ROANOKE TIMES

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

DATE: FRIDAY, June 22, 1990                   TAG: 9006220570
SECTION: VIRGINIA                    PAGE: A-3   EDITION: METRO  
SOURCE: JOEL Turner MUNICIPAL WRITER
DATELINE:                                 LENGTH: Medium


SALEM CITES LOW TAXES AT GLENVAR HEARING

Salem Mayor James Taliaferro suggested Thursday night that the Glenvar area of Roanoke County would have lower taxes if it was part of Salem rather than the county or a consolidated metropolitan government.

Salem's tax rates are lower in several categories than the county's, Taliaferro said, noting the personal property, motor vehicle decals and the effective true real estate tax rate.

The county also must find a way to finance several pending major projects - the Spring Hollow reservoir, new landfill and sewage treatment plant expansion - that could push its bonded debt as high as $166 million, Taliaferro said.

Even if the proposed consolidation of the county with Roanoke is defeated, Taliaferro told about 350 Glenvar residents that "things can't stay as they are" in the county because it is facing huge costs for several projects.

He raised the possibility that the county's annual payments for bonded debt could increase dramatically and could require higher taxes.

Taliaferro said the Glenvar residents need to get answers from county officials on these financial issues so they can make a "rational and intelligent" decision on the proposed consolidation plan and the possibility of joining Salem.

In suggesting that Glenvar residents may be facing higher taxes if they remain part of the county, Taliaferro said he didn't want to mislead them or antagonize the county's Board of Supervisors.

But he told the residents that "these are issues that you should get answers about" before the consolidation referendum this fall.

County Supervisor Lee Eddy, who attended the meeting, agreed with Taliaferro that the county must finance several large projects, but he said no decision has been made on how to do it. Eddy said he personally opposes a proposal to double the county's utility tax to help pay for the Spring Hollow reservoir project.

If the Glenvar residents want to join Salem, Taliaferro said "we'd love to have you" if a financial settlement can be reached with the county, allowing most of the Catawba Magisterial District to become part of Salem.

Thursday night's meeting was the second of three meetings to get county and Salem residents' views on the proposed financial settlement, which could require Salem to pay $16 million.

Salem City Council would also be required to agree to a 25-year moratorium on voluntary petitions for annexation by residents to become part of Salem.

Taliaferro and other Salem officials got a warm reception in Glenvar, as they did at a Tuesday night meeting in Mason Cove that attracted more than 250 people.

If the consolidation plan is approved, a second vote will be held to allow residents in Glenvar and most of the Catawba district to decide whether they want to become part of Salem rather than the consolidated government.

Without a financial settlement, a second vote to allow the residents to opt out of the consolidated government would be meaningless.

The proposed $16 million settlement 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.

But Taliaferro told the crowd that the proposal for the Glenvar and Catawba areas to join Salem is not an annexation case and the financial settlement should not be calculated on that basis.

Salem City Council will make a decision July 9 on the proposed financial settlement. Taliaferro has hinted that Salem will reject the $16 million figure, but would be willing to consider a smaller amount that is based on the unpaid debt on facilities in the Catawba district.

If Salem acquires the Catawba district, Taliaferro said it will expand its council, school board and planning commission from five to seven members, with the two additional members coming from the area.

Taliaferro said Salem would also retain the same zoning for the area and adopt all other county ordinances that regulate land-use and other issues in rural areas in the district.



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