Seeking the ‘next level’

Here’s a number in Danville’s proposed budget that should get some attention: $116,050. That’s the city’s share of this year’s estimated tax revenue from Swedwood and Yorktowne Cabinetry, the first two tenants in the city-county industrial park.
While that amount is relatively small — both companies are still “ramping up” their new local factories — it represents the success of the regional economic development plan.
That plan, more than anything in the city’s current or previous budgets, has given the community real hope for the future. But the economic development plan was, in part, made possible by the decisions made by local leaders and included in previous local government budgets.
Danville’s proposed budget reflects a city government that has survived the loss of the tobacco processing and textile manufacturing industries and come out stronger than ever.
For example, when Dan River Inc. closed its local manufacturing plants, the city lost its biggest sewage treatment customer.
The city responded with sewage rate increases, loans from the electric fund (that will have to be repaid eventually) and a plan to modify the wastewater treatment plant to more efficiently handle the amount of sewage being treated today.
In other areas, the city government is maintaining its fund balance, cutting its debt, honoring the promise to make salaries for city workers regionally competitive (which cuts the cost of training replacement workers) and keeping the property tax rate unchanged.
“Our investments are continuing to pay off,” City Manager Jerry Gwaltney said Wednesday.
The proposed budget even estimates higher sales and meals tax revenue — without the addition of Coleman MarketPlace, which will open later this year.
The city will expand Galileo Magnet High School, improve the electrical grid and start a new program to replace worn-out water mains, similar to what the city has been doing to replace leaky natural gas lines.
“This budget assures the city continues its positive transition from textiles and tobacco to the new global economy,” Gwaltney wrote in the proposed budget. “As the city moves to the ‘next level,’ our strong fund balances and excellent debt ratios only enhance our efforts to attract more investments and jobs.”
The proposed budget doesn’t address utility rate relief for the elderly poor and disabled, but that’s a political decision that must be made by Danville City Council, not by the city staff or Gwaltney. With three members of City Council retiring this year, we may finally reach the political tipping point where the city will give those folks a break.
Overall, Danville’s proposed budget represents the cumulative benefits of aggressive economic development, shrewd management, hard work and good fortune through tough times. We’re not out of the woods yet, but we’ve been on the right path for several years — and it shows.