THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Wednesday, May 3, 1995 TAG: 9505030429
SECTION: LOCAL PAGE: B5 EDITION: FINAL
SOURCE: BY ALEX MARSHALL, STAFF WRITER
DATELINE: NORFOLK LENGTH: Medium: 55 lines
On the eve of tonight's public hearing, several City Council members Tuesday made noises about not approving the various taxes, fines and fee increases included in next year's budget.
But Mayor Paul Fraim warned the council during the discussion that not raising the real estate tax 2 cents might mean holding off on renovating Granby High School. Deputy City Manager Darlene L. Burcham said the tax increases were necessary to put the city on a more sound financial footing.
In the budget now under review, city staff members have recommended raising the real estate tax by 2 cents, doubling or tripling most parking fines, and boosting water and sewer rates. The staff estimates that the increases would cost the average homeowner less than $4 a month.
The public hearing is set for 5 p.m. today at Chrysler Hall. Individuals or groups who oppose or support city spending initiatives are encouraged to attend.
Besides the real estate tax increase, several council members questioned whether the city should boost parking fines so dramatically. The fine for parking too long at some timed spaces, for example, would rise to $30 from $10.
Fraim said the city was expecting to use the extra money generated from increasing the parking fines to pay off debt on revenue bonds set to be sold. Sales from these bonds are to pay to construct the parking garages at the proposed MacArthur Center Mall.
Councilman Mason C. Andrews said parking fines should be used mainly to discourage people from parking illegally, not to raise money. He said he worried about the city growing dependent on such a source of money.
Both Andrews and Councilman G. Conoly Phillips said the budget may not have been scrutinized closely enough. ``To my mind, it's not a bare-bones, belt-tightening budget,'' Phillips said.
Andrews questioned two new football stadiums for Lake Taylor and Booker T. Washington high schools, and the more than $6 million allocated for neighborhood projects. ``When I look at the capital improvement budget, there are a lot of things I have never heard of,'' he said.
But Burcham said the additional revenue from the tax increases was needed to keep the city's debt level from rising above 10 percent of the city's annual operating budget. The City Council and municipal bond rating firms have traditionally used this as an indicator of when the city was taking on too much debt.
In other discussion on the budget, Councilman Rev. Joseph N. Green Jr. lobbied for the council to put more money into the budget of Tidewater Regional Transit so bus service along Colley Avenue could be resumed.
KEYWORDS: BUDGET NORFOLK CITY COUNCIL by CNB