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

DATE: THURSDAY, April 11, 1991                   TAG: 9104120873
SECTION: NEIGHBORS                    PAGE: E-16   EDITION: METRO 
SOURCE: BETSY BIESENBACH/ SPECIAL TO THE ROANOKE TIMES & WORLD-NEWS
DATELINE:                                 LENGTH: Medium

VINTON STUDIES RAISING UTILITY RATES TO KEEP BUDGET IN GOOD SHAPE

"Vinton is facing a very challenging time in its history," said Brad Corcoran. With that pronouncement, Vinton's town manager unveiled a plan for the 1991-92 budget that will raise some utility rates and will require a $1.1 million-bond issue to meet capital expenditures.

At a budget work session Monday, Corcoran told Town Council that Vinton is in good financial shape. But because the town has little room for expansion and a declining population that is growing increasingly older, Corcoran said the town is faced with the choice of reducing expenditures and raising utility rates or using reserve funds to cover expenditures, as it has in the past.

The total budget for 1991-92 will be $5,979,500, a 3.32 percent decrease from 1990-91. Although Vinton is not as dependent on state monies as some other Roanoke Valley localities and will, in fact, receive more money from certain programs, there still will be less to go around, Corcoran said.

The main thrust of the budget, which Councilman Don Davis called "the most realistic" budget he has seen in his years on council, is to keep the reserve fund intact in order to maintain the town's solvency.

For the past three years, Corcoran said, the reserve fund has been used to make up the difference between revenues from water and sewer service and their actual cost.

Raising the water and sewer rates by 15 percent this year is part of an "incremental" plan to raise one or two utility rates each year until they are sufficient to cover operating costs.

These rates have not been changed since 1983 and 1984, respectively, and even after the increase still will be "very reasonable" compared to other area localities, Corcoran said.

The water rate increase will bring in $118,457 in additional revenues, and the sewer rate increase should bring in $60,959.

The new budget also includes a five-year, $1.1 million-bond issue that will be used to refinance a 1985 bond issue, and will be used to purchase a new fire truck and a crash truck for the first-aid crew.

In addition, cost-of-living raises for town employees will be held at 3 percent, and an admissions tax, which is expected to bring in revenues of $14,000, will be enacted.

Two budgeted items caused heated debate among council members: the proposed building of a $35,000 restroom and office complex at the Vinton Farmer's Market and the purchase of new chairs for the Vinton War Memorial. Both items were left in the budget but were put on hold for further study.

A public hearing on the budget will be held May 3, Corcoran said. It is scheduled for final approval May 21.

by CNB