Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, March 6, 1991 TAG: 9103060289
SECTION: CURRENT PAGE: NRV-2 EDITION: NEW RIVER VALLEY
SOURCE: GREG EDWARDS/ NEW RIVER VALLEY BUREAU
DATELINE: CHRISTIANSBURG LENGTH: Medium
At Monday night's authority meeting, they learned they will need to increase the county's subsidy to the authority to $230,119 to cover a larger-than-expected operating deficit next year. The proposed subsidy had been $135,800.
The supervisors already face the prospect of raising the county's real estate tax rate from 3 cents to 5 cents to balance the overall budget for 1991-92. Adding $95,000 to that would mean roughly another half-cent increase in the tax rate.
The supervisors meet tonight to finish up their budget and set a proposed tax rate for the next fiscal year. A public hearing will be held March 21.
The alternative to raising taxes for all county property owners would be raising the fees for those who use sewer or water services - which led to a testy exchange between two supervisors.
"What I don't see this body doing is, we're not looking at ways to reduce this amount by looking at water and sewer rates," said Supervisor Todd Solberg, who never misses a chance to argue that the authority should be more self-supporting.
"You can't increase water and sewer rates way above our neighbors," Supervisor Henry Jablonski responded. "You can't double or triple somebody's rates overnight."
Jablonski said he believed other localities subsidize utility rates as Montgomery County does. But it's not as big an issue because they don't have accounting through a separate public service authority, he said.
Solberg responded that the authority was not looking at adjusting rates annually as operating costs increase. He said the PSA had once gone for a decade without raising rates.
During 1989-90, county taxpayers subsidized the PSA by $128,000.
County sewer rates, based on water use, were increased Jan. 1 for the first time since July 1981. Residential customers pay $14 for the first 4,000 gallons and $3.50 for each 1,000 gallons over that.
The latest county water rate took effect last April 1. Residential customers pay $9 for the first 2,000 gallons of water, $4.50 per 1,000 for the next 8,000 gallons, and $4 per 1,000 for the next 20,000 gallons.
The supervisors learned of the additional subsidy needed during a discussion of a proposed change in the way the authority's accounts are handled. The authority adopted the new system, intended to make it easier to keep up with its financial condition.
Authority member Joe Stewart didn't vote, saying he didn't understand the changes.
One sewer rate was increased Monday night, a 20 percent boost for service in Radford on Rock Road and U.S. 11. Again, Stewart abstained.
Related to efforts to provide a pure water source for the Elliston and Shawsville areas, the authority approved a $6,340 contract with Roanoke Pump Sales & Services for monitoring and testing new wells. Stewart abstained.
The authority also approved payment to Simmons Well Drilling for the well in Kirk Hollow in Shawsville, which cost $6,431, and the Elliston well, which cost $11,117. Stewart abstained.
Meanwhile, the authority also is talking with both the Town of Christiansburg and Roanoke County about providing water to the Elliston-Shawsville area.
But the authority heard some bad news about efforts to get clean water for Alleghany Springs, which, like Elliston and Shawsville, is in the southeastern portion of the county.
The Farmers Home Administration has turned down the county's application for a $500,000 emergency grant to deal with water contamination there because county officials have known about the problem for over two years.
***CORRECTION***
Published correction ran on March 7, 1991.
Because of an editor's error, the wrong fraction was used in a story in Wednesday's New River Current as the amount of tax increase needed in Montgomery County to generate $95,000. The correct figure figure is a third of a cent, not a half-cent.
Memo: CORRECTION