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

DATE: THURSDAY, March 16, 1995                   TAG: 9503160086
SECTION: VIRGINIA                    PAGE: C-3   EDITION: NEW RIVER VALLEY  
SOURCE: BRIAN KELLEY STAFF WRITER
DATELINE: CHRISTIANSBURG                                  LENGTH: Medium

BOARD PLANS TAX RATE INCREASE

The move means the board will have to slice $1.37 million from county and school system budgets to balance the budget, making it almost certain that many School Board initiatives will not be funded in the budget year beginning July 1.

The vote does not mean taxes will be increased. But it means the Board of Supervisors may lower but not increase the real estate tax rate when it finally gets to the point of setting tax rates early next month.

Coming on the heels of last year's property reassessment, the vote also sets the stage for a possibly contentious public hearing on the budget, to be held 7 p.m. March 29 at Christiansburg High School.

For the owner of a home valued at $100,000, the proposed increase would mean a tax bill of $740, compared with a total bill of $725 now. That's a 2 percent increase.

Because of the reassessment, the tax rate of 72.5 cents per $100 of assessed value will have to drop to 69 cents first. That's to keep the real taxes landowners pay within 1 percent of the amount paid before the reassessment, as required by state law.

With the 5-cent proposed increase, the rate would climb to 74 cents.

Board Chairman Larry Linkous and supervisors Joe Gorman, Nick Rush and Jim Moore supported the advertised rate.

The move all but guarantees that the county school system will receive far less money than it sought in asking for an 8 percent spending increase.

As it stands, the advertised budget will total approximately $69.08 million, down from last month's original proposal of $75.8 million.

Memo: ***CORRECTION***