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City Council will meet tonight in a special work session to discuss options for balancing the proposed budget for the next fiscal year, which begins on July 1. The session will begin at 5:30 p.m. in the City Council conference room, which is located on the fourth floor of the Municipal Building.
Last week, City Council voted to adopt a school budget that included an increase of $1.6 million in local funding for school operations. Council also approved higher tax rates for real estate, personal property and lodging, but not meals and aircraft.
The revenue generated by these increases will pay for the increase in school funding and initiatives to reduce violent crime and to grow Danville.
City Manager Ken Larking also is recommending that municipal services remain at current levels and funds be set aside for employee raises and increases in employee health insurance, employee retirement contributions and medical supplies for inmates at the City Jail.
However, the failure to approve proposed increases in the meals and aircraft taxes leave a revenue shortfall of $1.2 million to meet these expenses. City Council will meet in a special work session on Tuesday, May 23, to address the budget gap.
City Council must adopt a budget no later than June 30. The final budget will serve as a framework for city operations from July 1, 2017, through June 30, 2018.