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Danville, VA Local Government News and Announcements

Posted on: June 20, 2019

City Council OKs budget for next fiscal year

Photo of Council Chambers

City Council voted Tuesday night to adopt the full budget that will serve as a framework for city operations from July 1, 2019, through June 30, 2020.

The budget maintains basic city services and programs, gives Danville Public Schools an increase of $2.3 million or 11.2 percent for school operations, sets aside $1.5 million for crime prevention and public safety initiatives, and provides a current revenue source for projects designed to grow Danville.

Also, the budget allocates an additional $280,000 – from $80,000 to $360,000 – for the Danville Life Saving Crew.

To balance the budget, a combination of cost-saving measures and tax increases are in the budget.

The cost-saving measures involve changes to the health insurance plan, a verification audit of dependent eligibility, and creation of a tiered retirement system.

The tax increases are as follows:

  • A four-cent increase in the real estate tax rate from 80 cents per $100 of assessed value to 84 cents per $100 of assessed value.
  • A one-percentage-point increase in the hotel/motel occupancy tax from 7 percent to 8 percent. The increase will be effective on July 1.
  • A 10-cent increase in the tangible personal property tax from $3.50 per $100 of assessed value to $3.60 per $100 of assessed value. The increase will be effective Jan. 1.

The budget also includes the implementation of a fee of $2 per night of lodging for each room at any hotel and the rental of any short-term rental home. The fee will take effect on July 1.

For utilities, there is a projected natural gas rate decrease of 4 percent. The average residential gas customer will see a 4.7 percent decrease in their bill.

Also, there is a $0.20 per cubic foot sewer rate decrease that is offset by a water rate increase of the same amount, which, when combined, would have zero impact on utility bills for customers who have both water and sewer service – the vast majority of customers.

Several other matters were on the agenda Tuesday night. City Council voted to:

  • Grant a lump sum bonus to qualified City of Danville retirees.
  • Adopt a support agreement with the Danville-Pittsylvania Regional Industrial Facility Authority.
  • Authorize the city manager to submit a plan for projects and activities supported by federal Community Development Block Grant (CDBG) and HOME Investments Partnership Program (HOME) funds.

Council's meeting included a business session followed by a work session. In work sessions, Council reviews non-routine matters that may be voted upon in future business meetings.

During the work session, the City Council reviewed the latest financial reports, discussed a proposal to amend the rules of procedure for City Council meetings, and heard a presentation on a sports tourism study.

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