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

DATE: THURSDAY, June 2, 1994                   TAG: 9406020050
SECTION: CURRENT                    PAGE: NRV-2   EDITION: NEW RIVER VALLEY 
SOURCE: New River Valley bureau
DATELINE: PULASKI                                 LENGTH: Medium

PULASKI COUNCIL MEETING IN MORNING BUDGET WORK SESSION

Although the total is a 4.96 percent increase from the 1993-94 fiscal year, the revenue and expenses are balanced and no tax increases are planned. Expansions by Magnox Inc. and Pulaski Furniture Corp. are expected to improve the town's real estate tax assessment in the coming year.

The budget also includes an initiative to collect more delinquent taxes: the creation of a revenue collection enforcement clerk's position. The additional revenue brought in is expected to be more than the job's salary and benefits.

Merit salary increases of up to 4 percent and a 2 percent cost-of-living increase are proposed for town employees.

Water fund rates were increased during the 1993-94 year, following a study by consultants hired by the town on overhauling water rate structures and ending a deficit water operation. Other recommendations, including one more smaller rate increase, will go into effect in the coming year.

Two additional Water Department laborers are to be hired, and a Farmers Home Administration loan will be sought to improve the system, which is now losing water and money. The proposed $1.35 million water fund includes $148,276 for water line improvements and $100,480 for pump station improvements.

Sewer Fund revenue for 1994-95 is projected at $2.56 million, but expenses will be 16.52 percent higher than in the current year.

The major increases are $150,000 toward upgrading leaky sewer lines, $71,500 for five new positions on the upgrading program, and $100,000 for increased treatment costs. Sewer rates are proposed to increase by 12.52 percent starting in July to cover the upgrading and a repayment schedule on a FmHA loan to fix sewer corrosion.

The budget includes a switch by town employees from Blue Cross and Blue Shield of Virginia health care coverage, which would have increased nearly 25 percent, to an alternate Blue Cross plan establishing a network of participating doctors and hospitals offering charges about 3 percent lower.

A survey of town employees showed the alternate plan being heavily favored, but council tabled its inclusion at a budget session Monday until town officials show what part a smoking cessation program might play in it.