PRESENT: Mayor David P. Helms; Samuel S. Burkett (arriving later), Mark Warren, Eugene Hendrick, Mel Leaman, Buford Cregger, Ken Heath and Dr. James Gates, Council Members; Police Chief Michael Roberts; and Town Manager John E. B. Clark, Jr.
INVOCATION: Mr. Warren rendered the invocation. Mayor Helms led the Pledge to the Flag.
VISITORS: Mary Margaret Justis, David Richardson, James Widener, Perry Catron, Robert Pickleseimer, Brian Karriker
PUBLIC HEARING – PROPOSED 2003-2004 BUDGET: Mr. Clark presented an overview of the proposed budget in the amount of $7,300,199. He stated that the budget is increased from $6,807,871 for fiscal year 2002-2003. He informed those present that Capital Expenses are budgeted at $317,705. He noted that state funding has been reduced and that the Town’s largest water customer, Pepsi, will be closing by January 1, 2004. To offset the revenue losses, Town Council is proposing an increase to water rates ten-percent (10%) and raise tobacco tax to twelve (12) cents per pack. Water customers using less than 2001 gallons of water will not be affected by the water rate increase.
TOBACCO TAX INCREASE: James Widener, owner of Smokin’ Joes Tobacco Shop, stated that he feels that a 500% increase in the cigarette tax is too much at one time. He suggested that five or six cents would be more realistic. He noted that the tobacco industry is always the first area to realize increases in taxes. He further stated that the population census is not large enough to absorb such an increase. Mr. Leaman stated that tobacco taxes are increasing in many localities. It is an easy tax to establish and most people relate the use of tobacco to health issues. However, Mr. Leaman suggested that Council consider reducing the tobacco tax increase and phasing it in gradually over several years. Mr. Hendrick added that the proposed rate increases are not intended to result in hardship for citizens or businesses, but due to state cutbacks, Council had to pursue other available revenue. Dr. Gates stated that he would consider reducing the tax to ten (10) cents per pack. Mr. Warren stated that the tax was at ‘rock-bottom’ and has not been increased since instituted in 1984.
No other public comment was received. Mayor Helms closed the public hearing.
WATER RATE INCREASE: Mr. Hendrick advised the Town has not had an increase in water rates since 1995. He added that Town Council should review rates systematically and adjust them as necessary. Mr. Leaman stated that even though the Town crew is doing a good job on repairs, the Town must become more cost effective. He noted that the Town now has a five (5) year plan. The plan will replace old lines, rather than repairing them.
Following discussion and upon motion of Mr. Hendrick, seconded by Mr. Burkett and vote of 7 AYES and 0 NOES, the proposed budget for fiscal year 2003-2004 was approved as presented. Mr. Leaman abstained from the item concerning the Smyth County Free Clinic; Mr. Heath abstained from the items concerning Marion Downtown! And TV3, and Dr. Gates abstained from the Lincoln Theatre appropriation.
Mr. Leaman stated that he had hoped for a compromise on the cigarette tax but is well aware that the Town must do what is necessary to provide the best services possible to the citizens.
TRANSPORTATION 2020: Mr. Hendrick advised that VDOT has requested that the Town prioritize its requests for future transportation (roads) projects. The Street Committee recommended and Mr. Hendrick moved that the requested projects be rated in the following order: 1) West Main Street to Greenway Avenue; 2) Poston and Cherry Streets; and 3) West Chilhowie Street Upgrade. Mr. Cregger seconded the motion. Council approved the same by a vote of 7 AYES and 0 NOES. This information will be forwarded to VDOT. There are several other proposed projects within the plan. Mr. Heath reminded Council that the intersection at Pendleton Street and W. Main Street continues to be a problem. This is especially true with regard to school traffic.
304 PEARL AVENUE – BRIAN KARRIKER: Brian Karriker requested that the Town repair the culvert in front of his home and erect a new street sign. Mr. Karriker stated that he had appeared before the Town of Marion Board of Zoning Appeals and was granted a variance. He contended that the Town has agreed to repair the culvert in front of his residence but had not done so. Upon motion of Mr. Leaman, seconded by Dr. Gates and vote of 7 AYES and 0 NOES, this item was referred to the Street Committee.
Upon motion, duly seconded, and vote of 7 AYES and 0 NOES, the meeting was adjourned.