Danville City Manager proposes 15 cent real estate tax increase

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DANVILLE, Va. (WDBJ7) In Danville, the city manager presented the budget proposal for the upcoming fiscal year.

It includes a 15 cent real estate tax increase for residents and a 1 percent meals tax increase.

"What this budget is trying to do is to attract middle class people to choose Danville as a place to live," says Danville City Manager, Ken Larking.

The city manager says a fifteen cent real estate tax increase is necessary to improve several aspects of Danville.

He says even raising the tax from 73 cents to 88 cents, the city is still well below the average of $1.06.

"We have room to be more competitive in the tax rate structure, which is an advantage that Danville has that a lot of communities that are dealing with revenue shortfalls don't have," says Larking.

According to the city manager, the average occupied home is valued at $75,000 in the city.

If passed, that would mean the homeowner would pay $112.50 per year, or $9.38 per month.

"If you own a home in Danville, the value will go up because more people wanna live there," he says.

The city is looking at a $110 million general fund budget for the fiscal year.

Much of that will go to three main areas of focus: schools, law enforcement and economic development and growth.

The city has not seen a real-estate tax increase since the 2002-2003 fiscal year.

Here is the schedule for the rest of the budget process:
March 28 - April 4: City Council Work Sessions
April 18: City Council Introductory Budget
May 2: Public Hearing - School Budget; Final Adoption - Fee & Tax Increases
May 16: Public Hearing - City Budget
June 6: Final Adoption - City Budget



 
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