| Sharla Bardin

sharla.bardin@roanoke.com, 381-1669

CHRISTIANSBURG -- Three residents told Montgomery County supervisors Monday night that people are hurting financially now and increasing the real estate tax rate by 4 cents will only cause more hardship.

"We cannot afford it," Christiansburg resident Lois Crismond said at the board of supervisor's meeting.

The residents told supervisors that many people are trying to weather layoffs and increases in health care, utility and grocery costs. They said the county's proposed 4 cent increase, which would increase the real estate tax rate to 75 cents per $100 in assessed value, would result in more financial struggles for many.

Riner resident Bobby Way said, "These people out here are hurting."

County officials say the proposed increase is a way to maintain most of the county services and to help offset deep state budget cuts, including state funding reductions made to the schools.

The 4 cent increase has been built into the proposed $154.1 million budget that was presented Monday.

Supervisor Gary Creed said he is not in favor of the 4 cent increase after hearing from constituents who say they can't afford it.

Creed said his mindset is that "I would rather tax all the people too little than to tax one person more than they could possibly pay."

However, supervisors were quick to point out Monday that while a 4 cent increase has been proposed and included in legal advertisements, it doesn't mean that will be the rate set.

Any proposed change to the real estate tax must to be advertised. Supervisors could decide to approve the advertised rate, lower it or keep the current rate. Supervisors would not be able to increase the rate higher than what has been advertised, county officials said.

The average home value in Montgomery County is $201,122, and that homeowner pays $1,428 in taxes at the current, 71 cent rate. A 4 cent increase in the tax rate would add $80.45 to that tax bill.

The new real estate tax rate would go into effect for the bills due June 5, said Ruth Richey, the county's public information director.

County residents are billed in two parts for real estate taxes -- half due June 5 and the balance due Dec. 5, Richey said.

The 4 cent increase would bring in $2.7 million in additional revenue to the county, according to the budget.

The total budget for the next fiscal year, which starts in July, is a decrease from the current budget of $158.9 million.

Reasons for the budget shortfall include state budget cuts and less county revenue, including in local sales tax revenue, county officials have said.

A public hearing on the proposed budget is March 29, and county officials are expected to vote on the budget in April.