Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, June 21, 1995 TAG: 9506210123
SECTION: VIRGINIA PAGE: C-4 EDITION: METRO
SOURCE: PAUL DELLINGER
DATELINE: PULASKI LENGTH: Short
The disagreement over the nearly $9 million budget this time did not involve previously controversial sewer rates, which will stay the same until a rate restructuring study is complete, or water rates, which will rise 5 percent.
Instead, it involved funding sources for Pulaski's new economic development board.
Councilwoman Alma Holston said she would have to vote against the budget because the economic development initiatives are being funded with projected interest to be generated from the town's Urban Development Action Grant fund.
The UDAG money originated as a federal grant for the town to lend to an industry. As the loan was repaid, the town used UDAG funds for other loans to start new businesses with repayments and interest keeping the fund built up.
Holston said the town is lucky to have UDAG money but should keep it intact for future business loans, rather than depleting it.
Also voting against the budget was E.G. "Junior" Black, who opposed the economic development funding, too.
The budget passed 4-2 with W.H. "Rocky" Schrader, John Johnston, Roy D'Ardenne and John Stone voting for it. Two other council members were not present.
by CNB