ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Thursday, May 2, 1996 TAG: 9605020022
SECTION: CURRENT PAGE: NRV-2 EDITION: NEW RIVER VALLEY
DATELINE: PULASKI
SOURCE: PAUL DELLINGER STAFF WRITER
Pulaski Town Council completed work on its proposed 1996-97 budget Wednesday, but not without last-minute debates on its sewer fund and economic development staffing.
The other major issue was the increase in the water fund. The administration had recommended a 14 percent increase in rates to balance the fund, but council held out for a rate increase of 9 percent.
The staff also changed its mind Wednesday about recommending an increase in the cost of building permits, based on comparisons with fees in neighboring jurisdictions. That will mean an estimated decrease of $4,000 in anticipated revenue next year.
Councilman E.G. "Junior" Black renewed his concerns over upgrading a part-time assistant's position in the town's economic development department to a full-time job with benefits. He noted that the extra cost will take more principal from the town's Urban Development Action Grant fund, which has been used to finance the new department.
The fund was created from federal funds secured years ago by the town to loan to expanding industries. As the loans have been repaid, the town has kept the federal money earmarked for industrial development activities.
Black, who leaves council at the end of this month, drew support from Mayor Andy Graham. "I'm not sure that we need an assistant at this point in time," Graham said. "If it's not cost-efficient, if we don't produce in a couple of years, the whole department will go out."
He said the town could get help from Pulaski County, the New River Valley Economic Development Alliance and Pulaski Encouraging Progress for economic development activities.
Councilman Roy D'Ardenne reminded council that all this had been discussed earlier in budget considerations and it had been decided to upgrade the position to full-time status. "We've made a commitment. We need to stand by the commitment and furnish the tools that we need," said Vice Mayor Rocky Schrader.
Town Manager Tom Combiths noted the department and the 30-member Economic Development Board have already scored some successes, including the designation of a section of town as a state enterprise zone qualifying it for tax breaks and other incentives for new or expanding industries locating there.
Finally, council voted 6-2 to leave the upgraded position for economic development in the budget, with Black and Bettye Steger voting no.
Councilwoman Alma Holston continued to express concern about rising water and sewer rates. "Is it ever going to stop? Is it going up every year?" she asked.
"I think the only thing you can promise is that you'll give it the best look you possibly can," Councilman John Johnston said, and seek all the economies that can be found. Graham said part of the increases are catch-up costs from the time when rates were below the costs of producing water.
Money also is being spent to pinpoint places in sewer lines where ground water is seeping into the system, adding to the amount and cost of treatment by the Peppers Ferry Wastewater Treatment Authority.
Council voted 6-2 to leave the sewer fund as budgeted, with a 5 percent rate increase, rather than supplementing it from the general fund. Holston and Johnston voted no.
The public hearing on the budget will be at council's next meeting May 21.
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