Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: MONDAY, July 2, 1990 TAG: 9007020231
SECTION: VIRGINIA PAGE: A3 EDITION: EVENING
SOURCE: JOEL TURNER MUNICIPAL WRITER
DATELINE: LENGTH: Medium
And city residents will have to pay higher water and sewer rates in a month.
The increase in the cigarette tax was timed to coincide with the beginning of the new fiscal year Sunday.
The bus fares had been scheduled to increase today, but Valley Metro has delayed them two weeks because it is waiting for new weekly and monthly passes to be delivered.
Valley Metro's regular one-trip fare will increase from 75 cents to $1, and the discount fare for elderly and handicapped passengers will increase from 35 to 50 cents.
The students fare will go to 50 cents, up from 40 cents. And the cost for a monthly pass that provides an unlimited number of rides will increase from $25 to $28.
City Council approved the higher cigarette tax and bus fares when it approved a new budget in May.
A 12-percent increase in water and sewer rates, which was approved last week, will take effect Aug. 1.
Some councilmen had reservations about doubling the cigarette tax because they are afraid that some city residents might travel to Roanoke County to buy cigarettes because the county doesn't tax them.
They fear that city residents might buy other merchandise if they go to the county to buy their cigarettes, causing the city to lose sales tax money.
But Finance Director Joel Schlanger does not think the higher tax will cause any significant loss of revenue in other tax categories.
The 5-cent increase is estimated to generate an additional $400,000 next year, raising the revenue from the cigarette levy to $970,000.
Councilman Howard Musser, chairman of Valley Metro's budget committee, said earlier the higher fares are needed because costs have increased in recent years and the subsidies that are required by federal, state and city governments keep increasing.
The last increase occurred in 1982 when the cash fare was raised from 60 to 75 cents, and the cost for a 10-ride ticket increased from $5 to $7.
Despite the higher fares, passengers who use the buses regularly may save money if they buy several new types of weekly passes that will be offered by Valley Metro.
These include:
A $8 weekly pass for regular adult passengers. It will replace the 10-ride ticket that is now offered for $7.
A $4 weekly pass for elderly and handicapped passengers. It will replace the 10-ride ticket that is now offered to elderly and handicapped passengers for $3.25 for trips between 9 a. m. and 3 p.m. Monday through Friday and all day on Saturday. The $4 weekly pass will allow elderly and handicapped passengers to take an unlimited number of trips each week and ride the bus at anytime.
by CNB