DANVILLE, Va – Danville city leaders are considering a preliminary budget that would raise utility bills for residents while boosting funding for schools and using millions of dollars in casino revenue to support city priorities.
City Manager Ken Larking presented the proposed budget during Tuesday night’s City Council meeting. The plan includes an average utility increase of about $10 to $11 per month for customers but does not raise other local taxes, such as real estate taxes.
Larking said the utility adjustment is part of the city’s biennial rate study, conducted every two years to ensure the system remains financially stable.
“Frankly, the cost of doing business for everything goes up over time,” Larking said.
City officials say the smaller, periodic adjustments help avoid larger spikes in rates.
“By doing a biennial rate study every two years, we avoid that shock of a large increase that would be necessary no matter what,” Larking said.
Even with the proposed increase, officials say Danville’s overall utility costs would remain lower than those in several comparable Virginia cities, including Richmond, Roanoke and Lynchburg.
The proposal also outlines how the city plans to use revenue generated from Caesars Virginia. The casino contributed more than $32 million toward the upcoming budget.
Most of that money is being directed toward public education, city operations and economic development initiatives.
“The casino revenue actually kind of supercharges the work that has been done over the years to revitalize our community,” Larking said.
Under the agreement with the casino, the city is guaranteed about $5 million annually. Officials say that guaranteed portion is used for recurring costs, while the remaining revenue — which can vary year to year — is often directed toward one-time projects such as redevelopment efforts.
“The goal ultimately is that all these investments will result in more people wanting to live here,” Larking said. “They have better jobs, there are more amenities, there’s more tax base, and that means there’s more revenue to the city.”
The proposed budget also increases funding for Danville Public Schools by nearly $3 million. School leaders say the additional funding will largely support teacher raises and other educational priorities.
Officials say the investment will help schools expand outreach to families and improve educational opportunities for students across the community.
The proposal is still in its early stages. City officials will gather feedback from council members before releasing a revised version of the budget by April 30. Public hearings and a vote on the utility rate adjustments will follow, with final adoption expected around June 16 barring major setbacks.