Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SATURDAY, March 16, 1991 TAG: 9103160134
SECTION: VIRGINIA PAGE: A-3 EDITION: METRO
SOURCE: JOEL TURNER MUNICIPAL WRITER
DATELINE: LENGTH: Medium
Finance Director Joel Schlanger said the city's sales tax collections dropped by 9.6 percent in February, the fourth consecutive month retail sales have declined.
"It is getting worse," he said.
It is the first time in more than four years that sales tax collections have dropped four straight months, he said.
Schlanger said the latest figures confirm that the economic slump that was affecting Northern Virginia last year now is being felt in the Roanoke Valley.
For the first four months this fiscal year, retail sales rose by 14 percent in Roanoke, while other areas in the state reported declines of 10 to 12 percent. But the situation changed in Roanoke in November, when sales tax collections dropped by 11 percent.
"Cumulatively, we are up only 2.2 percent for the eight months of the fiscal year, but after you consider inflation, that is a minus figure," he said.
Schlanger already had lowered his revenues for the new budget because sales taxes were down during the Christmas season and the General Assembly made more cuts in state aid for localities. He said he is going to study whether he'll have to reduce them again in light of the decline in February sales.
Because of the financial pinch, the city has frozen 48 vacant jobs and asked departments to submit alternative budgets for the new fiscal year reflecting 3 percent and 5 percent cuts. If the 48 jobs remain vacant, the city would save $1.1 million a year.
City officials also got some indication Friday about how well-received another possible cost-saving measure is going to be. Half of the 125 city employees who would be eligible for a retirement incentive plan being considered by City Manager Robert Herbert indicated they would be interested.
City officials still were tabulating the results of a survey of the employees Friday, but Schlanger said, "I would expect at least 50 percent to accept the plan if it is offered." The employees were asked for a preliminary, non-binding decision by Friday.
"Those who have indicated they would be interested are a good cross-section of workers - from top management to down through the ranks," he said.
The results will be used to help determine projected savings if the plan is adopted. All the employees are, or will be, eligible for normal retirement by June 30.
Schlanger said the city will begin calculating the savings next week after the results have been tabulated.
Officials said the retirement-incentive plan could reduce payroll costs by replacing some workers with younger, lower-paid employees. Herbert said the plan is not designed to make a substantial reduction in the city's work force.
Under the proposal, the city would provide a voluntary, one-time incentive to the employees to retire now. Retirement benefits would be calculated on the basis of the employee's current salary, rather than a three-year average, and employees could receive credit for more years of service.
In addition, employees who retire now would receive a monthly supplement until they reach 65, based on their years of service ($10 a month for each year of service). For example, employees who have been with the city for 30 years would receive a supplement of $300 a month, in addition to their pension checks, until they reached 65.
by CNB