Two small towns in the Mid-Ohio Valley—Reedy in Roane County and Smithfield in Wetzel County—are facing scrutiny after failing to meet state budget requirements, according to the West Virginia State Auditor’s Office.
In a news release this week, the auditor’s office said that both municipalities, along with Terra Alta in Preston County, are not in compliance with state law regarding their levy estimates and budget submissions for the 2025-2026 fiscal year.
The issue is serious. If a town doesn’t properly adopt its levy rates on time, it risks locking its future revenue at zero. Since state law prohibits levy rates from exceeding 101% of the previous year’s figure, and any percentage of zero remains zero, the financial impact could last for years unless lawmakers step in.
Reedy’s situation appears especially problematic. The state auditor’s office said the town has failed to submit any budget documentation and has not responded to repeated attempts at communication.
Reedy Mayor Richard Martin said the issue stems from a former official’s failure to submit the necessary paperwork. “This is just something that’s out of my control, something that I knew nothing about until it was too late,” he explained. “We’re working on the levy budget, but I don’t know if they’re going to accept it.”
Martin pointed to David Jarvis, who he claimed was the town’s former recorder, as the person responsible for the missed submission. However, Jarvis denied ever holding that role, saying he only agreed to record meeting minutes after the previous recorder stepped down.
Jarvis was among the council members who petitioned to have Martin removed from office last fall, citing alleged financial misconduct.
A three-judge panel is currently reviewing that case. Martin, in turn, said he and another council member removed Jarvis and others from the council for failing to attend meetings. Jarvis disputes the removal process, calling it illegal.
“We were removed from council, illegally, in January or February of this year,” Jarvis said. “We are not responsible for submitting the budget.”
For Smithfield, the issue is different but still problematic. The town submitted its budget on time and received a conditional approval for its levy rates.
However, they failed to notify the state that a public meeting was held to officially adopt those rates. Now, the auditor’s office says it hasn’t received any follow-up confirmation and has been unable to reconnect with town officials.
By law, all municipalities in West Virginia are required to submit their proposed budgets and levy estimates to the auditor’s office in advance of the new fiscal year. The state reviews these documents and sends back either a full or conditional approval.
Municipal leaders must then hold a public hearing—usually on the third Tuesday in April—and officially adopt the levy rates. Finalized levy documents must be submitted within three days of that hearing, and the state is not allowed to accept anything after May 1.
With Reedy unresponsive and Smithfield silent after initial contact, both towns now face uncertain financial futures. Without immediate corrective action or a legislative exemption, their ability to generate and use revenue in the coming year could be severely compromised.
