Danville Forecasts a Brighter Future

2019-2020 Proposed Budget

Council Continues Focus on Future

• Reduce Violent Crime• Improve Education• Grow Danville (Economic Development)

Crime Rates Fall Dramatically

• Violent Crime Rates Plummet Year to Date– Commercial robberies down 89%– Residential robberies down 57%– Aggravated assaults down 70%– Misdemeanor assaults down 18%

• 2019 Murder Clearance Rate at 82%

Crime Rates Fall Dramatically

• Property Crime Rates Fall Year to Date– Burglaries down 38%– Theft from motor vehicles down 16%– Motor vehicle theft down 20%– All other larcenies down 42%

Crime Rates Fall Dramatically• Established an office of gang

prevention staffed by the Youth and Gang Prevention Coordinator

• Increased focus on community policing

– Neighborhood walks– Coffee with a Cop– Assigned an officer at the

Community and Youth Engagement Liaison

– Police Youth Academy

City Puts Focus on Education• DPS doubles the number of fully accredited schools • DPS raised teacher pay an average of 12% last year

– Nearly 100% of teacher positions filled with licensed teachers• Produces higher quality instruction in classroom• Better student outcomes

• Students earning industry certifications grows rapidly– Jumps 23% from 2017 to 2018

• College enrollment rates continue to improve• On time graduation rates improve 5% from 2014-2018

– Improves to 81% in four years

Local Economy Continues to Roll

• River District Redevelopment– Luxury Hospitality– White Mill Option– New Entertainment– 206/208 N. Union

• Neighborhood revitalization

• Industrial Recruitment– Harlow Group announced– BGF Industries

announced– Essel Propack Expansion– Kyocera Opens Doors

• Workforce Development– Expansion at IALR

• Mega Site Development

Local Economy Continues to Roll

• Economic Development Increases Jobs and Capital Investment– 637 new full time jobs & 79 new part time jobs– $130 million in committed capital investment

• Unemployment down to 4.4% – Down from 8.4% five years ago– Down from 14.1% nine years ago– Lowest in 18 years

Multi-Year Forecasting Results in Millions in Annual Cost Savings

• Health Insurance Plan Design Changes – eliminated projected cost increase ($879,409)

• Dependent Eligibility Verification Audit nearly complete – We anticipate $200,000/year in premium savings

• Employee Health Clinic – A site has been selected and will be open by the end of this fiscal year. Premium savings will be realized in future years.

• Create Tiered Retirement System – Beginning July 1, newly-hired employees will share in the cost of their retirement. By FY 2024, the savings could be as much as $670,000 per year and would continue to increase by as much as $120,000 each year into the future.

Multi-Year Forecasting Results in Millions in Annual Cost Savings

• Reduction in public safety salary costs – due to retirement - $353,684/year

• Fire – Eliminate funding for six Kelly shift positions - $234,570/year

• Police – Consolidate Span of Control –Reorganization of the Police Department by reclassifying three captains and one lieutenant to sergeants (following retirements) - $58,000/year

Current OutlookPresented July 17, 2018

Cost Savings Improves Outlook

• FY 2023 Project is $7.8m better than expected, based on implemented gap-closing techniques

• There is still a long-term gap that needs to be addressed

(1.7) (2.3) (2.9) (3.4) (3.3) (3.9)

25.2 22.9

20.0

16.6 13.3

9.4

(10)

(5)

0

5

10

15

20

25

30

Proposed Budget2020

Projected2021

Projected2022

Projected2023

Projected2024

Projected2025

$ (in

mill

ions

)

FY Surplus /(Deficit)

FY EndingFundBalance

Proposed Budget Improves Financial Forecast

• This forecast shows no additional funds for DPS in future years

(1.7) (3.0) (4.3) (5.5) (5.9) (7.0)

25.2 22.2

17.9

12.4

6.5

(0.5)

(10)

(5)

0

5

10

15

20

25

30

Proposed Budget2020

Projected2021

Projected2022

Projected2023

Projected2024

Projected2025

$ (in

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ions

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FY Surplus /(Deficit)

FY EndingFundBalance

Continued Investment in Schools Requires Additional Resources

• This forecast shows modest increases for DPS in future years

Danville a Low Tax Burden City

• Average household pays $900 less than peer communities– Currently 27.7% lower than the average

• Real estate tax rate remains among state’s lowest– Currently 26 cents lower than state average

Real Property Tax

$0.70

$0.75

$0.80

$0.85

$0.90

$0.95

$1.00

$1.05

$1.10

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Real Property Tax: Danville Historical Trends vs. State Average

Danville Average VA City Rate

Real Property Tax

$0.60

Danville $0.80

$1.55

$1.06

$-

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

$1.80

Virginia City Tax Rates

2019 Rates State Average

Tax Rates – Cities with Electric Utilities

$0.76 $0.80

$0.85

$0.99 $1.0621

$1.17 $1.18

$1.268

$-

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

Radford Danville Harrisonburg Franklin Martinsville Bristol Salem Manassas

2017 Meals Tax

4.0%

5.5%

6.5% 6.5% 6.5%7.0% 7.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

Manassas Roanoke Danville Lynchburg Martinsville Petersburg Harrisonburg

Budget Proposes Low Taxes; Increased School & EMS Funding

• Real Estate tax to remain among lowest for cities in the state (88 cents per $100 value)

• Cigarette tax revenue for improved EMS service and K-12 education (30 cents/pack)

• Increased personal property tax revenue earmarked for economic development (new rate of $3.60)

Budget Puts Focus on Education and Public Safety Initiatives

• $2.9 million increase in General Fund (excluding transfer of customer service)– $2.3 million increase for Danville Public

Schools– $280,000 increase for Danville Life Saving

Crew

City Remains Focused on Future

• Reduce Violent Crime/ Improve Public Safety– Increase to DLSC– Additional Animal Control

Officer– New Security Cameras– New police equipment– Pay supplement for

Commonwealth Attorney’s Office

– Fire apparatus/equipment

• Improve Education– Competitive teacher pay

• Grow Danville– River District projects– International recruitment– Blight removal &

neighborhood revitalization

– Gateway improvements– Park improvements

City Remains Focused on Future

• Crime/Public Safety $1,553,125• Education $4,300,000• Grow Danville $2,095,530

*Includes a combination of current revenues, debt service, and appropriations from unreserved fund balance

Tax Rate Impact Minimal• Eight-Cent Real Estate Tax Rate increase

– Generates $1.76 million– Average household will have $72 yearly or $6 monthly

increase• Thirty-Cent Cigarette Tax implemented

– Generates $500,000– Comparable to total NC cigarette tax on cigarettes

• Ten-Cent Personal Property Tax Rate Increase– Generates $150,000 first year; $300,000 subsequent years– Average annual increase of $12.60 per year ($15,000 car)