JUSTIN COOK The Roanoke Times

The budget City Manager Tony Cox proposed March 2 was more $2 million smaller than last year's proposed budget. But it included a 14 cent increase in the real estate property tax rate, a 12 percent increase in the electricity rate and a 9 percent increase in water and sewer rates. Shown is the Radford Electric Department building on 17th Street.

JUSTIN COOK The Roanoke Times

Construction workers dig along West Main Street in Radford. Mayor Tom Starnes suggested postponing equipment purchases to cover most of his budget cuts.

RADFORD -- Monday night's budget work session began with Vice Mayor Dick Harshberger saying he thinks city staff did a good job, proposing a budget that's $2 million and 16 jobs smaller than last year's proposal.

City leaders have cut out the fat and into the muscle, Harshberger said, and the Radford City Council shouldn't cut any deeper. Aside from some adjustments made because of errors and information gained since the first draft -- enough to account for more than a penny of the real estate tax rate -- there shouldn't be any more cuts, Harshberger said.

"I obviously disagree with that assessment," said Mayor Tom Starnes. Last week, Starnes called for reducing the proposed real estate tax rate by 5 or 6 cents.

These hard times are not the right time to increase taxes more than absolutely necessary, Starnes argued then.

"We're talking about hitting people up for a 10 percent increase in water; 10 [percent] or 11 percent in electricity, and then you hit them up with a 20 percent increase in taxes," he said when he made his proposal. "That's a lot of money."

Monday night he doubled up, calling for 10 cent cut.

"I truly believe that the city has to look at getting by with a little less in these times," Starnes said.

The budget City Manager Tony Cox proposed March 2 was more than $2 million smaller than last year's proposed budget. But it included a 14 cent increase in the real estate property tax rate, a 12 percent increase in the electricity rate and a 9 percent increase in water and sewer rates.

City residents currently pay a real estate tax of 63 cents per $100 taxable property.

Payments on the new Belle Heth Elementary School account for 9 cents of the real estate rate increase. A decrease in utility use, driven by decreased industrial activity, explains the other increases. To make the budget balance, Cox proposes cutting 16 city jobs.

"I don't think any of us relish the idea of a tax increase given the economic conditions that we face," Councilman Bruce Brown said. "But this is not unanticipated. We knew that we factored in 9 cents on the schools.

"I think to go down to [an increase of] 4 cents is penny wise and pound foolish in the long run."

After Starnes' first tax cutting proposal, the council asked Cox and his staff to figure out how they would accommodate that 5 cent cut. Cox brought back four alternatives.

But in the interim, Starnes said, city residents told him he was on the right track when he started cutting the city's budget.

"I've been stopped in the post office," he said, "several times in church yesterday, rec hall, e-mail, phone call, Wade's, Food Lion. In every single instance, people have said, 'Tom, I really think that the city needs to cut back.' "

Councilwoman Laurie Buchwald said she wonders whether those people have really taken a look at how lean the city's operations are run, the equipment purchases that have been put off, the capital projects that have been deferred.

"It is almost a knee-jerk reaction in this country to complain about the taxes being too high," she said. "That's kind of the American way."

Buchwald said people often tell her they'd be willing to pay higher taxes to preserve Radford's quality of life.

According to a report Cox gave the council last week, the current real estate tax rate is 11 cents below the 1999 rate.

Starnes suggested postponing equipment purchases to cover most of his cuts. But he also suggested that full-time city employees take off three days without pay next year. Council would do without a week's pay.

Cox's alternatives included cuts in services, cuts in equipment purchases, increases in meals and lodging taxes, taking more money from the electricity fund, charging residents for using the recreation center and shifting money set aside for capital projects into the general fund.

Monday night, council discussed another set of alternatives -- cutting some equipment, cutting spending for conferences, cutting a month's salary from council and raising the meals tax a penny.

Not everyone was on board with that. Starnes wasn't ready to back the meals tax increase.

When council holds a public hearing on the budget next Monday, Cox plans to present his original proposal.

The other seven versions may come up as the discussion progresses.

What’s next

Monday: At 6 p.m., the council holds another budget work session. During its 7:30 meeting, the council plans to hold a public hearing on the budget. Members will also decide the “cannot exceed” tax rate to advertise for public hearing. The council can set the rate lower than that advertised rate, but not higher.

March 30: Another budget work session.

April 13: The council holds a public hearing on the real estate tax rate and votes on the budget.

April 27: The council officially sets the real estate tax rate.