ROANOKE TIMES

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

DATE: TUESDAY, May 8, 1990                   TAG: 9005080637
SECTION: VIRGINIA                    PAGE: B3   EDITION: EVENING 
SOURCE: JOEL TURNER MUNICIPAL WRITER
DATELINE:                                 LENGTH: Medium


ROANOKE'S CIGARETTE TAX TO DOUBLE

Roanoke's cigarette tax will rise from 5 to 10 cents per pack on July 1 to help fund the $152 million budget approved Monday by City Council.

As anticipated, council gave unanimous approval, without making any changes, to City Manager Robert Herbert's recommended budget

Councilman Robert Garland said he had reservations about doubling the cigarette tax because he is afraid some city residents may go to Roanoke County to buy cigarettes, then buy other merchandise as well, causing the city to lose sales tax money. The county doesn't have a cigarette tax.

Garland voted for the tax rise, however.

Finance Director Joel Schlanger said he doesn't think the higher tax will cause any significant loss of revenues in other tax categories.

The city expects to collect $570,000 from the cigarette tax in the current year. Schlanger predicts the 5-cent tax increase will generate an additional $400,000 next year, raising the total revenue from the levy to $970,000.

Council also approved a plan to prorate personal property taxes beginning Jan. 1 so motor vehicle owners can pay taxes only for the time they own the vehicle. This is similar to the system used in Roanoke County.

Currently, city residents who buy vehicles after Jan. 1 don't have to pay taxes on them until the following year.

Herbert recommended the measures to help provide an additional $829,600 for a full-day kindergarten program, a longer high school day, remedial teachers and a dropout-prevention program.

Council also raised Herbert's salary 7.8 percent to $90,000. The salaries of the city's two other top officials - Schlanger and City Attorney Wilburn Dibling - were increased to $80,000 each from $75,000.

Council also approved raises for three other officials: Municipal Auditor William Brogan, $51,415 to $55,000; Director of Real Estate Valuation Von Moody, $49,600 to $53,000; and City Clerk Mary Parker, $45,850 to $49,000.

None of the officials got raises in the current fiscal year; council increased their pension benefits instead - to persuade them to remain with the city, council members said.

The budget provides an average raise of 6.6 percent for the city's other 1,900 workers.

Council members also approved a $1,000 pay raise for themselves, although the salaries of the mayor and vice mayor would remain the same: $15,000 and $13,000 respectively.

The five council members get $12,000 each. Their new salary will be $13,000.



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