Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, December 13, 1994 TAG: 9502080027
SECTION: VIRGINIA PAGE: C3 EDITION: METRO
SOURCE: JAN VERTEFEUILLE STAFF WRITER
DATELINE: LENGTH: Medium
The General Assembly has increased pay to retirees from public school jobs and state-authorized local positions, such as constitutional officers' staffs. Other local government retirees have asked for a comparable raise.
Roanoke County last month approved such a raise for its retirees at a cost of $362,000 a year.
But Salem council members said they were concerned about a possible $2.4million loss in revenue - 10 percent of the general fund budget - if Allen's recent proposal to eliminate the business license tax is approved.
They said they will wait until budget sessions next spring to see what the city's financial situation looks like. The cost to bring about 80 retirees up to the state pay level would be $110,000 a year.
"I think it's important we take a look at trying to correct the inequities among retirees," said Councilman Garry Lautenschlager, who said he had been prepared to approve the raise until he learned of the business tax cut. Now, "I agree with the mayor that we do this as part of our budget year."
The Salem School Board, however, has agreed to pay its nonclassified retirees the 3 percent increase, to bring them in line with teachers and other state-authorized retirees in the school system. That will cost the city $140,000.
The state raise, even though it required no comparable raise by local governments, is considered an unfunded mandate by many elected officials, who feel pressured into equalizing the pay of their retirees.
Former City Manager William Paxton, who is not covered by the state raise, urged council to approve it. If City Council does so during the budget process, the raises could start immediately, but they would not be retroactive.
The General Assembly will have to vote on Allen's proposal to deny localities the option of charging a tax on business licenses. But the threat of losing a major revenue source loomed large in council chambers.
In other action,
City Council approved designating the downtown area a historic district. Such a designation carries more symbol than substance. The city will get a plaque and will be noted as having a historic downtown, but no restrictions or architectural review will be imposed on property owners because of the designation. If owners choose to take advantage of federal tax credits for renovation work, however, then there could be strings attached, Planning Director Joe Yates told council.
Yates said he has received no negative responses from anyone downtown. The city will apply for both state and federal designation for a three-block area that roughly parallels the original plat map of Salem in 1802.
Council members endorsed a route for proposed Interstate 73 that would follow existing roads, a route being promoted by the Roanoke Valley Business Council. The route endorsed would follow U.S. 220 from North Carolina to Roanoke, then use Interstates 581 and 81 to the U.S. 460 corridor to West Virginia.
Such a route would take the Bent Mountain corridor out of consideration and reduce the cost by using existing roadways, some of which already have money appropriated for improvements. But following an existing corridor does not necessarily mean using the same road; it could mean building a highway next to the existing one.
by CNB