Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, June 20, 1990 TAG: 9006200326
SECTION: VIRGINIA PAGE: B-4 EDITION: METRO
SOURCE: JOEL TURNER MUNICIPAL WRITER
DATELINE: LENGTH: Medium
McGraw, who represents the Catawba District, said he will not campaign against consolidation as Supervisor Harry Nickens plans to do, but he will vote against it if there is no financial settlement.
McGraw said "it is regrettable that Salem waited until the 11th hour to get involved."
Salem's refusal to get involved early and the negotiators' attempts to try to please as many people as possible has created a "confusing situation" in which emotions are likely to dominate, McGraw said.
Mayor James Taliaferro has hinted that City Council will reject the proposed settlement, particularly the requirement that Salem agree before the merger election not to accept any annexation petitions for 25 years.
If consolidation passes, the annexation route could close forever because Salem could not annex any part of the consolidated government's territory. Officials say this issue still could be negotiated.
The $16 million financial offer is half the amount that Salem would be required to pay if the consolidation negotiators had stuck with an annexation-type settlement as originally proposed.
Annexation settlements are based on the premise that a city should compensate a county to help offset the loss of part of its territory and tax base.
State law requires an annexing city to pay the county for the publicly owned facilities it acquires and the net loss of tax revenue for five years. It is also required to assume a proportionate share of the county's bonded debt on schools, parks, libraries, sewer and water lines, and other publicly owned property.
McGraw and two other county supervisors agreed to cut the $32 million figure by half after it became apparent that Salem would not consider paying that amount.
The proposed settlement for the Catawba area has caused sharp debate and conflict among the supervisors.
Taliaferro contends it is unfair to require Salem to pay for public facilities in the Catawba area because the residents already have paid for them. Catawba residents have been paying for the facilities with their taxes, he said.
In fact, the county has been making a profit on Catawba because the county's own financial documents show that it collects $7.5 million per year in revenue but spends only $5 million a year on services there, Taliaferro said.
by CNB