Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, February 17, 1993 TAG: 9302170274
SECTION: VIRGINIA PAGE: B3 EDITION: NEW RIVER VALLEY
SOURCE: MARK MORRISON STAFF WRITER
DATELINE: BEDFORD LENGTH: Medium
BEDFORD COUNTY MAY RAISE TAXES
Bedford County taxpayers could be facing a moderate tax increase on real estate if the Board of Supervisors wants to balance its proposed 1993-94 budget, says County Administrator Bill Rolfe."We're about at the end of our rope as far as revenue resources go."
Rolfe presented the proposed budget to the supervisors on Tuesday, telling them that estimated spending would exceed revenues by $3 million for the fiscal year.
The 1993-94 budget calls for spending $63.7 million - $7.5 million more than last year's county expenditures. That is a 13.5 percent increase.
At the same time, revenues for 1993-94 are expected to reach $60.7 million - a 6.9 percent increase over last year but still $3 million short of projected spending.
Rolfe cited higher landfill costs, a school budget increase and an overall jump in operating costs as the primary reasons for the shortfall.
However, Rolfe doesn't believe taxpayers will be asked to foot the entire $3 million difference. Rather, he expects the supervisors to first take a hard look at cutting each county department's planned spending for the coming year.
"We'll probably have to pare some down," he said.
Departments proposing significant budget increases include the sheriff, recreation, community development, comprehensive youth services, public works and the regional library.
Still, Rolfe said the supervisors probably would not be able to cut enough excess spending to bring the budget into balance. He anticipates that the supervisors also will consider raising real estate taxes.
Bedford County's last real estate tax increase was in 1990-91, when the rate went from 60 to 62 cents per $100 in assessed real estate value.
Rolfe said a 3- or 4-cent jump from that rate could generate approximately $750,000 in additional revenue. With that money, combined with cuts in projected spending, the supervisors could bring the budget in line, he said.
Bedford County's real estate tax rate is below the rates for Roanoke County, Bedford, Lynchburg and Botetourt County, and is above rates in Franklin, Campbell and Pittsylvania counties.
There are no other major sources of revenue that the county can as readily tap, Rolfe said. A meals tax could raise an additional $600,000 annually, but it would take voter approval before it could be levied. The last meals tax referendum in Bedford County was defeated.
Rolfe also noted that budget shortfalls in Bedford County, although not usually this large, have become common in recent years. For example, last year's proposed spending plan came in $760,000 over budget. To make it balance, the supervisors made cuts to the budget and imposed a monthly electric bill tax on county residents.
Two years ago, the supervisors slashed $2 million out of the county budget to match spending with revenues. But this year the supervisors may find it harder to trim the proposed budget, Rolfe said.
For two years, county departments have been asked to keep their spending requests level, but now there is a real need for some of those departments to make increases, Rolfe said.
Schools, for example, are asking for $38.5 million for 1992-93, an overall increase of $1.9 million over last fiscal year. Of that increase, about $500,000 would come from the county.
A year ago, the local portion of the school spending plan came in $300,000 less than it had for the previous budget. But this year, several school roofs need major repairs, and there are increased expenses associated with the building of Forest Middle School.