THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Wednesday, May 10, 1995 TAG: 9505100439
SECTION: LOCAL PAGE: B3 EDITION: FINAL
SOURCE: BY KAREN WEINTRAUB, STAFF WRITER
DATELINE: VIRGINIA BEACH LENGTH: Medium: 82 lines
The City Council decided Tuesday that better-funded schools and managed growth are more important than low taxes.
By a vote of 10-1, the council approved a 1995-96 budget that includes a 4.8-cent real estate tax rate increase. But the city's rate remains the lowest in the region except for portions of Suffolk.
Beach residents will pay $1.189 for every $100 of assessed value of their homes, or $1,189 for a house valued at $100,000. As of last year, owners of comparable houses in other Hampton Roads cities paid $1,200 or more.
The council also agreed to impose a new tax on cellular phones of 10 percent of monthly bills, up to $3.
The council members have been reviewing the capital and operating budgets since March 29, when City Manager James K. Spore presented his recommendations.
The operating budget, which funds the city's day-to-day needs, will total $838 million for next year. The capital, or construction, budget will top $108 million.
The tax increases will pay the day-to-day costs of schools built in the past few years and will help inaugurate a $90 million plan to protect farmland in the city's southern half. The Agricultural Reserve Program, developed over the past year by a group of farmers, environmentalists and city officials, is intended to reduce long-term city expenses by limiting development that requires costly city services.
In response to an outpouring of support for school expansion programs and the dredging of the Western Branch of the Lynnhaven River, the council found money for those projects without further increasing taxes. The money is coming from budget reserves and by issuing more long-term debt.
The dredging project will cost $250,000 next year for engineering and $2.2 million total.
The council designated $2.9 million to add 20 classrooms and other improvements to Kellam High School. First Colonial High School will receive $1.9 million for eight new classrooms and the completion of a school modernization project that was supposed to have been finished this year.
Although they did not provide any funding for 1995-96, the council members decided in an earlier session to provide money in future years for additions to Kempsville and Plaza middle schools.
The school district ran out of money for those additions because of cost overruns and changes in project scope. The council, which provides the district with all of its local funding, has given the district more than $33 million for school renovations and additions - including those at Kellam, First Colonial, Kempsville and Plaza - in the past two years.
Other smaller projects added into the budget include: additional street lighting, extended hours at the Pungo library, increased security at Mount Trashmore, a special events trolley at the Oceanfront and the hiring of another real estate expert in the city attorney's office.
The council also added $100 a month raises for sheriff's deputies, who are among the lowest paid in the state. Sheriff Frank Drew said he asked for the pay increase because of a 20 percent attrition rate in his 300-deputy force in each of the past three years. Higher pay will help prevent deputies from leaving, Drew said.
In response to concerns about school district spending, the council decided to give money in smaller amounts rather than by lump sum. Instead of handing over $358 million for school operations, the council decided to give the money in four categories: about $296 million for instruction; nearly $11 million for administration, attendance and health; nearly $15 million for student transportation; and more than $37 million for operations and maintenance.
In a May 5 letter to Spore, Schools Superintendent Sidney L. Faucette took issue with the council's decision to change the funding mechanism. Several years ago, Faucette had convinced the council that giving him the money in one pot instead of four would save the district about $2 million.
The council also decided to side with Spore in budgeting $3.8 million less for school operations than had been requested. The school district last week voted not to decide how it would cut its budget until after Tuesday's council action. ILLUSTRATION: TRACKING VIRGINIA BEACH'S BUDGET
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KEYWORDS: VIRGINIA BEACH CITY COUNCIL TAX INCREASE BUDGET by CNB