Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, April 7, 1995 TAG: 9504070058
SECTION: CURRENT PAGE: NRV-1 EDITION: NEW RIVER VALLEY
SOURCE: RICK LINDQUIST STAFF WRITER
DATELINE: RADFORD LENGTH: Medium
Chagrined city officials discovered an error in preliminary working estimates of revenues needed to balance the 1995-96 budget this week, when they crunched the numbers for real. City Council hears the budget and sets tax rates Monday.
"It was an honest mistake," Finance Director Jess Cantline said Thursday, trying to put a bright face on it. "It's not as bad on the taxpayers as we'd anticipated."
He told City Manager Robert Asbury in a memorandum Tuesday that "there was an oversight in not posting but half" of the proposed 10-cent real estate tax increase, and that the budget balances with a 5-cent increase.
As Asbury explained it Thursday: "It was double entered."
The mistake - amounting to $188,525 - also slipped past number-weary City Council members, who, after multiple budget work sessions, were ready to raise the real-estate tax the full, advertised 10 cents, effective July 1.
Mayor Tom Starnes said council still could go for the whole amount when it convenes Monday, but said he'd "be very surprised" if sentiment exists on council to increase the rate back to 10 cents.
"I think five will be the number," he said Thursday. "Everybody should be happier."
For the owner of an $85,000 house, the likely 5-cent tax increase means an additional $42.50 a year.
The proposed ordinance to levy and set tax rates for the rest of the calendar year contains the 5-cent increase, from 63 cents per $100 valuation to 68 cents.
Council also is expected to approved increases in the machinery and tools and so-called "furniture and fixtures" taxes affecting city businesses, plus new utility taxes on cellular telephones and an additional $5 for motor vehicle decals.
The personal property tax remains at $2.14 per $100 valuation.
Before taking formal action at Monday's meeting, City Council presents the 1995-96 budget and the tax increases in a public hearing.
Council also considers:
An ordinance to create a new Commission on Arts and Events, to oversee and administer a "world-class" annual festival.
An ordinance to establish advanced life support as the minimum standard of care for ambulance providers in the city.
A $34,500 appropriation for a sewer expansion study.
A proposal to approve a new subdivision at Forest Avenue and Preston Street.
Monday's hearing and meeting are in council chambers at the Municipal Building on Second Street. The sessions start at 7:30 p.m.
by CNB