Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, January 15, 1992 TAG: 9201150376
SECTION: VIRGINIA PAGE: B3 EDITION: METRO
SOURCE: By MARK LAYMAN STAFF WRITER
DATELINE: LENGTH: Medium
COUNTY FACES BUDGET SHORTFALL
Because of lower-than-expected local tax revenues and further state cuts, Roanoke County will have to make up a budget shortfall of as much as $1.5 million this year, County Administrator Elmer Hodge told the Board of Supervisors Tuesday.And the really bad news is, that might double next year.
For now, at least, the county can make up the shortfall without reducing services or laying off employees, Hodge said.
Department heads are prepared to cut 5 percent from their operating expenses for the remaining six months of the 1991-1992 fiscal year, saving $329,000. Seventeen job vacancies have been left unfilled, saving $149,000. The rest of the shortfall will be made up with last year's budget surplus, which totaled $791,000.
Despite the recession, the assessed value of residential real estate went up 4.2 percent this year, while the assessed value of commercial and industrial real estate went up 3.9 percent. So real estate tax revenues will be higher than budgeted.
But personal property tax revenues could be as much as $1.45 million lower than budgeted, reflecting a slump in new-car sales. And depending on Christmas shopping season figures that won't be available until next month, local sales tax revenues could be as much as $500,000 lower than budgeted, Hodge said.
The county also is bracing for another $150,000 reduction in state money this year. The county lost $2.7 million in state money last year.
Hodge warned the supervisors that the county's 1992-1993 budget might start out $3 million in the red, due in part to a big increase in health insurance premiums.
The supervisors will begin debating some of the tough choices they face - raising taxes, laying off employees, reducing services - at a work session this weekend.
ROANOKE COUNTY SUPERVISORS
ADDITIONAL BUSINESS
Appointment: Appointed newcomer Fuzzy Minnix to fill the seat on the Roanoke Regional Airport Commission previously held by Dick Robers. Minnix is a retired air-traffic controller.
OK'd borrowing money: Approved the borrowing of $10 million in anticipation of future tax revenues. The county does this regularly, because bills have to be paid year-round while tax collections peak in May and December. The county will have to pay an estimated $125,000 in interest on the borrowed money. But the money will be invested until it is spent, and that will offset part of the interest cost.
Landfill negotiations: Agreed to continue negotiations with two localities that have expressed an interest in using the new landfill at Smith Gap - Salem and Montgomery County.