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

DATE: WEDNESDAY, February 16, 1994                   TAG: 9402160162
SECTION: VIRGINIA                    PAGE: B3   EDITION: NEW RIVER VALLEY 
SOURCE: Karen Barnes
DATELINE: BEDFORD                                LENGTH: Short

BEDFORD COUNTY AUDITOR: PAY $2 MILLION DEBT QUICKLY

The Bedford County school system owes the Virginia Retirement System almost $2 million, according to Wally Cox, the county's auditor.

Cox recommended that the Board of Supervisors consider paying the $1.95 million debt as soon as possible rather than spreading payments over 30 years, as the school superintendent plans.

Under Superintendent John Kent's proposal, interest rates would be 8 percent, increasing the actual dollar amount repaid to near $5 million, Cox said. "It's the worst piece of accounting I've seen a county do," he told the board. "I strongly encourage you to pay this off as quickly as you can."

The preliminary 1994-1995 school budget includes only $169,000 for debt payment.

If the county borrowed the money under a 3 percent short-term loan, millions of dollars could be saved, he said.

The debt results from an early teacher retirement plan offered by the commonwealth during the Wilder administration.

by CNB