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

DATE: TUESDAY, July 27, 1993                   TAG: 9307270228
SECTION: VIRGINIA                    PAGE: C-3   EDITION: METRO 
SOURCE: JOEL TURNER STAFF WRITER
DATELINE:                                 LENGTH: Short

ROANOKE FISCAL YEAR ENDS ON POSITIVE NOTE

Despite a sluggish economy, Roanoke collected $2.2 million more in taxes than expected in the past 12 months, enabling it to end the year in the black by $2.6 million.

City expenditures were nearly $500,000 lower than projected.

"Local taxes are a reflection of our local economy and our consumers' confidence. Our local tax revenue base is following the slow growth of the national economic trend," Grisso told City Council.

"As anticipated last year, and proven by our final figures, we expect slow growth in the upcoming fiscal year," he said.

The city had expected to collect $160.1 million in the fiscal year that ended June 30. It collected $162.3 million, which is 1.4 percent above the budget estimate.

The $2.6 million will be divided with the school system, which will use the money for building projects and to replace equipment. The city will receive $1.6 million and the schools, $1 million.

Unlike some localites, Roanoke's officials don't call the year-end balance a surplus.

While taxes were up overall, they were down in a few categories, including cigarette taxes.

The city had expected to collect $1.6 million in cigarette taxes, but it collected only $1.4 million.

Grisso believes that more people are stopping smoking and cigarette sales are declining. The city has increased the cigarette tax from 10 cents to 17 cents a pack in recent years, but Grisso said he doesn't believe this is the reason for the drop in cigarette sales.

by CNB