DATE: Friday, April 25, 1997                TAG: 9704250596

SECTION: LOCAL                   PAGE: B1   EDITION: FINAL 

SOURCE: BY TONI GUAGENTI, STAFF WRITER 

DATELINE: VIRGINIA BEACH                    LENGTH:   74 lines

BEACH SETS 3-CENT LIMIT ON ANY TAX INCREASE

If the City Council votes next month to increase real estate taxes, it won't be for more than three cents, if any, council members decided Thursday.

It means that the most an owner of a $100,000 house would have to pay would be an additional $30 a year.

There's still the possibility, though, taxpayers won't see any increase.

Thursday, the council had to meet a legal deadline for letting the public know the maximum tax increase it might seek in time for its scheduled public hearing on the budget May 6.

While they didn't decide how much of a tax increase they might adopt, council members also stopped short of determining whether they would earmark any of a potential increase for schools.

The council looked at six different options for funding schools, which included tax increases from as high as 7 cents to none at all.

The council was haggling over the tax increase issue after the School Board twice this week refused to ask the council to raise taxes to help offset a gap in what the board has requested in funding and what the city says it can afford.

The City Council adopted a revenue-sharing policy in February that establishes a set percentage of certain tax revenues to run the city's educational system and requires the School Board to request a tax increase if that percentage does not meet the division's request.

Council members expressed frustration with the School Board for not following the policy.

``There cannot be a policy unless the School Board follows it,'' said Councilwoman Barbara M. Henley.

``I guess I'm frustrated,'' she said. ``We were trying to work with the School Board so we wouldn't have the problems . . . this year.''

The School Board decided by a close vote Wednesday not to touch the tax increase issue, lobbing it back in City Council's court. Board members, though, decided to decrease their budget request from $422 million to $415.8 million.

That still exceeds the $409 million limit that the city says it can afford for schools.

``They did not send you a balanced budget, they sent to you a budget that still has a $6 million problem,'' said E. Dean Block, director of the Department of Management and Budget.

City leaders also expressed frustration that school officials had not yet answered questions posed two weeks ago during a special budget work session between the council and school superintendent.

Those issues include how many teaching positions were funded but not filled in this year's budget, how much money the school system needs for computers and other technology and what's needed to renovate eight of the city's oldest school buildings.

Council members also are concerned about what to do with a projected $16.5 million surplus in this year's school budget. The School Board has estimated the surplus to be between $12 million and $20 million.

Traditionally, the council has returned any surplus to the school system to spend on one-time expenses.

``We've got some very basic questions out there that have not been answered,'' said Councilwoman Louisa M. Strayhorn, ``I find it highly disturbing.''

``I don't think we can be honest with the public until we know the full amount,'' Henley said, referring to two possible referendums on technology and modernization.

City Manager James K. Spore told council members that answers to their questions should be received today from school officials.

The City Council will meet again on the budget Tuesday. The council is scheduled to adopt the budget May 13. ILLUSTRATION: REAL ESTATE TAXES IN VIRGINIA BEACH

SOURCE: City of Virginia Beach

The Virginian-Pilot

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[For a copy of the graphic, see microfilm for this date.] KEYWORDS: VIRGINIA BEACH CITY COUNCIL

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