THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Wednesday, May 17, 1995 TAG: 9505170052
SECTION: LOCAL PAGE: B1 EDITION: FINAL
SOURCE: BY ALEX MARSHALL, STAFF WRITER
DATELINE: NORFOLK LENGTH: Medium: 70 lines
The City Council informally agreed Tuesday to slash taxes for owners of recreational vehicles but proceeded with plans to raise them on almost everyone else.
Despite some misgivings expressed during a discussion on the proposed budget, the council appears set to raise the real estate tax rate by 2 cents, sharply increase parking fines, and charge more for trash disposal and wastewater treatment.
Councilman G. Conoly Phillips, an automobile dealer, led the drive to cut the RV tax.
The tax, he said, discourages RV owners from keeping the vehicles in the city. Motor homes and campers can range in value from $50,000 to $400,000, Phillips said. At current rates, the annual tax on a $50,000 RV would be the same as for a car of equal value - $2,000.
After discussion, the council agreed to cut the tax rate in half, to $2 per $100 of assessed value.
This year's $465 million operating budget and $43.8 million capital budget are more oriented toward neighborhood projects and programs, city staff members say. The capital budget includes the renovation of Granby High School and new football stadiums for Lake Taylor and Booker T. Washington high schools. The operating budget includes expanded hours for the libraries and more recreation programs.
In a letter this month, Andrews said he worried that the proposed tax increase was a sign that the city staff was no longer using traditional budget practices that allowed the council to rigorously scrutinize expenditures.
But neither Andrews nor Phillips, who had also raised concerns about the tax increase, expressed strong criticism Tuesday.
``I think at this point it's a predetermined issue,'' Andrews said.
Council members Herbert Collins, Randy Wright and Paul R. Riddick, who traditionally have opposed increased city spending, support the budget because of its emphasis on neighborhood development.
The budget, which the council is expected to vote on next Tuesday, would:
Increase the real-estate tax rate to $1.40 per $100 of assessed value - costing a person whose home is assessed at $100,000 an extra $20 per year.
Increase residents' charges for trash pickup by a couple dollars a month, to $8.10. Business rates also would rise, as the city passes on higher costs from the Southeastern Public Service Authority.
Raise residents' sewerage charges from a base rate of $1.22 to a rate of $1.28, and phase out a discount for larger users, in the interest of conserving water.
Boost some $10 parking fines to as high as $30, and double the fine for parking in a handicapped zone from $50 to $100. Council members considered limiting the increases to double the current fine. But Deputy City Manager Darlene Burcham told the council it would then have to raise other automobile-related fines to bring in the nearly $1 million more a year in revenue that it expects the increased fines to raise.
The money is slotted to help pay to build parking garages for the proposed MacArthur Center shopping mall.
Burcham said the higher fines should free up more parking spots for downtown shoppers.
But shop owners say they worry higher fines will drive people away from downtown, where the city collects the bulk of its fines.
``A $10 fine is an inconvenience,'' Wiley Francisco said from behind the counter of his art and decoration shop, Calvin & Lloyd, at Granby and Plume streets. ``A $25 or $30 fine is a discouragement. It's going to anger people. It's way out of proportion.'' by CNB