(Danville) — Danville leaders Tuesday rejected a series of proposed fee increases, creating a six-figure budget hole for staff to fill.
Council deadlocked four-to-four on a proposal from City Manager Ken Larking to establish a short term rental fee and adjust inspection fees in Community Development. The other proposals would have increased sanitation and cemetery fees to reflect the increased costs of services.
Councilman Larry Campbell says now is not the time to increase fees on people struggling to pay the bills. “I’m thankful I’m able to vote no on increasing any types of fees,” Campbell said. “Especially when we have such a surplus.”
Larking said the rental and inspection fees would have generated $143,170 for the general fund. Now, they’ll have to find the money somewhere else. The sanitation fee hike would have generated $404,760. “It covers the costs of the program to collect solid waste, recycling and yard waste,” Larking said. “There’s also code enforcement. When there are weed or junk vehicle complaints, this money goes toward helping keep our community cleaner.”
Larking says the cemetery fee increase was designed to meet increasing costs for services in maintaining the city’s cemeteries. “We’ve experienced increased costs related to mowing and general upkeep,” Larking explained. “I’m not clear how we will make this up and keep this a self-supporting fund.”
The cemetery fees increases would have generated $299,800 in the next fiscal year. The city’s cemetery fee has been unchanged for 12 years.
Councilman Lee Vogler says his “no” vote was about timing. The vote came after Council had approved expanding eligibility for elderly and disabled tax relief, and a drop in the Personal Property rate. “I couldn’t vote to lower the taxes and get excited and tell folks how great that was, and then turn around in the next vote and raise fees on them,” Vogler said. “It seemed contradictory as to what our stated goals were.”
In total, the four fee proposals would have generated nearly 850-thousand dollars.
Also on Tuesday, City Council voted to increase the maximum allowed income for participation in the City’s Elderly and Disabled Real Estate Tax Exemption Program from $35,000 to $40,000.
Currently, those who are at least 65 years old and have household income of $35,000 or less are able to apply. Those with income of $17,500 or less get a full exemption. Those earning between $17,501 and $35,000 get a 50-percent exemption.
The original income limit for this program was $20,000 and had not been adjusted since its inception several decades ago. Council increased the cap to $30,000 two years ago, and to $35,000 last year. This has resulted in the addition of 49 qualifying taxpayers, at an annual cost of $24,000.
Staffers say it is impossible to forecast how many new residents will be eligible with the higher income threshold.
Council also voted Tuesday to lower the Personal Property Tax rate. It will drop from $3.60 per $100 of value to $3.45. That will go into effect the first of next year.
City Manager Ken Larking’s original budget request called for that to be dropped to $3.50. It is the first time in over twenty years that Council has lowered the Personal Property rate.