City Manager Ken Larking tonight presented his proposed budget for the next fiscal year to the City Council, outlining a $379.3 million plan that reflects a 9 percent increase over the current budget.
The proposal continues to prioritize education, economic growth and public safety — key areas identified by the City Council — while maintaining quality services, investing in infrastructure, and leveraging casino revenue for community benefits.
“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 is a working draft for the next fiscal year, which begins July 1. The City Council will hold public hearings in May and June prior to adopting a budget. Final adoption is scheduled for June 17, 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 remains tied for the fifth lowest among Virginia cities, and the city’s real estate tax burden ranks 14th lowest among the 133 localities in the state.
Additionally, the budget includes implementation of adjustments for utilities' services recommended by the biennial rate study and a modest $1 per month increase in the solid waste fee to support continued service improvements.
The utilities' rate adjustments for electric, gas, water and wastewater treatment would result in an estimated $10 monthly increase for typical residential customers. The adjustments would ensure adequate funding to operate and maintain the utilities' system, meet fund balance minimums, and continue investments that encourage economic development.
To mitigate this impact, Larking proposes 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.
Even with these adjustments, Danville’s utility rates will 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.
Revenue forecasts
Larking told the City Council that the proposed budget includes $35 million in gaming tax revenue from the casino. That figure is a $10 million increase from the current budget year. Caesars Virginia opened its permanent casino resort in December. Prior to that time, it operated in a smaller, temporary facility.
Other revenue forecasts are also favorable as compared to last year, Larking said. Those increases include:
- $3.7 million – real estate taxes.
- $1.8 million – meals tax revenue.
- $1.0 million – sales tax.
- $940,000 – business licenses.
Expenditure highlights
Of the $35 million expected gaming tax revenue from Caesars, $30 million is allocated based on the 2024 Investing in Danville Committee Report:
- $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 aids, 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.
A total of $50 million is allocated for capital and special projects, funded through casino revenue, bonds, grants, and other sources.
Education spending
The recommended budget provides $32,483,680 for Danville Public Schools, an increase of $4,637,480. These funds will 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.
These investments will help maintain low classroom sizes and provide a safe and supportive learning environment to improve student achievement.
Economic growth
Danville has taken bold steps to attract businesses and revitalize neighborhoods. Since 2008, the City and public partners have invested $52 million in the River District, resulting in $375 million in private investment, 1,283 new apartments, and 97 new small businesses. Since 2018, Danville and Pittsylvania County have announced over $2.9 billion in capital investment and nearly 7,000 new jobs, including Microporous’ $1.3 billion investment and 2,000+ jobs at the Southern Virginia Mega Site at Berry Hill.
To sustain this success, the proposed budget includes:
- $15.1 million for economic development initiatives, including grant programs, incentives, and site development.
- $5.2 million for capital improvements to parks and playgrounds.
- $1.2 million for tourism marketing.
- $1 million for neighborhood street repaving projects.
- $237,840 for the Experience Works Internship Program.
Public safety
The City Council’s past prioritization of violent crime reduction has yielded positive results, and the City remains committed to keeping Danville a safe, family-friendly community. The proposed budget includes:
- $761,110 for continued implementation of the comprehensive gang model under the Office of Juvenile Justice and Delinquency Prevention.
- $342,000 for equipment and video surveillance expansion.
- Continued investment in youth engagement officers and community policing initiatives, including neighborhood walks, Coffee with a Cop, and increased school presence.
More information online
The city manager’s full proposed budget will be made available at this link on the City of Danville’s website.