The Virginian-Pilot
                            THE VIRGINIAN-PILOT  
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Tuesday, May 9, 1995                   TAG: 9505090256
SECTION: LOCAL                    PAGE: B1   EDITION: NORTH CAROLINA 
SOURCE: BY PAUL SOUTH, STAFF WRITER 
DATELINE: KILL DEVIL HILLS                   LENGTH: Medium:   57 lines

KILL DEVIL HILLS BUDGET SEEKS NO TAX INCREASES

Following the lead of at least two other Dare County municipalities, the town of Kill Devil Hills does not plan to raise tax rates, according to a proposed 1995-96 budget that was presented to the town board Monday.

Property taxes in Kill Devil Hills will remain at 44 cents per $100 in assessed property value - the highest of any Outer Banks town. Proposed budgets for Nags Head and Manteo also provide for no tax increases for 1995-96.

Town Manager Debora Diaz submitted the budget to the Kill Devil Hills Board of Commissioners. A public hearing on the proposal is scheduled for 7 p.m. May 24 in the commissioners meeting room.

The $6.3 million proposed general fund budget provides for a $100,000 increase over the current budget. Diaz said increases in sales tax and occupancy tax revenues will offset the increase.

The proposed spending increase includes a 3.5 percent cost of living raise for town employees. There are no plans for hiring additional employees in the next fiscal year.

The recommended budget also provides $117,550 for new computer equipment and software, which will be acquired through a lease-purchase arrangement.

Capital improvements will focus on bringing municipal facilities in line with requirements of the Occupational Health and Safety Act and the Americans with Disabilities Act.

Mayor Terry Gray said of the proposed budget, ``I'm happy we're going to be able to maintain our current tax rate.''

He did not comment further, saying he wants to study the recommendations. However, he said he will continue to push for improvements to the town's parks and recreation system.

``This is something that's of tremendous importance to the people of our town,'' he said. ``I believe this is an area we need to concentrate on.''

Commissioner E.M. ``Coy'' Harbeson also said he would reserve judgment.

``I'm going to put in a lot of time and effort on this, and review it thoroughly,'' Harbeson said. ``I'm going to work to make sure this budget benefits the taxpayers of Kill Devil Hills.''

Also Monday, the commission:

Changed the municipal ordinance governing operating permits for taxis. Under the old ordinance, renewal was required each May. Now, renewal of the licenses is required one year from date of issuance.

Approved contracts with the Dare County Tourist Bureau. The town will receive $65,000 in funding for a variety of projects, including improvements to the Veterans Drive beach access.

On the recommendation of town attorney Wallace McCown, the board voted to defer any requests to close any municipal street until after the master plan for streets is completed.

KEYWORDS: REAL ESTATE TAX OUTER BANKS by CNB