ROANOKE TIMES

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

DATE: TUESDAY, April 16, 1991                   TAG: 9104160422
SECTION: VIRGINIA                    PAGE: B1   EDITION: NEW RIVER VALLEY   
SOURCE: CATHRYN McCUE NEW RIVER VALLEY BUREAU
DATELINE: BLACKSBURG                                LENGTH: Medium


BLACKSBURG TAX RATE STEADY

Town Council decided Monday to hold the real estate tax rate steady for the 1991-92 budget, after some members argued for lowering it by a penny per $100 assessed value.

"Making a tax cut is symbolic so you can say that you've done it," said Mayor Roger Hedgepeth, who sided with the majority in maintaining a 20 cents per $100 rate.

Several citizens at a recent public hearing on the budget opposed the current rate, saying it constituted a tax increase.

Property values in town rose an average of 21 percent after Montgomery County's reassessment, completed earlier this year, resulting in higher tax bills for many Blacksburg landowners. A tax rate of 17 cents per $100 would have offset the reassessment.

At a work session Monday night, council member Joyce Lewis proposed a $73,000 budget cut and tax rate of 19 cents per $100.

"The public wants to see cuts," she said. She read a list of proposed line-item cuts for supplies and town employee travel and training that would reduce the proposed $8.7 million budget.

A 19 percent tax rate would decrease revenue by $77,000.

"From a psychological viewpoint, it's a very important thing to show the people we're doing everything we can to keep the services and keep taxes down," said council member Al Leighton, who also favored cutting the budget.

He said he would not vote to adopt the budget with a 20-cent tax rate.

Town Manager Ron Secrist, who prepared the budget, said he tried to pare down administrative functions while maintaining direct services to residents.

The only noticeable change would be a once-a-week trash pickup, rather than twice weekly, to avoid raising collection fees. Council agreed to the change Monday.

The budget reflects a 4 percent drop in overall income from last year, due to state budget cuts and cautious consumer spending.

Blacksburg's tax rate remained steady - 19 or 20 cents - for most of the last decade. Secrist said the added income from the reassessment would be about $142,000 next year.

Hedgepeth, who used to teach at Virginia Tech, used a chalkboard Monday to show that because of the steady rate, Blacksburg property owners have paid less each year than their property value would reflect.

If the town lowered the rate this year, he said, "I'm afraid that next year we would have to restore more than that 1 cent."

Leighton said it would be easier for many citizens to handle smaller increases on a yearly basis, rather than getting a dramatic increase every four years after the county's reassessment.

The council likely will discuss the budget at its April 23 meeting. The town must approve a budget by July 1.

***CORRECTION***

Published correction ran on April 17, 1991 in the New River Valley edition.

\ Clarification

The caption with a picture of Blacksburg Mayor Roger Hedgepeth in some editions Tuesday said the mayor feared a big increase next year in the town's real estate tax rate. Hedgepeth's statement was based on what might happen if the town lowered the tax rate this year. The Town Council voted Monday to hold the tax rate at its current level.

\


Memo: Correction

by CNB