RICHMOND, Va. — Mayor Danny Avula presented his proposed budget plans to the Richmond City Council on Thursday, detailing challenges faced this year while maintaining a balanced budget. He emphasized that the proposed $3 billion budget reflects shared community priorities and will not raise taxes.
“This budget reflects our shared priorities and does not raise taxes,” Avula said.
The proposed budget matches last year's figures, but creating it was not without challenges. Avula noted that the city's budget is constrained by geographic and historic issues, compounded by rising costs and an uncertain federal landscape.
“Since February, we faced a $50 million budget gap between projected revenue and expenses — nearly 5% of our total operating budget,” he said.
Avula’s plan includes investments in City Hall, schools, and neighborhoods. He is proposing to add a position for performance management and provide city employees with a 3.5% raise. The budget also allocates an additional $18.6 million for staffing and improvements to the finance department and 311 services.
“We’ve invested in staff by transitioning into the Virginia Retirement System, requiring living wages, engaging with organized labor, and improving our benefits,” Avula said.
For neighborhoods, the Mayor proposed a $50 million investment in housing, $300,000 for the trauma healing response network, and funding for 60 new police officers, with increased compensation.
“The increase in compensation for our sworn personnel will average 10.3%, keeping Richmond an employer of choice,” he added.
In education, Avula has increased funding for Richmond Public Schools by $10 million compared to last year, although this is still $22 million less than what the schools proposed.
“I know the need is far greater, and I will advocate for more at the state and federal levels,” Avula said.
Richmond Public Schools Superintendent Jason Karmas expressed appreciation for the additional funding, acknowledging the city’s tough budget year, but emphasized that the amount still falls short of meeting students’ needs.
“The addition of $10 million is appreciated, but it jeopardizes the progress we’ve made and our children’s future,” Karmas stated.
Additionally, the city plans to accelerate $38 million in spending in upcoming years to improve water infrastructure following recent issues at the water plant. The budget includes a proposed $12 monthly increase in water, wastewater, and gas rates, along with cuts to nonprofit funding.
“That financial support has grown to over $13 million, but in this fiscal climate, that funding is not sustainable,” Avula said.
Mayor Avula highlighted the ongoing need for economic development to grow Richmond’s tax base. The City Council will hold public hearings in the coming weeks for citizen input, with a deadline for budget changes and approval set for the end of May.
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