The Danville City Council is set to vote on the new tax levy and new budget at their last regular meeting of the year on December 17th. But during Tuesday (Dec 10th) night’s special budget workshop meeting, intense discussion continued on the proposed gasoline tax increase. Mayor Rickey Williams, Jr said afterwards that right now, what will be included in the budget vote is a plan for a first step of a gradual staircase increase in the local gas tax.
AUDIO: If the proposal that Chairman Puhr outlined is passed, it would go from 10 cents and some change per gallon to 14 cents next year. After that, it would go up by two percent per year.
Earlier Tuesday night, during the Public Works Committee meeting, a $1.3 million agreement with municipal fund recovery firm Azavar was approved for full council consideration. It was Azavar that told the city the gas tax should be changed, and money from the gas tax increase would end of being used to help pay off the Azavar bill. But Mayor Williams says this was worth the investment, because in the long run the city will save money due to what Azavar recovered.
AUDIO: They have found a lot of money. For example, people that were cheating taxes for us; online payments and rentals of hotel rooms. People were paying the tax, but we were not receiving it. So, they’ve already brought in hundreds of thousands of dollars for us. The city will not come out in the red in the long term. In the end, we will actually be receiving far more than we are paying Azavar.
Former Director of Public Works and alderman candidate Doug Ahrens addresses Danville City Council.
Mayor Williams said if the gradual gas tax increase is not approved, there will be trouble with items in the future such as “the big one” from MFT funds, maintaining roads. Because after all, the cost to do that does not stay the same year to year. But Alderman Jon Cooper, who already said he’s voting “no,” says saying no sometimes is just the way it is.
AUDIO: We’re going after residents for more money and we don’t need to be doing that. We need to find ways to save them money, and this is the time we’ve got to do it. Well, I’d like to fix my house too. But I don’t have the money to do that. If you can’t afford it, you can’t do it.
It was mentioned by a couple public speakers Tuesday night, including Former Director of Public Works and alderman candidate Doug Ahrens, that although the tax levy must be turned in to the county by the end of the year, the budget does not actually have to be passed at the same time, as the new fiscal year is a handful of months away. But Mayor Williams says separating the two really isn’t a good idea.
AUDIO: It’s feasible, but it’s very irresponsible. If we don’t levy enough money, and then we figure out in the budgeting process; “uh oh, we need more than we anticipated,” we cannot go back and change our property tax rate. That’s why, in my opinion, it’s more important that we pass both together.
Ahrens says, however; sure it’s feasible; if you are flexible enough to adjust the tax levy when needed.
AUDIO: But it’s easier for the city mayor to push both through at the same time. Because less attention is focused on the budget as a single item. So there’s nothing wrong with doing them together; if there’s adequate proceeds to accomplish both, and there aren’t questions on revenue streams coming in.
So one question going into next Tuesday will be: Do both the levy and budget get voted on; or does someone make a successful motion to delay the budget vote?
