Danville City staff presented a revised fiscal 2026 operating budget to the City Commission at a special-call meeting, reporting an increased surplus after re‑examining transfers and revenues and proposing personnel adjustments and funding priorities for community and shared agencies.

City Manager Earl Cobb and Finance Director Lee walked commissioners through changes that raised the general‑fund surplus compared with an earlier draft. The pair told the commission they reduced planned transfers to the parking garage and the cemetery and lowered the police and fire pension contribution to the minimum recommended by the city’s investment adviser. Finance Director Lee said, “we are recommending at this point that your budget surplus be allocated to requested staffing changes and then considering your community and shared agencies.”

Lee and Cobb said the updated baseline shows operating revenue exceeding operating expenses, producing a larger surplus than in the first draft. From that surplus they recommended a group of organizational changes that total $207,206.87 in recurring cost to the general fund, including a police staffing change that converts one full‑time officer to a part‑time slot to open a recruit position, one additional firefighter, and several reclassifications. City staff projected those changes would reduce overtime spending, estimating an approximately $80,000 reduction in overtime costs. After the recommended organizational changes, staff said the remaining unallocated operating surplus would be about $499,000.

Staff also presented the utility fund status separately. That fund operates independently of the general fund; staff said it had shown a modest operating surplus in the current year but that planned utility capital and staffing changes would produce a mid‑five‑figure deficit within the utility fund balance. Cobb told commissioners that utility operating deficits would be paid from the utility fund balance.

On community and shared agencies, staff provided a line‑by‑line comparison of what the city gave in FY25 versus FY26 requests. Lee said the FY26 requests total $656,200 (not including capital requests) and that the FY25 allocations totaled $562,156, including several one‑time items. Staff asked commissioners to submit their individual funding preferences so staff could produce a recommended allocation at the next meeting.

Commissioners discussed priorities: some said city housekeeping and core public safety services should come first; others urged full funding of historically supported shared agencies. No new policy decisions were adopted at the meeting; staff asked commissioners to deliver community‑agency recommendations by the next week so a final budget draft can be prepared.

The meeting concluded after commissioners moved to close the session and recorded an affirmative voice vote.