The Richmond City Council received Mayor Levar Stoney’s budget presentation in a special meeting Monday. (Screenshot)
Amid a rebound in tax revenues as it adjusts from the pandemic, the City of Richmond is weighing a proposed fiscal year budget that would ramp up spending on operations overall, while emphasizing funding for schools, employee pay raises and increasing the city’s stock of low-income housing.
Mayor Levar Stoney presented the $3 billion proposal for fiscal year 2024 to the City Council at a special meeting Monday. The plan would hold the line on current tax rates while increasing the general fund budget to nearly $949 million, a 13 percent jump from the current fiscal year budget.
The jump in spending is driven by anticipated increases in tax collections, including a 22.5 percent increase in sales tax, a 19.2 percent increase in prepared meals tax and a 7.7 percent increase in real estate tax, which remains based on the current real estate tax rate of $1.20 per $100 of assessed value.
The budget would fund an 8 percent salary increase for most city employees and a step increase and plan adjustment that would see most sworn police officers and firefighters receive pay hikes of at least 5 percent. The adjustments would increase the city’s minimum wage to $18 an hour.
Funding for Richmond Public Schools would increase by over $21 million, or about 10 percent over the current budget, with $15 million set aside specifically for rehabbing Fox Elementary School, which was damaged in a fire early last year.
Funds for RPS would also include $200 million for school modernization projects outlined in the school system’s capital funding plan, and $2.5 million for school maintenance projects in the city’s five-year Capital Improvement Plan (CIP). Stoney emphasized that funding for RPS has increased 46 percent in the seven years he’s been in office.
Mayor Levar Stoney delivering his budget proposal Monday. (Screenshot)
The CIP budget would total $362 million next year and over $734 million over the next five years. Capital projects to be funded in FY24 include $15 million for a replacement of Fire Station 21 at 2505 Richmond Highway, and $10 million to renovate the police department’s First Precinct at Q and 25th streets.
Funding for street paving and improvements would total $21 million, while $14 million would be budgeted for city facilities maintenance projects listed in the CIP. The budget would put $1.75 million toward a year-round emergency shelter, and $1.4 million in American Rescue Plan Act funds for a first-time homebuyer’s assistance program for city employees wanting to reside in Richmond.
To help increase the city’s low-income housing stock, Stoney has said he would designate $10 million each year over the next five years specifically for income-based housing projects, which would contribute to his goal of creating 2,000 new homeownership opportunities for low-income households by 2030.
The budget would include the first $10 million, as well as an additional $500,000 for the city’s “alternative homes” project, in which the city would partner with a nonprofit to create a program for alternative homeownership opportunities, including manufactured homes.
Also in the budget is $2 million of the $25 million that the city has committed over five years for the planned Enslaved African Heritage Campus in Shockoe Bottom. The rest of the funds are allocated to be spent over the following two fiscal years on expenses related to planning, design, land acquisition and construction.
The full budget proposal can be viewed on the city’s website. The City Council will review the document in depth over the next several weeks in a series of workshops, leading up to an initial public hearing March 27. Initial amendments from the council are due March 29, and final amendments would be introduced at the April 24 regular meeting, setting the stage for a second public hearing May 8.
Once approved, the budget would take effect July 1, the first day of the fiscal year.
The Richmond City Council received Mayor Levar Stoney’s budget presentation in a special meeting Monday. (Screenshot)
Amid a rebound in tax revenues as it adjusts from the pandemic, the City of Richmond is weighing a proposed fiscal year budget that would ramp up spending on operations overall, while emphasizing funding for schools, employee pay raises and increasing the city’s stock of low-income housing.
Mayor Levar Stoney presented the $3 billion proposal for fiscal year 2024 to the City Council at a special meeting Monday. The plan would hold the line on current tax rates while increasing the general fund budget to nearly $949 million, a 13 percent jump from the current fiscal year budget.
The jump in spending is driven by anticipated increases in tax collections, including a 22.5 percent increase in sales tax, a 19.2 percent increase in prepared meals tax and a 7.7 percent increase in real estate tax, which remains based on the current real estate tax rate of $1.20 per $100 of assessed value.
The budget would fund an 8 percent salary increase for most city employees and a step increase and plan adjustment that would see most sworn police officers and firefighters receive pay hikes of at least 5 percent. The adjustments would increase the city’s minimum wage to $18 an hour.
Funding for Richmond Public Schools would increase by over $21 million, or about 10 percent over the current budget, with $15 million set aside specifically for rehabbing Fox Elementary School, which was damaged in a fire early last year.
Funds for RPS would also include $200 million for school modernization projects outlined in the school system’s capital funding plan, and $2.5 million for school maintenance projects in the city’s five-year Capital Improvement Plan (CIP). Stoney emphasized that funding for RPS has increased 46 percent in the seven years he’s been in office.
Mayor Levar Stoney delivering his budget proposal Monday. (Screenshot)
The CIP budget would total $362 million next year and over $734 million over the next five years. Capital projects to be funded in FY24 include $15 million for a replacement of Fire Station 21 at 2505 Richmond Highway, and $10 million to renovate the police department’s First Precinct at Q and 25th streets.
Funding for street paving and improvements would total $21 million, while $14 million would be budgeted for city facilities maintenance projects listed in the CIP. The budget would put $1.75 million toward a year-round emergency shelter, and $1.4 million in American Rescue Plan Act funds for a first-time homebuyer’s assistance program for city employees wanting to reside in Richmond.
To help increase the city’s low-income housing stock, Stoney has said he would designate $10 million each year over the next five years specifically for income-based housing projects, which would contribute to his goal of creating 2,000 new homeownership opportunities for low-income households by 2030.
The budget would include the first $10 million, as well as an additional $500,000 for the city’s “alternative homes” project, in which the city would partner with a nonprofit to create a program for alternative homeownership opportunities, including manufactured homes.
Also in the budget is $2 million of the $25 million that the city has committed over five years for the planned Enslaved African Heritage Campus in Shockoe Bottom. The rest of the funds are allocated to be spent over the following two fiscal years on expenses related to planning, design, land acquisition and construction.
The full budget proposal can be viewed on the city’s website. The City Council will review the document in depth over the next several weeks in a series of workshops, leading up to an initial public hearing March 27. Initial amendments from the council are due March 29, and final amendments would be introduced at the April 24 regular meeting, setting the stage for a second public hearing May 8.
Once approved, the budget would take effect July 1, the first day of the fiscal year.
“Stoney emphasized that funding for RPS has increased 46 percent in the seven years he’s been in office.” So Richmond continues to spend more and more per student, and yet the outcomes have gotten worse. In 2018 the average spend per pupil was approx $12,000 – in 2020 it was $15,667. Compared to it’s neighbors, RPC spends the most per pupil and gets the worst outcomes – why?
https://richmond.com/news/local/education/on-per-pupil-funding-chesterfield-ranks-last-among-large-va-school-systems/article_01c6f413-56f8-5256-94c7-cbd5122ccade.html#:~:text=That%20figure%20places%20the%20county%20in%20the%20bottom,the%20state%2C%20according%20to%20the%202019-20%20state%20data.
“a 7.7 percent increase in real estate tax, which remains based on the current real estate tax rate of $1.20 per $100 of assessed value.’ So the City is not going to raise my personal property tax rate, so how are they funding the 7.7% increase in revenue – you got it, they are raising my assessment. So now what is going to happen when/if the housing market plummets due to high interest rates? Will the city lower my assessment to “market value”?
Yes. That’s how assessments work.
Ludwig – you are correct, that is how assessments SHOULD work, but the City has NEVER lowered my assessment – not even in 2007 during the worst housing bubble with 30% declines in home values. Nope, they just did not increase it until 2009. And my property taxes have been going up every year since – either by rate increases, or assessment increases.
Wait until residents see the rise in the car tax. Henrico lowered the rate but based on this budget, city residents will see HUGE increases this year and most likely will be paying 75% or more of the tax. The state payments are flat and the car value are still skyrocketing like home value. City isn’t will to even lower rates 0.005 (or any number) to help out its residents.
The car tax situation is out of control. My beater car was assessed at $10k! Probably could sell it for less than what the taxes are going to be.
Any increase in utility fees hurts the poorest citizens of Richmond. These increases are regressive and unfair. If you rent, then Landlords pass the cost on. There needs to be an overhaul of the State/City relationship regarding property taxes – VCU and The Commonwealth have crippled Richmond, taking land and services, paying very little for the privilege of being located in this great city. If anything, raise the fees that the City charges these parasites for fire, police, water, gas and sewer.
Little Known Secret: water/sewer fees have LONG been a cash-cow for the city. This is very unfortunate as these charges are regressive, impacting our poorest residents worst of all. Increases of a dollar here, a dollar there, and generally no one notices.
It would be wonderful is Dobrin paid a fair tax. These guys are renting homes for $3k a month and the homes are assessed for $150k. They should be paying based on the value they are telling their tenants the home has. Instead theyre raking in profits and all the neighbors get to pay more.
PS I love to see the how the service charge rate the city calculates for state properties is done in the under 58.1-3403. That rates calculation is limited to fire, police, trash and some educational aspects but I wonder if the City is actually calculating that cost correctly considering how high those service cost in the city.
Mayor Stoney is proposing a three-billion-dollar budget. Henrico County is proposing a $1.06 billion-dollar general fund budget. Henrico County’s population is almost 3 times that of the City of Richmond. Something is radically wrong with the way the City of Richmond operates. Victoria Woodhull is absolutely correct when she states that the City spends the most per pupil for K-12 education in the MSA and the results keep getting worse. Interview the teachers in the failing schools, off the record, and you’ll find some of the answers, and they aren’t related to money spent or teachers’ salaries. I just had… Read more »
Is their any news on how much the City of Richmond going to raise City Sidewalk Repairs and new sidewalk construction? It would be nice if the city put in $12 to $20 million dollars a year towards sidewalk repairs and new sidewalks.
Agreed Carl – but alas, that is a pipe dream. I have requested my sidewalk be replaced for about 20 years, and they keep telling me it is “on a repair cycle” and my street is not due. Funny how Monument and Hanover’s sidewalks are nice…. But I will say that I almost had them scheduled, and then a neighbor (who only lived there about 5 years) stopped the city from fixing the sidewalks because they were going to cut down 2 huge trees (50+ yrs. old). She all but tied herself to the trees. Well that was enough for… Read more »
I was able to get a two foot tall sidewalk buckle that was 15 feet long replaced along Carry Street. They had to replace a 60 foot section of sidewalk to replace it. It took 3 years to do to and I can say one thing the Hollywood and the FBI I even them crowing about what is going on in the Ukraine have nothing over how secertive the City of Richmond is when it comes to when a sidewalk is fixed.
All this type of work is based on federal grants. Not our local taxes. That is why the poorer areas get their work done first and others, like 1st district, are last in line. Don’t remind your council person, ours is to busy complaining about permits for his gym.
It would be interesting to know how the City is forecasts the 22.5% increase in sales tax collections and the 19.2% increase in prepared meals tax collections. Are those tax rates being raised or do they anticipate organic growth? Or both?
I think some of it is inflation costs on good and meals that is driving up revenue.
These increases are coming from such a huge drop in sales and meals taxes due to Covid. Remember, 90% of the persons working downtown did not come downtown for 2 years. And even now, only 75% came back.
Politicians love spending other’s money, because it’s not theirs. Yet, the schools are some of worse in the state. Throwing more money at issues is not the answer, and never will be. I feel for the homeowners that have to keep flipping the bill for the senseless spending by Mayor after Mayor for generations at this point in the City of Richmond. What is the return on the homeowner’s investment, but higher tax rates that are not in line with the surrounding counties. Sad…
So many of our new developments and home sales are coming with tax credits/abatements. It’s the long term resident that’s getting screwed for sure. But what does Stoney care, he doesn’t own property in the City 🙄
Can we get Stoney out and never back in to public office, please and thank you?
The budget in 2016 was 700 million. Let that sink in.
I would be happy if the City could get my water bill right.One month they say they overcharged me $2,500, three months later, they say I owe them $2,200. A real mess with no solutions. The mayor is running for Governor or Senator, his budget reflects that. Virginia is the new New Jersey.
Vote for someone who cares about the city not someone using RVA as a leaping pad to something they deem “better.” If the city spent money on deferred maintenance (an aging school with a dumpy sprinkler system for example) not taking down statues nobody cares about maybe the budget wouldn’t be so high. Stoney needs to go.