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

DATE: FRIDAY, March 17, 1995                   TAG: 9503170058
SECTION: VIRGINIA                    PAGE: B-3   EDITION: NEW RIVER VALLEY 
SOURCE: RICK LINDQUIST STAFF WRITER
DATELINE: RADFORD                                 LENGTH: Medium

RADFORD OKS RAISING TAX ON REAL ESTATE

The vote was unanimous to approve the 73 cents per $100 valuation rate ``for advertising purposes only,'' meaning council cannot raise the rate more than 10 cents when it establishes the actual figure.

Even so, the approximately $377,000 in additional revenue the new rate would generate falls far short of what the city is likely to need to reconcile both columns of its proposed $45 million 1995-96 budget, now more than $2.5 million out of balance.

Among other things, council has not completed planning pay raises for city employees and is still considering supplemental requests to the budget from various departments.

The 10-cent figure, suggested by David Worrell, represents an almost 16 percent increase in the real estate tax rate and was the lowest of three possible numbers council members put forth. Polly Corn proposed 12 cents, while Bill Yerrick threw out a 16-cent figure.

However, Mayor Tom Starnes advised council members not to pass a big tax increase they had no intention of voting for later, with a crowd in the room. ``I'd just as soon not inflame them,'' he said.

Bob Nicholson said a massive tax increase in one year would be ``unfair to the general public,'' though Yerrick asserted the lower figures out on the table were not enough to make ends meet.

In the end, Worrell, Nicholson and Starnes convinced their colleagues to go with the lowest figure now, then try to find other revenue sources later, possibly considering Corn's idea for a cigarette tax.

Council returns to its budgeting tasks Monday at 7 p.m. ``We're going to sharpen some pencils,'' Starnes warned.