Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, April 16, 1991 TAG: 9104160392
SECTION: VIRGINIA PAGE: A-1 EDITION: METRO
SOURCE: JOEL TURNER MUNICIPAL WRITER
DATELINE: LENGTH: Long
But they are in no mood to raise School Board getting $127,626 from city. B1 taxes to provide $4 million that would be needed for salary boosts for municipal workers and teachers.
Council members said City Manager Robert Herbert's budget does a good job of maintaining city services during the city's worst financial crunch in 15 years, but they are troubled because there is no money for raises.
Asking the employees to work another year at the same pay is almost as distasteful as layoffs, said Councilman James Harvey.
Harvey said he was ready to push pay raises until he found out that they would require a big tax increase. He did not cite an amount, but a 15-cent increase in the real-estate tax rate of $1.25 would be needed to generate $4 million.
Harvey told Herbert to make sure city employees get a raise next year, and Councilman William White expressed similar concern.
Scarcity is the theme of the $152.1 million budget, which is up $54,387, or .04 percent, over the current year. The budget includes:
A reduction in the city work force by allowing 21 vacant permanent jobs to remain unfilled for the 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 median strips. Repairs on some buildings will be delayed, and money for an education program for recycling will be reduced.
A retirement incentive plan designed to persuade up to 124 employees to retire now to lower payroll costs. Council approved the plan Monday so city officials can begin the paperwork for those who accept.
Herbert recommended no changes in tax rates.
Despite the bad news, Herbert was encouraged that there were no layoffs and that most city services will not be reduced.
A public hearing will be held on the budget Monday at 7:15 p.m. at the Roanoke Civic Center Exhibit Hall.
"This conservative financial approach may not be pleasant, but I think it is the right one at this time," said Councilman David Bowers.
Bowers and other council members blamed the state for most of the financial woes, saying state aid will decrease by $2.7 million in the next year.
Councilman Beverly Fitzpatrick said that though he was disappointed at the lack of raises for city employees and teachers, he could not support a tax increase in the current economic conditions.
Herbert said that one of his main objectives was for the city to maintain essential services without a tax raise.
During hard economic times, he said, "the city is committed to weathering the storm and keeping in place the framework that makes Roanoke a good place to live and work."
Although the budget is up by $54,387, Herbert said the amount of money under his control - that appropriated for city operations - 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 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.
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 tax revenue will increase by only 2 percent or 3 percent in the next year, said Finance Director Joel Schlanger. Some levies, such as meals and lodging taxes, are expected to decrease because of the recession and closing of the Hotel Roanoke.
As expected, Herbert did not recommend any new programs in the coming 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.
White and Bowers said they are glad that Herbert included the money for minority recruiting. White said he is also happy the city manager didn't make cuts in funds for Center in the Square, Harrison Center, Total Action Against Poverty, Mental Health Services and other community service agencies.
Although no pay raises are proposed in the next year, city payroll costs will increase by $870,000 to cover merit raises given this year.
The cost of dental and health insurance and other fringe benefits for city employees will increase by $330,000 in the next year, and costs for gas for city vehicles and postage also will increase. To offset higher costs in these categories, Herbert made 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.
Among the "unfunded" positions were 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. The station now isn't expected to be finished until next year, and firefighters can be transferred from Station No. 1 to staff it without reducing fire protection in downtown.
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.
by CNB