Blacksburg council OKs tax increase, trash fees, water and sewer rate hikes

For the members of Blacksburg Town Council, approving a budget that included a tax increase was not something any of them wanted to do.

But following losses in revenue town officials had no choice on Thursday, unanimously signing off on the town's budget for the 2008- 09 fiscal year.

Blacksburg taxpayers will see a tax hike of 11.9 mills or about 7.5 percent, raising the town's estimated millage rate for the year to 171.15 mills or $1.71 per $1,000 of assessed property value.

The owner of a house valued at $100,000 would see an increase of about $12, from $159 to $171.

"I'm concerned along with everyone else here in Blacksburg," Mayor David Hogue said. "It is not something that we wanted to do, but sometimes you have to bite the bullet."

The town is slated to spend close to $4.2 million this year, which is significantly down from last year's total of nearly $5.5 million.

Most of the decrease is attributed to reduced natural gas purchases.

However, the loss of Hanson Brick Co., the municipality's primary buyer of gas, put a large dent in Blacksburg's revenue stream.

"(Hanson) was one of, if not our top, buyer of (natural) gas," Blacksburg Town Administrator Trudy Martin said. "The company would purchase close to 50 percent of what was there. When you lose a company like that, you lose a lot."

A $7 fee for trash pickup is in store for Blacksburg residents. The pressing need of the town to replace its current trash truck along with plans to use rollout cart trash cans prompted town officials to budget close to $26,000 to purchase the carts and buy a new trash truck.

Water and sewer fees were also affected. Flat fees for water will rise a total of $2.10 a month while flat fees for sewer service will jump $2.75.

Residents will also face certain tap and initiation fees.

"This throws a burden on everyone," Councilman MikePatterson said. "I don't want any of these things to go up, but it is something we have to do."

Council passed first reading of the budget March 11. The fiscal year begins April 1.

An increase in the pay of Hogue and other members of the council were part of the agenda for the meeting. However, officials declined to vote on the issue, believing their main goal is to relieve the town of its financial strain.

"I can't vote to increase my pay and have a good conscience about it," Hogue said. "If I have to lose my salary to help the town, I'll do so."