Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, March 21, 1990                   TAG: 9003212331
SECTION: VIRGINIA                    PAGE: B1   EDITION: BEDFORD
SOURCE: MONICA DAVEY STAFF WRITER
DATELINE: BEDFORD                                 LENGTH: Medium

MEALS TAX TO BE PUT TO VOTE

A meals tax referendum failed in the county just two years ago by a vote of 9,495 to 4,059. But county supervisors, searching for a way to raise revenues in coming years, said history does not have to repeat itself.

"We did not promote it, we didn't sell it, and we did no education on it," Supervisor T.D. Thornton said of the 1988 referendum.

"It's a fair tax. If we go to the areas around us to eat, we will pay. And they should pay us, too." If a referendum passed in the county, the supervisors could set a tax on meals of up to 4 percent of a restaurant bill.

Supervisors searched for ways to increase future revenues Tuesday as they worked on the county's 1990-91 budget.

The supervisors have agreed to cut $350,000 in spending from a proposed $52.9 million budget. But even with the cuts, some supervisors said they were worried about future budgets, given a one-time windfall of revenues anticipated next year.

The county will pick up about $4 million more than usual because of a switch in June to twice-a-year real estate tax collection. In future years, county officials cannot again expect to bring in that extra money unless tax rates were raised or growth increased dramatically.

Supervisors would be spending about $1 million of that reserve money next year if current tax rates were left alone and no more spending cuts were made from the proposed budget. The county has advertised for public hearing a tax increase of 2 cents, to 62 cents per $100 assessed valuation next year.

A 2-cent tax increase would generate an extra $338,000 for the county. Still, supervisors would dig into the reserve fund by about $650,000.

Either way, using that reserve $4 million seems to make supervisors nervous. "I'd hate to see that," Chairman A.A. "Gus" Saarnijoki said. "We're going to have to make this up next year."

In making their cuts, the supervisors left the county schools' proposed $36 million budget alone. The schools are asking for a $2.1 million more in county funds. That's a 22.7 percent increase over this year's funds.

Thornton suggested that supervisors leave the proposed schools' budget alone but hold Superintendent John Kent to a promise he made last month: If the supervisors agreed to his 1990-91 budget, Kent would not ask for more than a 5 percent increase in the near future.

Kent and school board members have complained in the past two years that supervisors ruthlessly cut their budgets despite increasing demands from the state legislature and a growing school-age population in Bedford.

Some other supervisors indicated Tuesday that they believe a few things - like new windows in the school board office - could be cut. But in the end, they left it alone.

"My recommendation is that we go as we are," Saarnijoki said. "I can't see finding, say, $350,000 to cut. On the other hand, between now and the fourth of April, we could find it."

A public hearing will be held on the county and school budgets next Tuesday, and supervisors are to adopt a budget and set the tax rates April 4.

Among areas the supervisors did agree Tuesday to cut spending were:

New personnel that were requested by the sheriff's department and the commonwealth's attorney's office but were rejected by the State Compensation Board, which decides how much state funding goes to localities to fund courts and law enforcement.

Additional money requested by the sheriff's department for a boat on Smith Mountain Lake. The county gave $25,000 for that purpose this year.

Money requested by Bedford Main Street Inc., Bedford YMCA and Center in the Square.