BY JENNIFER BAILEY
DANVILLE — Aldermen recommended Tuesday night moving forward to the full city council next week a 1 percent sales tax increase to the current 7.75 percent city sales tax, a 1 percent decrease in the current 2 percent food and beverage tax and an increase in the rental registration fee from $10 to $20, with a $2,000 cap.
But Ward 6 Alderman Steve Nichols suggested the city make even more budget cuts than the proposed $420,000 cuts next year and only increase the sales tax by a half percent and decrease the food and beverage tax by the same.
“If we take that approach, we really have to look at public safety (cuts),” he said.
Seventy-five percent of the city’s budget is related to public safety costs.
“If we don’t make some fundamental changes to how we do business, then the property tax will never get better …” Nichols said.
He said the city is basically overtaxing residents now due to unpaid pension costs from the past. Pension costs alone are causing the 4.63 percent property tax levy increase.
Mayor Scott Eisenhauer appreciated Nichols’ comments, and said no one like to increase taxes.
“But we have a responsibility to the citizens of this community to provide services,” he said.
Also, citizens have a certain level of expectation for public services, including police and fire, and they’ve indicated a willingness to pay for it, he added.
Eisenhauer said the city is trying to provide the revenue necessary to meet those expectation levels.
Ward 3 Alderman Bill Gilbert said he doesn’t see another source to fix the city’s financial problems — about a $1.8 million budget deficit and building up general fund and infrastructure fund reserves.
If the city cuts more public safety personnel, it’d be unsafe for the community, he said.
Ward 5 Alderman Jerry Askren fears the sales tax increase won’t generate as much as city officials hope.
“(But) I think we have to give this a chance …” he said of the tax increases.
The committee also heard from Danville Housing Authority executive director Greg Hilleary about how a $20 rental registration fee, but no cap, would cost the authority more than $10,000 when it now pays $2,100 a year with the fee.
Ten apartment complexes in the city would be affected by the cap.
The increased fee will help raise about $90,000 to pay for the inspections and associated costs for the program.
Ward 2 Alderwoman Lois Cooper supported a $15 fee with no cap.
“I just feel out-of-town landlords should be paying full price,” she said.
Also Tuesday, Corp. Counsel Dave Wesner said he’s investigating ordinance changes to address the problem of residents and landscaping companies raking and blowing leaves into the street.
The action affects the city’s services by clogging drains and causes problems for the public works department, he said.
