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The Danville Town Council is set to review the fiscal year 2025-26 financial report and audit at its meeting on Tuesday. The financial report shows that the town’s general fund balance dropped from $39.9 million to $37.9 million last fiscal year, but the analysis from the Pun Group notes the city’s fiscal outlook is strong.
The year-over-year decrease is attributed to a transfer of $12.3 million to restricted funds, including $9.5 million to the city’s capital improvement fund.
Overall general fund revenue compared with expenses came out better than expected in the previous year’s budget. The actual revenue was $5.3 million more than budgeted, with expenses coming out to $2.9 million less than budgeted.
Finance Director Lani Ha said in a staff report that Danville’s “financial condition continues to be sound,” pointing to healthy balances in the general and restricted funds. The town requires a minimum operating reserve of 20% of the next year’s general fund expenses. The reserve balance stood at nearly $18 million or 42.2% of that requirement as of June 30, the end of fiscal 2025-26, Ha said.
Danville’s other highlights in the past fiscal year include earning a certificate of achievement for excellence in financial reporting for the 2024-25 fiscal year, Ha said, and last year’s passage of a special assessment fee to fund a town-wide lighting and landscaping assessment district. That measure had increased revenue by nearly $1.5 million as of June 30.
The town’s unemployment rate dropped slightly from 5.6% to 4.5% in the last fiscal year. It remains above pre-COVID-19 rates, which were between 2.7% and 3.5% in the years leading up to the pandemic.
Danville’s population increased from 42,960 in 2025 to 43,190 in 2026, reversing a downward trend that started in 2020. Public school enrollment continued to decline, with 27,986 students this year compared with 28,615 in 2025.
While revenue is expected to continue growing modestly according to a 10-year financial forecast, the town is bracing for other challenges that include a shortfall of gas tax revenues to fund street maintenance and ongoing capital improvement projects.
“The town’s ability to fund services, capital projects, and street maintenance over the longterm depends on continued economic growth and the absence of further adverse fiscal actions by the state or voters,” Ha wrote.
The town council will consider formally accepting the report at an 8:30 a.m. study session Tuesday (Nov. 10), where it will also discuss preparations for the upcoming Mayor’s Installation and Community Awards ceremony and a proposed plaque at the new makers space at the Town Green, which is currently under construction. The agenda is available here.
