DANVILLE, Va. – Danville City Manager Ken Larking has proposed a $379.3 million budget for the next fiscal year to the city council, a 9 percent increase from last year.
The proposal focuses on education, economic growth and public safety, all of which are key areas identified by the city council. Additionally, there is also an emphasis on preserving quality services, investing in infrastructure and optimizing casino revenue in ways that benefit the community.
“After years of investments by City leaders both present and in the past, Danville is recognized as a model for how to rebuild, reinvent, and reimagine a community,” Larking said. “Since 2015, Danville has received dozens of regional, statewide, and national awards, recognizing innovative practices, sustained efforts, and the resulting positive outcomes, including All America City awards in 2020 and 2024. The priorities contained within this recommended budget include the funding necessary to continue Danville’s success.”
The proposed budget serves as a working draft for the next fiscal year, which starts on July 1. Public hearings will be held in May and June to discuss all that has been proposed, with final adoption scheduled for June 17. A budget must be adopted no later than June 30.
So what are the key takeaways?
The proposal includes millions of dollars in gaming tax revenue from Caesars Virginia:
Larking provided an outline of revenue forecasts, which can be found below:
- Caesars Virginia: $35 million, a $10 million increase from the current budget year
- Real estate taxes: $3.7 million
- Meals tax revenue: $1.8 million
- Sales tax: $1 million
- Business licenses: $940,000
According to the 2024 Investing in Danville Committee Report, $30 million of tax revenue from Caesars will be allocated as follows:
- $7.8 million for economic development initiatives.
- $7.3 million for capital and special projects.
- $4 million for Danville Public Schools for the local match for bonuses, school bus aides, elementary school security, early tuition costs, utility and transportation expenses, and security enhancements.
- $4 million reserved for future economic development loan payments.
- $1.7 million for housing programs, including $300,000 for the Danville Neighborhood Development Corporation.
- $1.5 million for lease and debt payments associated with the new police headquarters.
- $1.2 million for tourism marketing.
- $850,000 for blighted property removal.
- $761,000 for gang prevention programs, which were previously funded mostly with grant funds.
- $564,000 for personnel, including grant administration, parks maintenance, economic development, cultural arts, housing and public works.
- $279,000 for support of regional industrial facility authorities.
- $237,000 for the summer internship program.
There won’t be an increase in the tax rate:
Currently, Danville’s tax rate of 83 cents per $100 of assessed value is tied for the fifth lowest when compared to other Virginia cities and the city’s real estate tax burden is the 14th lowest among the 133 localities across the Commonwealth.
Additionally, the city is planning to adjust utility services, which include a $1 per month increase in the solid waste fee and rate adjustments for electric, gas, water and wastewater treatment. This could result in a $10 monthly increase for most residents. To offset the increase, Larking suggests using casino revenue to:
- Provide a $10 monthly credit on a city resident’s utility bill to offset utility increases
- Allocate $200,000 to the Neighbors Helping Neighbors assistance program
- Invest $500,000 in an energy efficiency program for qualifying homeowners
Larking pointed out that despite these adjustments, Danville’s utility rates remain $57 per month below the average of what residents in Lynchburg, Roanoke, Charlottesville, Richmond, Durham, and Greensboro typically pay for water, wastewater, electric, and gas, combined.
Danville Public Schools will see an increase of $4.64 million in the recommended budget:
The proposed budget provides $32,483,680 for the school district, which will be used to support:
- Pay Increases: $2.2 million for salary adjustments from a pay study.
- State-mandated salary match: $956,650 for a 3% salary increase for Standards of Quality (SOQ) funded positions.
- Non-SOQ Bonuses: $491,260 to match proposed bonuses for SOQ positions.
- Bus monitors: $255,590 to enhance student safety.
- Utility costs: $252,910 for electricity, water, sewer, and waste removal.
- Transportation: $195,000 for fuel, supplies, and bus parts.
- Health insurance: $170,370 to cover increased premiums.
- Security enhancements: $100,000 for staff training, software upgrades, and equipment
For more information on the City Manager’s Proposed Budget, click here.
