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Tax rate in Warren headed for slight increase

The local property tax rate in Warren could increase as much as 4 cents for 2017, but it probably won’t.

“It should be less than $1.11,” Clerk-Treasurer Marilyn Morrison told members of the Warren Town Council during their meeting on Monday, Aug. 8.

Preliminary figures presented to the council show the town’s total budget increasing to $2.2 million for 2017, up from $1.86 million in 2016.

“Our overall budget went up substantially,” Morrison said.

Part of the increase can be attributed to two new funds — a second LOIT fund, estab-lished to hold an additional distribution of $33,055 the town will receive from the state, and an $11,000 rainy day fund established to hold the second part of that same distribu-tion.

In addition, the Motor Vehicle Highway Fund has a substantial carryover “because last year we didn’t know if we were going to pave,” she said.

The town’s property tax rate will fund only a portion of the estimated $2.2 million budget, with revenue from other sources making up the rest.

The portion of the budget to be funded by the local tax is estimated at $341,932, but that’s higher than the maximum levy — the total amount that can be raised by the local property tax — of $334,987 set by the state. To bring the numbers down to permissible levels, Morrison said, the 2017 budget must be reduced by $6,945 — a cut she said would not be a problem.

The town’s property tax rate for 2016 is $1.07 per $100 of assessed valuation, based on an assessed valuation of $30,272,501. Morrison figured the tentative tax rate for 2017 as $1.11 on a slightly lower assessed valuation of $30 million. The assessed valuation for 2017, she said, “will probably go up, so the rate will probably come down a penny.”

The Warren Volunteer Fire Department is currently looking into the possibility of buying a used tanker and also plans to buy a pumper in the near future. Money is available for both purchases, Morrison said, “unless a big calamity happens.”

In other business:

• The council awarded a paving job to E&B Paving, which submitted the lower of two quotes received for the work. E&B submitted a quote for $64,177, with Brooks Construc-tion quoting a price of $78,891.

Because the E&B price was so much lower than expected, Utilities Manager Lee Poulson recommended adding several more paving projects to the list at an extra cost of $23,037. Council members approved the additional work.

The paving, which will be done yet this summer, includes alleys from Matilda Street to Nancy Street, between 2nd and 3rd streets; an alley between 1st and 2nd streets; an alley from Wayne Street to Nancy Street at the post office; an alley from Matilda Street to Wayne Street between Railroad and 7th streets; the town shop parking lot; and repairs to numerous patches and low spots.

• Council members agreed to begin investigating the costs of accomplishing the second phase of a downtown improvement project, which would focus on 2nd Street between the Warren Town Hall and the Knight Bergman Center.

The first phase of the project upgraded the water lines, sidewalks and street lights along Wayne Street in the downtown area. The second phase would include lighting upgrades and sidewalk repair on 2nd Street, which is used often for festivals.

• Council members discussed possible changes to a proposed nuisance ordinance that would replace the town’s current ordinance. Warren was one of seven communities that banded together to pay for the drafting of a new ordinance after a judge ruled that the nuisance ordinance in Roanoke was faulty.

Warren Marshal Dennis Spitler expressed several concerns with the proposed ordinance, including the lack of any provision covering loud music coming from cars and how tall grass and weeds can grow before it's considered a nuisance. Other concerns include the method by which violators receive notification and the fines assessed for violations.

Morrison said the council can make changes to the ordinance that would affect only the community of Warren.

• Council approved the purchase of a copier from Ricoh USA at a cost of $4,354. The only other quote was from the town’s long-time supplier, Allen Business Machines, at $8,295.

Morrison explained that the Ricoh quote was so much lower because that company holds the state purchasing contract.

• Poulson received permission to get quotes for the construction of a building to house a new well. The current well has many problems, he said, and a new well can’t be dug until a building is constructed.