Danville releases 2025 fiscal year budget proposed
DANVILLE, Va. (WFXR) — Danville’s City Manager Ken Larking submitted a proposed budget to city council that emphasizes the continuing effort to enhance job opportunities, reduce crime, improve education, revitalize neighborhoods, and create additional housing options in the city.
According to Larking, this new budget proposal is based on residents who have not had the economic opportunities in a ‘growing Danville.’ During his presentation to the board, Larking also proposed steps to create an environment for young people to stay in Danville and later return to the city as an adult.
“The theme of this year’s budget is in keeping with our brand that ‘Danville is home’ and ‘home is here,’” Larking said. “The investments that we have been making and will continue to make are helping to make it possible for our young people to have a good job, a home they can afford, and a quality of life that they seek. We are in a global competition for talent, and if do not provide these things, then we are going to lose them. The best thing that we can do for our young people is make Danville a place they want to call home.”
The total recommended budget for the next fiscal year is $347.8 million for operations, capital, and debt services. This is a 7% increase, or $22.7 million more, compared to the current fiscal year’s budget of $325.1 million.
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The proposed budget provides for a 10-cent decrease in the personal property tax rate. It also includes an added elderly tax relief on real estate and mobile homes by increasing the threshold from $35,000 to $45,000. The real estate tax rate will remain at 84 cents per $100 value, which is the third-lowest rate among cities in Virginia.
Additionally, the recommended budget provides $27.84 million in funding for school operations—representing an increase of $2.48 million. The budget also provides funding for the pay-for-performance system for employee raises, rising healthcare costs, and an increase in retirement contributions.
The budget also includes the establishment of a short-term rental fee and an increase in fees for the Planning Commission and zoning, inspections, solid waste, and cemetery services. However, there was no proposed increase in utility rates and fees.
With the Caesars Virginia Casino operating as a temporary casino and the resort project expected to be completed in late 2024, Larking told City Council the proposed budget includes $25 million in expected gaming tax revenue from Caesars. Of the $25 million, $16.3 million is state-collected gaming tax revenue and $8.7 million is the local supplement that Caesars Virginia agreed to pay as part of the development agreement with the city. This includes a $5 million minimum payment to the city per year.
Most of the guaranteed payment will go toward the cost of an average 5 percent pay for performance increase for city employees, the local portion of pay increases for Danville Public School employees, and increased health insurance costs for both city and school system employees.
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This budget recommends using the remaining $20 million of gaming tax revenues to pay for activities recommended in the 2024 Investing in Danville Committee report. This includes the following:
$7.8 million for capital and special projects.
$5.2 million for economic development initiatives.
$2 million to put in reserve for a future balloon payment on an Industrial Development Authority loan, which was used to finance economic development projects in FY2022 and FY2023 in anticipation of future casino revenues.
$1.5 million for lease and debt payments associated with the new police headquarters.
$1.25 million to Danville Public Schools for school bus aids, elementary school security, and early tuition costs.
$788,800 for the tourism marketing program.
$700,000 for removal of blight.
$526,630 to pay for gang prevention efforts previously funded mostly with grant funds.
$91,350 to pay for a grant administrator.
$97,916 to pay for new parks maintenance positions necessary to help maintain the Riverfront Park and three new splash pads.
$40,000 for the summer internship program.
The proposed budget is a working project for the next fiscal year, which starts on July 1. The City Council will be holding public hearings during the months of May and June before adopting a budget.
Final adoption is scheduled for June 18 but must be turned in no later than June 30.
For more information on this proposed budget, visit the City of Danville’s website.
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