Danville City Council considers options for utility relief

Danville City Councilman Larry Campbell is proposing a 1 percent raise on the city’s lodging tax to provide extra funds for utility bill relief for the poor and/or elderly.

He contends the increase from 3 to 4 percent would add $135,000 to the Energy Crisis Assistance Program administered by the Department of Social Services.

Councilman Buddy Rawley said during a work session Tuesday he didn’t feel the tax for hotel and motel rooms should be used for programs other than tourism, and suggested having the funds come from utilities income.

Interim City Manager Lyle Lacy said city contributions for such a program would come from the general fund, which is what the increase in lodging taxes would go into. He also noted that Social Services already handles the program for federal funds received for that purpose.

Mayor Sherman Saunders said need is great for the utility assistance, though several organizations in the area also try to provide relief.

“Let’s find a way to help people,” he said. “It’s still not enough, but it will help some people.”

Councilman Gary Miller said he felt the request is a modest increase that will help some people with their heating costs.

“The city needs to chip in and help,” Miller said.

Campbell, who also is the assistant pastor at Bibleway Worldwide Church, said he gets many calls every day from people who need help, and thinks this is one way to help with the problem when the city’s budget is already tight.

“I’m trying to think of ways to help people when the city has done all it can do,” Campbell said.

The issue is scheduled to come before council officially on Dec. 2 with a public hearing and final vote set for Dec. 16.

Regional One EMS also wants to raise rates for its service, but must get council approval.

Tim Duffer, director of Regional One EMS, said during Tuesday’s work session that the company normally raises rates every five years when its permit is renewed, but said rising across-the-board costs mean the company needs to raise its prices.

Various transportation fees would be raised between 8 and 16 percent.

Duffer said the company’s fuel costs have risen since the last increase in early 2007. Despite the recent drop in gasoline prices, the vehicles use diesel fuel and Duffer wants mileage rates raised from 21 to 26 percent a mile. This means that in addition to the above rate increases, mileage rates would be raised to between $12.09 and $23.52 a mile.

While council could have approved the increase, many members said they felt a second increase in less than two years should be heard by the public and they voted to bring the issue into a regular council meeting for a public hearing.

Contact Denice Thibodeau at dthibodeau@registerbee.com or (434) 791-7985.