Breaking Down Richmond’s Budget

Rachel DePompa – bio | email   

It’s here! It’s here! (You’d think I was writing about a new Harry Potter movie hitting the theaters.) Nope! I’m referring to the Mayor’s 2011 proposed Budget. To a journalists it means lots of stories this week. It takes a few days to comb through all the fine print and pages. For now, I’ll give you the quick run through.

No New taxes. No major cuts to service. No furloughs for city employees. (No raises, either) And only 11 layoffs out of more than 4,000 positions. We’d been reporting about a $30 million shortfall. Well, it grew to $34 million. So how did they fill the gap without cutting services? They cut the fat and duplicate services. It looks like Richmond is trying to be more efficient. Mayor Dwight Jones said at the meeting, “We can not tax our way out of this situation, nor can we cut our way out of these financial challenges. We’ve got to implement new strategies that allow the city to weather the storm while positioning ourselves for stronger and sustainable growth.” The mayor called his budget an economic recovery strategy and went on to say, “We’re intentional about trying to change the way city government operates.”

I caught up with City Council President Kathy Graziano today. She said she liked the Mayor’s presentation and hopes, “that working together we can begin to be a city where people say, ‘hey we can get stuff done in Richmond.”

The budget:

*$637.2 million

*Proposes Semi-annual Property Tax payments. (you pay half in January/half in June) Projected to save the city $1.7 million each year. Currently the city borrows upwards of $70 million each year. The two payments will

*Gets tough on Delinquent Parking Fees. There are 47,819 outstanding parking tickets in the last three years on 33,548 plates. The bill totals $3,000,000.

*Adds a $30 Administrative Fee for taxpayers who are late paying real estate and personal property taxes

*Combines city and school plans for a projected savings of $3,000,000. (Currently the two city schools employees are on a different plan) The switch also means premiums will not go up.

*Dissolves the Broad Street Community Development Authority. (Expected to save the city $2.5 million each year)

Council will set the tax rate on April 12th. It currently sits at $1.20 per 100 dollars of assessed value. There are proposals to raise it, but my sources say that won’t happen. The council will vote on the Mayor’s budget on May 24th.

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1 Comment

Filed under Budget, City Council, City Hall, Dwight Jones, Uncategorized

One response to “Breaking Down Richmond’s Budget

  1. robsmithiii

    Very nicely done!

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