ROANOKE TIMES

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

DATE: THURSDAY, December 1, 1994                   TAG: 9412010073
SECTION: CURRENT                    PAGE: NRV-1   EDITION: NEW RIVER VALLEY 
SOURCE: STEPHEN FOSTER STAFF WRITER
DATELINE: BLACKSBURG                                LENGTH: Medium


TOWN CONSIDERS CAPITAL IMPROVEMENTS, RAISING TAXES

Blacksburg Town Manager Ron Secrist has proposed $2.78 million in capital improvements for next year, including setting aside $145,000 for a senior citizens center that he says can be paid for by doubling cigarette and lodging taxes.

Assistant Town Manager Bonnie Svrcek presented an overview of the new Capital Improvement Program for 1995-2000 to Town Council at its quarterly work session Tuesday night.

The program, which calls for $18.3 million in improvements over the next five years, recommends increasing the town's tax on cigarettes from 5 cents to 10 cents, and hotel and motel taxes from 2 percent to 4 percent. In addition to more than $290,000 the taxes would bring in for the seniors center during the next two years, the tax money from 1997 to 2000 is earmarked for financing the extension of Clay Street between Jefferson and Alleghany streets.

Secrist said the tax increases are needed to pay for long-awaited projects that could not be otherwise funded by the town's current revenue stream.

"There just will not be sufficient town revenues," he said. "Those projects would not get done.

"I think it is always a very serious and deliberate issue when a decision is made to raise a tax rate," Secrist said. But he hopes the "discretionary" nature of the tax sources - "consumer-based rather than property-owner based" - and the fact that those dollars are earmarked for specific projects will work toward their support.

Some council members agreed.

Councilman Lewis Barnett, a long-time advocate of seniors-related issues, including the center, said it's time the town began delivering on some of its projects "that we have been postponing for years and years." He praised the overall nature of the 100-page program. Of the tax increase, he said: "I think it's sound government." While he'll listen to any public debate that may arise, he said, "I plan to support it."

Councilman Waldon Kerns also said it was high time the town found a way to move forward on its seniors center and Clay Street connection.

"In order to do that though, we must have expenditures. [The tobacco tax] It's pretty low now - certainly not out of line with the rest of the area. [The lodging] also is in line with everything else around here. It's much lower than Richmond, Washington, D.C., Atlanta or any other places I travel. I don't think it's out of line," Kerns said.

"These are some much needed improvements that we've delayed, but it is time for us to complete those projects," he said.

Most governments in the New River Valley do not place a tax on cigarettes, although Pulaski charges 4 cents and Roanoke charges 17 cents. Roanoke and Roanoke County enforce a 5 percent lodging tax; Salem and Christiansburg, 4 percent. Montgomery County charges 2 percent and Pulaski and Pulaski County have no tax.

In addition to the tax increases next year, the program calls for:

Setting aside $304,100 toward the purchase of a new ladder truck for the Blacksburg Fire and Rescue Department. The town needs to buy a new truck by1998 to replace the department's 1978 model, Fire Chief Keith Bolte said. The town will need to get additional funds from Montgomery County, Virginia Tech and the Fire Department's own fund raising to make the purchase. "It's going to cost a half a million dollars, so you better start saving your money," Bolte said.

$360,600 for street repaving and curb, gutter and sidewalk replacement.

$125,000 to replace three sewer pumping stations.

$59,248 to replace some of the town's main water lines.

$70,000 for trimming trees along streets.

$280,086 to to buy equipment.

$54,785 to be set aside toward upgrading the town's computer system, which is aging and is growing short on memory. The same amount was set aside this year.

The town's Planning Commission is to hold a public hearing on the Capital Improvement Program by Jan. 3. Town Council is to hold a hearing Jan. 10 and consider approval of it Jan. 24.



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