City leaders in Danville did not approve a proposed utility rate increase, opting instead to potentially use gaming tax funds from Caesars Virginia to offset costs.
City Manager Ken Larking explained that the budget for Danville Utilities had anticipated the rate increase, and without it, the utility is facing a $6.2 million deficit.
“There’s 6.2 million dollars of deficit in the utility fund, so in order to continue operating our utilities in the same manner that people have been accustomed to getting it,” said Larking.
To address the shortfall, Larking said Danville Utilities still needs $3.8 million. The city is considering rerouting excess casino revenue to cover the gap, rather than investing it in future projects.
