Minutes 09/29/1981 - Laserfiche WebLink

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TUESDAY SEPTEMBER 29, 1981 -- report indicated that of the twenty applications considered during the year, some of which were withdrawn by applicants, thirteen were closed and approved for a total issuance of $23,250,000.00 in IDA bonds, the largest of which was $9,950,000.00 for expansion (recently completed) of The Memorial Hospital of Martinsville & Henry County. In response to inquiries pertaining to situs of applicants and borrowers as well as to types of their business and/or professional occupations or operations and as to whether the tax-exempt status of bonds issued constitutes, in some cases, government subsidization, Mr. Groves reported that some legislative restraints are anticipated and that, meanwhile, the Authority is concentrating (within the scope of current rules and regulations) on the financing needs of locally-owned businesses and industries on which the well-being of the local economy is dependent. Mr. Groves further noted, in response to an inquiry concerning measures by which the local economy can be sustained and/or improved, that one avenue would be the consolidation of City-County services, where feasible, coupled with the need to insure adequate water supply and sewage treatment services for future growth. Subsequent to the preparation of the agenda for this meeting, Council was informed, Martinsville Cablevision (represented by Mr. Douglas K. Frith, Attorney at Law) withdrew or postponed its proposal or request that Council extend and amend the franchise how held by Martinsville Cablevision. Represented by its President and Vice President, Messrs. W. Lynwood Craig and Edwin G. Penn, III, respectively, the Martinsville-Henry County Oil Dealers Assocation requested that Council exempt (as now permitted by the Virginia General Assembly, effective October 1, 1981, and thereafter) local domestic users of now-taxed heating fuels from the locally-imposed one per cent sales tax, noting that the General Assembly has removed its three per cent tax on such fuels and claiming that such exemption (by the City, as well as by Henry County) would be of some benefit to users, particularly those on fixed incomes, as well as would enable local dealers to compete favorably with dealers in nearby jurisdictions where the tax has been or is expected to be exempted. After some discussion, in which it was noted (based on information compiled by the State Department of Taxation) that the City would lose some $8,100.00 in revenue from this source for the remainder of its current fiscal year and some $16,900.00 on an annual basis if Council complies with the request, Council indicated its preference that the Henry County Board of Supervisors, which will soon act upon a similar request, not comply therewith; however, Council further indicated that it would parallel the