ROANOKE TIMES

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

DATE: WEDNESDAY, November 22, 1995                   TAG: 9511220056
SECTION: VIRGINIA                    PAGE: C-1   EDITION: METRO 
SOURCE: KIMBERLY N. MARTIN STAFF WRITER
DATELINE:                                 LENGTH: Medium


TRANSPORTATION DISTRICT GETS OFF THE GROUND

The Roanoke County Board of Supervisors is considering a reduction in the county's real estate tax rate. However, residents' wallets may not feel the savings, because any tax break might be offset by a 2-cent-per-gallon gasoline tax.

That's if Roanoke-area governments can hammer out an agreement to form a transportation district.

After months of mulling over the option, Roanoke County's Board of Supervisors gave staff the go-ahead to continue negotiations with Roanoke and other localities interested in forming the Roanoke Regional Transportation district.

Roanoke is pushing for such a district to replace disappearing federal dollars for transportation programs, explained County Administrator Elmer Hodge.

This year, because of federal cutbacks, Roanoke had to increase its annual contribution to Valley Metro by $190,000. Hodge said that in the years to come, Roanoke will lose almost $700,000 per year in federal funds.

A transportation district would allow local governments to levy a joint tax on gasoline in exchange for lowering real estate tax rates enough to equal what localities would have spent on bus service.

Roanoke would have $1.5 million at its disposal if it could forge ahead with a district on its own. However, state law requires at least two localities in a district. If Roanoke County and Salem joined Roanoke, the amount collected would grow to $2.5 million.

Supervisor Harry Nickens characterized the county's potential involvement as a willingness by the county to help the city replace a shrinking pool of federal dollars.

However, how those dollars are distributed among the district's member localities has been a sticking point in negotiations.

County supervisors are adamant that money collected in the county be returned to the county.

That would work out to an estimated $485,000 annually. The county, as required by law, would have to reduce local taxes by the $70,200 it contributes annually to its CORTRAN limited bus service.

The $410,000 windfall also would go to lower taxes, Hodge said.

"It's a net situation for the county," Hodge said. "The direction I got from the board is that we reduce [taxes] the same amount that we increase.

However, there is nothing in the law that requires that, said County Attorney Paul Mahoney.

And that concerns county residents, said Board Chairman Fuzzy Minnix.

Residents understand that the county says it will "increase gas and promise to take it off the real estate tax, but it's just a promise. I need some reassurance, too," Minnix said.

Whatever agreement is reached must be approved by the board and the General Assembly, Hodge said.

In other action, the board:

Changed a county ordinance to allow opposite-sex massages by licensed massage therapists. In 1976, the county prohibited all opposite-sex massages with the exception of those performed at hospitals, nursing homes and other "legitimate" places.

Roanoke and Salem already have made similar changes to their ordinances.

Brought the county's business, professional and occupation licenses into conformity with a model BPOL ordinance recommended by the Virginia Municipal League and Virginia Association of Counties.

Commissioner of Revenue Wayne Compton said he hopes the "better definitions and better descriptions" will save BPOL from elimination by the General Assembly as was threatened last year.

The tax is a source of about $3 million in annual revenue.

Increased by $1,500 its assistance to Salem in hosting the Stagg Bowl and Division III Basketball Tournament. The county now will give Salem $4,000.

Appropriated $2,500 to help the Hanging Rock Battlefield and Railway Preservation Foundation apply for an additional $300,000 in Intermodal Surface Transportation Efficiency Act funds to complete the second phase of the trail linking Salem with the Hanging Rock battlefield site. The project received $549,300 earlier this year in ISTEA funds. Its total cost is $848,783.

Gave $2,500 to bring the Archery Shooters Association Virginia Championship to Roanoke County.

It's the first time the event has been held in Virginia. The event is estimated to bring about 4,500 visitors to the Roanoke Valley and will be broadcast on ESPN.

Recognized Hodge for his 10 years of service as Roanoke County administrator.



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