Danville City Manager Ken Larking tonight presented his proposed budget for the next fiscal year to the City Council, outlining a $395.2 million plan that reflects a 2.8 percent increase over last year’s adopted budget.

The proposal continues to prioritize education, economic growth and public safety — key areas identified by the City Council — while ensuring essential services remain reliable and accessible, and leveraging casino revenue for community benefits.

“Strategic efforts to enhance economic development, reduce crime, and improve education have increased opportunities and improved property values,” Larking said. “This work includes investing heavily in economic development, public education, housing, downtown revitalization, and workforce programs.”

Larking said for the first time in many years, Danville is experiencing growth, but it does not mean that the city has reached its goal.

“Some still have not fully participated in the economic opportunities we have worked hard to bring to our community,” he said. “We need to be intentional about encouraging more economic opportunities and providing pathways for people to have the skills and abilities to take advantage of these opportunities.”

The proposed budget is a working draft for the next fiscal year, which begins July 1. The City Council will hold public hearings in May and June. Final adoption is scheduled for June 16, but must take place no later than June 30.

Key budget numbers

The proposed budget is balanced with no increase in the tax rate. Danville’s current real estate tax rate of 83 cents per $100 of assessed value is the seventh lowest for cities in Virginia.

Additionally, the budget includes implementation of adjustments for utilities’ services recommended from last year’s biennial rate study. A typical residential customer in Danville will have an approximate monthly increase of $10-11, if they have electric, gas, water, and wastewater service.

“Utility rates that support maintenance and expansion are essential because they ensure reliable service, protect public health and safety, support economic development, preserve affordability over time, and allow the City to reinvest locally in infrastructure that serves both current and future generations,” Larking said.

Unlike most cities, Danville residents pay for all their household utilities in one bill. Typically, this means electric, water, wastewater, natural gas, and sometimes broadband. In most other cities, residential customers pay separately for electricity, water and wastewater, and natural gas.

Larking said, “When you add up the typical costs for each of these utilities and compare Danville to Lynchburg, Roanoke, Charlottesville, Richmond, Durham, and Greensboro, our costs are the least costly by about $25 per month as compared to the next lowest city and $55 per month lower than the average for the other cities.”

Danville Utilities once again will allocate $200,000 to the Neighbors Helping Neighbors assistance program and invest $500,000 in an energy efficiency program for qualifying homeowners.

Revenue forecasts

Larking told the City Council that revenue projections show moderate growth primarily driven by increases in local taxes and property tax collections, reflecting stable economic activity within the community. At the same time, the budget reduces reliance on the use of fund balance compared to the prior year, strengthening the City’s long-term fiscal position.

The proposed budget includes $37.7 million in gaming tax revenue from the casino. That figure is an increase of $2.7 million from the current budget year.

The budget includes an increase of $1.6 million in real estate tax revenue and $600,000 in meals tax revenue.

Sales tax revenue is projected to decrease by $1 million, along with a decrease of $348,000 in interest earnings and $82,000 in business license revenue.

Expenditure highlights

Of the $37.7 million expected gaming tax revenue from Caesars, $31.9 million is allocated to pay for activities recommended in the 2024 Investing in Danville Committee Report:

• $7.57 million for capital and special projects.
• $6.5 million to Danville Public Schools to pay for school bus aides, elementary school security, early tuition costs, contracted substitute pay, professional development targeted to achieving accreditation status, and security enhancements.
• $4.38 million for economic development initiatives.
• $1.6 million for removal of blighted properties.
• $1.5 million for lease and debt payments associated with the new police headquarters.
• $1.3 million for the tourism marketing program.
• $1.3 million for housing programs, including $600,000 for the Danville Neighborhood Development Corporation.
• $1.27 million to pay for City personnel, including a grant administrator; park maintenance positions for Riverfront Park and splash pads; cultural arts manager; housing coordinator; public works senior project manager; an additional violence prevention outreach worker; assistant visitor center manager; full-time travel counselor II; recreation program development manager; school resource officers; and Social Services personnel.
• $822,150 to pay for gang prevention efforts previously funded mostly with grant funds.
• $238,240 to provide support for regional industrial facility authorities.
• $222,130 for the summer internship program.

A total of $31.5 million is allocated for capital and special projects, funded through casino revenue, bonds, grants, and other sources.

Education spending

The recommended budget provides nearly $35.4 for Danville Public Schools, an increase of $2.9 million. These funds will support:

• $961,760 to pay for the local share of the 2% salary increase for Standards of Quality-funded (SOQ) positions.
• $841,850 to pay for an expected 7% increase in health insurance premiums.
• $500,000 for Meaningful Engagement initiatives, which will be funded by casino revenue.
• $306,000 to implement recommendations from the compensation study for bus aides, bus drivers, cafeteria staff, environmental services trades, and information technology positions.
• $301,140 to pay for the local share of a 2% salary bonus for SOQ-funded positions.

These investments will help maintain low classroom sizes and provide a safe and supportive learning environment to improve student achievement.

Economic growth

Investments made over the past 15 years have resulted in a variety of new economic opportunities. Since 2018, Danville and Pittsylvania County have announced over $3 billion in new capital investment and over 8,000 new jobs, much of this happening in Danville and industrial parks owned by Danville and Pittsylvania County.

Last month, Governor Spanberger announced that Avio USA will invest about $500 million to establish a manufacturing facility in the Southern Virginia Multimodal Park (SVMP) in Hurt, Virginia. The SVMP is a jointly-owned industrial park between Pittsylvania County (61%), the City of Danville (35%), and the Town of Hurt (4%). Avio USA will employ about 1,000 people with high average salaries.

The Southern Virginia Mega Site at Berry Hill is the largest mega site in Virginia. The years of effort that current and past Danville and Pittsylvania County leaders put into making this property ready for potential large-scale manufacturers will soon result in the construction of a $1.3 billion manufacturing facility for Microporous.

To sustain this success, the proposed budget includes:

• $5.1 million for various economic development projects and initiatives that are expected to produce new economic opportunities for residents and a reasonable return on investment over time. This includes such items as grant programs, already-approved incentives, and investments in sites and buildings. Funding projects in this category help to increase the tax base and improve our ability to have available funds to support the increasing cost of delivering core City services.
• $6 million to pay for various capital improvements to parks and playgrounds.
• $1 million to pay for neighborhood street repaving projects.
• $1.3 million to continue the tourism marketing program that will work to encourage new visitors to Danville to explore businesses in our City and region.
• $222,130 to continue the Experience Works Internship Program.

Public safety

A few years ago, “reducing violent crime” was the City Council’s top priority, and the focus put on this area has produced incredibly positive results. The proposed budget includes funds to continue to push initiatives with the goal of making Danville a family-friendly community. These initiatives include:

• $863,300 for continued implementation of the Office of Juvenile Justice and Delinquency Prevention’s Comprehensive Gang Model.
• $91,510 to pay for expansion of the video surveillance program and a Real Time Information Center.
• Continued efforts in the Police Department to connect with youth of all ages through dedicated youth engagement officers.
• Increased focus on community policing through neighborhood walks and added presence in schools, among other activities.

More information online

The city manager’s full proposed budget will be made available on Wednesday at this link on the City of Danville’s website.