DANVILLE, Va. (WSET) — City Manager Ken Larking announced that the city has an additional $3.1 million in gaming tax revenue from Caesars Virginia, which could be used to counteract proposed utility rate increases.
Larking explained that $2.4 million of the surplus would be allocated to provide a $10 monthly credit for Danville utility customers. This credit is designed to offset the proposed rate increases of approximately $10 to $11 per month, effectively neutralizing any impact on residents’ bills.
He emphasized that this offset would only be for this next fiscal year.
“The credit, I think that’s something that has to be considered on a yearly basis, based on what revenues are available,” Larking said.
SEE ALSO: Danville-Pittsylvania Co. Habitat for Humanity receives $35K grant from Caesars Virginia
City Councilman Lee Vogler, who proposed the credit program, expressed his opposition to the rate increases but acknowledged the potential relief the credit could provide. “This kind of fall-back plan is that this credit increase kicks in so that folks actually don’t see an increase in their bill,” Vogler said. He added, “I still don’t like it, but I do like the idea of city folks using casino money to help prevent our citizens from seeing an increase.
In addition to the credit, Larking stated that $200,000 would be directed to the “Neighbor Helping Neighbors” program to assist those most in need with utility costs. The remaining $500,000 would fund energy efficiency programs aimed at upgrading older home systems to reduce costs.
Vogler expressed support for these additional programs, and Larking emphasized his commitment to maintaining them regardless of the outcome of the rate increase vote. The Danville City Council is set to vote on these proposals at its meeting next Tuesday.
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