Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, May 6, 1993 TAG: 9305060098
SECTION: VIRGINIA PAGE: C-1 EDITION: METRO
SOURCE: JOEL TURNER STAFF WRITER
DATELINE: LENGTH: Medium
"This sends a message to me that an election is coming," said Fitzpatrick.
"We have asked everyone to help pay for restoring Hotel Roanoke and now we are cutting taxes," he said at a council budget session.
"I don't feel good about it. It seems to be a coalition of vote trading."
On a 4-3 vote Tuesday, council decided to trim the tax rate by 2 cents - from $1.25 to $1.23 per $100 assessed valuation of property.
Fitzpatrick, a Democrat, joined Republicans Elizabeth Bowles and Delvis "Mac" McCadden in opposing the move.
Councilman James Harvey's proposal was supported by Mayor David Bowers, Howard Musser and William White. All four are Democrats.
Harvey, Musser and White face re-election next year. White is expected to seek a new term. Harvey has not disclosed his plans. Musser said earlier he would not seek re-election, but he has not ruled it out.
Bowles said she was told that the four Democrats decided to cut the tax rate during a conference call about midnight Monday before council's budget session Tuesday. She said the call apparently violated the state's Freedom of Information Act. She would not say who told her about the call.
Bowers and his three Democratic colleagues denied emphatically that there was a conference call. Bowers said he talked individually with Harvey and White by phone, but not with Musser.
Bowers and Musser have had strained relations since their battle for the Democratic nomination for mayor a year ago.
Bowles said she would accept the Democrats' denial and drop her\ accusation.
James Turner, a School Board coalition of vote trading. Beverly Fitzpatrick Jr. In suggesting that the member, said he was disappointed by the reduction.
At a meeting between the board and council, Turner said the schools could use more money to pay higher salaries to teachers.
Turner said council members claim that schools are a priority, but they don't always vote that way.
"Our teachers have the toughest job in the Roanoke Valley and they ought to be paid more," he said. Salaries for teachers in Roanoke are below those in Salem and Roanoke County.
McCadden said the School Board needs to be more emphatic with City Manager Bob Herbert about its funding needs.
Musser said the opponents are making too big of an issue out of the tax cut because it will have little effect on next year's budget.
While the 2-cent cut will cause the city to lose $564,000 a year in tax revenue, that won't happen in the next year because the reduction won't take effect until Jan. 1, halfway through the fiscal year. The cut will cost the city $282,000 in the next budget.
The shortfall has been reduced even more by upward revisions, totaling $200,000, in projected revenues in several tax categories including utility and personal property taxes.
Bowles said she was concerned that tax-revenue estimates have been increased to help balance the budget. She said this tends to give validity to complaints that the city can find money whenever it is needed.
"When you go back and find additional revenue, I don't understand," Bowles said.
Acting Finance Director James Grisso said the revenue estimates have been increased because they now are based on the latest data collections, through April. The earlier projections were based on economic data and collections in February and March, when the budget was being prepared.
At council's request, Herbert submitted a list of budget reductions and revenue adjustments that will provide an additional $148,000 for schools above the budget approved by the School Board and a reduction of $138,592 for operations under his jurisdiction.
The additional money for the schools will be used to hire more elementary guidance counselors and primary grade teachers to reduce class size.
"I don't see that we have damaged anything [by the budget cuts]," Musser said. "This won't hurt anyone."
Musser said he makes no apology for the tax cut.
Asked if the cuts will cause a reduction in services, Herbert said no. The reductions will come in several categories, including street lights and an employees news letter.
Bowers said the $138,592 cut is one-tenth of 1 percent of the city's $129 million budget.
Defending the reduction in the tax rate, Bowers said council has "an obligation to run a tight ship." He said he doesn't believe such a small cut will have any adverse impact on city operations.
Council told Herbert and other officials to prepare the budget documents to make the cuts and revenue adjustments that were outlined Wednesday by Herbert. The final vote will come Monday night.
by CNB