Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: MONDAY, April 15, 1991 TAG: 9104150334
SECTION: VIRGINIA PAGE: A1 EDITION: EVENING
SOURCE: JOEL TURNER MUNICIPAL WRITER
DATELINE: LENGTH: Long
Scarcity is the theme of the $152.1 million budget that was given to City Council today. It contains:
No pay raises for city employees and teachers.
A reduction in the city work force by allowing 21 vacant permanent jobs to remain unfilled for the entire year and eliminating 10 temporary jobs. An additional 50 jobs will remain vacant for varying periods.
Cuts in services such as leaf collection, residential street sweeping and mowing of highway median strips. Repairs on some buildings will be delayed and money for a public education program for recycling will be reduced.
A retirement incentive plan designed to persuade up to 123 employees to retire now to lower payroll costs.
"When you understand that the city has already made more than $1 million in cutbacks during the current year due to state budget reductions, the total picture is even more dramatic," Herbert said.
Despite the bad news, Herbert said, there are a few bright spots. No city employees will be laid off and most city services will not be reduced.
The budget is up $54,387, or .04 percent, over the current year.
Herbert said that figure is misleading because money for city operations under his control will decrease by $416,530 in the fiscal year that begins July 1.
The school budget, which is included in the overall budget, will increase by $470,917. Local tax money for schools will increase by $836,668. That is still $2 million below what the School Board says it needs to avoid cuts in programs and to provide raises for teachers.
Herbert's budget includes $87.8 million for city operations and $64.3 million for schools. He provided an additional $127,626 for schools after the School Board adopted a $64.2 million budget that was based on preliminary revenue estimates.
"Education is a key issue in Roanoke and we have worked diligently to reduce the impact on schools," he said. "The school budget has gone up, although only slightly, while the city administration side of the budget has gone down."
The city manager recommended no changes in tax rates. City Council members have said they are in no mood to raise taxes, even if it means the city must reduce service and forgo pay raises for employees.
"The tax-increase question is one for the state because cuts by the state are the main reason for the situation we're in," Herbert said.
The city's financial squeeze has been caused by a $2.7 million cut in state aid and by a growth in local tax revenues that will be less than half the rate of recent years because of the slumping economy.
State aid for schools will decrease by $1.4 million. The state also cut $1.3 million for other city services such as police, street maintenance and constitutional officers.
Local revenues are expected to increase by $2.75 million, or 2.9 percent, barely offsetting the reduction in state aid.
Because of the economic slowdown, most local taxes will increase by only 2 or 3 percent in the next year, Finance Director Joel Schlanger said. Some levies, such as meals and lodging taxes, are expected to decrease because of the recession and the closing of Hotel Roanoke.
If revenues had increased by the same percentage in the next year as the past decade, Herbert said the city would have had $9.3 million in additional funds.
As expected, Herbert did not recommend any new programs in the upcoming year. But he proposed that $7,100 be budgeted for minority recruiting to try to hire more black police officers. It was the only item in a list of $12 million in supplemental requests by the School Board and city departments that was funded.
Although the Community Relations Task Force has not released its report on racial relations and black representation on the police force, the city manager said he is recommending the money as an initial step in a more aggressive minority-recruiting program.
Herbert said he was forced to make cuts in city operations to free money to cover rising costs in several categories and try to provide more money for schools.
Although no pay raises are proposed in the next year, city payroll costs will increase by $870,000 to cover merit raises that were given during the current year and now must be paid for the entire year.
The cost of dental and health insurance and other fringe benefits for city employees will increase by $330,000 in the next year even without pay raises. Costs for gasoline for city vehicles and postage also will increase.
To offset the rising costs in these categories, Herbert had to make cuts of $1.2 million in other city operations.
In a move that will save $500,000, he recommended that no money be budgeted for 21 vacant jobs. Technically, the positions would not be eliminated, but they can't be filled because there will be no money for them. The "unfunded" positions include:
12 firefighters who were to have been hired to staff the new fire station on U.S. 460 East that was scheduled to open in June. Officials now say the station won't be finished until next year and firefighters can be transferred from Station No. 1 to staff it without reducing fire protection in downtown.
Two building inspectors.
Two clerks in the treasurer and commissioner of revenue offices.
An auditor, tax compliance administrator, computer programmer, mechanic and warehouse clerk.
Allowing the jobs to remain vacant won't have any significant impact on services because the duties can be shifted to other employees in most cases, Herbert said.
While residents may see some changes in services because of the vacant jobs, he said, city employees will feel the biggest impact. "We are asking our employees to work even harder to fill the void and carry an extra workload."
The city manager has also proposed eliminating 10 temporary jobs in several departments, a move that will save an additional $140,000 and reduce services in some cases.
Herbert has recommended that the second round of curbside leaf collection in the fall be eliminated. Residents will have to bag their leaves if they are not raked when crews make their first round of curbside collection that will continue to be provided by city.
Herbert has recommended that the frequency of street sweeping in residential areas be extended from 50 to 60 days. The mowing cycle for highway median strips will be extended from 14 to 16 days to save money.
The retirement incentive plan is estimated to save at least $275,000 a year. Incentives will be offered to 123 employees who will be eligible to retire by July 1, but only 77 are expected to accept them and retire now.
The city can reduce payroll expenses by replacing some workers with younger, lower-paid employees if council approves the plan. It would not necessarily produce a substantial reduction in the city work force of 1,937 because many employees who retired would be replaced because they have jobs that are needed, particularly in public safety.
by CNB