining fund information of City of Morgantown, West Virginia as of June
30, 2025, and the respective changes in financial position, and where applicable, cash flows thereof for
the year then ended in accordance with accounting principles generally accepted in the United States
of America.
We did not audit the financial statements of the Morgantown Public Library or the Morgantown
Utility Board, discretely presented component units, which represent 85.7 percent, 87.8 percent and
82.6 percent, respectively of the assets, net position, and revenues of the aggregate discretely
presented component units as of June 30, 2025, and the respective changes in financial position, and
where applicable, cash flows thereof for the year then ended. Those statements were audited by other
auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts
included for Morgantown Public Library and Morgantown Utility Board, is based solely on the report
of the other auditors.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America (GAAS) and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report. We are required to be independent of the City, and to meet our other
ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinions.

1
Locations throughout Ohio, Kentucky, Michigan, West Virginia • Phone: 614-708-4648 • www.bhmcpagroup.com
16

Page 17 of 207

Item 5B.

City of Morgantown
Independent Auditor’s Report
Page 2
Responsibilities of Management for the Financial Statements
Management is responsible for preparing and fairly presenting these financial statements in
accordance with accounting principles generally accepted in the United State of America; this includes
designing, implementing and maintaining internal control relevant to preparing and fairly presenting
financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions
or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue
as a going concern for twelve months beyond the financial statement date, including any currently
known information that may rise substantial doubt shortly thereafter.
Auditor’s Responsibility
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance
and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government
Auditing Standards will always detect a material misstatement when it exists. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control. Misstatements are considered material if there is a substantial likelihood that,
individually or in the aggregate, they would influence the judgment made by a reasonable user based
on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we
•

exercise professional judgment and maintain professional skepticism throughout the audit.

•

identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such procedures
include examining, on a test basis, evidence regarding the amounts and disclosures in the financial
statements.

•

obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.

•

evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.

•

conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that
raise substantial doubt about the City’s ability to continue as a going concern for a reasonable
period of time.

We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit, significant audit findings, and certain internal control-related matters
that we identified during the audit.

2
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Page 18 of 207

Item 5B.

City of Morgantown
Independent Auditor’s Report
Page 3
Required Supplementary Information
Accounting principles generally accepted in the United States of America requires that the
management’s discussion and analysis, the schedule of revenues, expenditures and changes in fund
balance – budget and actual – General Fund – budgetary basis, schedule of revenues, expenditures and
changes in fund balance – budget and actual – Coal Severance Fund – budgetary basis, net pension
liability information and other post-employment benefit plan information, as listed in the table of
contents be presented to supplement the basic financial statements. Such information, although not a
part of the basic financial statements, is required by the Governmental Accounting Standards Board,
who considers it to be an essential part of financial reporting for placing the basic financial statements
in an appropriate operational, economic, or historical context. We have applied certain limited
procedure to the required supplementary information in accordance with auditing standards generally
accepted in the United States of America, which consisted of inquires of management about the
methods of preparing the information and comparing the information for consistency with
management’s responses to our inquiries, the basic financial statement, and other knowledge we
obtained during our audit of the basic financial statements. We do not express an opinion or provide
any assurance on the information because the limited procedures do not provide us with sufficient
evidence to express an opinion or provide any assurance.
Management has omitted the management’s discussion and analysis that accounting principles
generally accepted in the United States of America require to be presented to supplement the basic
financial statements. Such missing information, although not a part of the basic financial statements, is
required by the Governmental Accounting Standard Board, who considers it to be an essential part of
the financial reporting for placing the basic financial statements in an appropriate operational,
economic, or historical context. Our opinion is not modified with respect to this matter.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Morgantown, West Virginia’s basic financial statements. The
accompanying combining and individual nonmajor fund financial statements, fiduciary fund financial
statements are presented for purposes of additional analysis and are not a required part of the basic
financial statements. The schedule of passenger facility charges – cash basis – for the year ended June
30, 2025 and notes to schedule of passenger facility charges – cash basis – for the year ended June 30,
2025 are presented for purposes of additional analysis as specified in the Passenger Facility Charge
Audit Guide for Pubic Agencies, issued by the Federal Aviation Administration and is not a required
part of the basic financial statements. The Schedule of Expenditures of Federal Awards as required by
Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards, the Schedules of Rate Covenant Compliance,
Combining Statements of Fiduciary Net Position and Combining Statement of Changes in Fiduciary
Net Position are presented for purposes of additional analysis and are not a required part of the basic
financial statements. Such information is the responsibility of management and was derived from and
relates directly to the underlying accounting and other records used to prepare the basic financial
statements.

3
18

Page 19 of 207

Item 5B.

City of Morgantown
Independent Auditor’s Report
Page 4
The information has been subjected to the auditing procedures applied in the audit of the basic
financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic financial
statements or to the basic financial statements themselves, and other additional procedures in
accordance with auditing standards generally accepted in the United States of America. In our
opinion, the Schedules and Statements are fairly stated, in all material respects, in relation to the basic
financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual financial report. The other
information comprises the introductory section. Our opinions on the basic financial statements do not
cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and
the basic financial statements, or the other information otherwise appears to be materially misstated. If,
based on the work performed, we conclude that an uncorrected material misstatement of the other
information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated July 30,
2026 on our consideration of the City’s internal control over financial reporting and our tests of its
compliance with certain provisions of laws, regulations, contracts and grant agreements and other
matters. That report describes the scope of our internal control testing over financial reporting and
compliance, and the results of that testing, and does not opine on internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the City’s internal control over financial reporting and
compliance.

BHM CPA Group Inc.
Huntington, West Virginia
July 30, 2026

4
19

Page 20 of 207

Item 5B.

City of Morgantown, West Virginia
Statement of Net Position
June 30, 2025
Primary Government

Assets:
Cash
Investments
Receivables
Due from other funds
Inventory
Prepaid expenses
Restricted assets
Capital assets, net
Deposits and prepayments
Deferred financing costs
Right to use asset
Accrued utility revenue
Net Pension Asset
Other, net

Governmental
Activities
$

25,214,668

3,826,879
8,626,648
1,378,543
4,975
2,455,350
27,684,071
-

Business-Type
Activities
$

764,826
194,853
59,372
286,432
44,522,637
43,220
-

Morgantown
Public Library

Total
$

25,979,494
3,826,879
8,821,501
1,378,543
59,372
4,975
2,741,782
72,206,708
43,220
-

716,700
4,748,460
45,374
8,619
2,258,783
1,677,399
-

Component Units
Municipal
Parking
Building
Authority
Commission

Board of Parks
and Recreation
Commision
$

8,757,460
132,859
20,823,639
93,102
-

1,525,656
708,812
1,303,406
6,168,573
-

367,717
59,778
265,406
12,831,546
-

Land Reuse and
Preservation
Agency

Morgantown
Utility
Board

111,506
1,786,337
-

9,712,862
14,877,464
4,068,931
2,891,931
12,054,812
357,716,255
754,635
956,497
359,833
2,131,906
197,947

69,191,134

45,871,340

115,062,474

9,455,335

29,807,060

9,706,447

13,524,447

1,897,843

405,723,073

1,660,662
3,566,528
3,550,896
1,163,466
12,480

423,326
41,987
-

2,083,988
3,566,528
3,550,896
1,205,453
12,480

168,590
72,179
-

126,738
79,409
-

76,574
50,930
-

2,031

3,941,447
169,436
-

Total deferred outflows of resources

9,954,032

465,313

10,419,345

240,769

206,147

127,504

2,031

4,110,883

Total assets and deferred outflows of resources

79,145,166

46,336,653

125,481,819

9,696,104

30,013,207

9,833,951

13,526,478

1,897,843

409,833,956

Total assets
Deferred Outflows of Resources:
Deferred outflows of resources - WVPERS
Deferred outflows of resources - Employee Retirement
Deferred outflows of resources - Fire Pension
Deferred outflows of resources - Police Pension
Deferred outflows of resources - MUB Pension
Deferred outflows of resources - MUP OPEB
Deferred outflows of resources - OPEB
Unamortized bond discount refunding loss

Page 21 of 207

Item 5B.

City of Morgantown, West Virginia
Statement of Net Position (Cont'd)
June 30, 2025
Primary Government

Liabilities:
Accounts payable
Due to other funds
Accrued payroll
Accrued expenses
Billing services payable
Accrued administrative costs on bonds
Accrued interest payable
Unearned revenues
Other accrued liabilities
Customer deposits
Accrued payroll and compensated absences
Long-term liabilities:
Due within one year
Due within more than one year

Governmental
Activities

Business-Type
Activities

575,441
931,007
7,764,897
+
862,674

198,254
389,398
17,631
72,468

878,767
103,755,552

Total

Morgantown
Public Library

Board of Parks
and Recreation
Commision

Component Units
Municipal
Parking
Building
Authority
Commission

Land Reuse and
Preservation
Agency

Morgantown
Utility
Board

68,510
30,783
73,104

276,720
21,525
85,911

98,882
20,105
95,363

760
10,998
-

1,247
-

3,789,951
1,166,848
143,339
18,337
1,203,971
7,490
66,484
774,433
-

2,036,641

773,695
1,320,405
17,631
7,764,897
935,142
878,767
105,792,193

733,878

365,000
15,067,487

145,735
2,666,530

743,965
6,231,160

96,240
1,029,244

114,768,338

2,714,392

117,482,730

906,275

15,816,643

3,026,615

6,986,883

1,126,731

7,130,388
207,861,603
222,162,844

3,790,345
21,509,176
21,064,793
5,030,427

419,970
183,796

4,210,315
21,509,176
21,064,793
5,214,223

89,781
315,546

123,284
397,176

228,545
501,031

2,904,682
18,105
-

Total deferred inflows of resources

51,394,741-

603,766-

51,998,507-

405,327-

520,460-

729,576-

2,922,787-

Total liabilities and deferred inflows of resources

166,163,079

3,318,158

169,481,237

1,311,602

16,337,103

3,756,191

6,986,883

1,126,731

225,085,631

7,060,386
2,486,992
(96,565,291)

44,522,637
286,432
(1,790,574)

51,583,023
2,773,424
(98,355,865)

1,677,399
2,258,783
4,448,320

6,353,639
7,322,465

4,379,105
1,303,406
395,249

5,856,421
265,406
417,768

660,853
110,259

171,013,839
3,996,789
9,737,697

($87,017,913)

$43,018,495

($43,999,418)

$8,384,502

$13,676,104

6,077,760

$6,539,595

$771,112

184,748,325

Total liabilities
Deferred inflows of resources:
Deferred inflows of resources - WVPERS
Deferred inflows of resources - Employee Retirement
Deferred inflows of resources - Fire Pension
Deferred inflows of resources - Police Pension
Deferred inflows of resources - MUB Pension
Deferred inflows of resources - MUP OPEB
Deferred inflows of resources - OPEB

Net Position:
Net investment in capital assets
Restricted
Unrestricted
Total net position

The notes to the basic financial statements are an integral part of this statement.

Page 22 of 207

Item 5B.

City of Morgantown, West Virginia
Statement of Activities
For the Year Ended June 30, 2025

Functions/programs
Primary government:
Governmental activities:
General government
Public safety
Highway and streets
Health and sanitation
Culture and recreation
Social services
Community development
Debt services
Benefits payments
Total governmental activities
Business-type activities:
Airport
Total business-type activities
Total
Component unit:
Morgantown Utility Board
Parking Authority
Municipal Building Commission
Board of Parks Recreation Commission
Land Reuse and Preservation Agency
Morgantown Public Library
Total component units

Program Revenues
Operating
Capital
Charges for
Grants and
Grants and
Services
Contributions Contributions

Governmental
Activities

Business-type
Activities

9,211,039
14,918,861
2,228,431
1,743,473
3,378,967
287,444
1,393,306
1,221,734
9,834,952
44,218,207

5,022,899
5,022,899
49,241,106

3,722,776
3,722,776
$ 19,698,450

40,131,635
3,289,014
795,513
5,362,169
36,651
2,296,291
51,911,273

$ 42,515,044
3,071,095
4,371,715
18,856
16,727
$ 49,993,437

Expenses

Net Revenue (Expense) and
Changes in Net Position
Primary Government

4,138,696
4,609,701
2,157,472
387,726
50,000
4,632,079
15,975,674

138,176
316,688
528,054
240,830
1,223,748

(4,934,167)
(9,992,472)
(2,228,431)
413,999
(2,463,187)
(287,444)
(1,102,476)
(1,221,734)
(5,202,873)
(27,018,785)

$ 1,223,748

5,546,535
5,546,535
$ 5,546,535

$ (27,018,785)

4,246,412
4,246,412
$ 4,246,412

4,246,412
4,246,412
$ (22,772,373)

1,435,450
$ 1,435,450

Morgantown
Public Library

Total

(4,934,167)
(9,992,472)
(2,228,431)
413,999
(2,463,187)
(287,444)
(1,102,476)
(1,221,734)
(5,202,873)
(27,018,785)

Component Unit
Municipal Land Reuse and
Parking
Building
Preservation
Authority
Commission
Agency

Board of Parks
and Recreation
Commission

(844,114)
(844,114)

(990,454)
(990,454)

(217,919)
(217,919)

(795,513)
$ (795,513)

(17,795)
(17,795)

Morgantown
Utility
Board

2,383,409
2,383,409

Page 23 of 207

Item 5B.

City of Morgantown, West Virginia
Statement of Activities (Cont'd)
For the Year Ended June 30, 2025

Functions/Programs

Expenses

Program Revenues
Operating
Capital
Charges for
Grants and
Grants and
Services
Contributions Contributions

General Revenues
Taxes and special assessments:
Ad valorem
Gas and oil severance
Municipal sales tax
Utility
Buisness and occupation
Wine and liquor
Animal control
Hotel and motel
Amusement
Coal severance
Licenses and permits
Franchise fees
Investment income
Video lottery and gaming income
Miscellaneous
Total general revenues
Changes in net position before tansfers between activities
Transfer between activities
Change in net position before contributed capital
Contributed capital
Sale on capital assets
Net change in net position

Net Revenue (Expense) and
Changes in Net Position
Primary Government
Governmental
Activities

Business-type
Activities

6,364,021
111,714
10,334,817
1,355,134
15,981,338
817,812
3,208
1,311,482
7,515
98,679
786,883
184,843
899,720
148,167
2,715,743
41,121,076

10,870
1,465
12,335

Morgantown
Public Library

Total

6,364,021
111,714
10,334,817
1,355,134
15,981,338
817,812
3,208
1,311,482
7,515
98,679
786,883
184,843
910,590
148,167
2,717,208
41,133,411

Component Unit
Municipal Land Reuse and
Parking
Building
Preservation
Authority
Commission
Agency

Board of Parks
and Recreation
Commission

582,403
582,403

187,332
109,450
296,782

146,393
845
147,238

20,068
20,068

Morgantown
Utility
Board

2,033,054
(68,747)
1,964,307

14,102,291
(2,540,116)
11,562,175

4,258,747
192,418
4,451,165

18,361,038
(2,347,698)
16,013,340

(261,711)
995,803
734,092

(693,672)
2,033,721
1,340,049

(70,681)
(70,681)

(775,445)
(319,469)
(1,094,914)

(17,795)
349,314
331,519

4,347,716
4,347,716

(168,055)

16,865,687
-

11,562,175

4,451,165

16,013,340

734,092

1,340,049

(238,736)

(1,094,914)

331,519

21,213,403

Net Position at Beginning of Year

($98,580,088)

38,567,330

($60,012,758)

7,650,410

12,336,055

6,316,496

7,634,509

439,593

163,534,922

Net Position End of Year

(87,017,913)

43,018,495

(43,999,418)

8,384,502

13,676,104

6,077,760

6,539,595

771,112

184,748,325

The notes to the basic financial statements are an integral part of this statement.

Page 24 of 207

Item 5B.

City of Morgantown, West Virginia
Fund Balance Sheets Governmental Funds
June 30, 2025

General
Fund

Cash
Investments
Receivables, net of allowances:
Taxes
Accounts
Other
Due from other funds
Restricted assets
Prepaid expenses

Assets

Total assets

6,246,262
1,112,990

Coal
Severance

4,159,015
1,123,426
662,360
4,975

Capital
Reserve

Life and
Health

1,383,824

2,455,350

2,704,753

2,443,147

4,783,446

41,507,063

5,263,075

2,236,921

277,940

11,200
7,764,897
7,776,097

34,077
34,077

5,659
135,586
15,483
156,728

575,441
7,764,897
931,007
862,674
10,134,019

68,510
30,783
73,104
172,397

2,878,850
1,730,483
109,656
64,457
-

25,214,668
3,826,879

4,298,470
1,123,426
3,204,752
1,378,543
2,455,350
4,975

716,700
4,492,382

45,374

Board of
Parks and
Recreation
Commission

Capital
Project
Funds

2,704,752
-

2,443,147
-

Morgantown Public Library
Morgantown
Library
Public
Expendable
Library
Trust

$ 14,397,699

29,816

Total
Governmental
Funds

500,000
651,726
-

2,455,350
-

1
-

Other
Governmental
Funds

29,799
-

Component Units

American
Rescue Plan
Act Fund

$ 13,245,973
-

400,418
983,406

Municipal
Sales and Use
Tax Fund

17
-

$ 13,309,028

Tax Increment
Financing
Debt Service

2,236,921
-

8,619

256,078

21,862
-

Total

8,757,460
-

9,474,160
4,748,460
178,233
2,258,783
8,619

8,890,319

16,668,255

276,720
85,911
362,631

345,230
30,783
159,015
535,028

132,859
-

Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities:
Accounts payable
Accrued interest payable
Due to other funds
Accrued expenses
Accrued payroll and compensated absences
Total liabilities
Deferred Inflows of Resources:
Deferred revenue - taxes
Unearned revenues
Total deferred inflows of resources
Fund Balances:
Restricted
Nonspendable
Assigned
Unassigned
Total fund balances
Total liabilities, deferred inflows of resources and fund balances

220,085
533,093
847,191
1,600,369

304,420
262,328
566,748

556,975
-

556,975

4,975
11,146,709
11,151,684

29,816
29,816

13,830,951
13,830,951

1,383,824
1,383,824

(5,320,747)
(5,320,747)

2,704,753
2,704,753

2,409,070
2,409,070

77,922
4,548,796
4,626,718

2,486,992
4,975
22,498,140
5,825,962
30,816,069

8,619
476,069
4,605,990
5,090,678

2,236,921
2,236,921

21,862
256,078
277,940

8,527,688
8,527,688

2,258,783
8,619
9,259,835
4,605,990
16,133,227

29,816

$ 14,397,699

$ 13,309,028

1,383,824

2,455,350

2,704,753

2,443,147

4,783,446

41,507,063

5,263,075

2,236,921

277,940

8,890,319

16,668,255

The notes to the basic financial statements are an integral part of this statement.

9
24

Page 25 of 207

Item 5B.

City of Morgantown, West Virginia
Reconciliation of Fund Balance Sheets of
Governmental Funds to Statement of Net Position
June 30, 2025
Component Units

Primary
Government
Fund balance, fund level statement June 30, 2025

30,816,069

Morgantown
Public
Library

Board of
Parks and
Recreation
Commission

7,605,539

8,527,688

The total fund balance of the City of Morgantown's governmental funds differs from net position
of the governmental activities reported on the Statement of Net Position as follows:
Some liabilities are not due and payable in the current period and therefore, are not reported in
the fund level statements:
Accrued interest
Accrued compensated absences
Notes payable
Net pension (obligation)
Bonds payable
Accrued other post employment benefits

(788,265)
(71,214,150)
(20,623,685)
(12,008,219)

71,429
(805,307)

(21,525)
93,102
(14,470,000)
(962,487)

Capital assets, that are used in governmental activities and are
purchased or constructed, the costs of those assets are reported
as expenditures to governmental funds. However, the
Statement of Net Position includes those assets and their
associated accumulated depreciation.

27,684,071

1,677,399

20,823,639

1,660,662
3,566,528
3,550,896
1,163,466
(3,790,345)
(21,509,176)
(21,064,793)
(5,030,427)

168,590
72,179
(89,781)
(315,546)

126,738
79,409
(123,284)
(397,176)

12,480
556,975

8,384,502

$ 13,676,104

Deferred inflows and outflows related to pension and other
post employment benefit activity are not required to be
reported in the funds but are required to be reported at the
government-wide level:
Deferred outflows of resources - WVPERS
Deferred outflows of resources - Employee retirement
Deferred outflows of resources - Fire Pension
Deferred ouflows of resources - Police Pension
Deferred outflows of resources - OPEB
Deferred inflows of resources - WVPERS
Deferred inflowsof resources - Employee retirement
Deferred inflows of resources - Fire Pension
Deferred inflows of resources - Police Pension
Deferred inflows of resources - OPEB
Some assets do not provide current financial resources and are reported as deferred revenues in
the fund level statements.
Unamortized bond discount
Deferred revenue
Net Position of Governmental Activities

(87,017,913)

The notes to the basic financial statements are an integral part of this statement.

10
25

Page 26 of 207

Item 5B.

City of Morgantown, West Virginia
Combining Statement of Revenues, Expenditures and Changes in Net Position Governmental Funds
For the Year Ended June 30, 2025

Revenues:
Taxes and special assessments
Ad valorem
Gas and oil severance
Municipal sales tax
Utility
Buisness and occupation
Wine and liquor
Animal control
Hotel and motel
Amusement
Licenses and permits
Charges for services
Fines and forfeits
Franchise fees
Investment income (loss)
Donations
Video lottery and gaming income
Intergovernmental:
Federal
State
Local
Contributions from employees
Contributions from employers
Rental Income
Other

General
Fund
$

Total revenues
Expenditures:
General government
Public safety
Highway and streets
Health and sanitation
Culture and recreation
Social services
Community development
Capital outlay
Debt service - principal
Debt service - interest
Benefit payments
Total expenditures

4,831,221
111,714
1,355,134
15,981,338
817,812
3,208
1,311,482
7,515
786,883
10,511,801
266,399
184,843
248,787
148,167

Coal
Severance
$

Capital
Reserve

511
-

50,000
251,476
-

Life and
Health
$

12,459
-

Tax Increment
Financing
Debt Service

Municipal
Sales and Use
Tax Fund

127,126
120,000
-

10,334,817
-

American
Rescue Plan
Act Fund
$

50,140
-

Component Units

Other
Governmental
Funds

Total
Governmental
Funds

1,571,211
387,726
127,669
209,221
528,054
-

6,402,432
111,714
10,334,817
1,355,134
15,981,338
817,812
3,208
1,311,482
7,515
786,883
10,949,527
394,068
184,843
899,720
648,054
148,167

Morgantown Public Library
Morgantown
Library
Capital
Public
Expendable
Project
Library
Trust
Funds
$

16,727
298,406
23,121
-

283,793
-

Board of Parks
and Recreation
Commission
204
-

839,153
187,332
-

Total
$

839,153
16,727
769,735
23,121
-

195,022
18,176
446,206

98,679
-

735
62,810
304,119

4,632,079
1,711,603

177,285
121,666
253,815

373,042
220,345
80,986
4,632,079
2,715,743

622,257
790,072
-

3,204,023
328,539
109,450

622,257
3,994,095
109,450

37,225,708

99,190

669,140

6,356,141

247,126

10,334,817

50,140

3,376,647

$58,358,909

1,750,583

283,793

204

4,668,497

6,374,538

4,965,384
9,953,297
426,544
607,746
15,952,971

374,229
7,367,507
9,953,297
426,544
607,746
18,355,094

8,125,388
19,562,405
2,795,497
1,743,473
287,444
1,048
56,901
1,245
32,573,401

103,803
103,803

795,842
7,855,874
8,651,716

1,146,039
-

8,943,003
10,089,042

127,772
814,000
1,220,489
2,162,261

1,295,886
2,522,674
3,818,560

2,684
3,299,814
3,302,498

829,332
10,291,006
752,490
597,464
49,998
891,949
13,412,239

10,231,215
31,149,297
2,795,497
1,743,473
3,378,967
287,444
1,393,306
11,206,734
870,901
1,221,734
9,834,952
74,113,520

2,376,352
2,376,352

16,743
16,743

9,028
9,028

Excess (deficiency) of revenues
over (under) expenditures

4,652,307

(4,613)

(7,982,576)

(3,732,901)

(1,915,135)

6,516,257

(3,252,358)

(10,035,592)

(15,754,611)

(625,769)

267,050

(8,824)

(11,284,474)

(11,652,017)

Other Financing Sources (Uses):
Operating transfers in
Operating transfers out

2,777,938
(13,824,689)

9,411,884
(628,342)

5,626,416
(591,695)

1,464,572
-

(6,527,399)

1,085,707
(1,334,508)

20,366,517
(22,906,633)

995,803
-

2,033,721
-

3,029,524
-

(11,046,751)

8,783,542

5,034,721

1,464,572

(6,527,399)

(248,801)

(2,540,116)

995,803

2,033,721

3,029,524

(6,394,444)

(4,613)

800,966

1,301,820

(450,563)

(11,142)

(3,252,358)

(10,284,393)

(18,294,727)

370,034

267,050

(8,824)

(9,250,753)

(8,622,493)

Total other financing sources (uses)
Net change in fund balance
Fund balances at beginning of year
Fund balances at end of year

17,546,128
$ 11,151,684

34,429

13,029,985

29,816

$ 13,830,951

82,004
$

1,383,824

(4,870,184)
$

(5,320,747)

2,715,895
$

2,704,753

5,661,428
$

2,409,070

14,911,111
$

4,626,718

49,110,796
$

30,816,069

4,720,644
$

5,090,678

1,969,871
$

2,236,921

286,764
$

277,940

17,778,441
$

8,527,688

24,755,720
$

16,133,227

The notes to the basic financial statements are an integral part of this statement.

11
26

Page 27 of 207

Item 5B.

City of Morgantown, West Virginia
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Net Position of Governmental Funds to the Statement of Activities
For the Year Ended June 30, 2025
Component Units

Primary
Government
Net Change in Fund Balance - Total Governmental Funds

(18,294,727)

Board of
Parks and
Recreation
Commission

Morgantown
Public
Library
$

628,260

(9,250,753)

Amounts reported for governmental activities in the Statement of Activities are different
because:
Governmental funds report capital outlays as expenditures while governmental
activities report depreciation expense to allocate those expenditures over the
life of the assets. This is the difference between capital outlays and depreciation
in the current period.
Notes payable and bonds provide current financial
resources to governmental funds, but entering into notes
payable and bonds increase long-term liabilities in the
Statement of Net Position. Repayment of notes payable
obligations and
bonds are expenditures in the governmental funds, but the
repayment reduces long-term liabilities in the Statement of
Net Position, while proceeds are considered revenue in the
governmental funds, but increase long-term liabilities in the
Statement of Net Position.
Repayment of notes payable
Repayment of bonds

5,159,228

(45,815)

9,953,297

56,901
814,000

2,542
-

56,544
370,000

(38,411)

23,865,184

149,105

210,961

Some revenues reported in the Statement of Activities do
not provide financial resources that are both avaliable and
measurable for use in current activities.
Change in deferred revenues
Certain pension expenses in the Statement of Activities are
recognized on the accural basis of accounting in accordance
with GASB 68:
Amount of decrease (increase) in pension expense and
OPEB expense recognized at government-wide level
Change in Net Position of Governmental Activities

11,562,175

734,092

1,340,049

The notes to the basic financial statements are an integral part of this statement.

12
27

Page 28 of 207

Item 5B.

City of Morgantown, West Virginia
Statement of Net Position Proprietary Funds (Cont'd)
June 30, 2025

Business-Type
Activities
Parking
Authority

Airport Fund

Municipal
Building
Commission

Component Units
Land Reuse and
Morgantown
Preservation
Utility
Agency
Board

Total

Liabilities
Current Liabilities (payable from current assets)
Accounts payable
Due to other funds
Accrued payroll
Billing services collected payroll
Deferred Revenue
Other accrued liabilities
Interest payable
Accrued compensated absences

Total current liabilities(payable from current assets)
Current Liabilities (payable from restricted assets)
Revenue bonds payable
Current portion of long-term debt
Interest payable
Total current liabilities (payable from restricted assets)
Long-Term Liabilities (net of current portion)
Revenue bonds payable
Note payable net of current portion
Net pension obligation
Net other post employment benefit obligation
Customer deposits
Accrued administrative costs on bonds
Accrued interest on bonds
Interest on customer deposits
Advances on construction
Total long-term liabilities (net of current portion)
Total liabilities
Deferred Inflows of Resources
Deferred inflows of resources - Employee retirement
Deferred inflows of resources - MUB Pension
Deferred inflows of resources - MUB OPEB
Deferred inflows of resources - OPEB
Total deferred inflows of resources
Total liabilities and deferred inflows of resources
Net Position:
Net investment in capital assets
Restricted
Unrestricted
Total net position

198,254
389,398
17,631
72,468

98,882
20,105
95,363

760
10,998
-

3,789,951
1,166,848
143,339
7,490
66,484
-

3,889,593
1,186,953
143,339
7,490
66,484
10,998
95,363

677,751

214,350

11,758

5,174,112

5,400,220

145,735
-

743,965
-

96,240
1,247

7,115,665
14,723
-

8,101,605
14,723
1,247

145,735

743,965

97,487

7,130,388

8,117,575

1,597,404
439,237
-

1,643,733
475,749
547,048
-

6,231,160
-

1,029,244
-

179,931,861
7,457,440
774,433
18,337
1,197,891
6,080
20,472,302

188,835,998
7,933,189
547,048
774,433
18,337
1,197,891
6,080
20,472,302

2,036,641

2,666,530

6,231,160

1,029,244

209,858,344

219,785,278

2,714,392

3,026,615

6,986,883

1,126,731

222,162,844

233,303,073

419,970
183,796

228,545
501,031

2,904,682
18,105
-

228,545
2,904,682
18,105
501,031

603,766

729,576

2,922,787

3,652,363

3,318,158

3,756,191

6,986,883

1,126,731

225,085,631

236,955,436

44,522,637
286,432
(1,790,574)

6,168,573
1,303,406
(1,394,219)

12,831,546
265,406
(6,557,357)

1,786,337
(1,015,225)

171,013,839
3,996,789
9,737,697

191,800,295
5,565,601
770,896

43,018,495

$ 6,077,760

6,539,595

771,112

$ 184,748,325

198,136,792

See accompanying notes and independent auditor's report.

Page 29 of 207

Item 5B.

City of Morgantown, West Virginia
Statement of Net Position Proprietary Funds (Cont'd)
June 30, 2025
Business-Type
Activities
Liabilities
Current Liabilities (payable from current assets)
Accounts payable
Due to other funds
Accrued payroll
Billing services collected payroll
Deferred Revenue
Other accrued liabilities
Interest payable
Accrued compensated absences

Parking
Authority

Airport Fund

198,254
389,398
17,631
72,468

98,882
20,105
95,363

Municipal
Building
Commission

Component Units
Land Reuse and
Morgantown
Preservation
Utility
Agency
Board

760
10,998
-

3,789,951
1,166,848
143,339
7,490
66,484
-

Total

3,889,593
1,186,953
143,339
7,490
66,484
10,998
95,363

677,751

214,350

11,758

5,174,112

5,400,220

145,735
-

743,965
-

96,240
1,247

7,115,665
14,723
-

8,101,605
14,723
1,247

145,735

743,965

97,487

7,130,388

8,117,575

1,597,404
439,237
-

1,643,733
475,749
547,048
-

6,231,160
-

1,029,244
-

179,931,861
7,457,440
774,433
18,337
1,197,891
6,080
20,472,302

188,835,998
7,933,189
547,048
774,433
18,337
1,197,891
6,080
20,472,302

2,036,641

2,666,530

6,231,160

1,029,244

209,858,344

219,785,278

2,714,392

3,026,615

6,986,883

1,126,731

222,162,844

233,303,073

419,970
183,796

228,545
501,031

2,904,682
18,105
-

228,545
2,904,682
18,105
501,031

603,766

729,576

2,922,787

3,652,363

3,318,158

3,756,191

6,986,883

1,126,731

225,085,631

236,955,436

44,522,637
286,432
(1,790,574)

6,168,573
1,303,406
(1,394,219)

12,831,546
265,406
(6,557,357)

1,786,337
(1,015,225)

171,013,839
3,996,789
9,737,697

191,800,295
5,565,601
770,896

43,018,495

$ 6,077,760

6,539,595

771,112

$ 184,748,325

198,136,792

See accompanying notes and independent auditor's report.

Page 30 of 207

Item 5B.

City of Morgantown, West Virginia
Statement of Revenues, Expenses and
Changes in Net Position
Proprietary Funds
For the Year Ended June 30, 2025
Business-Type
Activities

Operating Revenues
Charges for services
Fines

Parking
Authority

3,722,776
-

$ 3,071,095
-

3,722,776

3,071,095

742,531
2,242,216
39,484
98,271
154,401
101,842
1,139,017
505,137
-

963,650
39,810
79,078
99,653
507,521
361,470
1,032,005
171,708
-

5,022,899
(1,300,123)

Total operating expenses
Operating income (loss)
Nonoperating Revenues (Expenses)
Investment income
Gain (loss) on investments
Interest and fiscal charges
Amortization of bond costs
Other revenue

Component Units
Land Reuse and
Morgantown
Preservation
Utility
Agency
Board

Airport Fund

Total operating revenues
Operating Expenses
Personal services
Purchases - fuel
Supplies
Liability insurance
Utilities
General and administrative
Depreciation
Maintenance
Rental lease
Water operating expenses
Sewer operating expenses
Storm water utility operating expenses

Municipal
Building
Commission

10,870
1,465

42,515,044
-

$ 45,604,995
-

18,856

42,515,044

45,604,995

40,809
571,594
1,424
-

20
-

13,243,231
19,320,728
1,759,097

963,650
39,810
79,078
99,653
548,350
933,064
1,033,429
171,708
13,243,231
19,320,728
1,759,097

3,254,895

613,827

34,323,056

38,191,798

(183,800)

(613,827)

18,836

8,191,988

7,413,197

20,068
(180,784)
(902)
-

(36,631)
-

2,033,054
(5,808,579)
(68,747)

2,152,232
47,283
(6,060,113)
(902)
(67,902)

99,110
47,283
(34,119)
845

18,856
-

Total

Total nonoperating revenues (expenses)

12,335

113,119

(161,618)

(36,631)

(3,844,272)

(3,929,402)

Change in net position before nonoperating grants
and operating transfers

(1,287,788)

(70,681)

(775,445)

(17,795)

4,347,716

3,483,795

Nonoperating grants - federal
Nonoperating grant - state
Operating transfers in (out)
Transfers to other governmental units
Contributed capital
Disposal of capital assets

5,511,385
35,150
192,418
-

(168,055)

968,264
(1,287,733)
-

349,314
-

16,865,687
-

1,317,578
(1,287,733)
16,865,687
(168,055)

Change in net position

4,451,165

(238,736)

(1,094,914)

331,519

21,213,403

20,211,272

Total net position - beginning

38,567,330

6,316,496

7,634,509

439,593

163,534,922

177,925,520

43,018,495

$ 6,077,760

$ 6,539,595

771,112

$ 184,748,325

$ 198,136,792

Total net position - ending

See accompanying notes and independent auditor's report.

Page 31 of 207

Item 5B.

City of Morgantown, West Virginia
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2025
Business-Type
Activities

Component Units
Municipal Land Reuse and
Morgantown
Building
Preservation
Utility
Commission
Agency
Board

Airport Fund

Parking
Authority

$ 3,686,597
(3,168,079)
(957,679)

$ 3,054,385
(1,852,081)
(1,265,860)

Net cash provided by (used in) operating activities

(439,161)

(63,556)

34,303

Cash Flows from Capital and Related Financing Activities
(Increase) decrease in deferred financing net of amortization
Repayment of note payable
(Increase) decrease in acurred administrative costs of bonds
(Increase) decrease in restricted assets
Proceeds from revenue bonds
Repayment of revenue bonds
Principal Payments on Leases
Principal Payments on Subscriptions
Interest and Other Lease Related Payments
Advances on construction
Nonoperating grants
Acquisition of capital assets
(Increase) decrease in sinking fund
(Increase) decrease in bond construction account
Customer deposits including interest
Other nonoperating income
Transfers from (to) other funds
Change in Right to Use assets
Change in other assets net
Interest expense

(26,319)
(226,561)
5,546,535
(5,419,976)
1,465
192,418
-

(12,695)
(75,909)
(143,098)
(256,341)
(36,860)

67,562

Cash Flows from Operating Activities
Receipts from customers
Receipts from other sources
Payments to suppliers
Payments to employees

Net cash (used in) provided by capital and related financing activities
Cash Flows from Investing Activities
Proceeds from sale of investments
Purchase of investments
Investment income
Net cash provided by (used in) investing activities
Net increase (decrease) in cash
Cash at beginning of year
Cash at end of year

41,304,204
683,394
(11,485,660)
(7,507,624)

44,445,558
683,394
(13,371,571)
(8,773,484)

18,836

22,994,314

22,983,897

13,626
1,359,959
(763,155)
(135,781)
(319,469)
(183,159)

(102,358)
(210,212)
349,314
(36,745)

133
(523,330)
2,717,970
(7,493,786)
(90,258)
(22,832)
(2,513)
10,254
(8,563,203)
(314,203)
2,302,952
74,061
(68,747)
58,451
(5,808,579)

133
(12,695)
(523,330)
(62,283)
4,077,929
(8,502,397)
(90,258)
(22,832)
(2,513)
10,254
(9,165,537)
(314,203)
2,302,952
74,061
(68,747)
29,845
58,451
(6,065,343)

(524,903)

(27,979)

(1)

(17,723,630)

(18,276,513)

10,870

(61,110)
146,393

20,068

2,449,935
(2,668,943)
1,179,780

2,449,935
(2,730,053)
1,346,241

10,870

85,283

20,068

960,772

1,066,123

(360,729)

(503,176)

26,392

18,835

6,231,456

5,773,507

1,125,555

2,028,832

764,826

$ 1,525,656

68,113
(33,810)
-

341,325
$

367,717

18,856
(20)
-

Total

92,671
$

111,506

3,481,406

5,944,234

9,712,862

$ 11,717,741

Page 32 of 207

Item 5B.

City of Morgantown, West Virginia
Statement of Cash Flows
Proprietary Funds (Cont'd)
For the Year Ended June 30, 2025
Business-Type
Activities

Parking
Authority

Airport Fund
Reconciliation of Operating Income (Loss) to Net Cash
provided by (used in) operating activities:
Operating (loss) income
Adjustments to reconcile operating (loss) income
to net cash provided by (used in) operating activities:
Depreciation and amortization
(Increase) decrease in:
Accounts receivable
Inventory
Internal balances
Deposits and prepayments
Accrued utility revenue
Deferred outflows of resources
Deferred outflows of resources - Employee Retirement
Deferred outflows of resources - OPEB
Decrease in OPEB asset
Increase (decrease) in:
Accounts payable
Deferred revenue
Accrued payroll
Accrued compensated absences
Billing service payable
Net pension obligation
Net other post employment benefit obligations
Deferred inflows of resources - Employee Retirement
Deferred inflows of resources
Deferred inflows of resources - OPEB
Other current accrued liabilities
Net cash provided by (used in) operating activities

$ (1,300,123)

(613,827)

18,836

8,191,988

Total

7,373,068

1,139,017

361,470

571,594

14,067,771

15,000,835

7,041
4,283
(48,878)
(43,220)
5,947
6,120
-

(16,710)
7,268
8,160
-

68,113
6,761
902
-

(361,032)
(16,082)
167,592
(173,904)
1,398,735
173,531

(292,919)
(16,082)
(9,949)
167,592
(173,904)
1,399,637
7,268
8,160
173,531

137,867
3,874
17,925
(330,742)
(48,090)
147,548

77,694
4,559
(10,533)
(404,240)
(64,120)
180,336
(23,640)
-

760
-

1,511,853
7,490
132,394
(318,469)
(2,557,836)
854,430
(84,147)

1,590,307
7,490
136,953
(10,533)
(318,469)
(2,962,076)
(64,120)
180,336
854,430
(23,640)
(84,147)

22,994,314

$ 22,983,897

(17,730)
(120,000)
$

(183,800)

Component Units
Municipal Land Reuse and
Morgantown
Building
Preservation
Utility
Commission
Agency
Board

(439,161)

(63,556)

34,303

18,836

See accompanying notes and independent auditor's report.

Page 33 of 207

Item 5B.

City of Morgantown, West Virginia
Fiduciary Responsibilities
Statement of Net Position
June 30, 2025
Pension and
Retirement
Funds

Assets:
Cash
Investments
Receivables:
Contributions
Accounts
Total assets

Liabilities:
Accounts payable
Total liabilities
Net Position:
Held in trust

935,759
132,302,441

Component Unit
Morgantown
Public
Library
$

169,787

0
0
133,238,200

169,787

11,033
11,033

133,227,167

169,787

See accompanying notes and independent auditor's report

18
33

Page 34 of 207

Item 5B.

City of Morgantown, West Virginia
Fiduciary Responsibilities
Statement of Chnages in Net Position
For the Year Ended June 30, 2025
Pension and
Retirement
Funds

Additions
Contributions:
Employer
Employees
Insurance premium tax allocation
Other
Total contributions

17,301,563
1,710,070
1,647,911
20,659,544

Component Unit
Morgantown
Public
Library
$

Investment income:
Gain (loss) on investments
Interest and dividends
Total investment income

10,654,274
2,490,401
13,144,675

18,588
3,012
21,600

Total additions

33,804,219

21,600

Deductions
General and administrative
Contribution refunds
Benefit payments
Total deductions

426,267
377,682
10,947,838
11,751,787

1,617
1,617

Net increase (decrease)

22,052,432

19,983

Net position - beginning of year

111,174,735

149,804

Net position - end of year

133,227,167

169,787

See accompanying note and independent auditor's report.

19
34

Page 35 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements
For the Year Ended June 30, 2025
I.

Summary of Significant Accounting Policies
The accounting policies of the City of Morgantown, West Virginia (the City), conform to generally
accepted accounting principles as applicable to governmental units. The following is a summary of
significant accounting policies:

(a)

Reporting Entity
The City of Morgantown, West Virginia is a municipal corporation governed under a CouncilManager form of government. The accompanying financial statements present the government and
its component units as required by generally accepted accounting principles.
The services provided by the government and accounted for within these financial statements
include public safety for the City, sanitation services, cultural and recreational programs, and other
governmental services.
The accompanying financial statements present the government as required by the accounting
principles generally accepted in the United States. In determining whether to include a governmental
department, agency, commission or organization as a component unit, the government must evaluate
each entity as to whether they are legally separate and financially accountable based on the criteria
set for by the Governmental Accounting Standards Board (GASB). Legal separateness is evaluated
on the basis of: (1) its corporate name, (2) the right to sue and be sued and (3) the right to buy, sell or
lease and mortgage property. Financial accountability is based on: (1) the appointment of the
governing authority, and (2) the ability to impose will, or (3) the providing of specific financial
benefit or imposition of specific financial burden. Another factor to consider in this evaluation is
whether an entity is fiscally dependent on the City.
The City complies with GASB Statement No. 61, "The Financial Reporting Entity: Omnibus an
Amendment of GASB Statements No. 14 and No. 34". This statement established standards for
defining and reporting component units in the financial statements of the reporting entity. It defines
component units as legally separate organizations for which the component unit not only has a fiscal
dependency on the reporting entity but also a financial benefit or burden relationship must be
present between the reporting entity and the entity that is to be included as a component unit. In
addition, an entity may be included as a component unit in the financial statements of the reporting
entity, if the reporting entity's management determines that it would be misleading to exclude them.

Page 36 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
Blended Component Units
The City of Morgantown has determined it has no blended component units.

Discretely Presented Component Units
Discretely presented component units are entities which are legally separate from the City, but are
financially accountable to the City, or whose relationship with the City is such that exclusion would
cause the City's financial statements to be misleading or incomplete. Because of the nature of services
they provide and the City's ability to impose its will on them or a financial benefit/burden relationship
exists, the following component units are discretely presented in accordance with GASB Statement
No. 14 (as amended by GASB Statement No. 39). The discretely presented component units are
presented on the government-wide statements.
The Morgantown Parking Authority serves the City of Morgantown, West Virginia, and is governed
by a separate board of directors. The Morgantown Parking Authority provides parking areas within the
City.
The Morgantown Municipal Building Commission serves the City of Morgantown, West Virginia, and
is governed by a separate board of directors. The Morgantown Building Commission acquires property
and debt on behalf of the City.
Board of Parks and Recreation Commission serves the City of Morgantown, West Virginia and is
governed by a separate board of directors. The Board of Parks and Recreation Commission provides
recreational facilities in Morgantown for the City.
Land Reuse and Preservation Agency serves the City of Morgantown, West Virginia and is governed
by a separate board of directors. The Land Reuse and Preservation Agency is dedicated to preserving
the unique character of the City of Morgantown's natural environment, its resources and its quality of
life and promoting the social and economic vitality of its community now and for future generations.
The Morgantown Utility Board services all the citizens of the City of Morgantown. Complete financial
statements for this component unit may be obtained at the entity's administrative offices at the following
address:
Morgantown Utility Board
278 Greenbag Road
Morgantown, West Virginia 26507

Page 37 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
The Morgantown Public Library serves all of the citizens of the City of Morgantown. The financial
statements for this component unit may be obtained at the entity's administrative offices at the
following address:
Morgantown Public Library
373 Spruce Street
Morgantown, West Virginia 26505

(b)

Government-Wide and Fund Financial Statements

The government-wide financial statements (i.e., the statement of net position and the statement of
activities) report information on all the nonfiduciary activities of the primary government and its
component units. For the most part, the effect of interfund activity has been removed from these
statements. Governmental activities, which normally are supported by taxes and intergovernmental
revenues, are reported separately from business-type activities, which rely to a significant extent
on fees and charges for support. Likewise, the primary government is reported separately from
certain legally separate component units for which the primary government is financially
accountable.
The Statement of Activities demonstrates the degree to which the direct expenses of a given function
are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific
function. Program revenues include: 1) charges to customers or applicants whose purchase, use, or
directly benefit from goods, services, or privileges provided by a given function and 2) grants and
contributions that are restricted to meeting the operational or capital requirements of a particular
function. Taxes and other items not properly included among program revenues are reported instead
as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary
funds, even though the latter are excluded from the governmental-wide financial statements. Major
individual governmental funds and major individual enterprise funds are reported as separate
columns in the fund financial statements. Combining financial statements for the nonmajor
governmental funds are included as supplementary information.

Page 38 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
(c)

Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial
statements. Revenues are recorded when earned and expenses are recorded when a liability is
incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in
the year for which they are levied and collectible. Grants and similar items are recognized as revenue
as soon as all eligibility requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon
as they are both measurable and available. Revenues are considered available when they are
collectible within the current period or soon enough thereafter to pay liabilities of the current period.
For this purpose, the government considers revenues to be available if they are collectible within 60
days of the end of the current fiscal period. Expenditures generally are recorded when a liability is
incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures
related to compensated absences and claims and judgments, are recorded only when payment is due.
Property taxes, franchise taxes, interest and special assessments are susceptible to accrual. Also,
certain taxpayer-assessed revenues such as business and occupation and utility taxes are accrued as
revenue at year end. Only the portion of special assessments receivable due within the current fiscal
period is considered to be susceptible to accrual as revenue of the current period. Other receipts and
taxes become measurable and available when cash is received by the government and are recognized
as revenue at that time.
Entitlements and shared revenues are recorded at the time of receipt or earlier if the susceptible to
accrual criteria are met. Expenditure-driven grants are recognized as revenue when the qualifying
expenditures have been incurred and all other grant requirements have been met.

Page 39 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
Measurement Focus and Financial Statement Presentation - Government-Wide Financial
Statements
Funds are classified into three categories: governmental, proprietary and fiduciary. Each category, in
turn, is divided into separate "fund types". Governmental funds are used to account for governmental
activities, where the focus of attention is on the providing of services to the public as opposed to
proprietary funds where the focus of attention is on recovering the cost of providing services to the
public through service charges or user fees. Fiduciary funds are used to account for assets held by
the City in a trustee or agency capacity. The fund types used by the City of Morgantown are
described as follows:
Governmental Fund Types
General Fund: The General Fund is the general operating fund of the municipality. It is used to
account for all financial resources except those required to be accounted for in another fund.

Special Revenue Funds: Special Revenue Funds are used to account for the proceeds of specific
revenue sources (other than special assessments, expendable trusts, or major capital projects) that are
legally restricted to expenditures for capital purposes.
Debt Service Funds: The Debt Service Funds are used to account for proceeds of specific revenue
sources (other than special assessments, expendable trusts, or major capital projects) that are legally
restricted to expenditures for debt retirement.
Capital Project Funds: Capital Project Funds are used to account for financial resources to be used
for the acquisition or construction of major capital facilities which are not financed by Proprietary
Funds.
Proprietary Fund Types
Enterprise Funds: Enterprise funds are used to account for operations (a) that are financed and
operated in a manner similar to private business enterprises - where the intent of the governing body
is that the costs (expenses including depreciation) of providing goods and services to the general
public on a continuing basis be financed or recovered primarily through user charges; or (b) where
the governing body has decided that periodic determination of revenues earned, expenses incurred,
and/or net income is appropriate for capital maintenance, public policy, management control,
accountability, or other purposes.

Page 40 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
The City of Morgantown reports the following major governmental funds:
General Fund, Coal Severance Fund, Life and Health Fund, Tax Increment Financing Debt Service
Fund, Capital Reserve Fund and Municipal Sales and Use Tax Fund.
General Fund: The General Fund is the general operating fund of the City.
Coal Severance Fund: The Coal Severance Fund is a special revenue fund used to receive and
disburse coal severance tax revenues received from the State of West Virginia.
American Rescue Plan Act Fund is a special revenue fund used to receive and disburse federal funds
received as a result of the American Rescue Plan Act.
Life and Health Fund: The Life and Health Fund is a special revenue fund used to receive and
disburse funds for insurance benefits.
Tax Increment Financing Debt Service Fund: The Tax Increment Financing Debt Service Fund is a
debt service fund used to receive and disburse funds used to repay tax increment financing debt.
Capital Reserve Fund: The Capital Reserve Fund is a Capital Projects Fund used to receive and
disburse funds in connection with capital projects in the City of Morgantown.
Municipal Sales and Use Tax Fund: The Municipal Sales and Use Tax Fund is used to receive and
disburse municipal sales tax funds.
The City of Morgantown reports the following major proprietary funds: The Airport Fund

Page 41 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
Funds - Fund Financial Statements
The accounts of the City are organized into funds, each of which is considered to be a separate
accounting entity. The major fund categories for the fund financial statements are:
Governmental Fund Types

Governmental funds are accounted for using the current financial resources measurement focus.
Only current assets and current liabilities are generally included on their balance sheets. Their
operating statements present sources and uses of available resources during a given period.
General Fund: The General Fund is the general operating fund of the municipality. It is used to
account for all financial resources except those required to be accounted for in another fund.
Special Revenue Funds: Special Revenue Funds are used to account for the proceeds of specific
revenue sources (other than special assessments, expendable trusts, or major capital projects) that
are legally restricted to expenditures for specified purposes.
Capital Project Funds: Capital project funds account for the acquisition of capital assets or
construction of major capital projects not being financed by proprietary or fiduciary trust funds.
Debt Service Funds: Debt Service Funds are used to account for proceeds for specific revenue sources
(other than special assessments, expendable trust, or major capital projects) that are legally restricted
to expenditures for debt retirement.

Page 42 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
Proprietary Fund Types

Proprietary funds are accounted for using the economic resources measurement focus; the accounting
objectives are determination of net income, financial position, and cash flows. All assets and
liabilities associated with a proprietary fund's activities are included on its balance sheet.
Enterprise Funds: Enterprise Funds are used to account for operations (a) that are financed and
operated in a manner similar to private business enterprises - where the intent of the governing body
is that the costs (expenses, including depreciation) of providing goods and services to the general
public on a continuing basis be financed or recovered primarily through user charges; or (b) where
the governing body has decided that periodic determination of revenues earned, expenses incurred,
and/or net income is appropriate for capital maintenance, public policy, management control,
accountability, or other purposes.
Fiduciary Funds

Fiduciary funds account for assets held by the City in a trustee or agency capacity. Pension trust funds
are accounted for in essentially the same manner as proprietary funds.
As a general rule, the effect of interfund activity has been eliminated from the government-wide
financial statements.
Amounts reported as program revenues include: 1) charges to customers or applicants for goods,
services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and
contributions, including special assessments. Internally dedicated resources are reported as general
revenues rather than program revenues. Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services in connection with a proprietary
fund's principal ongoing operations. Expenses for the enterprise fund include the administrative
expense, and depreciation of capital assets. All revenues and expenses not meeting this definition are
reported as nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the government's policy
to use restricted resources first, then unrestricted resources as they are needed.

Page 43 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
(d)

Assets, Deferred Outflows, Liabilities, Deferred Inflows, and Net Position

The accounts of the City are organized into funds, each of which is considered to be a separate
accounting entity. The major fund categories and account groups for the fund financial statements
are:

1. Deposits and Investments
The City of Morgantown, West Virginia's cash and cash equivalents are considered to be cash on
hand, demand deposits and short-term investments with original maturities of less than three months
from the date of acquisition. For purposes of the Statement of Cash Flows, restricted assets may be
considered cash equivalents based on liquidity.
In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain
Investments and/or External Investment Pools, the City reports its investments at fair value, except
for non-participating investment contracts (certificates of deposits and repurchase agreements)
which are reported at cost, which approximates fair value. All investment income, including
changes in fair value of investments, are recognized as revenue in the operating statement. Fair
value is determined by quoted market prices.
Short-term investments are reported at cost, which approximates fair value. Securities traded on a
national or international exchange are valued at the last reported sales price at current exchange
rates. Managed funds related to the retirement systems not listed on an established market are
reported at estimated fair value as determined by the respective fund managers based on quoted
sales prices of underlying securities. Cash deposits are reported at carrying amount, which
reasonably estimates fair value.
State statutes authorize the government to invest in the State Investment Pool or the Municipal Bond
Commission or to invest such funds in the following classes of securities: Obligations of the United
States or any agency thereof, certificates of deposit (which mature in less than one year), general
and direct obligations of the State of West Virginia; obligations of the federal mortgage association;
indebtedness or guaranteed by the federal government; pooled mortgage trusts (subject to
limitations); indebtedness of any private corporation that is properly graded in the top three ratings,
at the time of acquisition; interest earning deposits which are fully insured or collateralized; and
mutual funds registered with the
S.E.C. which have fund assets over three hundred million dollars.

Page 44 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
State statute §8-13-22c places limitations on the aforementioned investments which include the
following: at no time can investment portfolios consist of more than seventy-five percent of the
indebtedness of any private corporation nor can the portfolio have over twenty-five percent of its
portfolio consisting of the indebtedness of a private corporation's debt which matures in less than one
year; at no time may more than nine percent of the portfolio be invested in securities issued by a
single private corporation or association; and at no time can more than sixty percent of the portfolio
be invested in equity mutual funds.
Municipal Pension Funds are governed as to type of investments by West Virginia Code §8-22-22.
Pension funds are permitted to invest in all of the above mentioned types of investments with the
exceptions of: (1) Direct and general obligations of the State and (2) Pooled mortgage trusts.
Additionally, pension funds are permitted to invest funds in the following categories of investments:
(1) Repurchase agreements and (2) Common stock, securities convertible into common stocks, or
warrants and rights to purchase such securities. Pension funds have different rules concerning the
purchase of marketable debt securities.
The following restrictions apply only to pension portfolios and are separate and distinct from the
limitations mentioned above: (1) fixed income securities which are issued by one issuer (with the
exception of the United States government) are not to exceed five percent of the total pension fund
assets; and (2) at no time can the nonreal estate equity portion of the portfolio exceed seventy-five
percent of the total portfolio.

2. Receivables and Payables
Interfund Transactions
Activity between funds that are representative of lending/borrowing arrangements outstanding at the
end of the fiscal year are referred to as either "interfund receivables or payables" (i.e., the current
portion of interfund loans) or "advances to/from other funds" (i.e., the non-current portion of
interfund loans). All other outstanding balances between funds are reported as "due to/from other
funds." Any residual balance outstanding between the governmental activities and the business-type
activities are reported in the government-wide financial statements as "internal balances".

Page 45 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
Trade Receivables
All trade receivables are shown at their gross value and, where appropriate, are reduced by the
estimated portion that is expected to be uncollectible.

Property Tax Receivable
All current taxes assessed on real and personal property may be paid in two installments; the first
installment is payable on September first of the year for which the assessment is made, and becomes
delinquent on October first; the second installment is payable on the first day the following March
and becomes delinquent on April first. Taxes paid on or before the date when they are payable,
including both first and second installments, are subject to a discount of two and one-half percent. If
the taxes are not paid on or before the date in which they become delinquent, including both first and
second installments, interest at the rate of nine percent annum is added for the date they become
delinquent until the date they are paid.
All municipalities within the State are authorized to levy taxes not in excess of the following
maximum levies per $100 of assessed valuation: On Class I property, twelve and five-tenths cents
(12.5 cents); On Class II property, twenty-five cents (25 cents); On Class IV property, fifty cents (50
cents). In addition, municipalities may provide for an election to lay an excess levy; the rates not to
exceed statutory limitations, provided at least sixty percent of the voters cast ballots in favor of the
excess levy.
The rates levied by the City per $100 of assessed valuation for each class of property for the fiscal
year ended June 30, 2025, were as follows:

Class of
Property

Assessed
Valuation For
Tax Purposes

Current
Expense

Class II
Class IV

$ 509,737,240
$ 806,658,954

25.00 cents
50.00 cents

Page 46 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
3. Restricted Assets
Certain proceeds of the enterprise fund revenue bonds, as well as certain proceeds set aside for their
repayment, are classified as restricted assets on the balance sheet because their use is limited by
applicable bond covenants.
4. Capital Assets and Depreciation
Capital assets, which include property, plant, and equipment, and infrastructure assets (e.g., roads,
bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type
activities columns in the government- wide financial statements. Capital assets are defined by the
government as assets with an initial, individual cost of $5,000 or more and estimated to have a useful
life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if
purchased or constructed. Donated capital assets are recorded at estimated fair market value at the
date of donation.
The costs of normal maintenance and repairs that do not add to the value of the assets are materially
extend assets lives are not capitalized.
Major outlays for capital assets and improvements are capitalized in proprietary funds as projects are
constructed. Interest incurred during the construction phase of proprietary fund capital assets is not
reflected in the capitalized value of the asset constructed, net of interest earned on the invest
proceeds during the same period.
Capital assets of the primary government, as well as the component units, are depreciated using the
straight-line method over the following estimated useful lives:
Governmental Funds
Buildings

25 - 50 years

Improvements
Utility plant
Equipment

10 - 20 years
10 - 20 years
5 - 25 years

Page 47 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
Proprietary Funds
Buildings and improvements
Infrastructure
Machinery and equipment
Vehicles

20 - 50 years
20 - 65 years
5 - 25 years
5 years

The City has defined capital assets with an initial cost of over $5,000 and an estimated useful life of
greater than one year. Capital assets donated to the City are recorded at their estimated fair value at
the date of the donation.
Discretely Presented Component Units (Having Separately Issued Financial Statements)

Morgantown Public Library
The Morgantown Public Library depreciates all capital assets using the straight-line method. The
estimated useful lives are as follows:
Buildings and improvements
Books and videos
Machinery and equipment

20 - 40 years
5 years
5 - 20 years

Morgantown Utility Board
The Board depreciates all long-term assets on a straight-line basis. The Board takes half a year's
allowance in the year the asset is placed in service and a full year's allowance in the subsequent years
with half a year's allowance in the final year of depreciation. At the time of retirement of depreciable
utility plant in service, the amount is charged with the book cost of the property retired and the cost
of removal, and is credited with any amounts recovered. The estimated useful lives of these assets
are as follows:
Buildings and structures
Water transmission and distribution lines
Sewer and storm drain collection system
Treatment plants equipment
Office furniture and computers
Vehicles and heavy duty equipment

30 years
50 - 100 years
50 years
10 - 30 years
5 - 10 years
8 - 10 years

Page 48 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
5. Compensated Absences
The liability for compensated absences reported in the government-wide financial statements
consists of unpaid, accumulated annual sick and accrued vacations. The liability has been calculated
using the vesting method, in which leave amounts for both employees who currently are eligible to
receive termination payments and other employees who are expected to become eligible in the future
to receive such payment upon termination are included.
Accumulated Sick Leave

Municipal employees receive payment of 1/2 of the accumulated sick leave in excess of 720 hours.
The payment for sick leave is calculated at current hourly rates and is paid in June of each fiscal year.
Terminated and retiring employees hired before June 15, 1993 are entitled to receive payment for
1/2 of their accumulated sick leave, up to the amount accrued as of June 15, 1993, upon cessation of
employment. Employees hired after that date do not receive payment for accumulated sick leave at
cessation of employment.
Discretely Presented Component Unit

Morgantown Utility Board
The Board provides compensated absences for its employees in the form of vacation and sick leave.
Employees are approved to carry over two weeks of vacation leave from calendar year to calendar
year.

6. Long-Term Obligations
In the government-wide financial statements, the proprietary fund types in the fund financial
statements, long-term debt and other long-term obligations are reported as liabilities in the applicable
governmental activities, business-type activities, or proprietary fund type statement of net position.
Bond premiums and discounts are deferred and amortized over the life of the bonds using the
straight-line method. Bonds payable are reported net of the applicable bond premium or discount.
In the fund financial statements, governmental fund types recognize bond premiums and discounts,
as well as bond issuance costs, during the current period. The face amount of debt issued is reported
as other financing sources. Premiums received on debt issuances are reported as other financing
sources while discounts on debt issuances are reported as other financing uses. Issuance costs are
recognized as an expense in the period incurred.

Page 49 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
7. Fund Balances
Equity Classification

Effective July I, 2010, the City adopted GASB Statement No. 54 "Fund Balance Reporting and
Governmental Fund Type Definitions," which establishes new standards for accounting and financial
reporting that are intended to improve the clarity and consistency of the fund balance information
provided to financial report users. The classifications are based primarily on the extent to which the
City is bound to honor constraints on the specific purposes for which the amounts in those funds can
be spent. Fund balances are reported in the following categories:
Net Position Classifications:
GASB 63 - Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources,
and Net Position - divided net position for Government- wide net position into three components:
a.

Net investment in capital assets - consist of the historical cost of capital assets less
accumulated depreciation and less any debt that remains outstanding that was used to
finance those assets plus deferred outflows of resources less deferred inflows of resources
related to those assets.

Restricted net position - consists of net position that is restricted by the City's creditors (for
example through debt covenants), by the state enabling legislation (through restrictions on
shared revenues), by grantors (both federal and state), and by other contributors.

c. Unrestricted- all other net position is reported in this category
GASB 54 - Fund Balance Reporting and Governmental Fund Type Definitions - divided fund
balance for fund level into five components:
a.

Nonspendable - Amounts that cannot be spent either because they are in a nonspendable
form or because they are legally or contractually required to be maintained intact.

Restricted - Amounts that can be spent only for specific purposes because of the City's
code, state or federal laws, or externally imposed conditions by grantors or creditors.

Page 50 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
c.

Committed - Amounts that can be used only for specific purposes determined by a formal
action by the City's council.

d. Assigned - Amounts that are designed by the City's council for a particular purpose but
are not spendable until there is a majority vote approval by the City's council.
e. Unassigned - All amounts not included in other spendable classifications.
The City Council is the government's highest level of decision-making authority. The Council would
take formal action to establish, and modify or rescind, a fund balance commitment or to assign fund
balance amounts to a specific purpose. The government has adopted a revenue spending policy that
provides guidance for programs with multiple revenue sources. For purposes of fund balance
classification, expenditures are to be spent from restricted fund balance first, followed in order by
committed fund balance, assigned fund balance and lastly unassigned fund balance. The government
has the authority to deviate from this policy if it is in the best interest of the City.
8. Change in Accounting Principle
During the year ended June 30, 2025, the City adopted following GASB statement:

GASB 102 -Certain Risk Disclosures - The primary objective of this Statement is to improve
financial reporting by providing users with timely information regarding certain concentrations or
constraints and related events that have occurred or have begun to occur that make a government
vulnerable to a substantial impact. As a result, users will have better information with which to
understand and anticipate certain risks to a government’s financial condition. The implementation
of GASB Statement No. 102 did not have an effect on the financial statements of the City.

9. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section
for deferred outflows of resources. This separate financial statement element, deferred outflows
of resources, represents a consumption of net position that applies to a future period(s) and so
will not be recognized as an outflow of resources (expense/expenditure) until then.
In addition to liabilities, the statement of financial position will sometimes report a separate
section of deferred inflows of resources. This separate financial statement element, deferred
inflows of resources, represents an acquisition of net position that applies to a future period(s)
and so will not be recognized as an inflow of resources (revenue) until that time.

Page 51 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
10. Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of the resources
related to pensions, and pension expense, information about the fiduciary net position of City of
Morgantown, West Virginia's Retirement System (PERS) and additions to/deductions from the Plans'
fiduciary net position have been determined on the same basis as they are reported by the PERS. For
this purpose, benefit payments (including refunds of employee contributions) are recognized when
due and payable in accordance with the benefit terms. Investments are reported at fair value.
The City provides separate defined benefit pension plans for uniformed police and fire department
personnel. It is the City's policy to fund the normal cost and amortization of the unfunded prior
service cost.
All eligible employees of BOPARC are covered under the West Virginia Public Employee
Retirement System due to the City's electing to be a participating public employer. All other eligible
employees are covered under the City of Morgantown Retirement and Benefit Fund.
Discretely Presented Component Unit (Issuing Separately Presented Financial Statements.)

Morgantown Utility Board
Pension Plan and Deferred Compensation Plan

For fiscal year 2025, the Board calculated their proportionate share of net position using the audited
fiscal year 2024 actuarial report, the most readily available information. This change allows the
Board to calculate and present all GASB 68 related items in accordance with the Standard and
acceptable practices. For this reason, there was no change in activity, however, the Board has
disclosed the covered payroll during fiscal year 2025.
Plan Description - The Board contributes to the City of Morgantown, WV (the "City") Employee's

Retirement and Benefit Fund (the Plan). The Plan is a cost- sharing multiple-employer defined
benefit plan. The Plan provides retirement, disability and death benefits to plan members and
beneficiaries. Major features of the plan appear in Chapter 8, Article 22, Sections 2-15 of the Code
of West Virginia as approved by ordinance of the City Council of Morgantown, WV.

Page 52 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
Funding Policy - Plan members are required to contribute 6% of their annual covered salary and the

Board is required to contribute an actuarially determined rate. The 2025, 2024 and 2023 rates were
21.49%, 21.66%, and 20.49% of annual covered payroll. The Board's contributions to the Plan for
the years ended June 30, 2025, 2024, and 2023 were $1,865,090, $1,934,814, and $1,641,110.
Deferred Compensation Plan - Employees are eligible to participate in an IRC Section 457

Deferred Compensation Plan. The maximum amount which may be deferred is the lesser of 100%
of an employee's salary or $29,790, for 2025 and 2024, plus $7,500 catch-up for employees over fifty
years of age. The Board provides no match for participant's contributions. All amounts which are
deferred remain solely the property of the Board and are subject to its general creditors.
The following is a summary of eligibility factors, contribution methods, and benefits provisions:
Governing authority

Board of Directors

Eligibility to participate:

All Board full-time permanent employees,
except those covered by other plans.

Determination of contribution
requirements:
Actuarially determined
Employer:

Contribute annually an amount
sufficient to meet the normal cost of
the fund and amortize the actuarial
deficit over a period of 15 years.

Plan member:

6.00% of covered payroll

Period required to vest:

The latter of the date the participant attains
age 60 and 10 years of service credit,
or attains age 55 and age plus years
of service credit total 85.

Post-retirement benefit:

Annual Cost of Living adjustments is the lesser
of 3% or the annual consumer price
index multiplied by 50%; provided that
the municipality's contribution for the
year is less than 6.0% of the
participating payroll.

Provisions for:
Disability benefits
Death benefits

Yes
Yes

Page 53 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
Morgantown Public Library
All eligible employees of the Library are covered under the West Virginia Public Employee
Retirement System due to the Library's electing to be a participating public employer.

11. Inventories
The City considers inventories of materials and supplies, other than fuel, utilized in governmental
fund types operations as expended at the time of purchase therefore, they do not appear in the
municipality's financial statements. Inventories of materials and supplies utilized in the proprietary
fund type operation and fuel in governmental fund type operations, are considered expended at the
time of consumption; therefore, balances on hand at year end, valued at cost (first-in, first- out) are
presented in the City's financial statements.
Discretely Presented Component Unit

Morgantown Utility Board
The supplies inventory is valued on average cost basis.
12. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted
in the United States of America requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.

II. Stewardship, Compliance and Accountability
Budgetary Information
Annual budgets are adopted on a basis consistent with generally accepted accounting principles for
the General Fund and the Coal Severance Tax Special Revenue Fund, except that the amounts held
for stabilization are not included for budgeting purposes. All annual appropriations lapse at fiscal
year end.
The governing body of the City is required to hold a meeting or meetings between the seventh and
twenty-eighth days of March to ascertain the financial condition of the City and to prepare the levy
estimate (budget) for the fiscal year commencing July 1. The budget is then forthwith submitted to
the State Auditor for approval. The governing body then reconvenes on the third Tuesday in April
to hear objections from the public and formally lay the levy.

Page 54 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
The appropriated budget is prepared by fund, function and department. Transfers of appropriations
between departments and revenue related revisions to the budget require approval from the governing
council and then submission to the State Auditor for approval. Revisions become effective when
approved by the State Auditor and budgeted amounts in the financial statements reflect only such
approved amounts. The governing body made the following material supplementary budgetary
appropriations throughout the year:
General Fund
Amount
$

Description

1,505,852
48,086
122,028
81,636
602

General Government Expenditure Increase
Public Safety Expenditure Increase
Streets and Transportation Expenditure Increase
Culture and Recreation Expenditure Increase
Health and Sanitation Expenditure Increase
Social Services Expenditure Increase

Coal Severance
Amount

Description

General Government Expenditure Decrease
Culture and Recreation Expenditrure Decrease

(191)
(1,715)

Page 55 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
III. Detailed Notes on All Funds
A.

Deposits and Investments
At year end, the government had the following investments:
Policeman's Pension and Relief Plan

Type of Investments
Corporate stocks
Mutual fund
Bond market fund
Large capital growth fund

1
$

7,469,908
2,637,679
4,538,039
10,577,960

$ 25,223,586

Market
Value

3
-

7,469,908
2,637,679
4,538,039
10,577,960

25,223,586

Credit risk

Corporate stocks
Mutual funds
Bond market fund
Large capital growth fund

Fair Value

Credit Risk Rating
Standard & Poor's
and Fitch

$ 7,469,908
2,637,679
4,538,039
10,577,960

BBB - AAA
BBB - AAA
BBB - AAA
BBB - AAA

$ 25,223,586
Interest Rate Risk

Mutual funds
Bond market fund
Large capital growth fund

Fair Value

Less than 1

$ 2,637,679
4,538,039
10,577,960

$ 17,753,678

1-5
$

6 - 10

2,637,679
4,538,039
10,577,960

$ 17,753,678

More than 10
-

Concentration of Credit Risk

The government's investment policy does not allow for an investment in any one issuer that is in
excess of five percent of the government's total investment. In accordance with GASB Statement
No. 40, Deposit and Investment Risk Disclosures, it requires disclosure when the investment in
any one issuer equals or exceeds 5% of the total amount of investments.
40

Page 56 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
At year end, the policemen's pension fund had the following investment held with these issuers:
Issuer

Fair Value

Vanguard Short-Term Bond Index Fund
John Hancock Total Bond Market Fund
AB Large Capital Growth Fund
John Hancock Index 500 Fund

$ 2,637,679
$ 4,538,039
$ 10,577,960
$ 7,469,908

Percent
10.45%
17.98%
41.96%
29.60%

Fireman's Pension and Relief Plan
Type of Investments

Corporate stocks
Mutual fund
Bond market fund
Large capital growth fund

6,901,232
1,650,893
4,608,846
9,249,030

22,410,001

Market
Value

3
-

6,901,232
1,650,893
4,608,846
9,249,030

22,410,001

Credit risk
Credit Risk Rating
Standard & Poor's
and Fitch

Fair Value
Corporate stocks
Mutual fund
Bond market fund
Large capital growth fund

6,901,232
1,650,893
4,608,846
9,249,030

BBB - AAA
BBB - AAA
BBB - AAA
BBB - AAA

$ 22,410,001

Interest Rate Risk
Fair Value
Mutual fund
Bond market fund
Large capital growth fund

Less than 1

1,650,893
4,608,846
9,249,030

$ 15,508,769

1-5

6 - 10

1,650,893
4,608,846
9,249,030

$ 15,508,769

More than 10
-

Page 57 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
Concentration of Credit Risk:

The government's investment policy does not allow for an investment in any one issuer that is in
excess of five percent of the government's total investment. In accordance with GASB Statement
No. 40, Deposit and Investment Risk Disclosures, it requires disclosure when the investment in any
one issuer equals or exceeds 5% of the total amount of investments. At year end, the fireman's
pension fund had the following investment held with these issuers:
Issuer

Fair Value

Vanguard Short-Term Bond Index Fund
John Hancock Total Bond Market Fund
AB Large Capital Growth Fund
John Hancock Index 500 Fund

$
$
$
$

1,650,893
4,608,846
9,249,030
6,901,232

Percent
7.36%
20.56%
41.30%
30.78%

Page 58 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
Employee’s Retirement and Benefit Plan
Type of Investment
Money Market
Corporate stocks
Asset backed bonds
Mortgage backed bonds
Corporate bonds
Government obligations

1
$

Market
Value

Unrealized
Gain/(Loss)

Cost

723,911
46,770,679
678,607
872,182
11,487,216
24,136,258

723,911
25,343,147
671,894
908,027
11,387,706
24,713,924

21,427,532
6,713
(35,845)
99,510
(577,666)

$ 84,668,853

63,748,609

$ 20,920,244

Credit Risk

Credit Risk Rating
Standard & Poor's
and Fitch

Fair Value
Money market
Corporate stocks
Asset backed bonds
Mortgage backed bonds
Corporate bonds
Government obligations

723,911
46,770,679
678,607
872,182
11,487,216
24,136,258

84,668,853

N/A
N/A
BBB - AAA
BBB - AAA
BBB - AAA
AA+

Interest Rate Risk

Asset backed bonds
Mortgage backed bonds
Corporate bonds
Government obligations

Fair Value

Less than 1

678,607
872,182
11,487,216
24,136,258

37,174,263

1-5

6-10

660,417
4,303,263
3,962,580

$ 8,926,260

More than 10
-

4,285,125
4,055,615

18,190
872,182
2,898,828
16,118,063

8,340,740

$ 19,907,263

Page 59 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
Fair Value
Government Activities
Certificates of Deposit
Total Government Activities
Investments

3,826,879

Less Than
1 Year
Certificate of Deposit
Total Government Activities
Investments

Poor's and
Fitch

Investment
Services

Not Rated

5-10
Years

More Than
10 Years

1-5
Years

Total

$ 3,826,879

Interest Rate Risk
Proprietary Fund Component Unit Parking Authority
At year end, the government had the following investments:

Type of Investments
Money market
Mutual funds

Market
Value

$ 1,182,831
708,496

$ -

$ 1,182,831
708,496

$ 1,182,831
561,920

146,576

$ 1,891,327

$ -

$ 1,891,327

$ 1,744,751

146,576

120,575

$ 2,011,902

$ 1,865,326

Investment in Municipal
Bond Commission
Total investments

Cost

Unrealized
Gain/(Loss)

Page 60 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
Credit Risk

Fair Value

Money market funds
Mutual funds
Total proprietary fund activities
Investments

1,182,831
708,812

1,891,643

Credit Risk Rating
Standard &
Moody's
Poor's and Investment
Fitch
Services

Not Rated
Not Rated

Investments are listed for the Parking Authority as follows:
Investments
Restricted assets

708,812
1,484,399

2,193,211

Component Unit – Morgantown Public Library

Governmental Activity Types
Money market funds
Common Stock
Corporate bonds
Certificates of deposit
Foreign Bonds
Mutual funds

Unrealized
Gain/(Loss)

Fair Value

Cost

$ 1,215,845
2,016,849
3,154,397
248,495
172,732
198,925

$ 1,215,845
1,690,040
2,796,608
250,000
175,000
168,463

326,809
357,789
(1,505)
(2,268)
30,462

$ 7,007,243

$ 6,295,956

711,287

Credit Risk Rating
Standard &
Moody's
Poor's and Investment
Fitch
Services

Not Rated
Not Rated
BBB+-A+
Not Rated
Not Rated
Not Rated

Not Rated
Not Rated
A1-A2
Not Rated
Not Rated
Not Rated

Page 61 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
Concentration of Credit Risk:
The government's investment policy does not allow for an investment in any one issuer that is in
excess of five percent of the government's total investment. In accordance with GASB Statement
No. 40, Deposit and Investment Risk Disclosures, it requires disclosure when the investment in any
one issuer equals or exceeds 5% of the total amount of investments. At year end, the library had no
investments in one issuer equal to or exceeding 5% of the total amount of investments.

Less than
one year
Corporate bonds
Certificates of deposit
Foreign Bonds
Mutual funds

1-5
years

5 - 10
years

More than
10 years

Total

149,175
248,495
198,925

$ 2,464,843
172,732
-

$ 540,379
-

$ 3,154,397
248,495
172,732
198,925

596,595

$ 2,637,575

$ 540,379

$ 3,774,549

At year end, the government had the following investments in fiduciary fund types:

Fair Value
Fiduciary Types
Money market funds
Mutual funds

Interest Rate Risk
Mutual funds

Unrealized
Gain/(Loss)

Cost

44,954
124,833

44,954
105,690

19,143

169,787

150,644

19,143

1-5
years

5 - 10
years

Less than
one year

124,833

Credit Risk Rating
Standard &
Moody's
Poor's and Investment
Fitch
Services

Not Rated
Not Rated

More than
10 years

Total

124,833

Credit Risk

Page 62 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
State law limit investments as described in Note I.D.l. It is the government's policy to limit its
investments as stated in the West Virginia Code. The government does not have a policy for credit
risk in addition to governing statutes.
Concentration of Credit Risk
The government's investment policy does not allow for an investment in any one issuer that
is in excess of five percent of the government's total investment. In accordance with GASB
Statement No. 40, Deposit and Investment Risk Disclosures, requires disclosure when the
investment in any one issuer equals or exceeds 5% of the total amount of investments.
Custodial Credit Risk
For deposits, the government could be exposed to risk in the event of a bank failure where
the government's deposits may not be returned. The government's policy for custodial credit
risk is to require a depository bond as collateral for all investments. At year end, the primary
government's and fiduciary funds' bank balances were $716,700 which were collateralized
with a depository bond.
For investments, the government could be exposed to risk in the event of the failure of the
counterparty where the government will not be able to recover the value of its investments
or collateral securities that are in the possession of an outside party. The government has
adopted State Code requirements as its policy for custodial credit risk. At year end, the
investment balances were $7,177,030. The entire balance is considered secured.
A reconciliation of cash and investments as shown on the Statement of Net Position of the
government and Statement of Net Position of the Fiduciary Funds is as follows:
Cash and cash equivalents
Investments - collateralized and secured
Total
Cash and cash equivalents
Investments - restricted - government funds
Investments
Investments - restricted - fiduciary funds
Total

716,700
7,177,030

7,893,730

716,700
2,258,783
4,748,460
169,787

7,893,730

Page 63 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
Component Unit – Morgantown Utility Board
The carrying amount of the Board's cash deposits was $9,712,862 at June 30, 2025 and
$3,481,406 at June 30, 2024. The bank balance at June 30, 2025 and June 30, 2024 was
$10,144,389 and $3,942,749, respectively, which was fully covered by Federal Deposit
Insurance Coverage or collateralized with securities held by the pledging institution's trust
department.
Total cash and investments at June 30, 2025 and 2024 consisted of the following:
June 30, 2025
Cost
Fair Value
Cash deposits
Demand deposits

June 30, 2024
Cost
Fair Value

$ 9,712,862

$ 3,481,406

Cash and invetments with fiscal agents
Cash
Investment agreements
Fixed income
Equities
Cash - restricted

1,594,200

2,425,094

8,041,642
2,956,685
12,054,812

7,881,357
5,401,907
12,054,812

8,148,633
2,355,354
14,043,561

7,686,508
4,206,578
14,043,561

Total cash and investments

$ 34,360,201

$ 36,645,138

$ 30,454,048

$ 31,843,147

Note that the Board held $1,510 in petty cash at June 30, 2025 and 2024
Interest Rate Risk-The Board's investment policy follows the State of West Virginia Code §8-1322a and any subsequently enacted modifications of this statute concerning the limits of maturities on
individual investments.
Credit Risk - The Board has a deposit policy for custodial credit risk beyond the requirements of
the State Statue. West Virginia law requires that deposits be insured or be protected by eligible
securities pledged to and deposited either with the Board or a qualified trustee by the financial
institution as security for repayment, or by a collateral pool of eligible securities deposited with a
qualified trustee and pledged to secure the repayment of all public monies deposited in the financial
institution whose market value at all times shall be at least one hundred five percent of the deposits
being secured.

Page 64 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its
obligations.
In 2025, the investment grade rating changed to Moody's from S&P. The following tables show the
rating for each year.
June 30, 2025
Fair Value
Percent

Quality Rating
Aaa
Aa2
Aa3
A1
A2
A3
Not Rated

4,808,562
587,166
446,945
983,721
1,053,850
1,113

61.01%
7.45%
5.67%
12.48%
13.37%
0.00%
0.01%

7,881,357

100.00%

June 30, 2024
Fair Value
Percent

Quality Rating
Aaa
Aa2
Aa3
A1
A2
A3
Not Rated

3,352,864
665,574
429,677
1,621,051
1,321,540
294,040
1,762

43.62%
8.66%
5.59%
21.09%
17.19%
3.83%
0.02%

7,686,508

100.00%

Concentration of Credit Risk - The Board's investment policy follows the State of West Virginia Code
§8-13-22a and any subsequently enacted modifications of this statute concerning the limits on the
amount that may be invest in any one financial institution.
Fair Value Measurements
The fair value hierarchy defines three levels of input, as follows:
Level 1: Valuations based on quoted prices (unadjusted) in an active market that are
accessible at the measurement date for identical assets or liabilities. The fair
value hierarchy gives the highest priority to Level 1 inputs.
Level 2: Valuations based on observable inputs other than Level 1 prices such as quoted
prices for similar assets or liabilities, quoted prices in inactive markets, or
model-derived valuations in which all significant inputs are observable or can
be derived principally from or corroborated with observable market data.
Level 3: Valuations based on unobservable inputs are used when little or no market data
is available. The fair value hierarchy gives lowest priority to Level 3 inputs.

Page 65 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
In determining the fair value, the Board utilizes valuation techniques that maximize the use of
observable inputs and minimize the use of unobservable inputs to the extent possible in its
assessment of fair value.
Financial assets and liabilities are carried at fair value at June 30, 2025 and 2024, and are classified
as Level 1, Level 2 and Level 3 as follows:
June 30, 2025
Assets carried at Fair Market Value

Level 1

Level 2

Level 3

Fixed Income
Equities

$ 7,881,357
5,401,907

Total

$ 13,283,264

June 30, 2024
Assets carried at Fair Market Value

Level 1

Level 2

Level 3

Fixed Income
Equities

$ 7,686,508
4,206,578

Total

$ 11,893,086

Government Wide

Concentration of Credit Risk
The government's investment policy does not allow for an investment in any one issuer that is in
excess of five percent of the government's total investment. In accordance with GASB Statement No.
40, Deposit and Investment Risk Disclosures, requires disclosure when the investment in any one
issuer equals or exceeds 5% of the total amount of investments.

Custodial Credit Risk
For deposits, the government could be exposed to risk in the event of a bank failure where the
government's deposits may not be returned. The government's policy for custodial credit risk is to
require a depository bond as collateral for all investments. At year end, the primary government's,
component units' and fiduciary funds' book balances (excluding the Pension and Retirement Funds
and Morgantown Utility Board) were $37,458,533, which were collateralized with a depository bond.

Page 66 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
For Investments, the government could be exposed to risk in the event of the failure of the
counterparty where the government will not be able to recover the value of its investments or
collateral securities that are in the possession of an outside party. The government has adopted State
Code requirements as its policy for custodial credit risk. At year end, the investment balances were
$9,453,938. The entire balance is considered secured.
A reconciliation of cash and investments as shown on the Statement of Net Position of the government
and Statement of Net Position of the Fiduciary Funds (excluding the Pension and Retirement Funds
and Morgantown Utility Board) is as follows:
Cash and cash equivalents
Investments - collateralized and secured
Total
Cash and cash equivalents
Cash and investments - restricted
Investments
Total

37,458,533
9,453,938

46,912,471

32,192,562
5,265,971
9,453,938

46,912,471

Page 67 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
B.

Receivables
Receivables at year end for the government's individual major and nonmajor funds, and fiduciary
funds in the aggregate are as follows:
Municipal
Sales and
Use Tax
Fund

Capital
Reserve

General
Fund

Coal
Severance
Fund

Other
Total
Proprietary
Nonmajor Governmental Airport
Funds
Funds
Fund

Receivables:
Taxes
Accounts
Contributions
Other
Grants
Interest

$ 4,159,015
1,123,426
-

$ 29,799
-

2,704,752
-

500,000
-

$ 109,656
-

$ 4,298,470
1,123,426
3,204,752
-

192,139
2,714
-

Total

$ 5,282,441

$ 29,799

$ 2,704,752

$ 500,000

$ 109,656

$ 8,626,648

$ 194,853

$ 4,306,942

Component
Units

3,911,114
325,748
70,080

Governmental funds report deferred revenue in connection with receivables for revenue that are not
considered to be available to liquidate liabilities of the current period.
Governmental funds also defer revenue recognition in connections with resources that have been
received, but not yet earned. At the end of the current fiscal year, the various components of
deferred revenue and unearned revenue reported in the governmental funds were as follows:
Property taxes receivable
Business and occuation tax and other receivable

276,273
280,702

Total deferred revenue for governmental funds

556,975

Page 68 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
C.

Capital Assets
Capital asset activity for the fiscal year ended June 30, 2025, was as follows:
Beginning
Balance

Additions

Retirements

104,767
2,116,237
2,221,004

Ending
Balance

Governmental Activities
Nondepreciable Capital Assets
Land
Construction in process
Total nondepreciable capital assets

2,997,020
2,639,416
5,636,436

(375,915)
(375,915)

3,101,787
4,379,738
7,481,525

Depreciable Capital Assets
Buildings
Infrastructure
Machinery and equipment
Vehicles
Total at historical cost

9,073,416
13,106,990
6,250,056
8,180,560
36,611,022

3,981,638
594,526
266,055
4,842,219

(1,148,332)
(3,288,199)
(4,436,531)

9,073,416
17,088,628
5,696,250
5,158,416
37,016,710

Less: Accumulated Depreciation
Buildings
Infrastructure
Machinery and equipment
Vehicles
Total accumulated depreciation

4,271,747
3,433,170
3,837,139
8,180,559
19,722,615

339,056
463,647
473,407
251,970
1,528,080

(1,148,332)
(3,288,199)
(4,436,531)

4,610,803
3,896,817
3,162,214
5,144,330
16,814,164

Total depreciable capital assets, net

16,888,407

3,314,139

$ 22,524,843

$ 5,535,143

Governmental activities capital assets, net

20,202,546

(375,915)

$ 27,684,071

Depreciation expense was charged to governmental activities as follows:
General government
Public Safety
Highways and streets
Total depreciation expense

382,020
962,690
183,370

1,528,080

Page 69 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
Component Unit
Board of Parks and Recreation
Beginning
Balance
Nondepreciable Capital Assets
Land
Construction in process
Total nondepreciable capital assets

84,566
5,823,896
5,908,462

Depreciable Capital Assets
Land improvements
Buildings
Machinery and equipment
Vehicles
Total at historical cost

1,739,909
8,031,391
1,365,099
423,486
11,559,885

Less: Accumulated Depreciation
Land Improvements
Buildings
Machinery and equipment
Vehicles
Total accumulated depreciation

1,241,739
3,884,761
1,058,088
413,417
6,598,005

Total depreciable capital assets, net

4,961,880

Component capital assets, net

$ 10,870,342

Adjustments

(5,823,896)
(5,823,896)

5,823,896
5,823,896

5,823,896
$

Additions

Retirements

4,429,500
4,429,500

Ending
Balance

84,566
4,429,500
4,514,066

6,259,818
6,259,818

(532,767)
(70,195)
(602,962)

1,207,142
20,044,910
1,365,099
423,486
23,040,637

77,294
367,894
58,768
5,798
509,754

(357,391)
(19,304)
(376,695)

961,642
4,233,351
1,116,856
419,215
6,731,064

5,750,064

(226,267)

16,309,573

$ 10,179,564

$ (226,267)

$ 20,823,639

Page 70 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
Business-Type Activities
Airport Fund
Beginning
Balance
Nondepreciable Capital Assets
Land
Construction in process
Total nondepreciable capital assets

50,050
16,721,720
16,771,770

Additions

Retirements

5,334,644
5,334,644

Ending
Balance

50,050
22,056,364
22,106,414

Depreciable Capital Assets
Buildings
Structures and improvements
Machinery and equipment
Total at historical cost

13,552,975
35,383,715
2,577,838
51,514,528

8,350
76,982
85,332

(6,595)
(47,539)
(209,259)
(263,393)

13,546,380
35,344,526
2,445,561
51,336,467

Less: Accumulated Depreciation
Buildings
Structures and improvements
Machinery and equipment
Total accumulated depreciation

6,006,616
19,533,447
2,504,557
28,044,620

319,992
743,883
75,142
1,139,017

(6,595)
(47,539)
(209,259)
(263,393)

6,320,013
20,229,791
2,370,440
28,920,244

Total depreciable capital assets, net

23,469,908

(1,053,685)

22,416,223

Enterprise activities capital assets, net

$ 40,241,678

$ 4,280,959

$ 44,522,637

Page 71 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
Component Unit Business-Type Activities
Parking Authority

Beginning
Balance

Ending
Balance

Additions

Retirements

257,186
257,186

(433,724)
(433,724)

$ 1,484,399
32,968
1,517,367

Nondepreciable Capital Assets
Land
Construction in process
Total nondepreciable capital assets

$ 1,484,399
209,506
1,693,905

Depreciable Capital Assets
Structures and improvements
Machinery and equipment
Total at historical cost

10,942,731
2,349,826
13,292,557

234,406
199,318
433,724

(1,941,579)
(1,611,341)
(3,552,920)

9,235,558
937,803
10,173,361

Less: Accumulated Depreciation
Structures and improvements
Machinery and equipment
Total accumulated depreciation

7,025,499
1,520,051
8,545,550

240,479
120,991
361,470

(1,905,713)
(1,479,152)
(3,384,865)

5,360,265
161,890
5,522,155

Total depreciable capital assets, net

4,747,007

72,254

(168,055)

4,651,206

Enterprise activities capital assets, net

$ 6,440,912

$ 329,440

$ (601,779)

$ 6,168,573

Page 72 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
Component Unit
Building Commission
Beginning
Balance
Nondepreciable Capital Assets
Land
Construction in process
Total nondepreciable capital assets

$ 1,439,707
912,843
2,352,550

Depreciable Capital Assets
Land improvements
Buildings
Machinery and equipment
Total at historical cost

744,473
20,167,413
1,094,319
22,006,205

Less: Accumulated Depreciation
Land improvements
Buildings
Machinery and equipment
Total accumulated depreciation

Additions

Retirements

(785,372)
(785,372)

$ 1,439,707
263,253
1,702,960

785,372
785,372

744,473
20,952,785
1,094,319
22,791,577

321,327
9,871,489
898,580
11,091,396

17,994
510,103
43,497
571,594

339,321
10,381,592
942,077
11,662,990

Total depreciable capital assets, net

10,914,809

213,778

11,128,587

Enterprise activities capital assets, net

$ 13,267,359

$ 349,560

135,782
135,782

Ending
Balance

$ (785,372)

$ 12,831,547

Page 73 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
Component Unit
Morgantown Land Reuse and Preservation Agency

Nondepreciable Capital Assets
Land
Construction in process
Total nondepreciable capital assets

Beginning
Balance

Additions

Retirements

597,338
978,787
1,576,125

$ 210,212
210,212

Ending
Balance

807,550
978,787
1,786,337

Depreciable Capital Assets
Buildings
Total at historical cost

Less: Accumulated Depreciation
Buildings
Total accumulated depreciation

Total depreciable capital assets, net

Enterprise activities capital assets, net

$ 1,576,125

$ 210,212

$ 1,786,337

Page 74 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
Discretely Presented Component Units
Morgantown Public Library
Beginning
Balance

Additions

Retirements

Depreciable Assets
Buildings and fixtures
Machinery and equipment
Books and videos
Total at historical cost

$ 3,722,986
270,838
6,253,828
10,247,652

$ 84,454
111,837
196,291

Less: Accumulated Depreciation
Buildings and fixtures
Machinery and equipment
Books and videos
Total accumulated depreciation

2,136,886
198,581
6,188,971
8,524,438

69,069
3,441
169,596
242,106

Total depreciable capital assets, net

$ 1,723,214

$ (45,815)

Ending
Balance

$ 3,807,440
270,838
6,365,665
10,443,943

2,205,955
202,022
6,358,567
8,766,544

$ 1,677,399

Page 75 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
Morgantown Utility Board
Capital asset activity for the year ended June 30, 2025 was as follows:

Additions

Retirements
& Transfers
to Utility Plant

Ending
Balance

64,388,422
1,719,674
383,056
80,988,919
97,848,375
146,877,305
110,139,541
7,179,550
10,679,186
304,072
100,842
520,608,942

$ 27,281,659
792,752
797,183
10,608,669
2,564,209
2,361,734
9,982
127,233
44,543,421

$ (17,999,869)
(29,793)
(612,867)
(42,500)
(20,174)
(25,139)
(45,081)
(18,775,423)

$ 73,670,212
2,512,426
383,056
81,786,102
108,427,251
148,828,647
112,458,775
7,169,358
10,781,280
258,991
100,842
546,376,940

(174,927,478)

(14,111,811)

738,437

(188,300,852)

345,681,464

$ 30,431,610

$ (18,036,986)

$ 358,076,088

Depreciation - Water
Depreciation - Sewer
Depreciation - Stormwater
Depreciation - Cheat Sewer

3,438,956
9,433,200
699,339
540,316

Total depreciation expense

14,111,811

Beginning
Balance
CWIP
Land
Intangible Plant
Buildings & Structures
Water Transmission & Distribution System
Sewer & Storm Collection System
Treatment Plant Equipment
Office Furniture & Equipment and Computer System
Vehicles & Heavy Duty Equipment
Lease Asset
Subscription Asset
Total Capital Assets

Less: Accumulated Depreciation
Total Net Capital Assets

Depreciation expense charged to operations:

Page 76 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
D.

lnterfund Receivables, Payables, and Transfers
The composition of interfund balances as of June 30, 2025, is as follows:

Capital Reserve
Fund
Transfers Out
General Fund
$ 3,090,011
Municipal Sales
2,522,674
Capital Reserve
Life and Health Fund
Other Governmental F 1,334,508
Other Entities
1,176,958
Component Unit:
Building Commissio 1,287,733
$ 9,411,884

Airport
Fund

Life and Health
Fund

Tax Increment
Other
Financing
Governmental
Funds
Funds

$ 200,000

$ 4,399,629
1,226,787
-

$ 1,464,572
-

$ 200,000

$ 5,626,416

$ 1,464,572

492,512

C
Other
Entities
$ 412,705

1,334,508
1,176,958

1,287,733

$ 1,085,707

$ 412,705

$ 995,803

$ 2,777,938

626,842

1,287,733

394,314

$ 2,033,721

$ 995,803

$ 20,386,027

Total
$ 13,824,689
6,527,399
628,342
591,695
1,334,508
1,176,958

968,264

$ 2,033,721

$ 10,059,429
6,527,399
-

394,314

2,777,938
-

Component
Unit
Library

Total Primary
Government

1,500
591,695
-

Component Unit Component Unit Component
Building
Land Reuse and
Unit
Commission
Preservation
BOPARC
341,422

General
Fund

$ 25,371,324

Page 77 of 207

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
E.

Item 5B.

Fund Balance Detail

At year-end, the detail of the government's fund balances is as follows:

General
Fund
Restricted:
Public safety
Economic development
Debt service
Community development

Nonspendable:
Prepaid expenses

Assigned:
Streets and transportation
Benefit payments
Public safety
Arts and recreation
Community development

Coal
Severance

4,975
4,975

29,816
29,816

Unassigned

11,146,709

Total fund balance

$ 11,151,684

$ 29,816

Capital
Reserve

Life and
Health

13,830,951
13,830,951

1,383,824
1,383,824

$ 13,830,951

$ 1,383,824

Tax Increment
Financing
Debt Service

Municipal
Sales and Use
Tax Fund

American
Rescue Plan
Act Fund

(5,320,747)
$ (5,320,747)

2,704,753
2,704,753
$ 2,704,753

2,409,070
2,409,070

$ 2,409,070

Nonmajor
Funds

30,888
47,034
77,922

13,709
2,325,588
398,757
1,810,742
4,548,796
$ 4,626,718

Total

30,888
2,456,104
2,486,992

4,975
4,975

43,525
3,709,412
398,757
1,810,742
16,535,704
22,498,140
5,825,962
$ 30,816,069

62
77

Page 78 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
F.

Long-Term Debt

Long-term liability activity for Governmental Activities for the year ended June 30, 2025, was as follows:

Beginning
Balance

Governmental Activities
Bonds Payable
2006A TIF bonds
2007 TIF bonds
2007A TIF bonds
2014 TIF bonds
2017 TIF bonds
Total bonds payable

2,725,000
8,615,000
1,720,000
2,330,000
6,047,685
21,437,685

Other long-term debt
Compensated absences
Net pension obligation
Net other post employment benefir obligation
Total other long-term debt

788,265
129,830,273
13,274,589
143,893,127

Total long-term debt - governmental activities

$ 165,330,812

Additions
$

Reductions
$

Ending
Balance

(270,000) $ 2,455,000
8,615,000
(95,000)
1,625,000
(362,000)
1,968,000
(87,000)
5,960,685
(814,000)
20,623,685

(58,616,123)
(1,266,370)
(59,882,493)

Amounts
Due Within
One Year
$ 280,000
136,767
371,000
91,000
878,767

Amounts
Due After
One Year
$

2,175,000
8,615,000
1,488,233
1,597,000
5,869,685
19,744,918

788,265
71,214,150
12,008,219
84,010,634

$ (60,696,493) $ 104,634,319

$ 878,767

$ 103,755,552

Page 79 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
Beginning
Balance

Component Unit

Additions

Reductions

Ending
Balance

Due Within
One Year

Due After
One Year

Board of Park and Recreation Commission
Note payable
Bond Payable *
Net other postemployment benefit obligation
Total long-term debt component unit

56,544
14,840,000
1,090,727

(56,544) $
(370,000)
14,470,000
(128,240)
962,487

$ 15,987,271

(554,784) $ 15,432,487

$ 365,000

$ 15,067,487

Amounts
Due Within
One Year

Amounts
Due After
One Year

Beginning
Balance

Component Unit

Additions

Reductions

Ending
Balance

365,000
-

14,105,000
962,487

Morgantown Public Library
Note payable
Net pension obligation (asset)
Net other postemployment benefit obligation

2,542 $
(1,940)
898,725

1,940
-

(2,542) $
(93,418)

805,307

Total long-term debt component unit

899,327

1,940

(95,960) $

805,307

Page 80 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
TIF Bonds
In 2006, the City of Morgantown issued Tax Increment Financing (TIF) revenue bonds to provide
funds to finance the costs of certain private capital improvements within the City's designated areas.
The bonds do not constitute a general obligation, or pledge of the full faith and credit of the City of
Morgantown. The principal and interest on the tax increment revenue bonds are to be repaid solely
by the property taxes generated in association with increased assessed values of property within the
TIF district area.
2006A TIF Bonds
The 2006A TIF bonds were issued in the amount of $6,180,000 to provide financing for the Parking
Garage Project No. 1. This is a private/public partnership project undertaken to economically
revitalize the Riverfront area. The bonds are payable solely from the tax increment property taxes
assessed and collected in the district area. Annual principal and interest on the bonds are expected to
require less than 55% of the net revenues associated with the property taxes within the district. The
bonds mature incrementally with final maturity due June 1, 2033. Payments of principal and interest
are due annually on June 1st with varying interest rates. The City has pledged future tax increment
revenue to provide for the repayment of these bonds. The following is a schedule of future debt
retirement based on current financing arrangements:
Fiscal Year Ended June 30,

Principal

2026
2027
2028
2029
2030 - 2033

Interest

280,000
295,000
310,000
325,000
1,245,000
$

2,455,000

Total

133,190
119,750
105,000
89,500
143,750
$

591,190

413,190
414,750
415,000
414,500
1,388,750
$

3,046,190

Page 81 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
2007 TIF Bonds
The 2007 TIF bonds were issued to provide financing for certain private capital improvements within
the City's designated Riverfront district area. The bonds are payable solely from the property taxes
generated in association with increased assessed values of property within the TIF district area. The
bonds do not constitute a general obligation, or pledge of the faith and credit of the City of
Morgantown. Payments of interest only are due semiannually with the principal and any outstanding
interest due in 2033. The bonds bear interest at 5.69%. The following is a schedule of future debt
retirement based on current financing arrangements:
Fiscal Year Ended June 30,
2026
2027
2028
2029
2030 - 2033

Principal
$

Interest
-

8,615,000

689,200
689,200
689,200
689,200
2,756,800

8,615,000

$ 5,513,600

Total
$

689,200
689,200
689,200
689,200
11,371,800

$ 14,128,600

2007A TIF Bonds
The 2007A TIF bonds were issued subordinate to the 2006 TIF bonds, and were issued to provide
funds to finance the costs of certain private capital improvements with the City's designated TIF
Falling Run district area. Proceeds from the bonds provided additional financing for the Riverfront
Event Center Project No. 1. The bonds are payable solely from the property truces generated in
associated with the increased assessed values of property within the TIF district area. The bonds do
not constitute a general obligation, or pledge of the full faith and credit of the City of Morgantown.
The bonds bear interest of 8.00%, with interest only payments due quarterly and principal and interest
due in June 2033. The following is a schedule of future debt retirement based on current financing
arrangements:

Page 82 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025

Fiscal Year Ended June 30,

Principal

2026
2027
2028
2029
2030
2031 - 2033

Interest

136,767
144,549
152,774
161,467
170,654
858,789
$

1,625,000

Total

82,999
75,217
66,992
58,299
49,112
86,832
$

419,451

219,766
219,766
219,766
219,766
219,766
945,621
$

2,044,451

2014 TIF Bonds
The 2014 TIF bonds were issued to provide funds to finance the costs of certain private capital
improvements with the City's designated TIF Sunnyside district area and to refinance the 2010 TIF
bonds. Proceeds from the bonds provided additional financing for the Sunnyside district area
improvements with the City's designated TIF Sunnyside district area. The bonds are payable solely
from the property taxes generated in association with the increased assessed values of property
within the TIF district area. The bonds do not constitute a general obligation, or pledge of the full
faith and credit of the City of Morgantown. The bonds bear interest of 2.64%. The following is a
schedule of future debt retirement based on current financing arrangements:
Fiscal Year Ended June 30,
2026
2027
2028
2029

Principal

Interest

Total

371,000
381,000
391,000
825,000

51,955
42,161
32,102
21,780

422,955
423,161
423,102
846,780

1,968,000

147,998

2,115,998

Page 83 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
2017 TIF Bonds
The 2017 TIF bonds were issued to provide funds to finance the costs of certain private capital
improvements with the City's designated TIF Sunnyside Up, CNRC TIF District. Proceeds of the
bonds provide additional financing for this district. The bonds are payable solely from the property
truces generated in association with the increased assessed values of property within the TIF district
area. The bonds do not constitute a general obligation, or pledge of the full faith and credit of the
City of Morgantown. The bond issue in the amount of $7,146,000 is dated December 27, 2017,
with a draw down period concluding on December 27, 2020. The bonds bear interest at a rate of
3.950%. The outstanding balance on this bond issue at June 30, 2025 is $5,960,685. The
following is a schedule of future debt retirement based on the full draw down of $7,146,000.
Fiscal Year Ended June 30,

Principal

2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038

$ 335,000
250,000
161,000
86,000
78,000
82,000
85,000
87,000
91,000
95,000
99,000
103,000
530,000
551,000
572,000
595,000
618,000
643,000
668,000
695,000
700,685

Total

$ 7,124,685

$ 3,554,205

Interest
15,354
82,504
165,731
241,744
248,561
245,480
242,241
238,883
235,447
231,852
228,100
224,190
220,121
199,186
177,421
154,828
131,325
106,914
81,516
55,130
27,677

Total
$

350,354
332,504
326,731
327,744
326,561
327,480
327,241
325,883
326,447
326,852
327,100
327,190
750,121
750,186
749,421
749,828
749,325
749,914
749,516
750,130
728,362

$ 10,678,890

Page 84 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
Total following is a schedule of future debt retirement based on the current debt retirement based on
current financing arrangements:
Fiscal Year Ended June 30,
2026
2027
2028
2029
2030
2031 - 2035
2036 - 2038

Principal
$

Interest

91,000
95,000
99,000
103,000
530,000
2,979,000
2,063,685

235,447
231,852
228,100
224,190
220,121
769,674
164,323

$ 5,960,685

$ 2,073,707

Total
$

326,447
326,852
327,100
327,190
750,121
3,748,674
2,228,008

$ 8,034,392

Total debt retirement of all TIF bonds based on current financing arrangements is as follows:
Fiscal Year Ended June 30,
2026
2027
2028
2029
2030
2031 - 2035
2036 - 2038

Principal

Interest

Total

878,767
915,549
952,774
1,414,467
1,040,654
13,357,789
2,063,685

$ 1,192,791
1,158,180
1,121,394
1,082,969
1,031,683
2,994,606
164,323

$ 2,071,558
2,073,729
2,074,168
2,497,436
2,072,337
16,352,395
2,228,008

$ 20,623,685

$ 8,745,946

$ 29,369,631

Page 85 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
2023A Revenue Bond
0B

On December 15, 2023, the Board of Parks and Recreation Commission of the City of
Morgantown entered into an agreement for the acquisition of an aquatic complex. This
agreement issued $14,840,000 for the aquatic complex at a 4.41% interest rate. This bond is to
be paid annually starting December 1, 2024 and lasting until December 1, 2048.
Fiscal Year Ended June 30,

Principal

2026
2027
2028
2029
2030 - 2034
2035 - 2039
2040 - 2044
2045 - 2049
$

Interest

Discount
Amortization

Total

365,000
380,000
395,000
415,000
2,330,000
2,835,000
3,460,000
4,290,000

612,550
594,300
579,100
563,300
2,554,700
2,049,300
1,418,513
656,025

(11,861)
(11,861)
(11,861)
(11,861)
(59,306)
(59,306)
(59,306)
(59,306)

965,689
962,439
962,239
966,439
4,825,394
4,824,994
4,819,207
4,886,719

14,470,000

$ 9,027,788

$ (284,668)

$ 23,213,120

Page 86 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
Long-term liability activity for Business-Type Activities Unit for the year ended June 30, 2025
was as follows:
Beginning
Balance
Business-Type Activities
Note Payable - CLT

26,319

Additions

Ending
Balance

Reductions

(26,319)

Amounts
Due Within
One Year

Amounts
Due After
One Year

Discretely Presneted Component Unit
Note Payable - CLT

12,695

(12,695)

Total notes payable

39,014

(39,014)

Bonds Payable
2013A Municipal Building Lease Revenue
Refunding Bonds
2021 Parking System Revenue Bonds
2019 Taxable Lease Revenue Bonds
2022A Municipal Building Lease Bonds
Total bonds Payable

995,000
1,932,566
1,227,833
5,383,322
9,538,721

(290,000)
(145,735)
(102,364)
(453,965)
(992,064)

705,000
1,786,831
1,125,469
4,929,357
8,546,657

300,000
148,356
105,593
465,957
1,019,906

405,000
1,638,475
1,019,876
4,463,400
7,526,751

Other Long-Term Debt
Net pension obligation
Net other postemployment benefit obligation
Total other long-term debt

1,928,146
487,327
2,415,473

(330,742)
(48,090)
(378,832)

1,597,404
439,237
2,036,641

Component Units
Net pension obligation
Net other postemployments benefit obligation
Total other long-term debt - component units

879,989
611,168
1,491,157

(404,240)
(64,120)
(468,360)

475,749
547,048
1,022,797

Total other long-term debt

3,906,630

(847,192)

3,059,438

$ (1,878,270)

$ 11,606,095

Total long-term debt

$ 13,484,365

$ 1,019,906

$ 10,586,189

Page 87 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
2013A Municipal Building Lease Revenue Refunding Bonds
This issue was authorized to refinance the $4,500,000, 2008A Municipal Building Lease Revenue
Bonds. The bonds were issued bearing interest of 1.00% - 2.75% payable semiannually on the first
day of April and the first day of October of each year.
The following is a schedule of future debt retirement based on current financing arrangements:
Fiscal Year Ended June 30,
2026
2027
2028

Principal

Interest

Total

300,000
305,000
100,000

17,851
8,206
1,625

317,851
313,206
101,625

705,000

27,682

732,682

The 2013A bonds are secured by the lease rentals derived from the lease of the station to the City
pursuant to the lease, and from funds on deposit in the reserve account.
As required by the 2013A bond ordinance, a sinking fund has been established. Monies in the
sinking fund are to be used only for the purposes of paying principal of and interest on the bonds.
Payments are required to be made into the sinking fund to pay interest and principal which will
mature and become due on the next succeeding payment date. The balance in the sinking fund
account at June 30, 2025 was $265,406.

Page 88 of 207

Item 5B.

CITY OF MORGANTOWN, WEST VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONT’D)
FOR THE YEAR ENDED JUNE 30, 2025
Series 2021 Parking System Revenue Bonds
This issue was authorized to finance the cost of the design, acquisition, construction and equipping of
the Parking project. The bonds were issued bearing interest of 1.79% payable semiannually on the first
day of June and the first day of December of each year in semiannual payments of $89,840.
The following is a schedule of future debt retirement based on current financing arrangements:
Fiscal Year Ended June 30,
2026
2027
2028
2029
2030
2031 -2035
2036

Principal

Interest

148,356
151,023
153,739
156,503
159,317
840,597
177,296
$ 1,786,831

Total

31,323
28,656
25,940
23,176
20,362
57,799
2,384

179,679
179,679
179,679
179,679
179,679
898,396
179,680

189,640

$ 1,976,471

The 2021 bonds are secured by the revenues of the Parking Authority and a statutory mortgage lien on
the Parking Authority system.

Page 89 of 207

Item 5B.

CITY OF MORGANTOWN, WEST VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONT’D)
FOR THE YEAR ENDED JUNE 30, 2025
Morgantown Land Reuse and Preservation Agency
Taxable Lease Revenue Bonds, Series 2019

This bond issue was authorized to purchase and upgrade the new City Hall annex. The bonds were
issued bearing interest of 3.11% payable monthly on the 14th day of the month.
The following is a schedule of future debt retirement based on current financing arrangements:
Fiscal Year Ended June 30,
2026
2027
2028
2029
2030
2031 - 2035

Principal
$

Interest

Total

105,593
108,924
112,289
115,903
119,560
563,200

33,509
30,178
26,813
23,199
19,543
39,576

139,102
139,102
139,102
139,102
139,103
602,776

$ 1,125,469

172,818

$ 1,298,287

The 2019 bonds are secured by real estate.

Page 90 of 207

Item 5B.

CITY OF MORGANTOWN, WEST VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONT’D)
FOR THE YEAR ENDED JUNE 30, 2025
Series 2022A Municipal Building Commission Lease Revenue Bonds
This issue was authorized to finance the design, acquisition, construction and equipping of
improvements to certain existing facilities of the City of Morgantown, including City Hall, the Public
Safety Building, the Norwood Fire Station and the City Public Works Garage, together with all
necessary appurtenances thereto. The bonds were issued in the amount of $7,000,000 and bear
interest at 2.61% for the life of the bonds. The bonds are interest only payable until January 15, 2024
with principal payments beginning January 15, 2024 until March 15, 2037. The bonds are secured by
a credit line deed of trust, fixture filing and security agreement on the Public Safety Building and
City Hall, including any additions, improvements, renovations, furnishings and equipment
associated therewith. At June 30, 2025 the City had drawn down $6,270,125 of this bond issue.
Repayment of this bond issue when fully drawn is as follows:

Fiscal Year Ended June 30,

Principal

Interest

Total

2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037

$ 465,957
478,265
490,898
503,865
517,174
530,835
544,857
559,249
574,021
589,183
604,746
464,019

$ 159,484
147,176
134,543
121,576
108,267
94,606
80,584
66,192
51,420
36,258
20,695
5,061

$ 625,441
625,441
625,441
625,441
625,441
625,441
625,441
625,441
625,441
625,441
625,441
469,080

Total

$ 6,323,069

$ 1,025,862

$ 7,348,931

Page 91 of 207

Item 5B.

CITY OF MORGANTOWN, WEST VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONT’D)
FOR THE YEAR ENDED JUNE 30, 2025
The following is a schedule of future debt retirement based on the current drawdown balance of
$6,270,125:
Fiscal Year Ended June 30,
2026
2027
2028
2029
2030
2031-2035

Principal
$

Interest

Total

465,957
478,265
490,898
503,865
517,174
2,471,198

159,484
147,176
134,543
121,576
108,267
290,611

625,441
625,441
625,441
625,441
625,441
2,761,809

$ 4,927,357

961,657

$ 5,889,014

The 2022A bonds are secured by the lease rentals of the facilities from the City of Morgantown, a
credit deed of trust, and a fixture filing and security agreement on the Public Safety Building and City
Hall, including any additions, improvements, renovations, furnishings and equipment associated
therewith.
Discretely Presented Component Unit

Morgantown Utility Board
The following is a description of the long-term liabilities of the Board.
2000A Bonds Payable
The Board issued $7,842,000 in a combined waterworks and sewerage system revenue bonds on
February 8, 2000, for the construction of certain extensions, additions, betterments and
improvements to the sewerage system for the Cheat Lake customers. The bonds mature quarterly on
March 1, June 1, September 1, and December 1 of each year commencing March 1, 2002. The bonds
mature on March 1, 2026. The bonds bear no interest and were issued to the West Virginia Division
of Environmental Protection. The bonds carry a 0.5% administrative fee per annum and are payable
quarterly. The bonds have a maximum reserve requirement of $323,384 and annualized payments
of $323,380 are required.

Page 92 of 207

Item 5B.

CITY OF MORGANTOWN, WEST VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONT’D)
FOR THE YEAR ENDED JUNE 30, 2025
2000B Bonds Payable

The Board issued $2,488,000 in a combined waterworks and sewerage system revenue bonds on
February 8, 2000, for the construction of certain extensions, additions, betterments and
improvements to the sewerage system for the Cheat Lake customers. The bonds mature quarterly
on March 1, June 1, September 1, and December 1 of each year commencing March 1, 2002. The
bonds mature on December 31, 2039. The bonds bear no interest and were issued to the West
Virginia Infrastructure and Jobs Development Council. The bonds hold a maximum reserve
requirement of $65,476 and annualized payments of $65,472 are required.
2006A Bonds Payable

The Board issued bonds of $6,410,000 in a combined waterworks and sewerage system revenue bonds
on June 30, 2006, for the acquisition and construction of the extension, additions, betterments and
improvements of the sewerage portion of the existing public combined waterworks and sewerage
system. The bonds bear interest rates of 3% with a 20-year term paid quarterly on March 1, June 1,
September 1, and December 1. The bonds have a maximum reserve requirement of $389,664 and
annualized payments of $389,663 are required.
2007 Bonds Payable

The Board issued bonds of $8,500,000 in a combined utility system revenue bonds on June 30, 2007,
for the acquisition and construction of the extension, additions, betterments and improvements of the
storm water portion of the existing public combined utility system. The bonds bear interest rates of
3% with a 20-year term paid quarterly on March 1, June 1, September 1, and December 1. The bonds
have a maximum reserve requirement of $535,039 and annualized payments of $535,037 are
required.

Page 93 of 207

Item 5B.

CITY OF MORGANTOWN, WEST VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONT’D)
FOR THE YEAR ENDED JUNE 30, 2025
2010C Bonds Payable

The Board issued on January 28, 2010 combined utility system revenue bonds, series 2010C (West
Virginia SRF Program) for the acquisition and construction of the extension, additions, betterments
and improvements of the sewerage portion of the existing public combined utility system in the
original aggregate principal amount of $15,380,277. The bonds bear a 2% interest rate and a 1%
administrative fee paid quarterly on March 1, June 1, September 1 and December 1. The bonds have
a maximum reserve requirement of $934,937 and annualized payments of $934,936 are required.
2010D Bonds Payable

The Board issued on January 28, 2010 combined utility system revenue bonds, series 2010D (West
Virginia DWTRF Program), for the acquisition and construction of the extension, additions,
betterments and improvements of the waterworks portion of the existing public combined utility
system in the original aggregate principal in the amount of $9,317,286. The bonds bear a 2% interest
rate paid quarterly on March 1, June 1, September 1, and December 1. The bonds have a maximum
reserve requirement of $666,514 and annualized payments of $566,380 are required.
2010E Bonds Payable

The Board issued on January 28, 2010 combined utility system revenue bonds, series 2010E (West
Virginia DWTRF Program/ARRA), for the acquisition and construction of the extension, additions,
betterments and improvements of the waterworks portion of the existing public combined utility
system, in the original aggregate principal in the amount of $100,000. The bonds bear a 2% interest rate
paid quarterly on March 1, June 1, September 1, and December 1. The bonds have a maximum reserve
requirement of $6,081 and annualized payments of $6,077 are required.
2012A Bonds Payable

The Board issued on August 24, 2012 $570,000 combined utility system revenue bonds for
construction of the extension, additions, betterments and improvements of the waterworks portion of
the existing public combined waterworks and sewerage system. The bonds bear an interest rate of .5%
and a .5% administrative fee per annum and is payable quarterly on March 1, June 1, September 1,
and December 1 of each year, beginning June 1, 2014 until March 1, 2044. Annualized payments of
$20,473 are required.

Page 94 of 207

Item 5B.

CITY OF MORGANTOWN, WEST VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONT’D)
FOR THE YEAR ENDED JUNE 30, 2025
2013A Bonds Payable

The Board issued on August 22, 2013 $4,605,260 combined utility system revenue bonds for the
assumption and replacement of the Canyon Public Service District Series 2008A bonds. The bonds
bear an interest rate of 0% and have a maximum reserve requirement of $131,580 and annualized
payment of $131,580 are required. Principal is paid quarterly until June 2048.
2014B Bonds Payable

The Board issued on July 23, 2014 $505,421 combined utility system revenue bonds for
construction of the extension, additions, betterments and improvements of the storm water portion
of the existing public combined utility system. The bonds bear an interest rate of 3.16%. The bonds
have a maximum reserve requirement of $34,148 and annualized payments of $34,148 are required.
2015A Bonds Payable

The Board issued on March 31, 2015 $137,568 original principal combined utility system revenue
bonds for the assumption and replacement of the Scotts Run Public Service District Series 1991A
bonds. The bonds bear an interest rate of7.75%. The bonds have a maximum reserve requirement
of $11,276 and annual payments of $11,275 are required. Principal and interest are paid annually
until October 2031.
2015B Bonds Payable

The Board issued on March 31, 2015 $4,586 original principal combined utility system revenue
bonds for the assumption and replacement of the Scotts Run Public Service District Series 1991B
bonds. The bonds bear an interest rate of 0% and have a maximum reserve requirement of $118.
Principal payments of $118 are paid annually until October 2031.
2015C Bonds Payable

The Board issued on March 31, 2015 $8,111,813 original principal combined utility system revenue
bonds for the assumption and replacement of the Scotts Run Public Service District Series 2003A
bonds. The bonds bear an interest rate of 0% and .5% administrative fee. The bonds have a
maximum reserve requirement of $213,468. Principal payments of $53,368 and administrative fees
are paid quarterly until September 2043.

Page 95 of 207

Item 5B.

CITY OF MORGANTOWN, WEST VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONT’D)
FOR THE YEAR ENDED JUNE 30, 2025
2015D Bonds Payable

The Board issued on March 31, 2015 $1,688,394 original principal combined utility system revenue
bonds for the assumption and replacement of the Scotts Run Public Service District Series 2009A
bonds. The bonds bear an interest rate of 0% and .5% administrative fee. The bonds have a maximum
reserve requirement of $44,144. Principal payments of $11,036 and administrative fees are paid
quarterly until December 2049.
2015E Bonds Payable

The Board issued on June 11, 2015 $662,300 combined utility system revenue bonds for construction
of the extension, additions, betterments and improvements of the storm water portion of the existing
public combined utility system. The bonds bear an interest rate of 0% and .5% administrative fee. The
bonds have a maximum reserve requirement of $16,876. Principal payments of $4,219 and
administrative fees of $417 are paid quarterly until June 2055.
2016A Bonds Payable

The Board issued on December 1, 2016 $69,755,000 combined utility system revenue bonds for
construction of the improvements to the Star City Wastewater Treatment Plant and to upgrade the
existing Popenoe Run Sewer Interceptor. The bonds were issued at a premium of $4,883,284. The
bonds are 30-year bonds and bear interest rates of 3% to 5%. The bonds have a maximum reserve
requirement of $4,209,988. Interest is paid semi-annually of June 1 and December 1 and principal
payments annually beginning December 1, 2017. Annualized payments of $4,208,688, are required.
2016Bl and B2 Bonds Payable

The Board issued on December 15, 2016 $25,000,000 (B1) combined utility system revenue bonds
(WV SRF Program) and $500,000 (B2) combined utility system revenue bonds (WV SRF
Program/Green) for construction of the improvements to the Star City Wastewater Treatment Plant
and to upgrade the existing Popenoe Run Sewer Interceptor. The 2016 B1 bonds are 30-year bonds
and bear an interest rate of .75% and an administrative fee of .25% paid quarterly on March 1, June
1, September 1, and December 1. The bonds have a maximum reserve requirement of $945,454 and
annualized payments of $945,453 are required. The 2016 B2 bonds are interest free and principal
forgiven.

Page 96 of 207

Item 5B.

CITY OF MORGANTOWN, WEST VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONT’D)
FOR THE YEAR ENDED JUNE 30, 2025
2017A Bonds Payable

The Board issued on December 21, 2017 $2,695,000 combined utility system revenue bonds, series
2017A (Bank Qualified). On January 16, 2018 a portion of the proceeds were used to pay outstanding
principal and interest on the Series 2012C Bonds. The remainder of the issue for construction of
additions, betterments and improvements of the storm water portion of the existing public combined
utility system. The bonds are 30-year bonds and bear an interest rate of2.l % to 3.75% and have a
maximum reserve requirement of $151,538. Annual principal and interest payments fluctuate due to
the varying interest rate. Interest is paid April 1 and October 1 and principal payments annually
beginning October 1, 2018.
2018A Bonds Payable

The Board issued on January 28, 2018 $394,074 combined utility system revenue bonds for
construction of the extension, additions, betterments and improvements of the waterworks portion of
the existing public combined waterworks and sewerage system. The bonds bear an interest rate of 1%
and is payable quarterly on March 1, June 1, September 1, and December 1 of each year, beginning
March 1, 2019 until December 1, 2057. Annualized payments of $12,216 plus annual payments of
$1,222 until a reserve requirement of $12,216 is met.
2018B Bonds Payable\
The Board issued on June 28, 2018 $44,260,000 combined utility system revenue bonds for the (A) design,
acquisition, construction of a new water reservoir and raw water transmission line from the reservoir to the water
treatment plan, and the acquisition and installment of emergency generators to serve the water system and (B) the
design, acquisition and construction of certain extensions, betterments and improvements to the Stormwater System.
The bonds were issued at a $4,089,120 premium. The bonds are 30-year bonds and bear interest rates of 3% to 5%
and have a maximum reserve requirement of $3,567,047. Interest is paid semi-annually on June 1 and December
1 and principal payments annually beginning December 1, 2019. Various annualized payments ranging from
$2,021,113 to $5,898,300 until June 2046.

2018A2 Bonds Payable

The Board issued on July 10, 2018 $140,715 combined utility system revenue bonds for construction
of the extension, additions, betterments and improvements of the waterworks portion of the existing
public combined waterworks and sewerage system. The bonds bear an interest rate of 1% and is
payable quarterly on March 1, June 1, September 1, and December 1 of each year, beginning
September 1, 2019 until June 1, 2058. Annualized payments of $4,363 plus annual payments of $436
until a reserve requirement of $4,362 is met.

Page 97 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
2019B Bonds Payable
The Board issued on October 22, 2019 $2,546,000 original principal combined utility system revenue
bonds for the assumption and replacement of the River Road Public Service District Series 2016A
bonds. The bonds bear an interest rate of .5% and .5%. Principal and interest payments of $22,862
and administrative fees of $1,644 are paid quarterly until December 2047. The bonds have a maximum
reserve requirement of $91,445.
2020A Bonds Payable
The Board issued on October 29, 2020 $31,890,000 combined utility system revenue bonds for the
assumption and replacement of the Direct Payment Build America Bonds series 2010A bonds. A
portion of the proceeds were used to pay outstanding principal and interest on the series 2010A bonds.
The series 2020A bonds were issued at a $4,529,670 premium and have a maximum reserve
requirement of $2,317,950. The bonds bear an interest rate of 3% - 4%. Annual principal and interest
payments fluctuate due to the varying interest rate. Payments will be made until December 2040.
2024A Bonds Payable
The Board issued on October 1, 2024 $33,489,214 combined utility system revenue bonds for
improvements to the sewerage portion of the existing public combined waterworks, sewerage and
stormwater system. The bonds bear an interest rate of 1.75% and 0.25%. Principal and interest
payments of $384,211 and administrative fees of $11,395 are paid quarterly, beginning September
2027 until December 2054.The bonds have a maximum reserve requirement of $1,536,845. As of
June 30, 2025, the Board has only drawn down $2,717,970 of the total bond amount. The amortization
of principal and interest amounts below reflects the entire amount of the bonds.

Page 98 of 207

Item 5B.

CITY OF MORGANTOWN, WEST VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONT’D)
FOR THE YEAR ENDED JUNE 30, 2025
Long-term debt bond activity for the year ended June 30, 2025 was as follows:
Beginning
Morgantown 2000A
Morgantown 2000B
Morgantown 2006A
Morgantown 2007A
Morgantown 2010C
Morgantown 2010D
Morgantown 2010E
Morgantown 2012A
Morgantown 2013A
Morgantown 2014B
Morgantown 2015A
Morgantown 2015B
Morgantown 2015C
Morgantown 2015D
Morgantown 2015E
Morgantown 2016A
Morgantown 2016B
Morgantown 2017A
Morgantown 2018A
Morgantown 2018B
Morgantown 2018A2
Morgantown 2019B
Morgantown 2020A
Morgantown 2024A
Total Bonds Payable
Unamortized Bond Premium

565,915
1,014,816
1,494,354
2,490,640
7,094,180
4,297,627
46,126
384,779
3,157,880
296,598
65,413
940
4,109,259
1,125,571
523,073
60,665,000
19,358,131
2,355,000
347,348
41,040,000
125,584
2,026,285
28,455,000
181,039,519
10,783,822

Net Bonds Payable

$ 191,823,341

Payments
$

(323,380)
(65,472)
(362,484)
(488,876)
(799,020)
(484,044)
(5,196)
(18,584)
(131,580)
(25,138)
(6,206)
(117)
(213,468)
(44,140)
(16,876)
(1,565,000)
(802,521)
(60,000)
(8,774)
(190,000)
(3,116)
(81,464)
(1,275,000)
(6,970,456)
(523,329)

$ (7,493,785)

Acquired/
Proceeds
$

Current
Portion

Ending

2,717,970
2,717,970
-

242,535
949,344
1,131,870
2,001,764
6,295,160
3,813,583
40,930
366,195
3,026,300
271,460
59,207
823
3,895,791
1,081,431
506,197
59,100,000
18,555,610
2,295,000
338,574
40,850,000
122,468
1,944,821
27,180,000
2,717,970
176,787,033
10,260,493

$ 2,717,970

$ 187,047,526

242,535
65,472
369,788
498,727
815,120
493,797
5,300
18,676
131,580
25,944
6,686
118
213,468
44,140
16,876
1,650,000
808,555
70,000
8,862
220,000
3,148
81,873
1,325,000
7,115,665
-

$ 7,115,665

Page 99 of 207

Item 5B.

CITY OF MORGANTOWN, WEST VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONT’D)
FOR THE YEAR ENDED JUNE 30, 2025
Maturities of the Board's debt principal for the years subsequent to June 30, 2025 are as follows:
2000A
Issue
Principal

2000B
Issue
Principal

2006A
Issue
Principal

2007
Issue
Principal

2010C
Issue
Principal

2010D
Issue
Principal

2010E
Issue
Principal

2012A
Issue
Principal

2026
2027
2028
2029
2030
2031-2035
2036-2040
2041-2045
2046-2050

242,535
-

65,472
65,472
65,472
65,472
327,360
327,360
32,736
-

369,788
377,241
384,841
-

498,727
508,777
519,030
263,423
211,807
-

815,120
831,545
848,302
865,396
882,833
2,051,964
-

493,797
503,746
513,897
524,252
1,777,891
-

5,300
5,407
5,515
5,626
19,082
-

18,676
18,770
18,864
18,960
96,223
98,662
96,040
-

Total

$ 242,535

$ 949,344

$ 1,131,870

$ 2,001,764

$ 6,295,160

$ 3,813,583

$ 40,930

2013
Issue
Principal

2014
Issue
Principal

2015A
Issue
Principal

2015B
Issue
Principal

2015C
Issue
Principal

2015D
Issue
Principal

2015E
Issue
Principal

2016A
Issue
Principal

2026
2027
2028
2029
2030
2031-2035
2036-2040
2041-2045
2046-2050
2051-2055
2056-2060

131,580
131,580
131,580
131,580
657,900
657,895
657,880
526,305
-

25,944
26,776
27,634
28,520
156,917
5,669
-

6,686
7,205
7,763
8,365
29,188
-

118
118
118
118
118
233
-

213,468
213,468
213,468
213,468
1,067,340
1,067,340
907,239
-

44,140
44,140
44,140
44,140
220,700
220,700
220,700
220,700
22,071
-

16,876
16,876
16,876
16,876
84,380
84,380
84,380
84,380
84,380
16,793

1,650,000
1,730,000
1,820,000
1,895,000
10,635,000
13,010,000
16,520,000
11,840,000
-

Total

$ 3,026,300

$ 271,460

823

$ 3,895,791

$ 1,081,431

$ 506,197

$ 59,100,000

59,207

366,195

Page 100 of 207

Item 5B.

CITY OF MORGANTOWN, WEST VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONT’D)
FOR THE YEAR ENDED JUNE 30, 2025

2016B
Issue
Principal
2026
2027
2028
2029
2030
2031-2035
2036-2040
2041-2045
2046-2050
2051-2055
2056-2060
Total

808,555
814,637
820,765
832,938
4,228,922
4,390,363
4,557,970
2,101,460
-

$ 18,555,610

2017A
Issue
Principal
$

70,000
70,000
70,000
70,000
405,000
490,000
575,000
545,000
-

$ 2,295,000

2018A
Issue
Principal
$

2018B
Issue
Principal

2018A2
Issue
Principal

8,862
8,951
9,041
9,132
9,225
47,526
49,960
52,517
55,203
58,035
30,122

220,000
255,000
295,000
335,000
3,520,000
7,795,000
19,585,000
8,845,000
-

$ 338,574

40,850,000

$ 122,468

3,148
3,180
3,212
3,244
16,719
17,574
18,473
19,420
20,415
17,083
-

2019B
Issue
Principal

2020A
Issue
Principal

81,873
82,283
82,696
419,730
430,348
441,239
406,652
-

$ 1,325,000
1,370,000
1,380,000
1,430,000
7,955,000
9,490,000
4,230,000
-

$ 1,944,821

$ 27,180,000

$ 33,489,214

2024A
Issue
Principal
957,041
973,900
991,056
5,223,372
5,699,922
6,219,948
6,787,418
6,636,557
-

100

Page 101 of 207

Item 5B.

CITY OF MORGANTOWN, WEST VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONT’D)
FOR THE YEAR ENDED JUNE 30, 2025
Estimated annual interest is as follows:
2006A
Issue
Interest

2007
Issue
Interest

2010C
Issue
Interest

2010D
Issue
Interest

2010E
Issue
Interest

2012A
Issue
Interest

2014
Issue
Interest

2015A
Issue
Interest

2016A
Issue
Interest

2026
2027
2028
2029
2030
2031-2035
2036-2040
2041-2045
2046-2050

$ 19,876
12,424
4,822
-

$ 36,310
26,261
16,009
4,095
-

$ 119,816
103,390
86,634
69,540
103,742
-

72,584
62,633
52,483
42,126
62,847
-

$ 779
672
563
452
675
-

$ 1,796
1,702
1,608
1,514
6,135
3,601
1,205
-

$ 8,205
7,373
6,514
5,628
13,825
22
-

$ 4,589
4,070
3,512
2,910
4,637
-

$ 2,559,938
2,475,438
2,386,688
2,312,763
10,392,188
8,024,419
4,518,600
781,750
-

Total

$ 37,122

$ 82,675

$ 483,122

$ 292,673

$ 3,141

$ 17,561

$ 41,567

$ 19,718

$ 33,451,784

*Interest shown gross rather than net of the interest credit since future credit rate is questionable.

101

Page 102 of 207

Item 5B.

CITY OF MORGANTOWN, WEST VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONT’D)
FOR THE YEAR ENDED JUNE 30, 2025
2016B
Issue
Interest
2026
2027
2028
2029
2030
2031-2035
2036-2040
2041-2045
2046-2050
2051-2055
2056-2060
Total

136,897
130,815
124,688
118,515
112,296
466,537
303,881
135,016
6,619
-

$ 1,535,264

2017A
Issue
Interest
$

2018A
Issue
Interest

2018B
Issue
Interest

2018A2
Issue
Interest

2019B
Issue
Interest

80,125
77,850
75,575
73,300
70,756
308,931
226,788
130,309
23,110
-

3,353
3,264
3,174
3,083
2,991
13,549
11,116
8,558
5,868
3,042
415

1,864,738
1,857,613
1,849,363
1,839,913
1,829,113
8,796,562
6,684,525
3,071,500
71,900
-

1,212
1,181
1,149
1,117
1,085
4,922
4,028
2,988
2,194
1,199
210

$ 1,066,744

58,413

27,865,227

21,285

$ 112,481

9,571
9,161
8,748
8,334
7,918
33,291
22,546
11,349
1,563
-

2020A
Issue
Interest
$

2024A
Issue
Interest

983,450 $
930,450
916,750
579,804
861,550
562,945
804,350
545,790
3,089,550 2,460,852
1,339,300 1,984,303
64,200 1,464,276
896,805
279,242
-

$ 8,989,600 $ 8,774,017

102

Page 103 of 207

Item 5B.

CITY OF MORGANTOWN, WEST VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONT’D)
FOR THE YEAR ENDED JUNE 30, 2025
Notes Payable- CLT
On July 15, 2009, the Airport Authority of the City of Morgantown entered into an agreement for the
acquisition of various lighting upgrades and energy efficient equipment. This agreement originally
qualified as a capital lease for accounting purposes and, therefore, had been recorded at the present
value of the minimum lease payments as of the date of inception of the acquisition. In accordance
with the implementation of GASB 87 - Leases, this acquisition has been reclassified from a capital
lease to a note payable as of June 30, 2022.
This lease was paid off during fiscal year 2025.

103

Page 104 of 207

Item 5B.

CITY OF MORGANTOWN, WEST VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONT’D)
FOR THE YEAR ENDED JUNE 30, 2025
Notes Payable-CLT

On July 15, 2009, the Parking Authority of the City of Morgantown entered into an agreement for
the acquisition of various lighting upgrades and energy efficient equipment. This agreement
originally qualified as a capital lease for accounting purposes and, therefore, had been recorded at the
present value of the minimum lease payments as of the date of inception of the acquisition. In
accordance with the implementation of GASB 87 - Leases, this acquisition has been reclassified
from a capital lease to a note payable as of June 30, 2022.
This lease was paid off during fiscal year 2025.

Benefits Funded by the State of West Virginia

For the year ended June 30, 2025, the State of West Virginia contributed estimated payments on behalf
of the governments public safety employees as follows:
Plan

Amount

Policemen's Pension and Relief Fund
Firemen's Pension and Relief Fund

839,937
807,974

Total

1,647,911

State contributions are funded by allocations of the State's insurance premium tax.

104

Page 105 of 207

Item 5B.

CITY OF MORGANTOWN, WEST VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONT’D)
FOR THE YEAR ENDED JUNE 30, 2025
IV. Other Information
A.

Risk Management

The government is exposed to various risks of loss related to torts, theft of, damage to and destruction
of assets; errors and omissions; and natural disasters for which the government carries insurance with
Commercial Insurance Company for umbrella (general liability) insurance for these various risks.
Workers' Compensation Fund (WCF): Private insurance companies could begin to offer workers
compensation coverage to government employers beginning July 1, 2010. Workers compensation
coverage is provided for this entity by Brickstreet.
Liabilities are reported when it is probable a loss has occurred and the amount of the loss can be
reasonably estimated.

Contingent Liabilities

The government is a defendant in various lawsuits. Although the outcome of these lawsuits is not
presently determinable, it is the opinion of the government's counsel that resolution of these matters
will not have a material effect on the financial condition of the government.

V. Employee Retirement System and Plans
Plan Descriptions. Contribution Information
The City of Morgantown, West Virginia participates in three single employer, public employee
retirement systems. Assets are held separately and may be used only for the payment of benefits to
the members of the respective plans, as follows:
The Policemen's Pension and Relief Fund (PPRF) provides retirement benefits for substantially all fulltime police employees. Unless otherwise indicated, PPRF information in this Note is provided as of
the latest actuarial valuation, July 1, 2025.
The Firemen's Pension and Relief Fund (FPRF) provides retirement benefits for substantially all fulltime fire employees. Unless otherwise indicated, FPRF information in this Note is provided as the
latest actuarial valuation, July 1, 2025.

105

Page 106 of 207

Item 5B.

CITY OF MORGANTOWN, WEST VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONT’D)
FOR THE YEAR ENDED JUNE 30, 2025
The Employees Pension and Relief Fund (ERF) provides retirement benefits for substantially all fulltime permanent employees not covered by other plans. Unless otherwise indicated, ERF information
in this Note is provided as of the latest actuarial valuation, July 1, 2024, rolled forward to June 30,
2025.
Actuarial valuations are required to be performed once every three years per state statute. However,
the actuarial valuations can be performed in shorter intervals at the discretion of the PPRF, FPRF and
ERF's board.
These plans are defined benefit plans. The following is a summary of funding policies, contribution
methods and benefit provisions.
Governing authority
Determination of
contribution
requirements

PPRF

FPRF

City Council
Ordinance

Actuarially
determined

Actuarially
determined
Contribute annually an amount sufficient to
meet the normal cost of the fund and
amortize the actuarial deficit over a
period of 22 years.

Employer

Contribute annually an amount which, together with
contributions from the members and the allocable portion
of the state premium tax fund, will be sufficient to meet
the normal cost of the fund and amortize any unfunded
actuarial accrued liability.
Municipalities may utilize an alternative contribution
method which allows the municipality to contribute no
less than 107% of the prior years contribution
provided the actuary certifies
in writing that the fund will be solvent over the next 15
years under this method. In no event can the employer
contribution be less than the normal cost as
determined by the actuary.

Plan
members

9.50% for pre January
2010 hires

Period Required to
Vest

20 years of service but no later than the date the
participant reaches 65.

The latter of the date the participant attains
age 60 and IO years of service credit. or
attains age 55 and age plus years of
Service Credit total 85.

Post-retirement
Benefit

Cost of living adjustment after two years of
retirement. Adjustment calculated on the first
$15,000 of the total annual benefit multiplied by the
Consumer Price Index (not to exceed 4.00%). Cost of
Living adjustment calculated thereafter on a
cumulative basis.

Annual Cost of Living adjustments is the
lesser of 3% or the annual consumer
price index multiplied by 50%;
provided that the municipality's
contribution for the year is less than 6%
of the participating payroll.

9.5% for post
January 2010
hires

6.00% of covered payroll

Provisions for:
Disability benefits
Death benefits

Yes
Yes

106

Page 107 of 207

Item 5B.

CITY OF MORGANTOWN, WEST VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONT’D)
FOR THE YEAR ENDED JUNE 30, 2025
Annual Required Contributions and Significant Actuarial Assumptions
Actuarial assumptions and other information used to determine the annual required contributions
(ARC) are as follows:
Policemen's and Firemen's
Pension & Relief Fund

Employees Pension
and Relief Fund

Valuation Date
Actuarial Cost Method
Amortization Method
Amortization Period

7/1/2023
Entry Age Normal
Level Dollar
15 to 25.5 years Market

7/1/2023
Aggregate entry age

Actuarial asset valuation method
Actuarial assumptions:
Investment rate of return
Projected salary increases
Post retirement benefit increases
Inflation
Cost of living adjustments

4-year smoothed market

Market Value

4.25%
Rates vary by years of service
None
2.50%
0%

6.75%
Rates vary by years of service
None
2.50%
None

Current year annual pension costs for the PPRF, FPRF and ERF are shown in the trend information.
A summary schedule of prior employer contributions is presented in the required supplementary
information (note 11). The annual required contributions were made by the PPRF, FPRF and ERF
fund plans.
Reserves
There are no assets legally reserved for purposes other than the payment of plan members benefits for
either plan. The plans held no investments (other than U.S. government and U.S. government
guaranteed obligations) whose market value exceeds 10 percent or more of net assets available for
benefits.
Deferred Compensation Plan
The government offers its employees a deferred compensation plan created in accordance with
Internal Revenue Code Section 457. The plan, available to all full-time government employees at
their option, permits participants to defer a portion of their salary until future years. The deferred
compensation is not available to participants until termination, retirement, death or unforeseeable
emergency. All amounts of compensation deferred under the plan, all property and rights purchased
with those amounts, and all income attributable to those amounts, property or rights are held for the
exclusive benefit of the participants and their beneficiaries.

107

Page 108 of 207

Item 5B.

CITY OF MORGANTOWN, WEST VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONT’D)
FOR THE YEAR ENDED JUNE 30, 2025
Other Post Employment Benefits
Upon termination from city service, an employee working for the City of Morgantown on June 15,
1993, who subsequently retires from the city will be eligible to convert sick leave days in excess of
ninety (90) days but less than one hundred and eighty one (181) days as of June 15, 1993, to health
insurance upon his/her day of retirement at the rate of three (3) sick days for one (1) month of single
group medical insurance as carried by the city, or at the rate of four (4) sick days for one (1) month
of family group medical insurance as carried by the city. This benefit requires that employees with
such qualifying sick days put them into escrow for this benefit and forgo collecting 1/3 day pay for
each day of sick leave. By placing these days in escrow, city employees as of the date of this
amendment will have their sick day balance reduced to 90 days. All employees hired subsequent to
June 15, 1993, are not granted this option.

Accrued Other Post Employment Benefits
Plan description/contribution information
The City maintains a single employer health insurance plan that covers substantially all eligible fulltime employees as well as certain current and future retirees of the system. The accrued other post
employment benefits (OPEB) provides retirement health insurance benefits for substantially all full-time
employees.

Pension Trust Funds Financial Statements
Policemen's
Pension
and Relief
Assets
Cash
Investments
Reeivables:
Contributions
Accounts
Total Assets
Liabilities
Accounts Payable
Total Liabilities
Net Position
Held in trust

579,223
25,223,586

Firemen's
Pension
and Relief

Employee's
Retirement
and Benefit

356,536
22,410,002

84,668,853

25,802,809

22,766,538

84,668,853

2,280
2,280

6,473
6,473

2,280
2,280

$ 25,800,529

$ 22,760,065

$ 84,666,573

108

Page 109 of 207

Item 5B.

CITY OF MORGANTOWN, WEST VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONT’D)
FOR THE YEAR ENDED JUNE 30, 2025
Policemen's
Pension
and Relief

Firemen's
Pension
and Relief

Employee's
Retirement
and Benefit

Additions
Contributions:
Employer (Including Premium Tax Allocation) $ 8,063,244
Employee
454,641
Other
Total contributions
8,517,885

$ 7,579,655
364,674
7,944,329

$ 3,306,575
890,755
4,197,330

2,059,943
197,831
2,257,774

1,775,240
218,930
1,994,170

7,022,026
2,073,640
(202,935)
8,892,731

Total additions

10,775,659

9,938,499

13,090,061

Deductions
General and administrative
Contribution refunds
Benefit payments
Total deductions

81,571
13,591
3,229,997
3,325,159

62,711
101,744
2,494,788
2,659,243

281,985
262,347
5,223,053
5,767,385

Net increase (decrease)
Net position - beginning of year

7,450,500
18,350,029

7,279,256
15,480,809

7,322,676
77,344,289

Net position - end of year

$ 25,800,529

$ 22,760,065

$ 84,666,965

Investment Income:
Gain (loss) on investments
Interest and dividends
Investment expense
Total investment income

109

Page 110 of 207

Item 5B.

CITY OF MORGANTOWN, WEST VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONT’D)
FOR THE YEAR ENDED JUNE 30, 2025
At June 30, 2025, the City's Policemen's Pension and Relief Fund reported deferred outflows of
resources and deferred inflows of resources related to pensions from the following sources:

Differences between expected and actual
experience

Deferred Outflows
of Resources

Deferred Inflows
of Resources

3,550,896

1,735,698

Changes in assumption

18,365,292

Net difference between projected and actual
earnings on pension plan investments

963,803

Total

3,550,896

21,064,793

Amounts reported as deferred outflows of resources and deferred inflows of resources related to
pensions will be recognized in pension expense as follows:
Year Ended June 30,
2026
2027
2028
2029
2030
Thereafter

(4,948,398)
(5,487,353)
(6,818,403)
(259,743)
-

110

Page 111 of 207

Item 5B.

CITY OF MORGANTOWN, WEST VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONT’D)
FOR THE YEAR ENDED JUNE 30, 2025
For the year ended June 30, 2025, the City's Firemen's Pension and Relief Fund reported deferred
outflows of resources and deferred inflows of resources related to these pensions from the
following sources:

Differences between expected and actual
experience

Deferred Outflows
of Resources

Deferred Inflows
of Resources

3,566,528

3,243,470

Changes in assumption

17,435,266

Net difference between projected and actual
earnings on pension plan investments

830,440

Total

3,566,528

21,509,176

(4,766,769)
(5,403,568)
(3,529,595)
(4,242,716)
-

111

Page 112 of 207

Item 5B.

CITY OF MORGANTOWN, WEST VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONT’D)
FOR THE YEAR ENDED JUNE 30, 2025
For the year ended June 30, 2025, the Employees' Retirement and Benefit reported deferred outflows
of resources and deferred inflows of resources related to these pension plans from the following
sources:

Differences between expected and actual
experience

Deferred Outflows
of Resources

Deferred Inflows
of Resources

Changes in assumption

1,423,527
737,035

Net difference between projected and actual
earnings on pension plan investments

Total

2,160,562

889,952

3,821,527
$

4,711,479

The amounts reported as deferred outflows of resources and deferred inflows of resources related to
pensions will be recognized in pension expense as follows:
Year Ended June 30,
2026
2027
2028
2029
2030
2031

$ 1,109,245
(1,360,600)
(1,604,662)
(732,624)
29,923
$
7,801

Total

$ (2,550,917)

112

Page 113 of 207

Item 5B.

CITY OF MORGANTOWN, WEST VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONT’D)
FOR THE YEAR ENDED JUNE 30, 2025
V.B.1 Plan Descriptions Contribution Information and Funding Policies
Public Employees Retirement System (PERS)
The City's contributions to the West Virginia Public Employees Retirement System for the year
ended June 30, 2025 is as follows:

Component Unit
Board of Parks and
Recreation Commission
Total wages
Covered wages
Employer share 9.00 %
Employee share 4.50% and 6.00%

$ 1,643,137
$ 956,802
$
86,112
$
51,927

Component Unit
Morgantown Public Library
$
$
$
$

1,114,880
794,555
71,245
43,102

The following is a summary of eligibility factors, contribution methods, and benefit provisions:
Public Employees' Retirement System (PERS)
Eligibility to participate

All Municipal full-time employees, except those
covered by other pension plans

Authority establishing contribution
obligations and benefit provisions

State Statute

Plan member's contribution rate
City's contribution rate

4.50% and 6.00%
9.00%

Period required to vest

Five Years

Benefits and eligibility for
distribution

A member who has attained age 60 and has earned
5 years or more of contributing service or age 55
if the sum of his/her age plus years of credited
service is equal to or greater than 80. The final
average salary (three highest consecutive years in
the last 15) times the years of service times 2%
equals the annual retirement benefit.
98

113

Page 114 of 207

Item 5B.

CITY OF MORGANTOWN, WEST VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONT’D)
FOR THE YEAR ENDED JUNE 30, 2025
Public Employees' Retirement System (PERS)
Deferred retirement portion

Provisions for:
Cost of living
Death benefits

No
Yes

PERS issues a publicly available financial report that includes financial statements and required
supplementary information. That information may be obtained by writing to the Public Employees’
Retirement System, 601 57th Street, SE, Suite 5 Charleston, WV 25304.
The City of Morgantown elected to become a participating employer under the West Virginia
Employees Retirement System (PERS plan).

General Information About the Plan
The plan is a defined benefit plan and provides pensions for all participating employees of the City
of Morgantown, West Virginia. The PERS plan is a statewide, cost-sharing, multiple- employer,
defined benefit retirement plan for public employees established on July 1, 1961. All employees of
the State of West Virginia and any political subdivision whose governing body elects to participate
are required (with certain exceptions) to become members. The PERS Plan is managed by a Board
of Trustees, which consists of the Governor, State Auditor, State Treasurer, and Secretary of the
Department of Administration together with the following gubernatorial appointments that are
subject to the advice and consent of the State Senate: for residents of the State who are not
participants in the retirement plans, one State and one non- state employee participant in PERS, and
one participant each from TRS, SPOORS, SPRS, DSRS, EMSRS, MPFRS, and TDCRS.
Participants in the PERS Plan who retire at age 60 with at least five years of credited service or at
least age 55 with their age plus service equal to 80 or greater are entitled to a retirement benefit,
payable monthly for life, equal to 2% of average salary multiplied by years of service. Average salary
is the average of the three consecutive highest annual earnings out of the last fifteen years of earnings.
Terminated members with at least five years of contributory service who do not withdraw their
accumulated contributions may elect to receive their benefits at age 62. The PERS Plan also
provides death and disability benefits.

114

Page 115 of 207

Item 5B.

CITY OF MORGANTOWN, WEST VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONT’D)
FOR THE YEAR ENDED JUNE 30, 2025
Employees covered by benefit terms are all active employees.
Contribution rates for the PERS Plan are subject to Chapter 5, Article 10 of the West Virginia State
Code. For the year ended June 30, 2025, active members contributed 4.5 and 6.0 percent of their
salary, and employers contributed 9.0 percent of the member's compensation into the plan. For the
year ended June 30, 2024, active members contributed 4.5 and 6.0 percent of their salary, and
employers contributed 9.0 percent of the member's compensation into the plan.
Public Employees Retirement System Tier II
The Public Employees Retirement System (PERS) was established on July 1, 1961 for the purpose of
providing retirement benefits for employees of the State and other political subdivisions.PERS Tier
II benefits were created effective July 1, 2015 for those members first hired with a PERS participating
public employer on or after July 1, 2015. PERS has approximately 11,036 members as of July 1, 2018.
PERS is funded by employee and employer contributions. An active member hired for the first time
by a participating public employer who first became a member on or after July 1, 2015 contributes
6% of his or her gross monthly salary to the plan. As of fiscal year 2025, the employer will contribute
9% of the member's gross monthly salary for a total combined contribution equal to 15%. All payroll
deducted employee contributions currently remitted are tax deferred. Contributions for members are
established by statute and are subject to legislative limitations. The employer contributions are
annually reviewed by the Board to assure that they result in actuarially sound funding for the
plan."Board", when used in the following sections of this brochure refers to the West Virginia
Consolidated Public Retirement Board.
Retirement Benefits
In order to qualify for retirement benefits, a Tier II member of PERS must meet certain eligibility
requirements.

100

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Item 5B.

CITY OF MORGANTOWN, WEST VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONT’D)
FOR THE YEAR ENDED JUNE 30, 2025
A PERS Tier II member who has not separated from employment with a participating PERS agency
may:
•
•
•
•

Retire with full benefits at age 62 if he or she has 10 or more years of contributing service,
excluding no-USERRA purchased military service.
Retire between the age of 60 and 62 with reduced benefits if he or she has 10 or more years
of contributing service, excluding no-USERRA purchased military service.
Retire between the age of 57 and 62 with reduced benefits if he or she has 20 or more years
of service, excluding non-USERRA purchased military service.
Retire between the age 55 and 62 with reduced benefits if he or she has 30 or more years of
contributing service, excluding non-USERRA purchased military service.

A PERS Tier II member who has separated from employment with a participating PERS agency prior
to retirement and has not withdrawn his or her contributions may:
•
•

Retire at age 64 with full benefits if he or she has 10 or more years of contributory service,
excluding non-USERRA purchased military service.
Retire at age 63 with full benefits if he or she has 20 or more years of service, excluding noUSERRA purchased military service.

Retirement Benefit Estimate
Approximately 6 to 12 months prior to retirement eligibility, members should contact the Board to
request an estimate of benefits for all three retirement annuity options. An estimate is required prior
to receiving a retirement packet.

Effective Date of Retirement
•

•

Effective date of retirement is dependent upon termination of employment, meeting retirement
eligibility and the Board's receipt of the retirement application. The Date the Board receives of
the retirement application can impact the effective date of retirement. If the member is less than
age 62 upon termination of employment, and all retirement criteria are met, the effective date of
retirement will be the first day of the month following receipt of the retirement application.
Retirement benefits are not automatic. Prospective retirees must make application to the
Board in order to commence retirement benefits.

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Item 5B.

CITY OF MORGANTOWN, WEST VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONT’D)
FOR THE YEAR ENDED JUNE 30, 2025
Retirement Benefit Formula
•
•

Regular retirement benefits are paid in equal monthly installments in an amount equal to 2%
multiplied by the member's years of credited service multiplied by the member's Final Average
Salary (FAS).
Final Average Salary means the average annual salary from the highest 60 consecutive months
within the last 15 years of employment. Any lump sum payment that is not guaranteed to be
paid annually is not considered compensation and is, therefore, not used in FAS. Annual
increment pay received by State employees is considered compensation and is, therefore,
used in FAS.

2% x Years of Service x FAS = Annual Straight Life Retirement Benefit

3 Annuity Options Upon Retirement
•
•
•

Straight Life: A lifetime annuity payable monthly to the retiree determined under the full
benefit formula without adjustment. There are no beneficiary benefits payable under this
option.
Option A - 100% Joint and Survivor: A reduced annuity payable monthly to the retiree for his
or her lifetime. Upon the death of the retiree, the named beneficiary will receive the same
amount for his or her lifetime.
Option B - 50% Joint and Survivor: A reduced annuity payable monthly to the retiree for his
or her lifetime. Upon the death of the retiree, the named beneficiary will receive one- half of
the monthly payment for his or her lifetime.

The named beneficiary in both Option A and Option B must have an insurable interest in the life of the
retiree such as a spouse, child, parent, or other dependent. Under all options, any unpaid employee
contributions, plus 4% interest, remaining at the retiree's or beneficiary's death, will be paid to the
named beneficiary or the estate.
The benefit option you elect is extremely important. Once you receive any benefits under the option
you select, you will NOT be allowed to change your benefit option unless you qualify under the
provisions of WV Code §5-10-24.

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Page 118 of 207

Item 5B.

CITY OF MORGANTOWN, WEST VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONT’D)
FOR THE YEAR ENDED JUNE 30, 2025
Benefit Payments
The first benefit payment due a retiree or beneficiary will be mailed directly to the recipient's home
address. Following the first payment, barring any unforeseen circumstances, benefit payments are
credited by direct deposit to retiree accounts on the 25th of each month, except in the month of
December when retiree accounts are credited on the 18th. If the 25th ( or December 18th) falls on a
weekend or holiday, direct deposits are processed on the prior full business day. Direct deposit is
mandatory.
Social Security income, private sector income, or private sector retirement benefits do not affect PERS
regular retirement benefits. (Some stipulations apply to disability retirees.)
Required Minimum Distributions
Distributions (whether eligible for lump sum refund or monthly annuity) must start by April 1 of the
year following the later of (A) the date you reach age 72 if you were born after June 30, 1949; B)
the date you reach age 70½ if you were born before July 1, 1949; or C) the date upon which you
terminate employment.
Disability Retirement
Less than 10 years of service - A member who has less than 10 years of credited service may apply
for disability retirement benefits only if the incapacitation occurred as a result of a work related
injury and if the member became incapacitated within 12 months of last being employed with a
participating public employer. The member must be receiving (or have received) Workers'
Compensation benefits on account of such disability.
10 or more years of service - A member who has 10 or more years of credited service may apply
for disability retirement benefits if still employed or if the member became incapacitated within 12
months of last being employed with a participating public employer.
Disability benefits shall not be less than 50% of a member's FAS. At age 65, the disability benefit is
calculated on actual years of service and may be reduced, but the straight life benefit or equivalent
may not be less than 20% of the FAS.
Disability retirees are required to submit medical recertifications and copies of his or her annual
statement of earnings for specified periods of time following receipt of disability benefits.

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Item 5B.

CITY OF MORGANTOWN, WEST VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONT’D)
FOR THE YEAR ENDED JUNE 30, 2025
Changing a Beneficiary Prior to Retirement
If a member whishes to change a beneficiary(ies), he or she must complete a new beneficiary form and
return it to the Board. The member should keep a copy of this form for his or her records. If a
member's family situation changes (birth, death, divorce, marriage.) his or her beneficiary
designation should be reevaluated.
Beneficiary options Prior to Retirement

PERS members may select beneficiary options based only upon the specific category that describes
his or her particular circumstances at the time a beneficiary form is completed (i.e. date of /,ire,
years of service and marital status).
Category 1: Less than IO years of credited service regardless of original date of hire or marital status:
A member who falls under this category may elect to name a beneficiary(ies) to receive a lump sum
payment of his or her employee contributions, plus 4% interest, if he or she had more than 2 years of
contributory service.
Category 2: Has 10 or more years of credited service, and is married at the time of death:
Upon the death of a member who falls under this category, a 100% Joint and Survivor annuity will be
paid to the deceased member's surviving spouse, calculated as if the member had retired the day
preceding the date of his or her death, unless the "Spouse's Waiver of Survivorship Annuity" section
on the beneficiary form is completed. If the "Spouse's Waiver of Survivorship Annuity" section is
completed, the member may:
(A) Elect to name a beneficiary(ies) to receive a lump sum payment of his or her employee
contributions, plus 4% interest; or
(B)

Elect to name a child who is financially dependent by virtue of a permanent mental or physical
disability to receive the 100% Joint and Survivor Annuity. *Evidence of the dependent child's
disability must be provided and the disabled child must be named sole beneficiary.

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Item 5B.

CITY OF MORGANTOWN, WEST VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONT’D)
FOR THE YEAR ENDED JUNE 30, 2025
Category 3: Has 10 or more years of credited service and is NOT married at the time of death: A
member who falls under this category may elect one of the following options:

(A)

The member may elect to name a beneficiary(ies) to receive a lump sum payment of his or her
employee contributions plus 4% interest.

(B)

The member may elect to have a 100% Joint and Survivor annuity, calculated as if the member
had retired the day proceeding the date of his or her death, paid to a child who is financially
dependent upon the member by virtue of a permanent mental or physical disability.
*Evident of the dependent child's disability must be provided and the disabled child must be
named sole beneficiary.

(C)

The member may elect not to name a beneficiary and have his or her per-retirement death benefit
paid as a monthly annuity, calculated as though the member had retired as of the date of his or
her death and elected a Straight Life annuity, to a minor child or children until the minor child
or children attains age 21 or sooner marries or becomes emancipated. In no event shall any
child or children receive more than $250.00 per month under this option.

Dependent Scholarship
Any person who qualifies as a surviving dependent child of a law enforcement officer who dies in the
performance of duty is entitled to receive a scholarship to be applied to the career development
education of that dependent.
Employment after Retirement
•
•
•
•

If a retiree becomes regularly employed by a participating PERS employer, payment of his or
her annuity shall be suspended during his or her re-employment, and he or she shall again
become a contributing member of the retirement system.
A retiree may accept temporary employment or permanent part-time (less than 1,040 hours per
calendar year) employment from a participating employer so long as he or she does not receive
compensation in excess of $20,000 during any calendar year.
It is the retiree's responsibility to contact the Board to report re-employment and to
determine future retirement options.
Disability retirees may not earn more than the Social Security substantial gainful activity
amount.

105

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Page 121 of 207

Item 5B.

CITY OF MORGANTOWN, WEST VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONT’D)
FOR THE YEAR ENDED JUNE 30, 2025
Termination of Employment
If a member terminates employment prior to the time he or she qualifies for retirement benefits and
has accrued at least 10 years of contributing service, contributions may be left on deposit until he or
she qualified for retirement benefits, or the member may choose to withdraw his or her employee
contributions (plus 4% interest if he or she has two or more years of contributing service) from the
plan after termination of employment. Employer contributions are not eligible to be withdrawn even
if you are vested. Once the member withdraws employee contributions from the system, all future
retirement and disability benefits are forfeited.

Reinstatement of Previously Withdrawn Service
Any member who has been re-employed for one full year by a participating public employer may
purchase previously withdrawn service, provided that he or she redeposits the withdrawn funds plus
interest. Members must be re-employed for one year and the first reinstatement payment must be
made between the first and second year of re-employment. If the first reinstatement payment is not
made before the end of the member's second year of re-employment, the member is not eligible to
reinstate previously withdrawn service. The full reinstatement amount must be repaid (in a lump
sum or payments) before the end of the fifth year of the member's return to employment. Members
should contact the Board at the end of his or her first year of return to employment to obtain the cost
to reinstate withdrawn PERS service.

Military Service
Up to 5 years of active duty military service and/or National Guard service may be purchased by PERS
Tier II members in accordance with the WV Code §§5-10-15 and 5-10-15c.
A Tier II member interested in purchasing active duty military service and/or National Guard service
must notify PERS in writing that he or she request to purchase military service during the first 12
months of employment. After completion of 12 months of retirement contributions, PERS will
calculate the actuarial reserve purchase amount and notify the member. Said military service
purchased will not count as contributing service for vesting or retirement eligibility.
Employees who continue concurrently in active service of the WV National Guard after the time to
purchase the employees prior National Guard service nay purchase military service credit earned
after the prior service period in every even calendar year following, up to the 5 year total.

106

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Page 122 of 207

Item 5B.

CITY OF MORGANTOWN, WEST VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONT’D)
FOR THE YEAR ENDED JUNE 30, 2025
Members who have a break in employment as a result of being called to active military service may
be eligible to purchase additional military service credit as provided by federal law USERRA.

Out of State Service
A member of PERS may purchase up to five years of service credit for public employment performed
in another state. However, the member cannot be vested in the other state's retirement system or be
in receipt of an annuity from such plan. Purchased out-of-state service may not be used to establish
eligibility for a PERS retirement benefit.
Appointments
Most retirement related matters can be handled from the convenience of your home via mail and
telephone. However, members who wish to visit the Board to discuss retirement related matters with
a PERS staff member are required to make an appointment.
Questions
Should you have any questions regarding PERS, Tier II, please feel free to contact us in writing, by
phone, or e-mail, Monday through Friday, 8:00 a.m. to 5:00 p.m. For additional information, you
may also want to visit our website.
Note

Information contained in this brochure illustrates the CPRB's understanding of the current provisions
of the PERS. These provisions are contained in the current plan statutes, and are subject to
modification by the West Virginia Legislature each year. This brochure is for general guidance
purposes only. In the event there is a discrepancy between information contained in this brochure
and the WV State Code and Rules, the language in the Code and Rules shall prevail.
Employees covered by benefit terms are all active employees.
Contribution rates for the PERS Plan are subject to Chapter 5, Article 10 of the West Virginia State
Code. For the year ended June 30, 2025, active members contributed 4.5 and 6.0 percent of their
salary, and employers contributed 9.00 percent of the member's compensation into the plan. For the
year ended June 30, 2025, active members contributed 4.5 and 6.0 percent of their salary, and
employers contributed 9.00 percent of the member's compensation into the plan.

107

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Page 123 of 207

Item 5B.

CITY OF MORGANTOWN, WEST VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONT’D)
FOR THE YEAR ENDED JUNE 30, 2025
Pension Liability, Pension Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to Pensions
At June 30, 2025 the City's Component Units reported an asset of $164,531 for its proportionate share
of the net pension liability. The net pension liability was measured as of June 30, 2024 and the total
pension liability used to calculate the net pension liability was determined by an actuarial valuation
as of July 1, 2023 and rolled forward to June 30, 2024 using the actuarial assumption and methods
described in the appropriate section of the notes. The City's Component Units portion of the net
pension liability was based on a projection of the City's Component Units long-term share of
contributions to the pension plan relative to the projected contributions of all participating public
employers actuarially determined.
At June 30, 2025, the City's Component Units reported the following proportions and
increases/decreases from its proportion measured as of June 30, 2024:
Amount for proportionate share of net pension liability (asset)
Percentage of proportionate share of net pension liability
Increase (decrease) percentage from prior proportion measured

108

(164,531)
0.0999%
9.06%

123

Page 124 of 207

Item 5B.

CITY OF MORGANTOWN, WEST VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONT’D)
FOR THE YEAR ENDED JUNE 30, 2025
For the year ended June 30, 2025, the City's Component Units recognized pension expense of $360,066
on its government wide financial statements. At June 30, 2025, the City's Component Units reported
deferred outflows of resources and deferred inflows of resources related to pensions from the
following sources:
Deferred Outflows
Deferred Inflows
of Resources
of Resources
Net difference between projected and actual
investment earnings on pension plan investments

Net difference between expected and actual
experience

223,781

$ 206,437

Changes in proportion and differences between
employer contributions and proportionate share
of contributionss

302

Employer contributions subsequent to measurement
period

71,245

6,540

Changes in assumptions
Total

$ 295,328

$ 213,065

The amount reported as deferred outflows of resources related to pensions resulting from government
contributions subsequent to the measurement date will be recognized as a reduction of the net pension
liability in the year ended June 30, 2026. Other amounts reported as deferred outflows of resources
and deferred inflows of resources related to pensions will be recognized in pension expense as
follows.

Year Ended June 30,
2026
2027
2028
2029

109

2,754
2,754
2,754
2,756

11,018

124

Page 125 of 207

Item 5B.

CITY OF MORGANTOWN, WEST VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONT’D)
FOR THE YEAR ENDED JUNE 30, 2025
Actuarial Information
The total pension liabilities for financial reporting purposes were determined by actuarial valuation
as of July 1, 2024 using the actuarial assumptions and methods described, as follows:
Actuarial cost method
Asset valuation method
Amortization method
Amortization period
Actuarial assumptions:
Investment rate of return
Projected salary increases:
State
Nonstate

Individual entry age normal cost with level
percentage of payroll
Fair Value
Level dollar, fixed period
Through Fiscal Year 2035
7.25% net of investment expense
2.75-5.55%
3.60-6.75%

Inflation rate
Discount rate

2.75%
7.25%

Morality rates

Active - Pub-2010 General Employee Tables, belowmedian,
headcount-weighted,
projected
generationally with Scale MP-2018
Health Male Retirees - 108% of Pub-2010 General
Retiree Male Table, below-median, headcountweighted, projected generationally with Scale
MP-2018
Health Female Retirees-122% of Pub-210 General
Retiree Female Table, below-median, headcountweighted, projected generationally with Scale
MP-2018
Disabled Males-118% of Pub-2010 General/
Teachers Disabled Male Table, headcount-weighted,
projected generationally with Scale MP-2018
Disabled Females- 117% of Pub-2010 General/
Teachers Disabled Female Table, headcountweighted, projected generationally with Scale
MP-2018

110

125

Page 126 of 207

Item 5B.

CITY OF MORGANTOWN, WEST VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONT’D)
FOR THE YEAR ENDED JUNE 30, 2025
Withdrawal rates:
State
Non-state

2.28% - 45.63%
2.50% - 35.88%

Disability rates
Retirement rates

0.005% - 0.540%
12%-100%

Dated range in most recent
experience study

2015 - 2020 - Economic assumptions;
2013 -2018 -All other assumptions

West Virginia Consolidated Public Retirement Board

Investment Section
Investment Pool Objectives. Financial Highlights. and Performance
Public Employees' Retirement System
The Public Employees' Retirement System (PERS) was created in 1961

Investment Objectives
The investment objectives are as follows:
•

Exceed the actuarial interest rate assumption of 7.25 percent per annum, net of fees.

•
Reduce the unfunded liability while maintaining adequate liquidity to satisfy benefit
payments and not subjecting PERS to an undue level of risk.

Asset Allocation
Based upon a determination of the appropriate risk tolerance, the Board adopted the following broad
asset allocation guidelines for the assets managed for PERS. Base and Strategic Allocations are
established on a market value basis.

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Page 127 of 207

Item 5B.

CITY OF MORGANTOWN, WEST VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONT’D)
FOR THE YEAR ENDED JUNE 30, 2025
Asset Class

Base Allocation

Strategic Allocations

Equity (including Portable Alpa)
Fixed Income
Private Markets:
Private Credit and Income
Private Equity
Real Estate
Hedge Fund

60.00%
40.00%

45.00%
15.00%

0.00%
0.00%
0.00%
0.00%

6.00%
12.00%
12.00%
10.00%

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Page 128 of 207

Item 5B.

CITY OF MORGANTOWN, WEST VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONT’D)
FOR THE YEAR ENDED JUNE 30, 2025
Financial Highlights (in $000s)
Progression of Plan Balance
June 30, 2024

9,060,044

Contributions
Withdrawals
Net

172,747
(485,972)
(313,225)

Investment Income
Net appreciation
June 30, 2025
\

1,707
981,740
9,730,266

Asset Allocation

Percentage of
Securities

Fair Value

Portable Alpha
Non-Large Cap Domestic
International Qualified
International Equity
Short-Term Fixed Income
Total Return Fixxed Income
Core Fixed Income
Private Markets
Hedge Fund
Total

2,669,588
429,064
535,564
1,197,833
25,014
702,213
701,469
2,401,207
1,068,314
9,730,266

27.40%
4.40%
5.50%
12.30%
0.30%
7.20%
7.20%
24.70%
11.00%
100.00%

Investment Performance
The IMB calculates total rates of return using the time-weighted rate of return methodology. The
time-weighted method determines the rate of return exclusive of the effects of participant
contributions or withdrawals. Actual rates of return are net of fees.
Period

Actual

Target

One-year
Three-year
Five-year
Ten-year
Twenty-year

11.10%
10.40%
10.70%
8.70%
7.90%

7.25%
7.25%
7.25%
7.25%
7.25%

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Page 129 of 207

Item 5B.

CITY OF MORGANTOWN, WEST VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONT’D)
FOR THE YEAR ENDED JUNE 30, 2025
Discount Rate
The discount rate used to measure the total pension liability was 7.25%. The projection of cash flows
used to determine the discount rate assuming that employer contributions will continue to follow the
current funding policies. Based on those assumptions, the pension plan's fiduciary net position was
projected to be available to make all projected future benefit payments of active and inactive
employees. Therefore, the long-term expected rate of return on pension plan investments was
applied to all periods of projected benefit payments to determine the total pension liability.

Sensitivity of the City's Proportionate Share of the Net Pension Liability to Changes in the
Discount Rate
The following presents the City's proportionate share of the net pension asset calculated using the
discount rate of 6.75 percent as well as what the City's proportionate share of the net pension
liability would be if it were calculated using a discount rate that is 1 percentage point lower (5.75
percent) or 1 percentage point higher (7.75 percent) than the current rate.
City's proportionate share of the
net pension asset (liability)

5.75%

6.75%

7.75%

$ 20,924,224

$ 9,447,012

$ (156,517)

Pension Plan Fiduciary Net Position
Detailed information about the pension plan's fiduciary net position is available in the separately
issued financial report available at the Consolidated Public Retirement Board's website at
www.wvrewtirement.com. That information can also be obtained by writing to the West Virginia
Consolidated Public Retirement Board, 601 57th Street, SE, Suite 5, Charleston, WV 25304.

Pension Liabilities, Pension Expense, Deferred Outflows, and Deferred Inflows Related to
Pensions - Morgantown Utility Board
Plan Description - The Board contributes to the City of Morgantown, WV (the "City") Employee's
Retirement and Benefit Fund (the Plan). The Plan is a cost-sharing multiple- employer defined
benefit plan. The Plan provides retirement, disability and death benefits to plan members and
beneficiaries. Major features of the plan appear in Chapter 8, Article 22, Sections 2-15 of the Code
of West Virginia as approved by ordinance of the City Council of Morgantown, WV.

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Item 5B.

CITY OF MORGANTOWN, WEST VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONT’D)
FOR THE YEAR ENDED JUNE 30, 2025
Funding Policy - Plan members are required to contribute 6% of their annual covered salary and the
Board is required to contribute an actuarially determined rate. The 2025, 2024 and 2023 rates were
21.49%, 21.66% and 20.49% of annual covered payroll. The Board's contributions to the Plan for the
years ended June 30, 2025, 2024 and 2023 were $1,865,090, $1,934,814, and $1,641,814.
Deferred Compensation Plan - Employees are eligible to participate in an IRC Section 457 Deferred
Compensation Plan. The maximum amount which may be deferred is the lesser of 100% of an
employee's salary or $29,790 and $29,790, for 2025 and 2024; respectively, plus $7,500 catch-up for
employees over fifty years of age. The Board provides no match for participant's contributions. All
amounts which are deferred remain solely the property of the Board and are subject to its general
creditors.
The following is a summary of eligibility factors, contribution methods, and benefits provisions:
Governing authority:

City Council Ordinance

Eligibility to participate:

All Board full-time permanent employees, except those
covered by other plans

Determination of contribution requirements:

Actuarially determined

Employer:

Contribute annually an amount sufficient to meet the
normal cost of the fund and amortize the actuarial
deficit over a period of 15 years.

Plan members:

6.00% of covered payroll

Period required to vest:

The latter of the date the participant attains age 60 and
10 years of service credit, or attains age 55 and age plus
years of service credit total 85.

Post-retirement benefit:

Annual Cost of Living adjustment is the lesser of 3% or
the annual consumer price index multiplied by 50%;
provide that the municipality's contribution for the year
is less than 6.0% of the participating payroll

Provisions for:
Disability benefits
Death benefits

Yes
Yes

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Item 5B.

CITY OF MORGANTOWN, WEST VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONT’D)
FOR THE YEAR ENDED JUNE 30, 2025
Pension Liabilities, Pension Expense, Deferred Outflows, and Deferred Inflows Related
to Pensions

At fiscal year-end, the Board reported the following liability for its proportionate share of the net
pension liability. The net pension liability was measured as of June 30, 2025 and 2024, and the total
pension liability used to calculate the net pension liability was determined by an actuarial valuation
as of July 1, 2024 and 2023 using the actuarial assumptions and methods described in the appropriate
section of this note. The Board's proportion of the net pension liability was based on a calculation
of Board employer contributions to total employer contributions to the Plan in fiscal years 2024
and 2023. At June 30, 2025 and 2024, the Board's reported the following proportions:
2025
Amount for proportionate shaer of net pension
liability
Percentage for proportionate share of net pension liability
liability
Increase/(decrease) in % from prior proportion
measured

2024

7,457,440

$ 10,015,276

56.8319%

51.1942%

5.6377280%

-7.8923861%

For the years ended June 30, 2025 and 2024, the Board recognized the following pension expense:
2025
Pension Expense

116

1,595,927

2024
$ 2,284,183

131

Page 132 of 207

Item 5B.

CITY OF MORGANTOWN, WEST VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONT’D)
FOR THE YEAR ENDED JUNE 30, 2025
The Board reported deferred outflows of resources and deferred inflows of resources related to
pensions from the following sources for the year ended June 30, 2025:
Deferred Outflows
of Resources
Net difference between projected and actual
earnings on pension plan investments

Deferred Inflow
of Resources

$ 1,037,092

Net difference between expected and actual
experience

602,230

708,820

Changes in assumptions

663,211

Changes in proportion and differences between
employer contributions and proportionate share
of contributionss
Contributions subsequent to measurement date

810,916
1,865,090

1,158,770
-

Totals

$ 3,941,447

$ 2,904,682

117

132

Page 133 of 207

Item 5B.

Deferred Outflows
of Resources
Net difference between projected and actual
earnings on pension plan investments

1,285,470

Deferred Inflow
of Resources

Net difference between expected and actual
experience

722,999

303,945

Changes in assumptions

855,010

Changes in proportion and differences between
employer contributions and proportionate share
of contributionss

156,965

1,543,562

3,020,444

$ 1,847,507

Totals

118

133

Page 134 of 207

Item 5B.

CITY OF MORGANTOWN, WEST VIRGINIA
NOTES TO THE FINANCIAL STATEMENTS (CONT’D)
FOR THE YEAR ENDED JUNE 30, 2025
Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions
will be recognized in pension expense for the years ended June 30, 2025 and 2024 as follows:
Year Ended June 30,

2025

2026
2027
2028
2029
2030
Thereafter
Total

Year Ended June 30,

(436,029)
781,099
(535,380)
-613276
-41737
16,998

2025
2026
2027
2028
2029
Thereafter

(828,325)

Total

2024
218,839
36,943
1,137,627
(39,609)
(103,744)
(68,019)
$

1,182,037

Actuarial Assumptions
The total pension liability was determined by an actuarial valuation as of July 1, 2025 and 2024,
using the following actuarial assumptions, applied to all periods included in the measurement.
Actuarially determined contribution rates are calculated as of July 1, which is 24 months prior to the
end of the fiscal year in which contributions will be made.
Methods and Assumptions

June 30. 2024

June 30. 2023

Actuarial Cost Method:

Individual Entry Age Normal

Amortization Method:

Level dollar, closed

Remaining Amortization Period:

12 years

13 years

Asset Valuation Method:

5-Year smoothed market

Inflation:

2.5% - approximate; No explicit
price inflation assumption is used
in this valuation.

Salary Increases:

4.0% per year

Investment Rate of Return:

6.75% per year, net of expenses,
compounded annually

119

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Page 135 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
Methods and Assumptions

June 30, 2025

June 30, 2024

Retirement Age:

Experience-based table of rates
that are specific to the type of
eligibility condition and years of
Service Credit.

Mortality:

Pre-retirement mortality is assumed
to follow the Pub-2010 (for General
Employees) mortality table, sex
distinct, with generational mortality
improvements using MP-2020. Postretirement mortality is assumed to
follow the Pub-2010 (for General
Employees)

Cost of Living Adjustment:

None

Information regarding plan investments can be found in a separately issued financial report available
at the City of Morgantown's website at www.morgantownwv.gov.

Discount Rate
A Single Discount Rate of 6.75% was used to measure the total pension liability. This Single
Discount Rate was based on the expected rate of return on pension plan investments of 6.75%. The
projection of cash flows used to determine this Single Discount Rate assumed that plan member
contributions will be made at the current contribution rate and that employer contributions will be
made at rates equal to the difference between actuarially determined contribution rates and the
member rate. Based on these assumptions, the pension plan's fiduciary net position was projected
to be available to make all projected future benefit payments of current plan members. Therefore,
the long-term expected rate of return on pension plan investments was applied to all periods of
projected benefit payments to determine the total pension liability.

120

135

Page 136 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
Regarding the sensitivity of the net pension liability to changes in the Single Discount Rate, the
following presents the plan's net pension liability, calculated using the Single Discount Rate of
6.75%, as well as what the plan's net pension liability would be if it were calculated using a Single
Discount Rate that is one percent lower or one percent higher:
1% Decrease
$

13,729,817

Current Single Discount
Rate Assumption
$

7,457,440

1% Increase
$

2,210,888

Detailed information about the pension plan's fiduciary net position is available in the separately
issued financial report available at the City of Morgantown's website at
www.morgantownwv.gov.
General Information About the OPEB Plan

Employer. City of Morgantown, WV
Summary of Plan Provisions
The following is our understanding of the plan provisions for retiree coverage. Where the following
differs from the official plan rules, the valuation should be revised.
Eligibility Conditions

A retired employee, who is participating in the employer's medical program, is eligible to elect postretirement coverage if:
• is at least age 60 with at least 10 years of service (City Employee), or
• is at least age 55 plus years of service equal 85 points (City Employee), or
• is at least age 50 with at least 20 years of service (Policemen and Firemen).

121

136

Page 137 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
Covered Employees

All full time employees (must be covered by the active plan at time of retirement).
Type of Coverage

Spouse

City Employees, Policemen & Firemen
Life Insurance

Medical Coverage:
Retiree Cost Sharing

Coverage Ceases

Employer provides for Life Insurance
coverage in the following amounts:
Under age 67: $5,000;
Age 68-69: $2,500;
Age 70 and older: $1,000

Not applicable

Retiree pays a portion of the premium.
if hired prior to January l, 2011. Retirees
hired on or after January l, 2011, pay
full premium.

Retiree, hired prior to January l, 2011,
pays a portion of the premium for
spousal coverage. Hired on or after
January 1, 2011, Retiree pay full
premium for spousal coverage.

Upon age 65 when eligible for
Medicare (may elect Medicare
Supplement at retiree's expense).

Upon eligibility for Medicare or
retiree's death.

Dependent (non-spouse) Coverage

None assumed as it is immaterial.
Amendments

The Employer reserves the right to amend the Plan at any time subject to Board action.

Employees covered by benefit terms. At July 1, 2022 (the valuation date) the following employees
were covered by the benefit terms:
Count

Total OPEB
Liability

Inactive employees or beneficiaries currently
receiving benefits
Inactive employees entitles to but not yet receiving
benefits
Active employees

$ 8,370,000

0
200

9,149,000

Total

269

$ 17,519,000

122

137

Page 138 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
Employer Contributions
The funding policy of the plan sponsor is to contribute annually an amount sufficient to satisfy
benefit payment requirements to participants.
Employee Contributions
None.
Net OPEB Liability
The employer's net OPEB liability is reported herein as of June 30, 2025, for the employer fiscal
year and reporting period of July 1, 2024, to June 30, 2025. The values shown for this fiscal year and
reporting period are based on a measurement date of July l, 2024 and the corresponding
measurement period of July 1, 2023, to July 1, 2024. The measurement of the total OPEB liability
is based on a valuation date of July 1, 2023.
Actuarial Assumptions and Actuarial Methods
The total OPEB liability in the July 1, 2024 actuarial valuation was determined using the following
key actuarial assumptions, applied to all periods included in the measurement:
Discount Rate:

4.09%

Salary Scale:

2.50%

Healthcare Cost Trend Rates:

7.00%

Mortality:

PUB - 2010 Amount-Weighted General Mortality
Table - Employees, projected using two-dimensional
mortality improvement scale MP-2021
PUB - 2010 Amount-Weighted Safety Mortality
Table - Employees, projected using two-dimensional
mortality improvement scale MP-2021Entry Age

Actuarial Cost Method:

Actuarial Cost Method

Expected Rate on Assets
1.00%

123

138

Page 139 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
Discount Rate
The discount rate has been set equal to 3.86% and represents the Municipal GO AA 20-year yield
curve rate as of the measurement date.
Changes in the Net OPEB Liability

Balances at July 1, 2024
Changes for the year:
Service cost
Interest
Differences between expected
and actual experiences
Contributions - employer
Contributions - employee
Net investment income
Benefit payments
Changes of benefit terms
Administrative expenses
Assumption changes
Net Changes

Total
OPEB
Liability
(a)

Increase (Decrease)
Plan
Fiduciary Net
Position
(b)

Net OPEB
Liability/
(Asset)
(a) - (b)

$ 17,747,000

$ 1,446,000

$ 16,301,000

432,000
685,000
(926,000)
(868,000)
258,000
(419,000)

Balances at June 30, 2025*

$ 17,328,000

432,000
685,000

1,118,000
(57,000)
(868,000)
(9,000)
184,000

(926,000)
(1,118,000)
57,000
9,000
258,000
(603,000)

$ 1,630,000 1

$ 15,698,000 2

* Measurement date is July 1, 2024

Assets are the combination of two accounts (CD and Checking).

The Net OPEB Liability is shown for illustrative purposes only. Per the Plan Sponsor, the assets are
not assumed to be irrevocable or protected from creditors.

124

139

Page 140 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
Sensitivity of the net OPEB liability to changes in the discount rate. The following presents
the net OPEB liability/(asset) of the employer as of the measurement date calculated using the
discount rate, as well as what the employer's net OPEB liability would be if it were calculated using
a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:

Employer's Net OPEB Liability/(Asset)

1% Decrease

Current
Discount Rate

1% Increase

$ 19,040,000

$ 17,328,000

$ 15,823,000

Sensitivity of the net OPEB liability to changes in the Trend rate. The following presents the
net OPEB liability/(asset) of the employer as of the measurement date calculated using the trend rate,
as well as what the employer's net OPEB liability would be if it were calculated using a trend rate that
is I-percentage point lower or I-percentage point higher than the current rate:

Employer's Net OPEB Liability/(Asset)

1% Decrease

Current
Discount Rate

1% Increase

$ 15,668,000

$ 17,328,000

$ 19,260,000

125

140

Page 141 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to OPEB (Part 1)

For the year ended June 30, 2025, under GASB 75 the employer OPEB expense is $67,000. The
Deferred Outflows of Resources and Deferred Inflows of Resources related to OPEB as of June 30,
2025 from various sources are as follows:

Deferred Outflows
of Resources
Differences between expected and actual
experience

Deferred Inflows
of Resources

$ (4,672,000)

1,407,000

(1,479,000)

Net rence between projected and
actual earnings on OPEB plan investment

Employer contributions after Measurement
date but prior to fiscal year end

TBD 3

Changes of assumptions

Total

$ 1,407,000

$ (6,151,000)

GASB 75 states that employer contributions made to the OPEB plan subsequent to the measurement
date and before the end of the employer's reporting period should be reported as a deferred outflow
of resources. The information contained in this report does not incorporate any employer
contributions made subsequent to the measurement date of July 1, 2024.

126

141

Page 142 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
Amounts reported as deferred outflows of resources and deferred inflows of resources related to
OPEB will be recognized in OPEB expense as follows:
Year ended June 30,

Amount

2026
2027
2028
2029
2030
Thereafter

$ (1,055,000)
(1,055,000)
(1,057,000)
(822,000)
(442,000)
(313,000)
$ (4,744,000)

Postemployment Benefits Other Than Pensions (OPEB)
Plan Description - The Board contributes to the West Virginia Other Postemployment Benefit Plan
(the Plan), a cost sharing, multiple-employer defined benefit postemployment healthcare plan. The
financial activities of the Plan are accounted for in the West Virginia Retiree Health Benefit Trust
Fund (RHBT), a fiduciary fund of the State of West Virginia. The Plan is administered by a
combination of the West Virginia Public Employees Insurance Agency (PEIA) and the RHBT staff.
Plan benefits are established and revised by PEIA and the RHBT management with approval of the
Finance Board. The Finance Board is comprised of nine members. Finance Board members are
appointed by the Governor, serve a term of four years and are eligible for reappointment. The State
Department of Administration cabinet secretary serves as Chairman of the Board. Four members
represent labor, education, public employees and public retirees. The four remaining members
represent the public at large. The Plan had approximately 43,000 policy holders and 63,000 covered
lives at June 30, 2025. The RHBT audited financial statements and actuarial reports can be found on
the PEIA website at www.peia.wv.gov. You can also submit your questions in writing to the West
Virginia Public Employees Insurance Agency, 601 57th• Street, SE, Suite 2, Charleston, WV 25304.
Benefits Provided - The Plan provides medical prescription drug insurance and life insurance. The
medical and prescription drug insurance is provided through two options: 1) Self-Insured Preferred
Provider Benefit Plan (primarily for non-Medicare-eligible retirees and spouses) and 2) External
Managed Care Organizations (primarily for Medicare eligible retirees and spouses).

127

142

Page 143 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
Contributions - Paygo premiums are established by the Finance Board annually. All participating
employers are required by statute to contribution this premium to the RHBT at the established rate for
every active policyholder per month.
OPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to OPEB

At fiscal year-end, the Board reported the following liability for its proportionate share of the net
OPEB liability (asset). The net pension liability (asset) was measured as of June 30, 2024 for the
Board's fiscal year ended June 30, 2025, using the actuarial assumptions and methods described in
the appropriate section of this note. The Board's proportion of the net pension liability (asset) was
based on a projection of the Board's long-term share of contributions to the pension plans relative to
the projected contributions of all participating governments, actuarially determined. At June 30, 2025,
the Board reported the following proportions and increase/decreases from its proportion as of June
30, 2025:
2025
Amount for proportionate share of net OPEB
liability/(assets)
Percentage of proportionate share of net OPEB
liability/(assets)
Increase/(decrease) in % from prior proportion
measured

2024

(173,531)

0.000000000%

0.109657133%

-0.109657133%

-0.009017181%

For the year ended June 30, 2025 and 2024, the Board recognized the following OPEB expense and
support provided by the State:
2025

2024

OPEB expense/(offset) Commission
OPEB expense/(offset) State support

346,609
-

(39,642)
-

Total OPEB expense/(offset)

346,609

(39,642)

128

143

Page 144 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
The Board reported deferred outflows of resources and deferred inflows of resources related to
OPEB from the following resources for the year ended June 30, 2025.
Deferred Outflows
of Resources

Deferred Inflow
of Resources

Changes in assumptions

$ 169,436

18,105

Total

$ 169,436

18,105

129

144

Page 145 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
The Board reported deferred outflows of resources and deferred inflows of resources
related to OPEB from the following resources for the year ended June 30, 2024.
Deferred Outflows
of Resources
Net difference between projected and actual
investment earnings

Differences between projected and actual
experiences

Deferred Inflows
of Resources

2,894

101,014

Changes in assumptions

47,850

96,817

Contributions subsequenr to measurement
date

506,509

29,225

554,359

$ 229,950

Total

The amount reported as deferred outflows of resources related to OPEB resulting from County
contributions subsequent to the measurement date will be recognized as a reduction of the net
OPEB liability (asset) in the year ended June 30, 2025. Other amounts reported as deferred
outflows of resources and deferred inflows of resources related to OPEB will be recognized in
OPEB expense as follows:
Year Ended June 30,
2026
2027
2028
2029

149,636
(998)
2,693
-

Total

151,331

130

145

Page 146 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
Actuarial Assumptions
The total OPEB liability (asset) was determined by an actuarial valuation as of June 30, 2025,
using the following actuarial assumptions, applied to all periods included in the measurement,
unless otherwise specified:
OPEB

June 30, 2025

June 30, 2024

Actuarial Assumptions:
Investment Rate of Return

7.40%, net of OPEB plan investment 7.40%, net of OPEB plan investment
expense, including inflation
expense, including inflation

Inflation Rate

2.50%

Healthcare Cost Trends

Trend rate for pre-Medicare and Trend rate for pre-Medicare and
Medicare per capita costs of 7.0% Medicare per capita costs of 7.0%
medical and 8.0% drug. The trends medical and 8.0% drug. The trends
increase over four years to 9.0% and increase over four years to 9.0% and
9.5%. respectively. The trends then 9.5%. respectively. The trends then
decrease linearly for 5 years until decrease linearly for 5 years until
ultimate trend rate of 4.50% is reached ultimate trend rate of 4.50% is reached
in the plan year of 2032.
in the plan year of 2032.

Mortality Rates

Postretirement: Pub-2010 General Postretirement: Pub-2010 General
Below Median Healthy Retiree Tables Below Median Healthy Retiree Tables
(106% males, 113% females) (106% males, 113% females)
projected with MP-2021 for PERS. projected with MP-2021 for PERS.
Sub-2010 Public Safety Healthy Sub-2010 Public Safety Healthy
Retiree Mortality Tables (100% males, Retiree Mortality Tables (100% males,
100% females) projected with Scale 100% females) projected with Scale
MP-2021 for Troopers A and B.
MP-2021 for Troopers A and B.

Date Range in most Recent
Experience Study

2.50%

Pre-Retirement: Pub-2010 BelowMedian Income General Employee
Mortality Tables projected with Scale
MP-2021 for PERS. Pub-2010 Public
Safety Employee Mortality Tables
projected with Scale MP-2021 for
Troopers A and B

July 1, 2015 to June 30, 2020

131

146

Page 147 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
The long-term rates of return on OPEB plan investments are determined using a building block
method in which estimates of expected future real rates of return (expected returns, net of OPEB plan
investment expense and inflation) are developed for each major asset class. These ranges are
combined to produce the long-term expected rate of return by weighting the expected future real rates
of return by the target asset allocation percentage. Target asset allocations, capital market
assumptions ("CMA"), and forecast returns were provided by the Plan's investment advisors,
including West Virginia Investment Management Board ("WV-IMB"). The projected return for the
Money Market Pool held with the West Virginia Board of Treasury Investments ("WV-BTI") was
estimated based on WV-IMB assumed inflation of 2.0% plus a 25-basis point spread.
The target allocation and estimates of annualized long-erm expected real returns assuming a 10year horizon are summarized below:
Asset Class

Long-term Expected
Real Return

Global Equity
Core Plus Fixed Income
Core Real Estate
Hedge Funds
Private Credit and Income
Private Equity

7.40%
3.90%
7.70%
4.50%
7.40%
10.00%

132

147

Page 148 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
Sensitivity of Board's proportionate share of the net OPEB liability (asset) to changes in the
discount rate. The following chart presents the Board's proportionate share of the net OPEB liability
(asset), as well as what the proportionate share of the net OPEB liability (asset) would be if it were
calculated using a discount rate that is I-percentage-point lower or 1-percentage-point higher than
the current discount rate:
1% Decrease
6.40%
Proportionate share of OPEBs
Net OPEB liability(asset)

Current Discount
Rate 7.40%

1% Increase
8.40%

Sensitivity of Board's proportionate share of the net OPEB liability (asset) to changes in the
healthcare cost trend rates. The following chart presents the Board's proportionate share of the
net OPEB liability (asset), as well as what the proportionate share of the net OPEB liability (asset)
would be if it were calculated using healthcare cost trend rates are 1-percentage-point lower or Ipercentage-point higher than the current healthcare cost trend rates described in the actuarial
assumptions:
1% Decrease
Proportionate share of OPEBs
Net OPEB liability(asset)

133

Healthcare Cost
Trend Rates

1% Increase

148

Page 149 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
VI. Debt Service Coverage
The debt service coverage factor for the Parking Authority has been calculated as follows for the
year ended June 30, 2025:
Total revenues
Investment income
Adjusted gross revenues

$ 3,071,095
99,110
3,170,205

Total expenses

3,254,895
(84,690)
361,470

Add: Depreciation expense
Amount available for debt service and capital expenditures

276,780

Maximum annual debt service

179,680

Calculated debt service coverage factor

1.54

Requiredebt service coverage factor

1.15

Based on this calculation, it appears that the Parking Authority was in compliance with the provisions
set forth in its bond ordinance as of June 30, 2025.

VII. Lease of Property
On April 30, 2009, the City of Morgantown Building Commission entered into a lease agreement with
Platinum Properties Limited Liability Company for the lease of a parcel of real estate located in the First
Ward of the City of Morgantown to Platinum Properties Limited Liability Company. This lease is for
a period of 50 years and requires Platinum Properties Limited Liability Company to remit a rental
payment of $1 per year.
On October 23, 2012, the City of Morgantown Building Commission entered into an agreement with
West Virginia University Board of Governors on behalf of West Virginia University whereby the City
of Morgantown Building Commission transferred certain real estate to West Virginia University and
in return West Virginia University is to pay the City of Morgantown Building Commission the sum of
$4,200,000 on August 31, 2026.

134

149

Page 150 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Financial Statements (Cont’d)
For the Year Ended June 30, 2025
VIII. Deficit Fund Balance
The Tax Increment Financing Debt Service fund had a deficit fund balance of $5,320,747. The
elimination of this deficit fund balance is dependent on increasing revenues and decreasing expenses
for this fund.

IX. Tax Abatement
The City of Morgantown entered into tax abatement agreements with local businesses located in the tax
increment financing districts of the City. For the fiscal year ended June 30, 2025, the City abated
property taxes totaling $33,029.

X. Subsequent Events
The City has considered all subsequent events through July 30, 2026, the date the financial statements
were made available.
`

135

150

Page 151 of 207

Item 5B.

REQUIRED SUPPLEMENTARY INFORMATION

151

Page 152 of 207

Item 5B.

City of Morgantown, West Virginia
Statement of Revenues, Expenditures, and
Changes in Fund Balance - Budget and Actual General Fund - Budgetary Basis
For the Fiscal Year Ended June 30, 2025

Revenues
Taxes (including interest and penalties):
Ad valorem
Gas and oil severance
Utility
Business and occupation
Wine and liquor
Animal control
Hotel and motel
Amusement
Municipal sales tax
Total taxes
Licenses and permits
Charges for services
Fines and forfeitures
Franchise fees
Interest
Intergovernmental:
Federal
State
Other
Video lottery and gaming income
Miscellaneous
Total revenues
Expenditures
General government
Public safety
Highways and streets
Health and sanitation
Culture and recreation
Social services
Debt service - principal
Debt service - interest
Total expenditures
Excess (deficiency) of revenues over
(under) expenditures

Budgeted Amounts
Original
Final

Actual
(Budgetary
Basis)

Budget to
GAAP
Difference

Variance
With Final
Budget
Favorable
(Unfavorable)

$ 4,831,221
111,714
1,355,134
15,981,338
817,812
3,208
1,311,482
7,515
24,419,424
786,883
10,511,801
266,399
184,843
248,787

93,153
153,271
561,754

66,852
(198,501)
139,544
463,905
(26,936)
116,884
6,124
567,872
173,837
153,074
83,223
(56,649)
109,596
101,869
18,176
(5,104)
(115,548)

195,022
18,176
148,167
446,206

(116,847)
(27,181)
(10,000)
2,271
209,742

39,501,803

36,195,362

1,030,346

37,225,708

(3,306,441)

15,255,673
18,347,371
5,110,596
1,900,000
4,162,828
336,161

16,761,525
18,395,457
5,232,624
1,900,000
4,244,434
336,763

45,112,629

46,870,803

7,355,124
16,928,625
4,220,360
2,051,177
267,470
511,271
108,294
6,063
31,448,384

(770,264)
(2,633,780)
1,424,863
307,704
(19,974)
510,223
51,393
4,818
(1,125,017)

8,125,388
19,562,405
2,795,497
1,743,473
287,444
1,048
56,901
1,245
32,573,401

9,406,401
1,466,832
1,012,264
(151,177)
3,976,964
(174,508)
(108,294)
(6,063)
15,422,419

(6,010,000)

(7,369,000)

4,746,978

2,155,363

4,652,307

12,115,978

$ 4,755,771
300,000
1,224,000
16,075,000
845,000
3,500
1,200,000
2,500
2,466,958
26,872,729
462,000
10,519,900
165,000
240,000
156,000

$ 4,755,771
300,000
1,224,000
16,075,000
845,000
3,500
1,200,000
2,500
2,777,939
27,183,710
462,000
10,544,900
165,000
240,000
156,000

$ 4,764,369
310,215
1,215,590
15,517,433
844,748
3,208
1,194,598
1,391
23,851,552
613,046
10,358,727
183,176
241,492
139,191

210,000
20,000
10,000
151,000
296,000

210,000
27,181
10,000
151,000
352,012

39,102,629

Actual
Amounts
(GAAP
Basis)

8,598
10,215
(8,410)
(557,567)
(252)
(292)
(5,402)
(1,109)
(2,777,939)
(3,332,158)
151,046
(186,173)
18,176
1,492
(16,809)

136

152

Page 153 of 207

Item 5B.

City of Morgantown, West Virginia
Statement of Revenues, Expenditures, and
Changes in Fund Balance - Budget and ActualGeneral Fund - Budgetary Basis (Continued)
For the Fiscal Year Ended June 30, 2025

Actual
(Budgetary
Basis)

Budgeted Amounts
Original
Final
Other Financing Sources (Uses)
Sale of Fixed Assets
Operating transfers in
Operating transfers (out)
Total other financing sources (uses)

Budget to
GAAP
Difference

Actual
Amounts
(GAAP
Basis)

Variance
With Final
Budget
Favorable
(Unfavorable)

10,000
10,000

3,482,440
(9,809,617)
(6,327,177)

(704,502)
4,015,072
3,310,570

2,777,938
(13,824,689)
(11,046,751)

(10,000)
3,482,440
(9,809,617)
(6,337,177)

Net change in fund balance

(6,000,000)

(7,359,000)

(1,580,199)

5,465,933

(6,394,444)

5,778,801

Fund balance at beginning of year

6,000,000

7,359,000

8,327,303

968,303

17,546,128

968,303

$ 6,747,104

$ 6,434,236

$ 11,151,684

$ 6,747,104

Fund balance at end of year

Explanation of Differences:
The City budgets for capital expenditures as a current period expenditure rather than a capital expenditure
on the accrual basis of accounting.
The City does not budget for accrued compensated absences payable and net pension obligations in
more than one year as is required by the accrual basis of accounting.
The amount reported as "fund balance" on the budgetary basis of acconting derives from the basis
of accounting used in preparing the City's budget. This amount differs from the fund balance reported
in the Statement of Revenues, Expenditures, and Changes in Fund Balances because of the cumulative
effect of transactions such as those described above.

See accompanying notes and independent auditor's report.

137

153

Page 154 of 207

Item 5B.

Revenues
Interest
Intergovernmental:
State
Total revenues

City of Morgantown, West Virginia
Statement of Revenues, Expenditures, and
Changes in Fund Balance - Budget and Actual Coal Severance Fund - Budgetary Basis
For the Fiscal Year Ended June 30, 2025

Actual
(Budgetary
Basis)

Budgeted Amounts
Original
Final
$

850

511

Budget to
GAAP
Difference
$

Variance
With Final
Budget
Favorable
(Unfavorable)

Actual
Amounts
(GAAP
Basis)
-

511

(339)

128,000
128,850

98,679
99,190

(29,321)
(29,660)

Expenditures
General government
Culture and recreation
Total expenditures

16,085
144,765
160,850

15,894
143,050
158,944

103,803
103,803
207,606

(103,803)
103,803
-

(87,909)
39,247
(48,662)

Excess (deficiency) of revenues over
(under) expenditures

(32,000)

(30,094)

(108,416)

99,190

(78,322)

Net change in fund balance

(32,000)

(30,094)

(108,416)

99,190

(78,322)

Fund balance at beginning of year

32,000

30,094

34,429

4,335

Other Financing Sources (Uses)
Operating transfers (in)
Operating transfers (out)
Total other financing sources (uses)

Fund balance at end of year

(73,987)

133,619

(73,987)

Expination of Differences:
The amount reported as "fund balance" on the budgetary basis of accounting derives from the basis of accounting
usied in preparing the City's budget. This amount differs frm the fund balance as derived from using the accrual basis of accounting.

See accompanying notes and independent auditor's report.

138

154

Page 155 of 207

Item 5B.

City of Morgantown, West Virginia
Required Supplementary Information
Schedule of the City's Proportionate Share of the Net Pension Liability (Asset)
West Virginia Public Employees Retirement System
Last Ten Years *

Total plan pension liability

2024

2023

2022

2021

2020

2019

2018

2017

2016

2015

$ 8,898,186,000

$ 8,396,617,000

$ 8,150,369,000

$ 7,927,948,000

$ 7,431,924,000

$ 7,140,467,000

$ 7,027,806,000

$ 6,816,742,000

$ 6,616,588,000

$ 6,130,174,000

9,062,803,000

8,401,099,000

8,001,450,000

8,805,884,000

6,903,253,000

6,925,454,000

6,769,554,000

6,385,097,000

5,697,470,000

5,761,109,000

Plan net position
Net pension liability (asset)

City's proportion of the net pension liability

(164,617,000)

0.09994800%

(4,482,000)

0.09044400%

148,919,000

0.09160000%

(877,936,000)

0.09000000%

528,671,000

0.10000000%

215,013,000

0.10000000%

258,252,000

0.99000000%

431,645,000

0.10000000%

919,118,000

0.09200000%

558,404,000
0.85000000%

City's proportionate share of the
net pension liability (asset)

(164,531)

(4,054)

136,402

(788,535)

513,642

210,946

256,671

438,062

845,671

474,487

City's covered payroll

1,666,070

1,595,132

1,488,393

1,489,393

1,466,710

1,431,740

1,395,289

1,351,744

1,351,170

1,151,193

City's proportionate share of the net
pension liability as a percentage of its
covered payroll

-9.90%

-0.30%

9.20%

-52.90%

35.00%

14.70%

18.40%

32.40%

62.60%

41.20%

Plan fiduciary net position as a percentage
of the total pension liability (asset)

101.85%

100.05%

98.17%

111.07%

92.89%

93.90%

96.33%

93.67%

86.11%

91.29%

* - Information for years prior to 2014 was not available.

139

155

Page 156 of 207

Item 5B.

City of Morgantown, West Virginia
Required Supplementary Information
Schedule of City Contributions
West Virginia Public Employees Retirement System
Last Ten Years *

2025
Contractually required contribution

Contributions in relation to the contractually
required contribution

2024

71,245

(71,245)

2023

166,607

(166,607)
$

143,831

(143,831)
$

2021

146,225

(146,225)
$

2020

148,930

(148,930)
$

2019

146,671

(146,671)
$

2018

143,174

(143,174)
$

2017

153,482

(153,482)
$

2016

162,079

(162,079)
$

170,510
(170,510)

Contribution deficiency (excess)

City covered payroll

712,450

$ 1,666,070

$ 1,595,132

$ 1,488,393

$ 1,489,393

$ 1,466,710

$ 1,431,740

$ 1,395,289

$ 1,351,744

$ 1,351,170

10.00%

9.00%

10.00%

11.00%

12.00%

12.60%

10.00%

11.00%

12.00%

13.50%

Contributions as a percentage of covered payroll

2022

* - Information for years prior to 2014 was not available.
Pension Allocation

140

156

Page 157 of 207

Item 5B.

City of Morgantown, West Virginia
Required Supplementary Information
Schedule of the City's Proportionate Share of the Net Pension Liability (Asset)
West Virginia Firemen's Pension and Relief Fund
Last Ten Years

2025

2024

2023

2022

2021

2020

2019

2018

2017

2016

$ 48,608,235

$ 66,242,946

$ 59,468,268

$ 57,325,328

$ 65,789,931

$ 64,887,379

$ 57,832,399

$ 51,995,644

$ 50,822,626

$ 53,826,064

Plan net position

22,762,345

15,480,810

14,284,625

13,709,149

16,528,896

13,590,152

13,539,956

12,718,148

12,233,107

11,138,652

Net pension liability (asset)

25,845,890

50,762,136

45,183,643

43,616,179

49,261,035

51,297,227

44,292,443

39,277,496

38,589,519

42,687,412

46.83%

23.37%

24.02%

23.91%

25.12%

20.94%

23.41%

24.46%

24.07%

20.69%

Total plan pension liability

Plan net position as a % of total pension liability
Covered payroll
Net pension liability (asset) as a % of Covered Payroll

4,282,269
603.56%

4,626,324

1097.25%

3,733,339
1210.27%

3,724,403
1171.09%

3,580,333
1375.88%

3,736,884
1372.73%

3,636,132
1218.12%

2,716,646
1445.81%

2,590,922
1489.41%

2,534,252
1684.42%

(1) Information for 2022 is presented to be consistent with other reporting throughout these schedules.

141

157

Page 158 of 207

Item 5B.

City of Morgantown, West Virginia
Required Supplementary Information
Schedule of City Contributions
West Virginia Firemen's Pension and Relief Fund
Last Ten Years *

Actuarially determined contribution
Employer contribution
State contribution
Percentage contributed
Covered payroll
Actual contribution as a % of covered payroll

2025

2024

2023

2022

2021

2020

2019

2018

2017

2016

$ 5,208,658

$ 4,409,931

$ 4,175,598

$ 4,073,755

$ 3,897,505

$ 3,716,017

$ 3,177,129

$ 2,813,357

$ 2,670,559

$ 2,514,255

6,771,682

1,267,217

1,046,841

981,069

920,455

933,095

909,000

986,830

870,926

728,343

807,974

690,530

587,680

629,778

638,747

631,772

548,107

507,846

485,359

460,023

146%

44%

39%

40%

42%

46%

53%

51%

47%

$ 4,282,269

$ 4,626,324

$ 3,733,339

$ 3,724,403

$ 3,580,333

$ 3,736,884

$ 3,636,132

$ 2,716,646

$ 2,590,922

$ 2,534,252

177%

42%

44%

43%

44%

42%

40%

55%

52%

47%

* - Information for years prior to 2014 was not available.
(1) Information for 2022 is presented to be consistent with other reporting throughout these schedules.

142

158

Page 159 of 207

Item 5B.

City of Morgantown, West Virginia
Required Supplementary Information
Schedule of the City's Proportionate Share of the Net Pension Liability (Asset)
West Virginia Policemen's Pension and Relief Fund
Last Ten Years

2025

2024

63,797,210 $

87,104,381

Plan net position

25,802,809

18,350,029

16,967,721

16,258,285

19,707,129

16,395,710

16,633,959

15,731,259

15,181,765

13,826,768

Net pension liability (Asset)

37,994,401

68,754,352

61,772,126

61,380,003

69,359,197

72,712,378

60,640,599

57,459,348

54,111,027

58,811,826

40.45%

21.07%

21.55%

20.94%

22.13%

18.40%

21.53%

21.49%

21.91%

55.16%

4,612,238

4,877,096

3,979,529

4,261,421

4,446,616

4,683,481

4,424,855

336,918

4,054,650

3,527,889

8.2377

14.0974

15.5225

14.4036

15.5982

15.5253

13.7045

170.544

13.3454

16.6705

Total plan pension liability

Plan net position as a % of total pension liability
Covered payroll
Net pension liability as a % of Covered Payroll

2023
$

78,739,847

2022
$

77,638,288

2021
$

89,066,326

2020
$

89,108,088

2019
$

77,274,558

2018
$

73,190,607

2017
$

69,292,792

2016
$

72,638,594

(1) Information for 2025 is presented to be consistent with other reporting throughout these schedules.

143

159

Page 160 of 207

Item 5B.

City of Morgantown, West Virginia
Required Supplementary Information
Schedule of the City's Proportionate Share of the Net Pension Liability (Asset)
Employee Retirement Pension and Relief Fund
Last Ten Years

2025

2024

94,113,585 $

90,466,209

Plan net position

84,666,573

77,344,289

68,754,023

63,958,835

71,870,034

58,807,778

57,243,111

54,128,669

51,325,284

46,968,749

Net pension liability (Asset)

9,447,012

13,121,920

19,563,296

21,270,366

9,627,289

15,345,634

14,327,999

14,780,817

15,429,637

12,769,969

89.96%

85.50%

77.85%

75.04%

88.19%

79.31%

79.98%

78.55%

76.89%

55.16%

14,845,933

15,094,393

16,091,923

15,114,310

14,763,639

14,510,386

14,785,000

336,918

13,321,335

13,182,134

0.6363

0.8693

1.2157

1.4073

0.6521

1.0576

0.9691

43.8707

1.1583

0.9687

Total plan pension liability

Plan net position as a % of total pension liability
Covered payroll
Net pension liability as a % of Covered Payroll

2023
$

2022

88,317,319

2021

85,229,201

2020

81,497,323

74,153,412

2019
$

71,571,110

2018
$

68,909,486

2017
$

66,754,921

2016
$

59,738,718

(1) Information for 2022 is presented to be consistent with other reporting throughout these schedules.

144

160

Page 161 of 207

Item 5B.

City of Morgantown, West Virginia
Required Supplementary Information
Schedule of City Contributions
West Virginia Policemen's Pension and Relief Fund
Last Ten Years *

2025
Actuarially determined contribution
Employer contribution
State contribution
Percentage contributed
Covered payroll
Actual contribution as a % of covered payroll

2024

2023

2022

2021

2020

2019

2018

2017

2016

5,846,378

$ 4,990,420

$ 4,913,333

$ 4,903,381

$ 5,101,824

4,709,413

$ 4,499,599

$ 3,983,176

$ 3,675,688

$ 3,285,978

7,223,308

1,401,389

1,314,699

1,233,680

839,937

737,407

647,136

711,889

1,158,547

1,219,659

1,295,000

1,212,990

1,073,218

848,356

763,467

738,271

705,979

691,798

629,967

597,542

138%

43%

40%

38%

42%

44%

48%

46%

44%

4,612,238

4,877,096

3,979,529

4,261,421

4,446,616

4,683,481

4,424,855

4,424,690

4,054,650

3,527,889

1.75

0.44

0.49

0.46

0.43

0.42

0.45

0.43

0.42

0.41

* - Information for years prior to 2014 was not available.
(1) Information for 2022 is presented to be consistent with other reporting throughout these schedules.

145

161

Page 162 of 207

Item 5B.

City of Morgantown, West Virginia
Required Supplementary Information
Schedule of City Contributions
Employee Retirement Pension and Relief Fund
Last Ten Years *

2025
Actuarially determined contribution
Actual Contributions
Percentage contributed
Covered payroll
Actual contribution as a % of covered payroll

2024

3,457,684 $ 3,274,800

2023

2022

2021

2020

2019

2018

2017

2016

$ 3,093,050

$ 2,973,178

$ 2,362,643

$ 2,063,537

$ 1,919,607

$ 1,743,996

$ 1,620,175

$ 1,657,313

3,306,575

3,404,449

3,205,655

3,076,513

2,312,062

2,357,915

1,986,467

1,770,496

1,819,231

1,745,681

96%

104%

103%

98%

114%

103%

102%

112%

105%

14,845,933

15,094,393

16,091,923

15,114,310

14,763,639

14,510,386

14,785,000

13,830,676

13,321,335

13,182,134

0.22

0.23

0.2

0.16

0.13

0.14

0.13

* - Information for years prior to 2014 was not available.
(1) Information for 2022 is presented to be consistent with other reporting throughout these schedules.

146

162

Page 163 of 207

Item 5B.

City of Morgantown, West Virginia
Required Supplementary Information
Schedule of the City's Proportionate Share of the Net OPEB Liability (Asset)
Last Seven Years *

2025
Total plan OPEB liability (Asset)

Plan net position

17,328,000

2024
$

1,630,000

17,747,000

2023
$

1,446,000

2022

18,469,000

1,439,000

21,489,000

2021
$

1,245,000

2020

23,507,000

508,000

2019

22,699,000

723,000

2018

21,922,000

711,000

20,447,000
709,000

Net OPEB liability (Asset)

15,698,000

16,301,000

17,030,000

20,244,000

22,999,000

21,976,000

21,211,000

19,738,000

City's covered payroll (1)

12,653,000

11,547,000

13,152,000

11,696,000

7,220,000

City's proportionate share of the net
OPEB liability as a percentage of its
covered payroll (1)
Plan fiduciary net position as a percentage
of the total OPEB liability (Asset)

124.07%

141.17%

9.41%

8.15%

147.48%

153.92%

7.79%

5.79%

174.87%

2.16%

187.89%

3.19%

181.35%

3.24%

273.38%

3.47%

* - Information for years prior to 2018 was not available.
- Information for 2022 is presented to be consistent with other reporting throughout these schedules.
(1) This is not applicable as the City does not have payroll for these employees as they
are already retired.

147

163

Page 164 of 207

Item 5B.

City of Morgantown, West Virginia
Required Supplementary Information
Schedule of City Contributions
Last Seven Years *

2025

2024

2023

2022

2021

2020

2019

2018

Contractually required contribution

1118000

914000

597000

445000

729000

959000

797000

955000

Contributions in relation to the contractually
required contribution

-1118000

-914000

-597000

-445000

-729000

-959000

-797000

-955000

12653000

11547000

13152000

11696000

7220000

0.088358492

0.079154759

0.051701741

0.033835158

0.055428832

0.081993844

0.068142955

0.132271468

Contribution deficiency (excess)
City covered payroll (1)
Contributions as a percentage of covered payroll (1)
* - Information for years prior to 2018 was not available.

(1) This is not applicable as the City does not have payroll for these employees as they
are already retired.

148

164

Page 165 of 207

Item 5B.

SUPPLEMENTARY INFORMATION

165

Page 166 of 207

Item 5B.

City of Morgantown, West Virginia
Combining Fund Balance Sheets Nonmajor Governmental Funds
June 30, 2025
Primary Government
Capital
Projects
Funds

Special
Revenue
Funds
Assets
Cash
Investments
Receivables (net of allowances for
uncollectables)
Taxes
Accounts
Grants
Due from other funds
Total Assets

2,066,158
1,730,483

64,457

812,692
-

Special
Revenue
Funds

Total
$

109,656
-

2,878,850
1,730,483

109,656
64,457

8,757,460
-

Component Unit
Capital
Projects
Funds
$

132,859
-

3,861,098

922,348

4,783,446

8,890,319

5,659
135,586

276,720
-

277,940

Total
$

8,757,460
277,940
132,859
-

$ 277,940

9,168,259

276,720
-

Liabilities, Deferred Inflows of
Resources and Fund Balances
Liabilities
Accounts Payable
Due to other funds
Accrued payroll and compensated
absences
Total liabilities
Deferred Inflows of Resources
Deferred revenues - taxes
Total deferred inflows of resources
Fund Balances
Restricted
Assigned
Unassigned
Total fund balances
Total Liabilities, Deferred Inflows of
Resoures and Fund Balances

15,483
156,728

85,911
362,631

77,922
3,626,448
3,704,370
$

3,861,098

922,348
922,348
$

922,348

149

77,922
4,548,796
4,626,718
$

4,783,446

8,527,688
8,527,688

21,862
256,078
277,940

8,890,319

$ 277,940

21,862
8,783,766
8,805,628
$

9,168,259

166

Page 167 of 207

Item 5B.

City of Morgantown, West Virginia
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances Nonmajor Governmental Funds
For the Year Ended June 30, 2025
Primary Government
Capital
Projects
Funds

Special
Revenue
Funds
Revenues
Amusement Tax
Charges for services
Fines and forfeits
Investment income
Donations
Taxes:
Ad valorem
Intergovernmental:
Federal
State
Local
Rental Income
Other
Total revenues

387,726
127,669
197,386
528,054

11,835
-

1,571,211

177,285
121,666

Specieal
Revenue
Funds

Total
$

387,726
127,669
209,221
528,054

839,153
187,332
-

Component Unit
Capital
Projects
Funds
$

204
-

Total
$

839,153
187,536
-

1,571,211

177,285

175,000
1,714,786

78,815
1,661,861

253,815
3,254,981

3,204,023
328,539
109,450
4,668,497

Expenditures
General Government
Public safety
Culture and recreation
Community development
Capital outlay
Debt service - principal
Debt service - interest
Debt issuance costs
Benefit payments
Total expenditures

7,224
10,291,006
752,490
597,464
891,949
12,540,133

822,108
49,998
872,106

829,332
10,291,006
752,490
597,464
49,998
891,949
13,412,239

4,965,384
9,953,297
426,544
607,746
15,952,971

9,028
9,028

4,974,412
9,953,297
426,544
607,746
15,961,999

(Deficiency) excess of revenues (under)
over expenditures

(10,825,347)

789,755

(10,157,258)

(11,284,474)

(8,824)

(14,825,860)

Other Financing Sources (Uses
Operating transfers in
Operating transfers (out)
Issuance of debt
Bond discount
Total other financing sources (uses)

1,085,707
160,064
1,245,771

(1,494,572)
(1,494,572)

1,085,707
(1,334,508)
(248,801)

2,033,721
2,033,721

(Deficiency) excess of revenues and
other financing sources (under) over
expenditures and other financing (uses)

(9,579,576)

(704,817)

(10,406,059)

(9,250,753)

(8,824)

(12,792,139)

Fund balance beginning of year

13,283,946

1,627,165

14,911,111

17,778,441

286,764

18,065,205

Fund balance end of year

3,704,370

922,348

4,505,052

8,527,688

277,940

5,273,066

150

204

109,450
1,136,139

167

Page 168 of 207

Item 5B.

City of Morgantown, West Virginia
Combining Fund Balance Sheets Nonmajor Governmental Funds Special Revenue Funds
For the Year Ended June 30, 2025

Assets
Cash
Investments
Receivables (net of allowances for uncollectibles)
Accounts
Due from other funds
Total Assets

Economic
Development
Grant

Community
Development
Block
Grant

40,125
-

72,803
-

Police
Forfeiture
$ 236,271
-

Special
Grants
$

3,641
-

Local Law
Enforecement
Grant

I.C. White
Coal
Severance

$ 110,014
-

32,482
-

40,125

72,803

$ 236,271

3,641

32,482

65,894
65,894

5,235
5,235

OPEB
Trust

Metropolitan
Theater

630,220
773,400

460,459
-

Sidewalks

Arts and
Woodburn
Property

Culture
Fund

Court
Technology

$ 13,709
-

$ 74,771
-

$ 24,648
-

64,457

$ 110,014

$ 1,403,620

524,916

1,038
1,038

$ 13,709

$ 74,771

46,028
-

Hazel
Ruby
McQuain
Park
$

199,250
957,083

Retirement
Fund
$

Opioid
Fund
$

Component
Unit
Board of
Parks and
Recreation

Total

121,737
-

2,066,158
1,730,483

64,457

8,757,460
132,859
-

$ 24,648

46,028

$ 1,156,333

121,737

3,861,098

8,890,319

5,279
5,279

5,659
135,586
15,483
156,728

276,720
85,911
362,631

Liabilities and Fund Balances
Liabilities
Accounts payable
Due to other funds
Accrued payroll and compensated absences
Total liabilities
Fund Balances
Restricted
Assigned
Unassigned
Total fund balances
Total Liabilities and Fund Balances

40,125
40,125
$

40,125

6,909
6,909

236,271
236,271

72,803

$ 236,271

(1,594)
(1,594)
$

3,641

380
380

32,482
32,482

110,014
110,014

1,403,240
1,403,240

32,482

$ 110,014

$ 1,403,620

151

44,955
14,445
59,400

523,878
523,878

13,709
13,709

74,771
74,771

(34,752)
(34,752)

524,916

$ 13,709

$ 74,771

$ 24,648

19,502
19,502

40,749
40,749

1,136,831
1,136,831

46,028

$ 1,156,333

121,737
121,737
$

121,737

77,922
3,626,448
3,704,370
$

3,861,098

8,527,688
8,527,688
$

8,890,319

168

Page 169 of 207

Item 5B.

City of Morgantown, West Virginia
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances - Nonmajor Governmental Funds Special Revenue Funds
For the Year Ended June 30, 2025

Revenues
Amusement Tax
Charges for services
Fines and forfeits
Investment Income
Donations
Intergovernmental
Federal
State
Local
Rental Income
Other Income
Total revenues

Economic
Development
Grant

Community
Development
Block
Grant

Police
Forfeiture

467
-

807
-

119,994
4,287
-

Special
Grants
$

177,285
-

467

178,092

124,281

Expenditures
General Government
Public Safety
Culture and recreation
Community development
Capital outlay
Debt service - principal
Debt service - interest
Debt issuance costs
Benefit payments
Total expinditures

174,632
174,632

123,293
123,293

(Deficiency) excess of revenues (under)
over expenditures

467

3,460

Other Financing Sources (Uses)
Operating transfers in (out)
Issuance of debt
Bond discount
Total other financing sources (uses)

467
39,658

Fund balance beginning of year - restated
Fund balance end of year

40,125

I.C. White
Coal
Severance

(Deficiency) excess of revenues and other financing
sources (under) over expenditures and other
financing (uses)

Local Law
Enforecement
Grant

377
-

1,279
-

OPEB
Trust
$

22,726
-

Metropolitan
Theater

Sidewalks

Arts and
Woodburn
Property

269,550
4,903
-

160
-

377

1,279

22,726

274,453

1,745
1,745

5,479
891,949
897,428

988

(1,738)

377

1,279

3,460

988

(1,738)

377

1,279

(226,593)

116,008

3,449

235,283

144

32,105

108,735

1,629,833

407,870

6,909

$ 236,271

$ (1,594)

32,482

$ 110,014

$ 1,403,240

523,878

$ 13,709

40,550
859
-

Culture
Fund

Court
Technology

17,136
1,130
-

7,675
492
-

Hazel
Ruby
McQuain
Park
$

60,490
25,027
528,054

Retirement
Fund
$

134,794
-

Opioid
Fund
$

Component
Unit
Board of
Parks and
Recreation

Total
-

$
71

387,726
127,669
197,386
528,054

839,153
187,332
-

160

25,000
66,409

18,266

8,167

150,000
763,571

134,794

121,666
121,737

177,285
121,666
175,000
1,714,786

3,204,023
328,539
109,450
4,668,497

242,340
242,340

36,425
36,425

422,832
422,832

5,279
5,279

473,725
473,725

10,162,434
10,162,434

7,224
10,291,006
752,490
597,464
891,949
12,540,133

4,965,384
9,953,297
426,544
607,746
15,952,971

(874,702)

32,113

160

29,984

(404,566)

2,888

289,846

(10,027,640)

121,737

(10,825,347)

(11,284,474)

648,109
648,109

83,895
83,895

353,703
353,703

(1,066,723)
(1,066,723)

1,226,787
1,226,787

1,245,771
1,245,771

2,033,721
2,033,721

160

29,984

(50,863)

2,888

(776,877)

(8,800,853)

121,737

(9,579,576)

(9,250,753)

13,549

44,787

16,111

37,861

1,913,708

8,800,853

13,283,946

17,778,441

$ 74,771

$ (34,752)

40,749

$ 1,136,831

152

121,737

3,704,370

8,527,688

169

Page 170 of 207

Item 5B.

City of Morgantown, West Virginia
Combining Fund Balance Sheets Nonmajor Governmental Funds Capital Project Funds
June 30, 2025
Primary Government

Business
Improvement
District
Assets
Cash
Investments
Taxes receivable
Total Assets

Tax
Increment
Financing

Airport
Access
Road

Component Unit
Morgantown
Public Library
Capital Project
Clay Battelle
Branch
Total

Total

18,057
-

615,809
109,656

$ 178,826
-

812,692
109,656

277,940
-

18,057

725,465

$ 178,826

922,348

277,940

$ 277,940

Liabilities, Deferred Inflow of
Resources and Fund Balance
Liabilities
Accounts payable
Due to other funds
Total liabilities
June 30, 2025
Deferred revenue - taxes
Total deferred inflow of resources
Fund Balance
Restricted
Assigned
Total fund balances
Total liabilities, Deferred Inflow of
Resources and Fund Balances

18,057
18,057

725,465
725,465

178,826
178,826

922,348
922,348

21,862
256,078
277,940

725,465

$ 178,826

277,940

$ 277,940

18,057

153

922,348

170

Page 171 of 207

Item 5B.

City of Morgantown, West Virginia
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances - Nonmajor Governmental Funds Capital Project Funds
June 30, 2025
Primary Government

Business
Improvement
District
Revenues
Investment Income
Taxes:
Ad valorem
Donations
Other
Total revenues

210

Tax
Increment
Financing
$

9,256

Airport
Access
Road
$

2,369

Total
$

11,835

Component Unit
Morgantown
Public Library
Capital Project
Clay Battelle
Branch
Total
$

204

210

1,571,211
78,815
1,659,282

2,369

1,571,211
78,815
1,661,861

204

Expenditures
General Government
Capital Outlay
Culture and recreation
Total expenditure

822,108
822,108

49,998
49,998

822,108
49,998
872,106

9,028
9,028

(Deficienct) excess of revnues (under)
over expenditures

210

837,174

(47,629)

789,755

(8,824)

Other Financing Sources (uses)
Operating transfers (out)
Total other financing sources (uses)

(1,464,572)
(1,464,572)

(30,000)
(30,000)

(1,494,572)
(1,494,572)

Excess (deficiency) of revenues and
other financing sources over (under)
expenditures and other financing (uses)

210

(627,398)

(77,629)

(704,817)

(8,824)

17,847

1,352,863

256,455

1,627,165

286,764

725,465

$ 178,826

277,940

$ 277,940

Fund balance beginning of year
Fund balance end of year

18,057

154

922,348

171

Page 172 of 207

Item 5B.

City of Morgantown, West Virginia
Combining Statement of Net Position Fiduciary Responsibilities
June 30, 2025
Policemen's
Pension
and Relief
Assets
Cash
Investments
Receivables:
Contributions
Accounts
Total assets

Liabilities
Accounts Payable
Total Liabilities
Net Position
Held in trust

579,223
25,223,586

Firemen's
Pension
and Relief
$

356,536
22,410,002

Employee's
Retirement
and Benefit
$

84,668,853

Total
$

935,759
132,302,441

25,802,809

22,766,538

84,668,853

133,238,200

2,280
2,280

6,473
6,473

2,280
2,280

11,033
11,033

25,800,529

22,760,065

84,666,573

155

133,227,167

Component Unit
Morgantown Public Library
Nonexpendable
Endowment
Trust
Fund
$

124,833

44,954

Total
169,787

124,833

44,954

169,787

124,833

44,954

169,787

172

Page 173 of 207

Item 5B.

City of Morgantown, West Virginia
Combining Statement of Changes Net Position Fiduciary Responsibilities
June 30, 2025
Policemen's
Pension
and Relief
Additions
Contribtionts:
Employer
Employee
Insurance premium tax allocation
Total contributions

Investment Income
Gain (loss) on investments
Interest and dividends
Total investment income

7,223,307
454,641
839,937
8,517,885

Firemen's
Pension
and Relief

6,771,681
364,674
807,974
7,944,329

Employee's
Retirement
and Benefit

3,306,575
890,755
4,197,330

Total

17,301,563
1,710,070
1,647,911
20,659,544

Component Unit
Morgantown Public Library
Nonexpendable
Endowment
Trust
Fund

Total

2,059,943
197,831
2,257,774

1,775,240
218,930
1,994,170

6,819,091
2,073,640
8,892,731

10,654,274
2,490,401
13,144,675

15,182
1,665
16,847

3,406
1,347
4,753

18,588
3,012
21,600

Total additions

10,775,659

9,938,499

13,090,061

33,804,219

16,847

4,753

21,600

Deductions
General and administrative
Contribution refunds
Benefit payments
Total deduction

81,571
13,591
3,229,997
3,325,159

62,711
101,744
2,494,788
2,659,243

281,985
262,347
5,223,053
5,767,385

426,267
377,682
10,947,838
11,751,787

926
926

691
691

1,617
1,617

Net increase (decrease)

7,450,500

7,279,256

7,322,676

22,052,432

15,921

4,062

19,983

Net position - beginning of year

18,350,029

15,480,809

77,343,897

111,174,735

108,912

40,892

149,804

Net position - end of year

25,800,529

22,760,065

84,666,573

156

133,227,167

124,833

44,954

169,787

173

Page 174 of 207

Item 5B.

City of Morgantown, West Virginia
Schedule of Expenditures of Federal Awards
For the Fiscal Year Ended June 30, 2025
Federal Grantor
Pass-Through Grantor
Program Title

United States Department of Housing and Urban Development
Office of Community Planning and Development
Community Development Block Grants/Entitlement Grants
Community Development Block Grants/State's Program and Non-Entitlement Grants in Hawaii

Pass-Through
Entity's
Number

Federal
AL
Number

B20-MC-54-0007
B21-MC-54-0007

14.218
14.228

Disbursements

Total United States Department of Housing and Urban Development

128,284
174,631
302,915

United States Department of Justice
State of West Virginia Deparment of Military Affairs & Public Safety
/Division of Justice & Community Services
Juvenile Justice and Delinquency Prevention
Violence Against Women Formula Grants
Direct Program:
Equitable Sharing Program

21-JAG-12
20-VAW

16.540
16.588

17,720
3,919

USMS

16.922

38,231

Total United States Department of Justice

59,870

United States Department of Transportation
Direct Program:
Airport Improvement Program
Passed through National Highway Traffic Safety Administration:
Highway Planning and Construction
State and Community Highway Safety

N/A

20.106

5,511,386

N/A
N/A

20.205
20.600

283,239
4,270

Total United States Department of the Transportation

5,798,895

United States Department of Treasury
Direct Program:
Coronavirus State and Local Fiscal Recovery Funds

CVRF-2020

21.027

3,302,499

Total United States Department of the Treasury

3,302,499

United States Department of Environmental Protection
Direct Program:
Brownfields Multipurpose, Assessment, Revolving Loan Fund, and Cleanup Cooperative Agreements

N/A

66.818

735

Total United States Department of Environmental Protection

735

United States Department of Homeland Security
Direct Program:
Assistance to Firefighters Grant
Home Land Security Grant Program

N/A
N/A

97.044
97.067

43,538
2,508

Total United States Department of Homeland Security

46,046

Total Federal Awards Expenditures

9,510,960

N/A - pass-through entity number not available.

See the accompanying notes to the schedule of federal awards expenditures.

157
174

Page 175 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Schedule of Expenditures of Federal Awards
2 CFR 200.510(b)(6)
For the Fiscal Year Ended June 30, 2025

Note 1 – Basis of Presentation
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the
federal award activity of the City of Morgantown (the City’s) under programs of the federal
government for the year ended June 30, 2025. The information on this Schedule is prepared in
accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards
(Uniform Guidance). Because the Schedule presents only a selected portion of the operations of
the City, it is not intended to and does not present the financial position, changes in net position,
or cash flows of the City.
Note 2 – Summary of Significant Accounting Policies
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such
expenditures are recognized following the cost principles contained in the Title 2 U.S. Code of
Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards, wherein certain types of expenditures may or may not be
allowable or may be limited as to reimbursement.
Note 3 – Indirect Cost Rate
The City has elected not to use the 10% de minimums indirect cost rate allowed under the
Uniform Guidance.

158
175

Page 176 of 207

Item 5B.

City of Morgantown, West Virginia
Schedule of Expenditures of Passenger Facility Charges
For the Fiscal Year Ended June 30, 2025

Receipts
Collections
Interest
Total Revenues
Disbursements
07-011 - Rehabilitate Terminal Apron
07-012 - Improve SRE Bldg
07-013 - Install Taxiway Lighting
07-014 - Install Apron Lighting
07-015 - Conduct Airport Master Plan Study
07-016 - Rehabilitate South Apron
07-017 - Improve Airport Drainage
07-018 - Improve Terminal Building
07-019 - Acquire ARFF Vehicle
07-020 - Install Perimeter Fencing
Total Disbursements

3rd Qtr. FY 2024

4th Qtr. FY 2024

1st Qtr. FY 2025

2nd Qtr. FY 2025

Total FY 2025

13,454
260
13,714

8,779
272
9,051

12,742
364
13,106

22,131
352
22,483

938
12,528
248
13,714

3,450
9,656
13,106

7,663
14,820
22,483

483
8,568
9,051

57,106
1,248
58,354

938
12,528
731
12,018
17,319
14,820
58,354

Net PFC Revenue

PFC Account Balance - Beginning

PFC Account Balance - Ending

The accompanying notes to the schedule of passenger facility charges are an integral part of this schedule.

158

176

Page 177 of 207

Item 5B.

City of Morgantown, West Virginia
Notes to the Schedule of Passenger Facility Charges
For the Fiscal Year Ended June 30, 2025

The accompanying Schedule of Passenger Facility Charges presents the revenues and interest
earned from Passenger Facility Charges and expenditures incurred on approved projects on the
cash basis of accounting.

160
177

Page 178 of 207

Item 5B.

bhm cpa group, inc.
CE R TIFIE D PUBLI C A CCOUN T AN T S

INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS REQUIRED BY
GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor and Council
City of Morgantown
389 Spruce Street
Morgantown, West Virginia 26505
We have audited, in accordance with auditing standards generally accepted in the United States of
America and the Comptroller General of the United States’ Government Auditing Standards, the financial
statements of the governmental activities, the business-type activities, the aggregate discretely presented
component units, each major fund, and the aggregate remaining fund information of the City of
Morgantown, West Virginia (the City), as of and for the year ended June 30, 2025, and the related notes
to the financial statements, which collectively comprise the City’s basic financial statements and have
issued our report thereon dated July 30, 2026.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control
over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in
the circumstances for the purpose of expressing our opinions on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do
not express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, when performing their assigned functions, to prevent, or detect and timely
correct misstatements. A material weakness is a deficiency, or combination of internal control
deficiencies resulting in a reasonable possibility that internal control will not prevent or detect and timely
correct a material misstatement of the City’s financial statements. A significant deficiency is a deficiency,
or a combination of deficiencies, in internal control that is less severe than a material weakness, yet
important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all internal control deficiencies that might be material
weaknesses or significant deficiencies. Given these limitations, we did not identify any deficiencies in
internal control that we consider to be material weaknesses. However, unidentified material weaknesses
or significant deficiencies may exist.

161
Locations throughout Ohio, Kentucky, West Virginia • Phone: 614-708-4648 • www.bhmcpagroup.com
178

Page 179 of 207

Item 5B.

City of Morgantown
Independent Auditor’s Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Required by Government Auditing Standards
Page 2

Report on Compliance and Other Matters
As part of reasonably assuring whether the City’s financial statements are free of material misstatement,
we tested its compliance with certain provisions of laws, regulations, contracts, and grant agreements,
noncompliance with which could directly and materially affect the determination of financial statement
amounts. However, opining on compliance with those provisions was not an objective of our audit and
accordingly, we do not express an opinion. The results of our tests disclosed no instances of
noncompliance or other matters we must report under Government Auditing Standards.
Purpose of this Report
This report only describes the scope of our internal control and compliance testing and our testing results
and does not opine on the effectiveness of the City’s internal control or on compliance. This report is an
integral part of an audit performed under Government Auditing Standards in considering the City’s
internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

BHM CPA Group Inc.
Huntington, West Virginia
July 30, 2026

162
179

Page 180 of 207

Item 5B.

bhm cpa group, inc.
CE R TIFIE D PUBLI C A CCOUN T AN T S
.

INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE WITH
REQUIREMENTS APPLICABLE TO EACH MAJOR FEDERAL
PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE
REQUIRED BY COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE
To the Honorable Mayor and Council
City of Morgantown
389 Spruce Street
Morgantown, West Virginia 26505
Report on Compliance for each Major Federal Program
Opinion on Each Major Federal Program
We have audited City of Morgantown’s (the City) compliance with the types of compliance requirements
identified as subject to audit in the U.S. Office Management and Budget (OMB) Compliance Supplement
that could have a direct and material effect on each of the City’s major federal program for the year ended
June 30, 2025. The City’s major federal programs are identified in the Summary of Auditor’s Results section
of the accompanying schedule of findings.
In our opinion, the City of Morgantown complied, in all material respects with the compliance requirements
referred to above that could have a direct and material effect on each of its major federal programs for the
year ended June 30, 2025.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America (GAAS); the standards applicable to financial audits contained in Government
Auditing Standards issued by the Comptroller General of the United States (Government Auditing
Standards); and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform
Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in
the Auditor’s Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of the City’s and to meet our other ethical responsibilities, in accordance
with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our opinion on compliance for the major federal program.
Our audit does not provide a legal determination of the City’s compliance with the compliance requirements
referred to above.

163
Locations throughout Ohio, Kentucky, West Virginia • Phone: 614-708-4648 • www.bhmcpagroup.com
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Item 5B.

City of Morgantown
Independent Auditor’s Report on Compliance with Requirements Applicable to each Major
Federal Program and on Internal Control Over Compliance Required by the Uniform Guidance
Page 2
Responsibilities of Management for Compliance
The City’s Management is responsible for compliance with the requirements referred to above and for the
design, implementation, and maintenance of effective internal control over compliance with the
requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable
to the City’s federal programs.
Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the
compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion
on the City's compliance based on our audit. Reasonable assurance is a high level of assurance but is not
absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS,
Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance
when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that
resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or
the override of internal control. Noncompliance with the compliance requirements referred to above is
considered material, if there is a substantial likelihood that, individually or in the aggregate, it would
influence the judgment made by a reasonable user of the report on compliance about the City’s compliance
with the requirements of major federal program as a whole.
In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform
Guidance, we:
•
•

•

exercise professional judgment and maintain professional skepticism throughout the audit.
identify and assess the risks of material noncompliance, whether due to fraud or error, and design
and perform audit procedures responsive to those risks. Such procedures include examining, on a
test basis, evidence regarding the City’s compliance with the compliance requirements referred to
above and performing such other procedures as we considered necessary in the circumstances.
obtain an understanding of the City's internal control over compliance relevant to the audit in order
to design audit procedures that are appropriate in the circumstances and to test and report on internal
control over compliance in accordance with the Uniform Guidance, but not for the purpose of
expressing an opinion on the effectiveness of the City's internal control over compliance.
Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal
control over compliance that we identified during the audit.
Other Matters
The results of our auditing procedures disclosed an instance of noncompliance which is required to be
reported in accordance with Uniform Guidance and which is described in the accompanying schedule of
finding as item 2025-001. Our opinion on the major federal program is not modified with respect to these
matters.

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Item 5B.

City of Morgantown
Independent Auditor’s Report on Compliance with Requirements Applicable to each Major
Federal Program and on Internal Control Over Compliance Required by the Uniform Guidance
Page 2
Government Auditing Standards requires the auditor to perform limited procedures on the City’s response
to the noncompliance finding identified in our compliance audit described in the accompanying schedule
of findings and corrective action plan. The County’s response was not subjected to the other auditing
procedures applied in the audit of compliance and, accordingly, we express no opinion on the response.
Report on Internal Control Over Compliance
A deficiency in internal control over exists when the design or operation of a control over compliance does
not allow management or employees, in normal course of performing their assigned function, to prevent,
or detect and correct, noncompliance with a type of compliance requirement of a federal program on a
timely basis.
A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in
internal control over compliance, such that there is a reasonable possibility that material noncompliance
with a type of compliance requirement of a federal program will not be prevented, or detected and corrected,
on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a
combination of deficiencies, in internal control over compliance with a type of compliance requirement of
a federal program that is less severe than a material weakness in internal control over compliance, yet
important enough to merit attention by those charge with governance.
Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s
Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies
in internal control over compliance. Given these limitations, during our audit we did not identify any
deficiencies in internal control over compliance that we consider to be material weaknesses or significant
deficiencies in internal control over compliance may exist that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control
over compliance. Accordingly, no such opinion is expressed.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing
of internal control over compliance and the results of this testing based on the requirements of the Uniform
Guidance. Accordingly, this report is not suitable for any other purpose.

BHM CPA Group, Inc
Huntington, West Virginia
July 30, 2026

165
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Item 5B.

bhm cpa group, inc.
CE R TIFIE D PUBLI C A CCOUN T AN T S

INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE WITH
REQUIREMENTS APPLICABLE TO THE PASSENGER
FACILITY CHARGE PROGRAM AND ON INTERNAL
CONTROL OVER COMPLIANCE
To the Honorable Mayor and Council
City of Morgantown
389 Spruce Street
Morgantown, West Virginia 26505
Compliance
We have audited the compliance of City of Morgantown, West Virginia with the compliance
requirements described in the Passenger Facility Charge Audit Guide for Public Agencies, issued by the
Federal Aviation Administration (Guide), for its passenger facility charge program for the year ended
June 30, 2025. Compliance with the requirements of laws and regulation applicable to its passenger
facility charge program is the responsibility of the City of Morgantown’s management. Our responsibility
is to express an opinion on the City of Morgantown’s compliance based on our audit.
We conducted our audit of compliance in accordance with generally accepted auditing standards; the
standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States; and the Guide. Those standards and the Guide require that we
plan and perform the audit to obtain reasonable assurance about whether noncompliance with the
compliance requirement referred to above that could have a direct and material effect on the passenger
facility charge program occurred. An audit includes examining on a test basis, evidence about the City of
Morgantown’s compliance with those requirements and performing such other procedures as we
considered necessary in the circumstance. We believe that our audit provides a reasonable basis for our
opinion. Our audit does not provide a legal determination of the City of Morgantown’s compliance with
those requirements.
In our opinion, City of Morgantown complied, in all material respects, with the requirements referred to
above that are applicable to its passenger facility charge program for the year ended June 30, 2025.
Internal Control Over Compliance
The management of the City of Morgantown is responsible for establishing and maintaining effective
internal control over compliance with the requirements of laws and regulations applicable to the
passenger facility charge program. In planning and performing our audit, we considered the City of
Morgantown’s internal control over compliance with requirements that could have a direct and material
effect on the passenger facility charge program in order to determine our auditing procedures for the
purpose of expressing our opinion on compliance and to test and report on the internal control over
compliance in accordance with the Guide.

166
Locations throughout Ohio, Kentucky, Michigan, West Virginia • Phone: 614-708-4648 • www.bhmcpagroup.com
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Item 5B.

City of Morgantown
Independent Auditor’s Report on Compliance with Requirements Applicable to the Passenger
Facility Charge Program and on Internal Control Over Compliance
Page 2
Our consideration of the internal control over compliance was for the limited purpose described in the
first paragraph of this section and was not designed to identify all deficiencies in internal control over
compliance that might be material weaknesses or significant deficiencies and therefore, material
weaknesses or significant deficiencies may exist that were not identified. We did not identify any
deficiencies in internal control over compliance that we consider to be material weaknesses.
This report is intended solely for the information and use of the audit committee, management, and the
Federal Aviation Administration and is not intended to be and should not be used by anyone other than
these specified parties.

BHM CPA Group Inc.
Huntington, West Virginia
July 30, 2025

167
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Item 5B.

City of Morgantown, West Virginia
Schedule of Findings
2 CFR § 200.515
June 30, 2025

1. SUMMARY OF AUDITOR’S RESULTS
(d)(1)(i)

Type of Financial Statement Opinion

Unmodified

(d)(1)(ii)

Were there any material weaknesses in internal
control reported at the financial statement level
(GAGAS)?

(d)(1)(ii)

Were there any significant deficiencies in internal
control reported at the financial statement level
(GAGAS)?

(d)(1)(iii)

Was there any reported material noncompliance at
the financial statement level (GAGAS)?

(d)(1)(iv)

Were there any material weaknesses in internal
control reported for major federal programs?

(d)(1)(iv)

Were there any significant deficiencies in internal
control reported for major federal programs?

(d)(1)(v)

Type of Major Program’s
Compliance Opinion

Unmodified

(d)(1)(vi)

Are there any reportable findings under 2 CFR
§200.516(a)?

Yes

(d)(1)(vii)

Major Programs (list):

(d)(1)(viii)

Dollar Threshold: Type A\B Programs

Type A: > $750,000
Type B: all others

(d)(1)(ix)

Low Risk Auditee 2 CFR §200.520?

Airport Improvement Program
AL #20.106
Coronavirus State and Local Fiscal
Recovery Funds
AL #21.027

168
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Item 5B.

City of Morgantown, West Virginia
Schedule of Findings
2 CFR § 200.515
June 30, 2025

2. FINDINGS RELATED TO THE FINANCIAL STATEMENTS
REQUIRED TO BE REPORTED IN ACCORDANCE WITH GAGAS
None noted

3. FINDINGS FOR FEDERAL AWARDS
Finding Number 2025-001
Material Noncompliance – Timeliness of Single Audit
We noted that the City did not submit the single audit reporting package to the Federal Audit
Clearinghouse within the prescribed timeframe.
Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements,
Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) section 200.512
states:
“The audit must be completed and the data collection form…and reporting package...must
be submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or
nine months after the end of the audit period.
The federal awarding agency or pass-through entity may impose additional conditions, or take
actions that could include in part: temporarily withhold cash payments, disallow all or part of the
cost of the activity, wholly or partly suspend or terminate the Federal award, withhold further
Federal awards for the project or program, or take other remedies that may be legally available.
For future single audits, the City should endeavor to ensure that their complied financial statements
are completed prior to the single audit deadline.
Officials Response:
The City of Morgantown agrees with the noncompliance finding related to not submitting the
Single Audit reporting package to the Federal Audit Clearinghouse within the timeframe required
by 2 CFR §200.512.
The delay was due to the unanticipated turnover of key Finance Department personnel in the
Spring of 2025. This staffing turnover was unrelated to any fraud or misconduct but resulted in
delays to year-end financial processes.
The City’s corrective action included appointing a new Finance Director and promoting the
Compliance Manager to Assistant Finance Director to restore operational continuity and leveraged
institutional knowledge withing the Finance Department. Internal controls and audit timelines
were reviewed and reinforced to ensure future compliance.
With these measures in place, City Leadership expects full compliance with Single Audit
submission requirements going forward.
169
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Item 5B.

P: 304-284-7412
Morgantownwv.gov
389 Spruce St.
Morgantown, WV 26505

Corrective Action Plan
Uniform Guidance Reference: 2 CFR §200.511(c)
Fiscal Year Ending June 30, 2025
Finding Number: 2025-001
Condition Identified:
The City did not submit the Single Audit reporting package to the Federal Audit
Clearinghouse within the timeframe prescribed by 2 CFR §200.512. The regulation
requires submission within the earlier of:
 30 calendar days after receipt of the auditor’s report, or
 Nine months after the end of the audit period.
Cause:
The delay in submission was directly attributable to the unexpected turnover of key
personnel within the City’s Finance Department during the Spring of 2024.
It is important to note that this turnover was not related to any suspected or actual
fraud, misconduct, or performance issues.
As a result, critical year-end accounting processes and audit preparation tasks were
delayed, impacting the timely completion of the Single Audit.
Effect:
The City was unable to meet the federally mandated deadline for submission of the
Single Audit reporting package. This resulted in a material noncompliance finding in
the Fiscal Year Ended June 30, 2025 audit report.

170
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Item 5B.

Corrective Action Taken:
To promptly address the turnover disruption and restore full compliance functionality
within the Finance Department, the City undertook the following actions:
 A new Finance Director was appointed, and the existing Compliance Manager
was promoted to Assistant Finance Director. This approach ensured operational
continuity and leveraged institutional knowledge to maintain momentum in key
financial processes.
 The City’s Finance Department conducted a comprehensive review of its
internal controls over audit preparation timelines. These procedures were
strengthened to support timely and accurate financial reporting in alignment
with federal compliance standards.
Federal Compliance Oversight:
The City of Morgantown has designated the Finance Director responsible for
monitoring federal reporting requirements and coordinating with external auditors to
ensure timely submission.
Anticipated Outcome:
With these corrective actions in place, the City is confident that future Single Audit
submissions will be completed within the required timeframe. The Finance
Department is now fully staffed and operational, and the internal processes have
been strengthened to prevent recurrence of this issue.

171

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Item 5B.

P: 304-284-7412
Morgantownwv.gov
389 Spruce St.
Morgantown, WV 26505

External Audit of the City’s Financial Statements
for the Fiscal Year Ending June 30, 2025
1. Overview of Audit Engagement






Audit Firm: BHM CPA Group, Inc.
Engagement Partner: Timothy W. Loper Jr., CPA
Engagement Letter Date: November 6, 2024
WV State Auditor’s Office Approval: December 6, 2024
Audit Report Date: July 30, 2026

The audit was conducted in accordance with Generally Accepted Auditing Standards
(GAAS) and Government Auditing Standards, ensuring a comprehensive and
independent review of the City’s financial statements and compliance obligations.
2. Financial Statement Audit Opinion Letter (Pages 1 through 4)
 Audit Opinion: Unmodified
 Key Statement (Page 1, Paragraph 2):
“In our opinion, based on our audit and the reports of other auditors, the
financial statements… present fairly, in all material respects… in accordance
with accounting principles generally accepted in the United States of America.”

1
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Item 5B.

Key Highlight #1: This type of report represents the highest level of assurance an
independent auditor can provide.
Key Highlight #2: Indicates that the City’s financial statements are free from material
misstatement and conform to GAAP.

2
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Item 5B.

3. Report on Internal Control Over Financial Reporting and

Compliance (GAS) (Pages 161 – 162)
 Summary of Findings:
o No significant deficiencies identified
o No material weaknesses identified
o No reportable instances of noncompliance identified

3
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Item 5B.

4. Report on Compliance with Major Federal Programs (Uniform
Guidance) (Pages 163 – 165)
 Key Statement (Page 162, Paragraph 2):
“In our opinion, the City of Morgantown complied, in all material respects with
the compliance requirements referred to above that could have a direct and
material effect on each of its major federal programs for the year ended June
30, 2025.”

4
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Item 5B.

 Summary of Findings:
o One instance of noncompliance related to timeliness of Single Audit
Submission. The City is required to submit the data collection form and
reporting package within the earlier of 30 calendar days after receipt of
5
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Item 5B.

the auditor's report(s) or 9 months after the end of the audit period, to
comply with 2 CFR § 200.512(a)(1).
Key Statement (Page 164, last sentence): This finding did NOT modify
the Auditor’s opinion on the City’s Major Federal Programs

The City’s Response and Corrective Actions (Page 169 -171):
The City of Morgantown agrees with the noncompliance finding related to not
submitting the Single Audit reporting package to the Federal Audit Clearinghouse
within the timeframe required by 2 CFR §200.512.
The delay was due to the unanticipated turnover of key Finance Department
personnel in the Spring of 2025. This staffing turnover was unrelated to any fraud or
misconduct but resulted in delays to year-end financial processes.
The City’s corrective action included appointing a new Finance Director and promoting
the Compliance Manager to Assistant Finance Director to restore operational
continuity and leveraged institutional knowledge withing the Finance Department.
Internal controls and audit timelines were reviewed and reinforced to ensure future
compliance.
With these measures in place, City Leadership expects full compliance with Single
Audit submission requirements going forward.

5. Report on Compliance with Passenger Facility Charge Program
(Airport PFC) (pages 166 – 167)
 Summary of Findings:
o No significant deficiencies identified
o No material weaknesses identified
o No reportable instances of noncompliance identified
 Key Statement (Page 165, Paragraph 3):
6
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Item 5B.

“In our opinion, City of Morgantown complied, in all material respects, with the
requirements referred to above that are applicable to its passenger facility
charge program for the year ended June 30, 2025.”

7
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Item 5B.

Summary & Conclusion:
 Summary of the FY25 Audit Report Package
o The City received clean (unmodified) audit opinions
o No material weaknesses or significant deficiencies were identified.
o One minor compliance issue was addressed regarding timeliness due to
staffing turnover.
Special Thanks: Preparing the City’s books and records for the annual audit
was a collaborative effort, and I want to extend sincere appreciation to
everyone in the Finance Department who contributed to this important
process.
The staff continues to strive to improve the timing for completing the audit,
with this year concluding a month prior to the prior year audit timing. Staff
continues to look to improve the timeliness and finalization of future reports.
A special note of thanks goes to Jon Furgison, Denise Stefanizzi, Courtney
Latocha, and Brandon Oliver for their outstanding contributions. Their
dedication, attention to detail, and professionalism were instrumental in
ensuring the successful completion of our audit preparation.
Conclusion: City leadership remains committed to maintaining high standards in
financial management and compliance. The results of this audit reflect the resilience
and professionalism of the Finance Department and the City’s dedication to sound
fiscal governance.
We appreciate the continued support of City Council and look forward to building on
this strong foundation in the coming fiscal year.

Respectfully yours,

Jennifer Street
Interim Director of Finance

8
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Item 6A.

MORGANTOWN
OFFICE OF THE MAYOR

PROCLAMATION
Whereas,

international education is one process by which people of one country become
familiar with people of another country, and share their values, traditions, and
cultures; and

Whereas,

the achievement of the goal of cultural exchange requires the patience and
heartfelt interests of everyone involved, the hosts and the guests in sharing their
dreams, hopes and ideas; and

Whereas,

the study of foreign languages and different cultures provides an immediate
bridge to international understanding and cooperation; and

Whereas,

the study of languages of different world regions fosters greater communication,
understanding, and appreciation of people from diverse cultures; and

Whereas

the West Virginia Council of International Programs Board of Directors and
volunteers based in Morgantown, West Virginia, continue to bridge the hundreds
of miles that separate the people of the United States with many other countries
and regions of the world; and

Whereas

Now therefore, I, Danielle Trumble, Mayor of the City of Morgantown, West Virginia, on behalf of City
Council, do hereby proclaim the ___ day of ___ , 2026 as,

West Virginia Council of International Programs Day
in the City of Morgantown and offer thanks and appreciation to those visiting CIP professionals
who came to our city, the local host families, the placement agencies, and the CIP’s volunteer
board of directors – for they truly are the world’s “cultural ambassadors”

Seal:

_______________________________
Danielle Trumble, Mayor
July 7, 2026

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Item 6B.

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Item 11A.

City Council
Agenda Item Summary
Council Meeting Date: 09/1/2026

Item:
Department:
Requested By:
Strategic Goal:

Resolution Amending the FY 2026-2027 Budget Revision for the
Morgantown General Fund (Revision #2)
Finance Department
Jennifer Street, Assistant Finance Director
Excellent and Responsible – Fiscal Sustainability

Recommended Motion: Move to approve the resolution amending the FY2026-2027
Budget Revision for the Morgantown General Fund (Revision #2)
Item Summary:
Attached is a narrative and proposed amendment to the FY27 General Fund Budget
(Revision #2) as follows:

1. Reallocation of Available Contingency
Purpose:
The purpose of this budget revision is to realign FY27 appropriations to address
increased employee benefit costs. Specifically, this revision provides additional
funding for life insurance, medical premiums, and insurance claims expenditures that
are currently exceeding budgeted projections.

Overview:
This budget revision reallocates existing General Fund resources to support the Life
and Health Fund while maintaining overall fiscal balance.

 Increase in Budgeted Expenditures:
o Account 509 – Life and Health: An increase of $413,250 is requested
for the Life and Health Fund to address higher-than-anticipated
employee benefit costs. The additional appropriation will support
1
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Item 11A.

City Council
Agenda Item Summary
o expenditures related to life insurance, medical premiums, and
insurance claims. This adjustment will ensure the city can continue to
provide employees with access to essential benefits while meeting
current funding obligations.
o Account 001-699 – Contingency: To fund the increase in the Life and
Health Fund, a corresponding decrease of $413,250 is proposed in the
General Fund Contingency account. The use of contingency funds
allows the City to address these unanticipated cost pressures without
increasing overall appropriations or negatively impacting the General
Fund's financial position.
Additional Context:
In January 2025, the City transferred $3,315,040 from the Fiscal Stabilization
Fund to the Life and Health Fund to strengthen the fund’s financial position and
support ongoing employee benefit obligations. Since that time, the fund has
experienced significant cost pressures driven by rising medical claims,
increasing healthcare premiums, and other employee benefit expenses. As a
result, available fund balances have been substantially reduced. The Health and
Life Subcommittee continues to review funding levels, claims experience, and
the overall financial condition of the fund, while also evaluating potential plan
design changes to help manage costs and ensure the long-term sustainability of
the City’s employee benefits program.
Conclusion:
This proposed budget revision reflects a disciplined and responsive approach to
financial management by addressing identified cost pressures while
maintaining overall budget balance. The proposed reallocations ensure that
employee benefit obligations are adequately funded through fiscal year‑end
without increasing total General Fund appropriations. By strategically utilizing
contingency resources, this revision aligns the FY27 budget with actual
operational conditions, preserves fiscal integrity, and supports the continued
delivery of reliable City services.
2
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Item 11A.

City Council
Agenda Item Summary
Fiscal Impact: A net change of $0 to the overall General Fund’s FY26 Budget
appropriations.

3
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Item 11A.

Resolution No. 2026-___

A RESOLUTION OF THE CITY OF MORGANTOWN
Amending the 2026-2027 Budget for the Morgantown General Fund
Budget Revision No. 2
The City of Morgantown hereby resolve as follows:
Section 1. Findings and Purpose.
The City Council finds and determines that the Fiscal Year 2026-2027 General Fund budget should
be amended as stated in this Resolution.
Section 2. Adoption of Revision to Fiscal Year 2026-2027 General Fund budget.
The City of Morgantown Fiscal Year 2026-2027 General Fund budget is hereby amended as shown
in the attached schedule, which is incorporated in this Resolution by reference.
Section 3. Repeal, Savings, Severability.
Any section of this Code repealed or modified by a subsequent Resolution will continue in force
until the effective date of the repealing Resolution.
The repeal or modification of any part of this Code does not affect any existing right acquired, or
liability or obligation incurred, under the code sections amended or repealed unless the modifying
Resolution expressly so provides. Any repealed or modified part of this Code will remain in force
for the purpose of sustaining any proper legal proceedings and prosecutions related to the
enforcement of such right or liability brought prior to the repeal or modification.
The repeal of any repealing Resolution, clause, or provision does not revive any former Resolution,
clause, or provision unless expressly provided by Resolution.
If any provision of this Resolution, or the application of this Resolution to any person or
circumstance, is held invalid by a court of competent jurisdiction or other entity or agency having
jurisdiction to make such determination, the remainder of this Resolution and the application to
other persons or circumstances remain in effect.
Section 4. Effective date; application. This Resolution shall be effective upon adoption, subject
to any approval or other action required by the office of the West Virginia State Auditor. This
Resolution does not affect rights, duties, or liabilities that matured, penalties that were incurred,
and proceedings that were begun, before its effective date. The law remains in force for the purpose
of sustaining any proper action or prosecution for the enforcement of the right, penalty, forfeiture
or liability.

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Item 11A.

Section 5. Recording of Resolution. The City Clerk is directed to obtain all signatures required
by the form of Resolution adopted and maintain an executed original Resolution with the official
records of the City of Morgantown, to be maintained, preserved, and accessed in accordance with
the laws of the State of West Virginia and the City of Morgantown, and to take the following
additional actions: Deliver an executed copy of the Resolution to the Director of Finance and
Support Services.
Adopted this ____ day of _________.
________________________
Mayor
________________________
City Clerk

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Item 11A.

Record of Roll Call Vote
The following votes were recorded for the foregoing ordinance or resolution:
Councilor M. Joeseph Abu-Ghannam, First Ward:

____Yes

____No

____Absent

Councilor Jodi Hollingshead, Second Ward:

____Yes

____No

____Absent

Councilor Louise Michael, Third Ward:

____Yes

____No

____Absent

Councilor Jennifer Selin, Fourth Ward:

____Yes

____No

____Absent

Mayor Danielle Trumble, Fifth Ward:

____Yes

____No

____Absent

Councilor Mark Downs, Sixth Ward:

____Yes

____No

____Absent

Deputy Mayor Brian Butcher, Sevent h Ward:

____Yes

____No

____Absent

Attest:
______________________________
City Clerk

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Item 11A.

REQUEST FOR REVISION TO APPROVED BUDGET

LGSD BR (Ver. 2023)

Subject to approval of the state auditor, the governing body requests
Ora Ash, Deputy State Auditor

that the budget be revised prior to the expenditure or obligation of funds

West Virginia State Auditor's Office

for which no appropriation or insufficient appropriation currently exists.

200 West Main Street
Clarksburg, WV 26301
Phone: 304-627-2415 ext. 5101 or ext. 5119
Fax: 304-340-5090
Email: [email protected]

(§ 11-8-26a)

Revision Number:

389 SPRUCE STREET
STREET OR PO BOX
MORGANTOWN
CITY

699

Contingencies

2
1 of 1

Municipality
26505
ZIP CODE

PREVIOUSLY
APPROVED AMOUNT

INCREASE

REVISED
AMOUNT

(DECREASE)
-

Explanation for Account # 378, Municipal Specific:
Explanation for Account # 369, Contributions from Other Funds:

Employee Health Benefits

001

Government Type

NET INCREASE/(DECREASE) Revenues (ALL PAGES)

509

2026-2027

CITY OF MORGANTOWN
GOVERNMENT ENTITY

EXPENDITURES: (net each acct.)
ACCOUNT
ACCOUNT
NUMBER
DESCRIPTION

Fund:
Pages:

Person To Contact Regarding Request:
Name: Jennifer Street
Phone: 304-284-2571
Fax: 304-284-7418
Email: [email protected]
REVENUES: (net each acct.)
ACCOUNT
ACCOUNT
NUMBER
DESCRIPTION

CONTROL NUMBER
Fiscal Year Ending:

Financial Stabilization Fund

(WV CODE 7-1-9)

PREVIOUSLY
APPROVED AMOUNT

INCREASE

REVISED
AMOUNT

(DECREASE)

413,250

1,413,250

(413,250)

1,000,000

AUTHORIZED SIGNATURE
OF ENTITY

8/18/2026
APPROVAL
DATE

NET INCREASE/(DECREASE) Expenditures (ALL PAGES)

APPROVED BY THE STATE AUDITOR
BY:
Deputy State Auditor, Local Government Services Division

Date

205

Page 206 of 207

Item 12A.

City Council
Agenda Item Summary
Council Meeting Date: 09/01/2026
Item:
Department:
Requested By:
Strategic Goal:

2027 City Council Calendar
City Council
City Clerk
Compassionate and Engaged

Recommended Motion: Move to approve the 2027 City Council calendar.

Item Summary:
The proposed 2027 City Council meeting calendar has been prepared for approval. In
reviewing the schedule, staff ensured that regular and Work Session meetings were not
impacted by city holidays.
Two WVML Conferences and two NLC Conferences fall within the year and options to
move council meetings are included in the attached calendar. Council may choose to
consider this option if desired. These include:





WVML Mid-Winter Conference – February 15-17, 2027, Charleston
NLC Congressional City Conference – March 15-17, 2027, Washington, DC
WVML Annual Conference – August 3-6, 2027, Wheeling, WV
NLC City Summit Conference – November 17-20, 2027, Houston, TX

The attached calendar reflects the full year of scheduled meetings as proposed.
Fiscal Impact: No direct fiscal impact. Costs related to council meetings are routine
and already included in the adopted operating budget.

206

Page 207 of 207

Item 12A.

2027 City Council Meetings
REGULAR

WORKSHOP

Tuesday, January 5, 2027

Tuesday, January 26, 2027
Option 2

Tuesday, March 23, 2027

NO WORKSHOP

Tuesday, March 30, 2027

Option 2

Tuesday, March 9, 2027

Tuesday, February 23, 2027

NO WORKSHOP

Tuesday, April 6, 2027

No Meeting - Election Day - Tuesday, April 27, 2027

Tuesday, April 20, 2027
Tuesday, May 4, 2027

Tuesday, May 25, 2027

Tuesday, May 18, 2027
Tuesday, June 1, 2027

Tuesday, June 29, 2027

Tuesday, June 15, 2027
Tuesday, July 6, 2027

Tuesday, July 27, 2027

Tuesday, August 17, 2027

Tuesday, August 10, 2027
Tuesday, August 24, 2027

Option 1

8/3/2027 (Week of WVML Annual
Conference)

Option 2

Option 1

Tuesday, July 20, 2027

Tuesday, September 7, 2027
Tuesday, October 5, 2027

Tuesday, October 26, 2027
Tuesday, November 9, 2027
Tuesday, November 23, 2027

Tuesday, December 7, 2027
Tuesday, December 14, 2027

Option 1

Option 2

Option 1

Tuesday, October 19, 2027

Tuesday, November 16, 2027 (Week of
NLC City Summit Conference)

NO WORKSHOP

Tuesday, September 28, 2027

Tuesday, September 21, 2027

Tuesday, November 2, 2027

Tuesday, August 31, 2027

Option 2

Tuesday, February 23, 2027

Tuesday, November 30, 2027

Option 2

3/2/2027 (Week of NLC Cong City
Conference)
Tuesday, March 16, 2027

Tuesday, February 9, 2027

Option 1

Tuesday, February 16, 2027 (Week of
WVML Mid-winter Conf)

Option 1

Tuesday, February 2, 2027

Option 1

Tuesday, January 19, 2027

NO WORKSHOP

WVML Mid-winter Conference February 15-17, 2027, Charleston
NLC Congressional City Conference, March 15-17, 2027, DC
WVML Annual Conference, August 3-6, 2027, Wheeling, WV
NLC City Summit Conference, November 17-20, 2027, Houston, TX

207

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Agenda Watch · Aug 28, 2026
DeFlock research desk · Aug 28, 2026

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Aug 28, 2026 Filed on the Docket
Aug 28, 2026 Full document archived — public record
Sep 18, 2026 Corroborated by another source DeFlock research desk
Sep 18, 2026 Record updated

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