| Amy Matzke-Fawcett

amy.matzke-fawcett@roanoke.com, 381-1674

RADFORD -- The Intermet foundry's closing could cause the city a loss of revenue so large that it could be offset by steps as drastic as closing the fire department, museum and library or major increases in the city's real estate tax rate.

City Manager Tony Cox doesn't advocate any of those options but used them during Monday's council meeting to put in perspective the effect of the company's closing on city finances. He called it a "doomsday scenario."

"I do this just to give you a feel for the magnitude of this," Cox said. "Clearly, the answer lies somewhere in the middle."

Intermet plans to close the New River Foundry on Dec. 12, laying off its remaining 76 employees, according to a letter a foundry official sent to the city Oct. 15.

According to a memo prepared by Cox, the projected annual revenue impact of the foundry's closing is:

• About $300,000 in water and sewer revenue, which equates to a 7 percent increase in water and sewer rates or cutting one position at the water plant and four positions in line maintenance.
• About $750,000 in electricity revenue.
• About $250,000 in machinery and tools property taxes and $80,000 in real estate taxes, which could be offset by a 4 cent increase in real estate taxes or eliminating the budget for all public ground maintenance, which includes tree trimming and grass cutting.
• About $750,000 in general electric transfers equates to a 9.4 cent real estate tax increase; eliminating the library, Glencoe Museum and tourism, economic development and code enforcement programs; eliminating 18 police officer positions; or eliminating the fire department.

Mayor Tom Starnes said the city tried to keep Intermet from closing using incentives, such as deducting the foundry's water bill from its operating cost each month if the foundry maintained its current level of employment.

"I know people are going to say, 'How could city council let the foundry go under?'," Starnes said. "But I want people to know we tried to work with them."