Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, March 31, 1995 TAG: 9503310094
SECTION: VIRGINIA PAGE: B5 EDITION: NEW RIVER VALLEY
SOURCE: RICK LINDQUIST STAFF WRITER
DATELINE: RADFORD LENGTH: Medium
Smokers also will avoid any local tax on cigarette sales, at least for another year, City Council has said.
However, after their final budget work session Thursday, council members remained firmly committed to a 10-cent jump in the real estate tax rate and to other new or increased levies to balance the 1995-96 budget.
Under the proposed budget, the real estate tax rate would increase to 73 cents per $100 valuation, generating an additional $377,050. The owner of an $85,000 house would pay an additional $85 a year in real estate taxes.
Council also wants to apply the utility tax to cellular telephone use, raising $24,000; increase two business taxes to generate an additional $97,000; and add $5 to the cost of a city motor vehicle decal, to bring in almost $38,500 more.
The city's electric fund - which gets revenue from the city's electricity sales - also will pay an additional 10 percent into the general fund next year, raising another $141,762.
The city's personal property tax will remain at $2.14 per $100 valuation.
The new budget includes money for 3 percent raises for city employees. Council also agreed to give the School Board an additional $267,000 in new money next fiscal year, the biggest chunk of that in money for salary increases comparable to those of other city employees, plus $50,000 to help fund two needed teaching positions.
The School Board now must decide if it can afford to raise teachers' and staff members' salaries the full 3 percent, or if it must use some of the additional money to pay that part of the new teachers' salaries - estimated at a total of $75,000 - that council declined to fund.
The School Board had asked for enough money to give teachers and staff members raises averaging 3.9 percent next year.
A public hearing on the spending plan is set for April 10. The new budget year starts July 1.
While council agreed on immediate budget issues, availability of money for future school and city expansion and improvement projects remained uncertain. The School Board already has asked the city for more than $3.8 million for additional projects and new technology, including additions to the city's elementary and intermediate schools and renovations at Radford High School.
Councilman Bill Yerrick had wanted his colleagues to consider setting aside up to $250,000 in a "debt service program" to cover the annual cost of paying off bonds or other borrowing. But Councilwoman Polly Corn worried where the money would come from in future years.
"There is no way under the shining sun that we can come up with $250,000 to pay for a bond issue this year" or in future years, Corn said.
The city already faces spending approximately $100,000 next fiscal year to plan a required expansion at the Municipal Building and Courthouse, including the cost of a temporary office building and additional parking.
While they agreed in principle on Yerrick's plan, council members decided against committing to the idea without further consideration.
In past years, City Council has paid for some projects and unexpected requests by transferring money from contingency accounts or from the electric fund.
Council did agree to give $1,000 to the Free Clinic of the New River Valley and to fund requests to pay for new technology and for higher hourly wages for library employees.
by CNB