Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, October 24, 1995 TAG: 9510240068
SECTION: VIRGINIA PAGE: C-1 EDITION: METRO
SOURCE: DAN CASEY STAFF WRITER
DATELINE: LENGTH: Medium
The approval marks the first time city taxpayers will be required to pay 100 percent of the cost of a federal highway exit. And it isn't a done deal yet.
Whether the interchange is built depends on the Federal Highway Administration, which has yet to grant approval.
The 7-0 vote came at the end of council's Monday meeting.
"When you get calls in about two months about a traffic jam near Valley View, please explain that City Council has moved expeditiously on it," Mayor David Bowers told council members after the vote. "It's just that we haven't gotten approval from the federal government."
In essence, bonds are a loan the city takes out, backed by council's power to tax residents. In all, council approved borrowing $8.3 million Monday: $5 million for the interchange; another $2.3 million to complete expansion of the city's jail; and $1 million to buy land to provide for employee parking downtown. Payment on the jail project bonds will be made by the state.
A public hearing on the bond package Oct. 16 drew no comment from residents.
It's unusual for council to approve borrowing money before it knows whether it will be able to spend it. The city has directed its bond attorney to find out what will happen to the deal if the interchange is dropped, Finance Director Jim Grisso said.
And, normally, as with $23 million in bonds that were approved for sale last year, the issue is put in a referendum to voters, although state law doesn't require it.
However, administrators said they were pressured to get the bond sale moving because bond-rating houses in New York City are being asked this month to rate the $23 million in borrowing for other public works projects city voters overwhelmingly approved last year.
Interest rates are on a downswing, meaning there's an opportunity for long-term savings by securing a lower rate on both packages.
"I don't have a concern because of the time frame," Councilman William White said. "To get everything in line to get this interchange going, we need to make these steps."
The federal and state governments won't be putting up any money for the highway project because it doesn't meet their standards. In concept, the interchange amounts to about one-half of a cloverleaf, rather than a full one.
And it's barely under a mile from Hershberger Road. Public Works Director William Clark said that is what has caused the biggest hang-up in federal approval - although the federal agency has not said it can't be built.
Grisso said if the city is turned down on the project after the bonds are sold, the money may be spent on other projects at council's discretion.
In other action, council approved 6-1 giving city workers two more holidays off per year, bringing the total to 11 paid holidays annually. The change would bring the city in line with the state government, which closes down for Columbus Day and Veterans Day, two holidays on which the city stays open.
While the city administration will stay open on those days, employees will be able to use the additional time as "floating" holidays. The change will cost taxpayers about $100,000, because the city will pay workers for unused holiday time they are owed.
Under the new plan, all workers will be granted 88 hours of holiday leave a year, or roughly two weeks.
Councilwoman Linda Wyatt voted against the change. She said it's unfair to patrol officers and sewage plant workers, who work holiday shifts longer than eight hours, because they'd get only eight hours credit for them under the new plan.
by CNB