Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, April 20, 1993 TAG: 9304200383
SECTION: VIRGINIA PAGE: C1 EDITION: NEW RIVER VALLEY
SOURCE: JOEL TURNER STAFF WRITER
DATELINE: LENGTH: Long
That's the way City Manager Bob Herbert described his proposed budget for Roanoke for the fiscal year that begins July 1.
The $129.7 million budget, which was submitted to City Council on Monday, is up $5 million, or 4.1 percent, from the current year.
Herbert said it was the most difficult budget he has worked on in his 14 years with the city, including eight years as city manager.
Most of the budget increase is earmarked for schools, 2.5 percent pay raises for municipal workers and higher debt payments to finance expansion of the jail and juvenile detention home.
Although tax rates will remain the same if Herbert's budget is approved, the city anticipates normal economic growth to provide revenue for the projected $5 million increase in spending.
James Grisso, acting finance director, said the largest increases in revenues will be from real estate, personal property and sales taxes.
Overall, local tax revenues are expected to increase by $3.4 million, or 3.6 percent, in the next year, Grisso said. Increases in state and federal funding account for the remainder of the $1.6 million increase.
Because of the financial crunch, Herbert said he was forced to cut $1.3 million from the operating expenses of municipal departments to balance the budget.
The cuts won't cause any reduction in services, he said, but he is worried about the financial outlook for the next two or three years.
"Our goal this year was to maintain services, fully fund the basic school budget, meet the increase in landfill fees and fund pay raises for city employees," Herbert said.
"At the same time, we were able to continue to move forward on City Council's key capital projects, including the Hotel Roanoke and Conference Center and the jail and juvenile detention home expansion projects."
Herbert has recommended that City Council approve the proposed $69.7 million school budget submitted earlier by the School Board. He also proposed that an additional $86,880 be given to the schools.
The school budget includes pay raises for teachers ranging from 2 percent to 20.8 percent, depending on their years with the city. The average raise for teachers is 4.1 percent.
Herbert has recommended a 2.5 percent raise for municipal workers under his jurisdiction. But many workers, especially those who received only a 3 percent raise last year, will receive more than a 2.5 percent raise.
The city manager has recommended that changes be made in the classification and pay plan that caused unrest among city workers last year. But he would not disclose his specific recommendations until he discusses them with council.
Herbert said he is worried about the financial outlook for the city for the next two or three years. He cited the loss of more than 2,000 jobs in the Roanoke Valley and the impact on the city's economy.
"While we were able to meet our goals this year, we continue to see slow growth in local revenue due to the slow economic recovery," Herbert said.
"I'm concerned that we will not be able to meet similar goals in subsequent years with the known [cost] increases we will be facing," he said. "As a result, we will be working throughout the next year to find ways to prepare for future budgets."
Herbert said he is concerned about the rapid increase in the cost of health insurance for city employees and the continued rise in landfill dumping fees.
New state mandates for social services, jails and courts will also mean higher costs for the city, he said.
Herbert said he has already asked his staff to begin reviewing alternative revenue sources and expenditure strategies for consideration in fiscal 1994-95.
An accounting change, approved earlier by council, created a separate fund for all state and federal money for the school portion of the budget. This resulted in a net reduction in the overall budget from $159 million in the current year to the proposed $129.7 million for the upcoming year.
If the city had not made the change, the proposed budget would have been $164 million.
Grisso said the accounting change was made because the state auditor of public accounts prefers that approach.
The $129.7 million budget includes $95.6 million for city operations under Herbert's jurisdiction and $34.1 million for the local share of the school budget.
The school budget is $69.8 million, up $2 million, or 3 percent, from the current spending plan.
Herbert's budget eliminates 13 jobs, mainly in the Solid Waste Management Department, where the city will eliminate backyard trash collection. The jobs will be eliminated by attrition and no one will be laid off.
\ ROANOKE BUDGET AT GLANCE\ THE $129.7 MILLION BUDGET IS UP $5 MILLION OVER THE CURRENT BUDGET.
Where will the $5 million in new money go?
$1.9 million for pay raises for municipal workers. This includes a 2.5 percent raise for all employees, and higher raises for others who received only 3 percent increases last year while others got raises of 15 percent to 20 percent. City Manager Bob Herbert did not disclose the size of the raises for those who received 3 percent last year.
$1.1 million in local money for schools to fully fund the school budget that was submitted by the School Board.
$1 million for debt payments, including the new debt to pay for the jail and juvenile detention home expansion.
$677,685 for higher premiums for hospitalization insurance for city employees.
$388,820 for higher dumping fees at the new regional landfill that will open this fall.
$145,000 for summer youth programs, including evening sports and playground activities. Where will the new money come from?
$1.6 million increase in state aid for social services, jail operations and street maintenance.
$3.4 million increase in local taxes in the following categories:
$1.3 million, real estate tax.
$375,000, sales tax.
$332,000, personal property.
$328,000, motor vehicle decal.
$250,000, utility tax.
$225,000, business licenses.
$132,000, meals tax.
$122,00, cigarette tax.
$284,000, all other local taxes.
(chart only ran in the Metro edition.)
Memo: shorter version ran in the Metro edition.