Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, May 9, 1990 TAG: 9005090547
SECTION: VIRGINIA PAGE: B-3 EDITION: METRO
SOURCE: LESLIE TAYLOR STAFF WRITER
DATELINE: LENGTH: Medium
Salem's $58 million budget for the next fiscal year, approved by council Monday, includes nearly $200,000 to 27 agencies, the largest appropriation the city has ever made to agencies.
"We have enough money in Salem to be generous to community service agencies," Councilman Alex Brown said. "Salem citizens do use most of the agencies that ask for money. I think we should help pay the cost."
The largest appropriations include $50,000 to Mental Health Services of the Roanoke Valley, $28,000 to Valley Metro, $21,000 to the Association for Retarded Citizens and $20,000 to the Salem Education Foundation.
First-time requests were granted to the Harrison Museum of African American Culture ($2,000), Big Brothers/Big Sisters Inc. ($1,000), Blue Ridge Region of Virginia ($1,200) and The Arts Council/Blue Ridge Renaissance ($2,000).
Since the phasing out three years ago of the federal revenue-sharing program - from which agency fund requests were drawn - the city has turned to its contingency fund for agency allocations.
As the number of agencies requesting funds has increased, so has the dollar amount. Requests this year totaled $215,488, slightly more than one-third of the city's $601,425 contingency fund.
The 1990-91 budget includes a 17 percent increase in water and sewer rates to help offset the cost of citywide public works improvement projects.
City Manager Randy Smith had suggested the rates be increased by a percentage that will enable the Water Department to pay for itself, yet will not permit the Sewer Department to avoid operating at a deficit.
Current monthly water rates for both domestic and commercial customers is $1.20 per 1,000 gallons for the first 50,000 gallons used and $1.10 per 1,000 gallons for the next 450,000 gallons. Any amount over that in one month carries a rate of $1 per 1,000 gallons.
Current monthly sewer rates are $1.45 per 1,000 gallons, based on 100 percent of monthly water consumption. The minimum rate for one month is $6.
Nearly $3.5 million of an upcoming $5 million bond issue has been earmarked for sewer-system improvements - correcting inflow and infiltration problems, repairing faulty lines and extending existing sewer lines. Targeted areas include the Lee Mitchell and Heidelberg Estates subdivisions and the North Mill Road area.
Two of the targeted areas became part of Salem as a result of annexations. The Heidelberg subdivision was part of Roanoke County property annexed into Salem in 1985. The North Mill Road area - where some households are without indoor plumbing - was annexed from the county into Salem in 1966.
The spending plan, scheduled for final adoption June 11, includes $37 million in general fund money, the bulk of which reflects $18.2 million in school funding. The enterprise fund comprises $21 million of the budget.
The budget is 4.7 percent higher than the current fiscal year budget of $55.4 million. The budget maintains the real estate tax rate of $1.18 per $100 of assessed value and a personal property rate of $3.20.
The budget includes $9.2 million in local funding for the city school system, $550,000 more than the city provided in the current budget. All but beginning teachers would receive a 6 percent pay raise in the proposed budget, one that exceeds the state-mandated 5 percent increase.
Council followed Smith's suggestion that $369,000 in meals and lodging tax revenue be allocated for new landfill equipment (a tractor excavator), new equipment for the Sewer Department and to complete funding for the $1 million James I. Moyer Sports Complex.
The meals tax has generated between $800,000 and $1 million a year in revenues for Salem since it was instituted in 1988.
A projected 11 percent growth in sales tax revenue will provide $300,000 in additional revenue. The growth reflects new businesses that have sprouted in Salem during the past year such as Wal-Mart and the Lakeside Plaza shopping center.
The budget does not include any payment to a proposed consolidated Roanoke and Roanoke County government for public facilities in territory identified as being allowed to become part of Salem.
Other budget highlights include:
A 4.5 percent cost of living raise for city employees;
The placement of a portion of the 1989-90 year-end balance in a reserve account, to be applied toward solutions on sewage treatment, landfills, solid waste disposal and recycling;
Nine new positions, including a five-person crew that will be charged with identifying faults in the city sewer system.
by CNB