ROANOKE TIMES

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

DATE: FRIDAY, May 18, 1990                   TAG: 9005180825
SECTION: VIRGINIA                    PAGE: A-1   EDITION: EVENING 
SOURCE: JOEL TURNER MUNICIPAL WRITER
DATELINE:                                 LENGTH: Long


SALEM WANTS MERGER TERMS SETTLED

The city of Salem will oppose the consolidation of Roanoke and Roanoke County unless there is a financial agreement that would allow parts of the county to join Salem, Mayor James Taliaferro said Thursday.

Salem wants the financial terms settled in writing before the consolidation referendum in November, he said.

"We will go one way or the other. We intend to take a position," Taliaferro said.

Voters in Glenvar and other neighborhoods in the Catawba Magisterial District should know before voting on the merger whether they will have a chance to opt out of a merged government, he said.

Under current plans, city and county voters would decide on the merger Nov. 6. If consolidation is approved, a second vote would be held in some areas on whether to join Salem.

The merger agreement does not require a financial settlement between the various governments before the second vote. But unless the financial terms are resolved ahead of time, it could be meaningless to promise some county voters a second referendum.

County Supervisor Steve McGraw said today he agrees that the financial arrangement needs to be resolved before the consolidation vote.

"I believe it would be a sham to promise the residents a second vote if it's not settled before the referendum," he said.

But McGraw still holds out hope that some type of arrangement can be worked out with Salem so parts of the county could receive some services from Salem, but remain a part of the consolidated government.

McGraw's proposal would require special state legislation and Salem officials have given no indication they would be interested in such an arrangement.

Supervisor Bob Johnson said today he thinks McGraw and other members of the county's "new negotiating team" have gotten themselves into an awkward situation and he's not sure how they are going to get out of it.

Johnson, who helped negotiate the merger plan, said the county was "very close" to an agreement with Salem several months ago, but McGraw and a majority of the Board of Supervisors rejected the proposal.

Now the county's new team has gotten itself into a "lose-lose situation," he said.

On the one hand, Roanoke says that all revisions in the consolidation plan should be completed quickly so it can be sent to the U.S. Justice Department. Johnson said Roanoke has valid reasons for wanting to send the plan to the federal agency soon.

On the other hand, Salem says it will oppose consolidation unless there is a financial settlement.

Johnson said he agrees that Salem should not be required to pay an enormous price for territory it might acquire. "You've got to give the people who live in these areas some credit for the taxes they have paid. They have paid their way. You've got to recognize their contribution."

Taliaferro said that if a settlement can be reached before the referendum, Salem City Council may support consolidation.

Salem is willing to make "`a fair and realistic offer" for any territory it might acquire, Taliaferro said, but it will not agree to pay an "outrageous price."

If residents in the western part of the county want to become part of Salem and the price is realistic, he said, Salem will be glad to acquire the territory.

If consolidation is approved without Salem's acquiring additional land, the city would be surrounded by a metropolitan government and have no chance to ever expand its boundaries. The consolidated government would be immune from annexation.

If county officials are trying to use the Salem-west county situation to defeat consolidation, Taliaferro said, they can accomplish that by either dragging out the financial negotiations or demanding an unrealistic price for the territory.

Under the original plan, only Glenvar and a few neighborhoods between Fort Lewis Mountain and Poor Mountain would have been given the chance to join Salem.

This week, city and county negotiators revised the consolidation proposal to allow Mason Cove, Bennett Springs, Catawba Valley and most other parts of the Catawba district to vote on whether to join Salem. That change is likely to be approved by the Board of Supervisors and Roanoke City Council.

In the talks over Glenvar, the consolidation negotiators wanted Salem to pay for public facilities and the loss of tax revenue in the territory for five years - the same basis for compensation that is used in traditional annexation cases in Virginia.

"They wanted us to pay an outrageous number, something like $31 million. They said we were getting the cream [Glenvar] of the west county area and they were keeping the high-cost, low-revenue areas," Taliaferro said.

"Now with their new proposal, they must not want us to pay anything because we would be taking the high-cost areas," he said half-jokingly. Taliaferro said it would be absurd for Salem to pay a large price for areas where it would have to provide services and facilities.

Taliaferro said he had not heard about the proposal to add most of the Catawba district to the second-vote area until he read about it in the newspaper. He plans to meet with city and county officials next week to discuss it.

Taliaferro said he does not see a need for further secrecy about the financial talks. "As far as I am concerned, everything can be open, because we don't have anything to hide."

Charles Landis, a former Roanoke city councilman who moved to the Glenvar area and has become a community leader there, has said he doubted that voters in the western part of the county would vote for merger unless they are assured they can join Salem.



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