The Virginian-Pilot
                            THE VIRGINIAN-PILOT  
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Friday, May 10, 1996                   TAG: 9605100486
SECTION: LOCAL                    PAGE: B1   EDITION: FINAL  
SOURCE: BY KAREN WEINTRAUB AND PAUL CLANCY, STAFF WRITERS
DATELINE: VIRGINIA BEACH                     LENGTH: Long  :  108 lines

CORRECTION/CLARIFICATION: ***************************************************************** CLARIFICATION A story in Friday's MetroNews section suggested that Virginia Beach City Council member Nancy K. Parker did not like the council's proposal to expand the Police Department and increase spending on schools. Parker does not oppose any specific spending proposals for schools, police or firefighters. Rather, she has questioned the need for the full 3.2-cent tax increase in light of significant growth in city revenues this year. Correction published in The Virginian-Pilot, Saturday, May 11, 1996, page A2. ***************************************************************** BEACH COUNCIL: MORE FOR SCHOOLS - WITHOUT A BIGGER HIT ON HOMEOWNERS SCHOOL FUNDING BUMPED UP\

Heralding a new era of trust and understanding between the city and the school system, the City Council informally agreed Thursday to add $4.8 million to next year's school budget.

The City Council and the school administration have fought for years over funding, with the district accusing the council of risking the future of children, and the council accusing the district of irresponsible spending.

But to show it trusts the district's new leadership and to comply with requests from hundreds of teachers and parents, the council set aside money Thursday for salary increases, textbooks, Celebration Station rent and other programs.

The city will find the money for schools - and $2 million more for other projects - without adding to the proposed 3.2-cent tax rate increase, budget director E. Dean Block said Thursday. The school district has asked for tax rates to be increased as much as 12 cents to fund many of the same programs that the council will finance with the smaller increase.

The council did not suggest spending any more money on police salaries, despite a heavy presence of police officers at a three-hour public hearing Thursday. City employees will receive increases of about 4.5 percent next year, with police officers earning somewhat more to make up for their relatively low wages.

About 200 police officers and firefighters packed the council chambers and spilled out into the adjoining hallway Thursday to argue for larger increases.

The core of the controversy is that many officers who entered the force five or six years ago are making less than new recruits. After the hearing, the council told City Manager James K. Spore to examine the issue and explore ways to increase pay for experienced officers during the next budget cycle.

Officer Otis Dowdy told the council that the most stressful thing about his job was not the thought of getting hurt or killed but making ends meet.

Dowdy said he is looking for work elsewhere.

``My future is far too valuable to gamble it away waiting for a raise that will never come,'' he said.

Though sympathetic to the police officers, about a dozen residents told the council Thursday that the 3.2-cent tax rate increase was more than they could afford.

David Silverman of Windsor Oaks said he has seen taxes or assessments increase in each of his 15 years as a Beach resident.

``I believe you're trying to drive the retirees out of the city,'' he said.

Sandbridge resident Maxine Graham also complained about the council's priorities.

``I'm still waiting to get something for the money I've spent all these years,'' she said.

And Lynnhaven resident Richard Dietz said he couldn't see increasing taxes, because Virginia Beach is already a ``good place - sometimes outstanding - to raise a family.'' He said his real estate taxes have increased more than 800 percent since he bought his house in 1968, while inflation has gone up 116 percent.

Council member Nancy K. Parker said she agreed with the residents that a tax increase was not needed.

The new spending suggested Thursday adds up to more than what would be collected with the 3.2-cent tax rate increase. If the city can find the money to fund all these extra projects, Parker said, it should be able to live without those projects and be able to give taxpayers some relief.

The $4.8 million for schools would be spent to give employees a 4.5 percent pay increase as of Dec. 1; to replenish the school system's textbook fund, which was depleted to balance the district's finances two years ago; and to rent the Celebration Station building on Virginia Beach Boulevard for another year to house Princess Anne High School, displaced by fire at the beginning of this school year.

The council informally agreed to spend $2 million more to hire eight additional police officers; hire three additional firefighters; add two social workers to handle a growing caseload of child abuse cases; hire an animal control officer to address the current outbreak of rabies; expand the city's drop-off recycling centers; and increase funding for the arts.

The city will be able to fund those projects by increasing estimated revenue from personal property taxes by $3 million, reducing reserves by $1.4 million and allocating $2 million in money expected to be left over at the end of this fiscal year.

The council will make final spending decisions on Tuesday when it approves the 1996-97 budget. ILLUSTRATION: GRAPHIC

FUNDING PROPOSALS INCLUDE:

$4.8 million set aside for next year's school budget

$460,000 to hire more patrol officers

$183,000 to expand drop-off recycling centers

$113,000 to hire more firefighters

KEYWORDS: BUDGET VIRGINIA BEACH CITY COUNCIL by CNB