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

DATE: Tuesday, June 25, 1996                TAG: 9606250279
SECTION: LOCAL                   PAGE: B3   EDITION: NORTH CAROLINA 
SOURCE: BY JEFFREY S. HAMPTON, CORRESPONDENT 
DATELINE: ELIZABETH CITY                    LENGTH:   41 lines

ELIZABETH CITY COUNCIL PASSES TAX HIKE, $36.7 MILLION BUDGET

Councilwoman Dorothy Stallings switched sides Monday night breaking a bitter stalemate and passing the city's $36.7 million budget that includes a 2.5-cent tax increase.

The council debated for hours last week and were unable to compromise. Monday the meeting lasted only 30 minutes.

``We had to have a budget,'' Stallings said after the meeting. ``Everything that could be done had been done.''

Councilman Jimi Sutton, who was not present last week, voted in favor of the budget Monday.

``We have to do things, and I know for a fact we have to have the revenues to do them,'' he said during the meeting.

Mayor Rick Gardner was prepared to break the tie if necessary.

``I don't believe in micromanaging,'' he said. ``We have to depend on the good judgment of our manager and his staff. I would urge the council to come together now in the interest of unity. Let's show we can go forward and do what's necessary.''

The council voted last week 4-3 against raising property taxes to 64 cents per $100 of value, but couldn't accept alternative plans. Zack D. Robertson Jr., Lloyd E. Griffin III and Anita Hummer firmly maintained their positions against the budget with a tax increase again Monday.

Gardner asked each councilmember for a statement. All except Stallings responded.

``I said what I wanted to say in the last meeting,'' said Griffin. ``I do not support a tax increase.''

The tax increase pays for debt service on the $800,000 needed to buy and renovate the BB&T building, $250,000 for a new fire station, and $50,000 to renovate the old city hall. The annual debt service on the three projects will range from $159,000 to $174,000 depending on how long the fire station is financed.

With the city property tax increase and a Pasquotank County property tax increase of 5 cents, residents within city limits will pay 7.5 cents more per year. by CNB