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Stoney administration proposes adjusted FY21 budget, prioritizes schools, housing and roads despite dramatic decreases in revenue

New FY21 budget based on nearly 5% reduction in projected revenue due to COVID-19

The Stoney administration today unveiled the adjusted FY2021 proposed budget, which was designed to align with a $38.5M projected general revenue fund decrease.

Budget and council staff have been working together tirelessly since the mayor declared a state of emergency in the City of Richmond, aiming to adapt the proposed FY21 budget to the new restrictions posed by the economic effect of the pandemic. 

The FY21 budget outlined in Mayor Stoney’s March 6 presentation was based on a $782.6M general fund revenue projection. That projection has been updated and is now estimated to decrease by $38.5M and now stands at an estimated $744.1M. That represents a decrease of 4.9 percent from the budget presented to City Council on March 6th. 

The city is now projected to face a shortfall at the end of FY20; a surplus was originally expected. The city has implemented cost-saving measures such as a hiring freeze and a moratorium on all discretionary spending to help offset the effect. 

Currently, the updated budget still aligns with Richmond’s priorities: supporting schools, fixing roads and sidewalks, and making the city a more equitable, safe place to raise a family. 

The revised FY21 budget will still allocate more to RPS than the city did in FY20, following council-approved guidance to dedicate a certain percentage of real estate tax revenue to schools. A total of $181M will now go to RPS, compared to roughly $175M in FY20. 

The City of Richmond also remains dedicated to supporting nonprofit partners who meet the needs of the Richmond community. Knowing that many non-profit partners are facing challenges due to COVID-19, the mayor worked to ensure that partners budget did not receive a cut from their FY20 allocations through the city’s non-departmental budget.  

Richmonders will no longer see utility rate increases in FY21, which has a $2.5M impact on projected general fund revenues - in the form of a PILOT (payment in lieu of taxes) payment to the city. The city has adjusted for this change by making further cuts to department budgets. 

“This international crisis is forcing local governments everywhere to make tough, sometimes heartbreaking decisions when it comes to budgets,” said Mayor Stoney. “In Richmond, we’re blessed with a team unified around our shared values: equity, opportunity, and fiscal responsibility to our residents. This adjusted budget reflects those values.”

The following lists do not include all changes. The finalized amendments will be available once they are formally submitted to Richmond City Council by April 20.

The following items funded in the original FY21 budget have been eliminated:
2 percent salary increase for employees; 
Step increases for public safety personnel and base salary increases for public safety recruits;
Nearly $9.4M in currently funded full-time and part-time employee positions, and the elimination of 12 proposed new positions throughout the administration, including in Citizen Service and Response, Parks and Recreation, Human Services, and the City Attorney’s office, among others;
Parks, Recreation and Community Facilities workforce development program for returning citizens;
Doula program run through the Richmond City Health District; 
History and Culture Commission operating budget; and
Several non-departmental allocations to nonprofits that did not receive funds in FY20. 

The following items saw an increase in the original FY21 budget but have now been brought to FY20 funding levels:
The Affordable Housing Trust Fund, which was slated to receive $3.5M but will now receive $2.9M;
The Eviction Diversion Program, which was slated for a $201k increase but will now receive $485k; and
Many non-departmental allocations to nonprofits that received funds in FY20. 
  
The budget amendments will be formalized and submitted to Richmond City Council by April 20, at which point they will become publicly available. 
 

La Ciudad de Richmond, la Autoridad de Desarrollo Económico y los Pieles Rojas (Redskins) de Washington se han puesto de acuerdo para eliminar la contribución que la ciudad debe dar al equipo, correspondiente a los años 2019 y 2020

La Ciudad de Richmond y el equipo de fútbol americano Pieles Rojas (en inglés, Redskins) de Washington D.C. se complacen en informar que se ha hecho una modificación significativa al acuerdo actual sobre el campamento de entrenamiento del equipo, el cual elimina el requisito de que la Autoridad de Desarrollo Económico (EDA, por sus iniciales en inglés) de la ciudad deba pagar una contribución en efectivo para cubrir algunos gastos de funcionamiento del equipo. 

 
Esta modificación cubre tanto el año 2019, durante el cual la EDA tenía la obligación contractual de pagarle al equipo $161 767.85, así como el año 2020, el año final de este pacto hecho por ocho años.

 
Esta modificación al contrato había estado en discusión por varios meses, pero llega en un momento en el cual la ciudad está enfocando sus recursos en ayudar a que los residentes y los negocios locales puedan enfrentar la pandemia de COVID-19. El dinero ahorrado como resultado de esta alianza ayudará a la EDA para que pueda financiar el programa de préstamos para pequeños negocios que la agencia y la administración anunciaron hoy. 

 
La decisión, tomada de mutuo acuerdo entre la ciudad, la EDA y los Pieles Rojas, se basa en su relación de largos años y está enfocada en las necesidades y metas establecidas de desarrollo económico de la comunidad. 

 
“Nos complace haber podido negociar este alivio para la ciudad”, dijo el alcalde Stoney. “Valoramos las inversiones y contribuciones que ha hecho el equipo a nuestra comunidad y buscamos seguir trabajando juntos este año, además de que seguimos explorando nuevas maneras de hacer crecer nuestra alianza”, añadió. 

  

Bajo el acuerdo original de 2013, la EDA acordó hacer una contribución anual a los Pieles Rojas, en efectivo y en especie, para ayudar a solventar algunos de los gastos en aumento requeridos por la reubicación del campamento de entrenamiento del equipo. A su vez, los Pieles Rojas colaboraron con la ciudad, con Bon Secours y con otras organizaciones comunitarias para brindar una experiencia única a sus aficionados, facilitar el crecimiento y estimular el desarrollo de la comunidad en esta parte de la ciudad. 

 
La alianza con el equipo ha conducido a iniciativas generosas de caridad por parte del equipo, las cuales han resultado en la construcción de nuevos parques infantiles, instalaciones de fútbol americano en las escuelas secundarias, el establecimiento de programas educativos de alto impacto en las escuelas primarias y secundarias de la ciudad y en donaciones de equipo deportivo. 

 
El campamento de entrenamiento del 2020 es el último que está cubierto bajo el contrato original de ocho años. Como parte de dicho contrato original, el equipo tiene la opción de extender el acuerdo, pero no obliga a que la EDA siga brindando una contribución en efectivo.

The City of Richmond Successfully Enters the Bond Market - Saves $22.7 Million

The City of Richmond successfully sold $333.7 million in Public Utility Revenue and Refunding Bonds, of which $150.9 million was for new money projects and $182.8 million was to refund existing debt service for interest rate savings.

The cost of funds for the city’s new money projects was approximately 3.09 percent, which is near the lowest cost of funds in several decades. In addition, the city took advantage of the low interest rate environment to refund its 2013A bond issue, which will result in the city reducing its existing debt service by $22.7 million over the next 23 years. Those savings will be spread across the city’s gas, water, and wastewater enterprise funds and will alleviate a portion of the expected future year rate increases.

The bonds were highly rated by all three national credit rating agencies: Moody’s, Standard & Poor’s and Fitch (Aa1, AA and AA, respectively). Investor interest appeared to be enhanced by the utilities credit rating upgrade the city received from Moody’s two weeks before the sale.

“The extraordinary amount of competitive demand to purchase our utility bonds, which drove down the interest costs and will ultimately benefit our customers, demonstrates the confidence that investors have in the effectiveness of our system,” said Mayor Stoney.

David Rose, Senior Vice President and Manager of Public Finance at Davenport & Company LLC, the city’s financial advisor, said, “The Moody’s upgrade and overall credit quality was significant and undoubtedly showed real momentum, as the city saved many millions compared to initial pre-pandemic planning.”

“The results of this bond sale reaffirm that the city’s utility system is well run and well respected by investors,” said Acting Chief Administrative Officer Lenora Reid

Las Vegas Raider and Richmond native Clelin Ferrell donates $100,000 to Richmond-based relief efforts

Clelin Richmond Press

NFL player and proud Richmond native Clelin Ferrell has generously agreed to donate $100,000 to two local relief efforts. 

$50,000 will go to support the Eviction Diversion Program, founded in 2019 by the Stoney administration and managed through local nonprofit Housing Opportunities Made Equal (HOME). 

The other $50,000 will support Richmond’s Family Crisis Fund, which provides one-time grants to families who have experienced income loss due to COVID-19. The Stoney administration announced last week that the city has matched the Robins Foundation’s original contribution to the fund. Both the city and Mr. Ferrell’s contributions, through a partnership with local nonprofit Enrichmond, will be disbursed directly to Richmond families. 

“Knowing who I am means knowing how much my hometown, Richmond, VA means to me,” said Ferrell. “There’s something special about the people from this city and how we are built. For a long time, we have had one of the highest eviction rates in the country and people are losing their jobs because of the crisis, so I am donating $100,000 to the Family Crisis Fund and the Eviction Diversion Program to help the communities that made me who I am. I love y’all and stay strong, stay safe, and always stay Richmond!”

“Clelin embodies everything I love about Richmond: its strength, its resilience, and its sense of community. His contribution will help hundreds of families, as well as our city as a whole, emerge from this crisis safe and supported,” said Mayor Stoney. 

Those interested in emulating Mr. Ferrell’s generosity and supporting either of these causes can do so below:
 

 

Las oficinas de la Ciudad de Richmond seguirán cerradas entre el 13 de abril y el 3 de mayo, pero los servicios esenciales continuarán funcionando

Las oficinas de la Ciudad de Richmond seguirán cerradas al público entre el lunes 13 de abril y el domingo 3 de mayo. 

Este cierre continuado está diseñado para garantizar la salud y seguridad de los residentes, empleados y el público en general, debido a la pandemia de COVID-19. 

El personal esencial seguirá trabajando y los servicios esenciales seguirán funcionando. Puede acceder a una lista de esos servicios haciendo clic aquí. 

Por favor lea la página en Internet que ha dedicado la ciudad a este tema, haciendo clic aquí, para obtener actualizaciones acerca de la respuesta dada por la ciudad al COVID-19. Si desea colaborar u obtener ayuda, visite la página RVAStrong. 

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