Rocky Mount may raise real estate taxes 2 cents

ROCKY MOUNT -- Town residents could see a 2-cent increase in real estate taxes, according to the town's proposed budget.

The increase would offset the 9.1 percent average drop in real estate taxes after reassessments completed last year. The town's rate would increase to 14 cents per $100 in assessed value from 12 cents, bringing the county an additional $78,803.

"It seems like our expenses are increasing faster than our revenues," Assistant Town Manager Matt Hankins said while presenting the budget Monday.

That increase comes on top of a proposed 6-cent real estate tax increase from Franklin County to offset the 15.5 percent countywide average loss in real estate value.

The proposed town budget is about $10 million, an increase of about $265,000 over the 2011-2012 budget, town Finance Director Linda Woody said.

The proposed budget also includes a 2.5 percent cost-of-living adjustment for town employees, who have not had a raise since 2008, Hankins said. Because of the adjustment, the town will not give holiday bonuses, according to the budget. It was unclear Monday how much that would cost the town, but it further discussion is planned during upcoming workshops.

Utility rates are not proposed to change when the budget takes effect July 1, but rate increases will be proposed in November, according to the budget.

The town council decided to take the utility rate discussions out of the regular budget debate last year to make the process easier, Woody said.

Town council members did not comment or ask questions about the budget.

The town council will hold a budget work session at 4 p.m. Monday in the town's municipal building. The proposed budget and presentation from the meeting will be posted at rockymountva.org. The council also discussed a proposed business incubator in the town's Community and Hospitality Center. The former train depot reopened as the town's welcome center in mid-March.

Two small offices in the depot are empty and could be rented out for startup businesses for a year or two, with the understanding that the businesses would then move into the town's central business district if space was available, Hankins said.

The council asked town staff to study other business incubators in small towns before moving forward.

Source: http://www.roanoke.com/news/roanoke/wb/307245