DANVILLE, Va. – On Tuesday night, Danville City Manager Ken Larking proposed the budget for the upcoming fiscal year, highlighting that the city has seen growth for the first time in several years.
Ultimately, the total recommended budget for the next fiscal year is $347.8 million, which is a 7 percent or $22.7 million increase from the current fiscal year’s budget of $325.1 million.
In the last 10 years, city leaders have been strategic in their efforts to boost job opportunities, reduce crime and revitalize neighborhoods. One major contributor to the city’s success is the Caesars Virginia casino, which is expected to generate $25 million in gaming tax revenue, a $12 million increase from the current year, according to the proposed budget.
When breaking that down, $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.
The budget suggests that the remaining $20 million of gaming tax revenues be used for 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
Additionally, the proposed budget will also include a 10-cent decrease in the personal property tax rate.
Overall, Larking emphasized the need to continue building upon and enhancing efforts to continue improving the quality of life in Danville.
“Because we are an isolated city, we cannot rely on the expansion of a major metro area into Danville to bring growth and opportunity,” Larking stated in his budget message to the City Council. “We need to build it for ourselves with the help of key partnerships, creativity, tough decisions, and hard work. If we are to continue and accelerate the positive momentum, we need to continue to provide quality services, invest in our neighborhoods, support the school system, attract business development, build a skilled workforce, and keep our community safe.”
The proposed budget is a working draft for the next fiscal year, which begins July 1. Prior to adopting the budget, the city council will hold public hearings in May and June, with the final adoptions set to take place on June 18.
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