Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, July 3, 1990 TAG: 9007030351
SECTION: VIRGINIA PAGE: B-1 EDITION: METRO
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.
The bus fares had been scheduled to increase Monday, 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 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, 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, had said the higher fares were needed because costs have increased in recent years and subsidies are decreasing.
The last fare increase occurred in 1982 when the cost of a ride was raised from 60 to 75 cents.
by CNB