Financial Impact Of Alderson Broaddus University Closure Affects Philippi Utilities

In a recent City Council meeting on Tuesday, February 6, City Manager Jeremy Drennen presented a sobering report on the financial repercussions the closure of Alderson Broaddus University (AB) has had on the utilities in the City of Philippi. The report shed light on a substantial decrease in utility revenues.

"The attached shows a breakdown by utility that reveals the utility impact of the closure of AB. We compared August 2022 – January 2023 to August 2023 to January 2024, which represents six months without AB," stated Drennen during the presentation.

The numbers presented indicated what was an expected decline, with the city's utility billing registering $488,000 less overall in the six-month comparison. When annualized, this translates to a substantial $976,000 reduction.

"The General Fund impact has been $8,400 through the first six months and could reach almost $17,000 within a year," added Drennen. “While some direct costs have seen a decrease, the majority have remained constant.”

Drennen emphasized, "Though some direct costs have gone down, the majority of our costs have stayed the same, and we are showing losses in the majority of the funds presented."

The report highlighted that certain costs have not seen a reduction, including payroll and associated expenses, as well as maintenance of equipment. These factors contribute to the overall financial impact on the city's utilities.

City officials are eagerly awaiting additional tax return data to assess the Business and Occupation (B&O) tax impact, with plans to present their findings in the upcoming council meeting. The hope is that a more comprehensive understanding of the financial implications will guide future decision-making and aid in developing a sustainable financial strategy for the City of Philippi.