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What Richmond’s projected $9 million shortfall means for taxpayers

Posted at 11:28 PM, Mar 05, 2016
and last updated 2016-03-05 23:31:34-05

RICHMOND, Va. -- Richmond Mayor Dwight Jones’ presented a belt-tightening $700 million budget to city council this week.

The new budget, which addresses a projected $9 million shortfall and offers no increase in funding for schools, means city residents will need to pitch in and possibly pay more in taxes.

"We're left with a projected deficit in the current fiscal year,” Jones said addressing council members.

As a result, city residents may be left paying more for city services.

Miranda Tower

Miranda Tower

"Well, it's very frustrating I mean we already pay an arm and a leg. And we pay taxes and we work hard,” said Miranda Tower, who lives in the city.

But Mayor Jones said the city must close the spending gap by finding ways to generate more money.

By implementing fee increases for city services:

  • On-street parking fees would increase from 75 cents to a $1.25.
  • Vehicle licenses would increase from $23 to $30 per vehicle.
  • Trash collection fees would increase from $17.50 to $20.
  • Residents late paying city taxes would face a $25 administrative fee.

Tower questions if the city made money on the UCI Road World Championships bike races.

"I'm just not sure where that... where the payoff is?" Tower asked. "I mean if we're going to be inconvenienced for a week, where's the money going?"

The mayor's spending plan also calls for level funding for the city's school system, which means no new funding to pay for teacher raises, RPS' academic improvement plan or repairing crumbling city schools.

Lisa Allen said she sees distributing conditions at her son's school.

"I know there's mold on the wall,” Allen said. "It concerns me about my son's health, my health as well... and the teachers."

As a longterm solution, Jones wants to dedicate 20-percent of new real estate tax revenue to the school system for construction and renovations.

"Clearly, we need it,” said Kristen Larson, a Richmond school board member. "Having a dedicated funding stream is definitely a good idea, and worth exploring."

Stay with WTVR.com and watch CBS 6 News for continuing coverage of this important local story.

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