Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, June 19, 1990 TAG: 9006190499
SECTION: VIRGINIA PAGE: A/1 EDITION: EVENING
SOURCE: JOEL TURNER MUNICIPAL WRITER
DATELINE: LENGTH: Medium
McGraw, who represents the Catawba district, said he will not campaign against the consolidation plan as Supervisor Harry Nickens plans to do, but he will vote against it if there is no financial settlement with Salem.
McGraw also said he will not attend the meetings that Salem officials plan to hold in his district to get residents' views on a proposal that would require Salem to pay $16 million for the Catawba district.
"I won't attend the meetings because I don't want to get into a shouting match" over the proposed financial settlement, he said.
Salem will hold the first meeting at Mason Cove Elementary School at 7:30 tonight. A second meeting is to be held Thursday night at Glenvar Elementary School.
McGraw said he believes that consolidation would save money for city and county taxpayers "10 to 15 years down the road, but it will probably be more expensive for the first five to 10 years."
McGraw said "it is regrettable that Salem waited until the 11th hour to get involved" in the merger negotiations. Salem's refusal to get involved early and the negotiators' attempts to try to please as many people as possible has created a "confusing situation" in which emotions are likely to dominate the meetings to discuss the proposed financial settlement, McGraw said.
Under the current proposal, in addition to paying $16 million for the Catawba and Glenvar areas, Salem City Council would also be required to agree to a 25-year moratorium on any voluntary petitions for annexation that might be filed if consolidation is rejected.
If merger is approved, a second vote will be held to allow residents in most of the Catawba district to decide whether they want to become part of Salem rather than the consolidated government. Without a financial settlement, however, a second vote would be meaningless.
Mayor James Taliaferro has hinted that City Council will reject the proposed settlement, particularly the requirement that Salem agree before the merger election not to accept any annexation petitions for 25 years.
If consolidation passes, the annexation route could close forever because Salem could not annex any part of the consolidated government's territory. Officials say this issue could still be negotiated.
The $16 million financial offer is half the amount that Salem would be required to pay if the consolidation negotiators had stuck with an annexation-type settlement as originally proposed.
Annexation settlements are based on the premise that a city should compensate a county to help offset the loss of part of its territory and tax base.
State law requires an annexing city to pay the county for the publicly owned facilities it acquires and the net loss of tax revenue for five years. It is also required to assume a proportionate share of the county's bonded debt on schools, parks, libraries, sewer and water lines, and other publicly owned property.
McGraw and two other county supervisors agreed to cut the $32 million figure by half after it became apparent that Salem would not consider paying that amount.
by CNB