Proposed Richmond budget has no service cuts

Richmond Mayor Dwight Jones has said that the city must grow to help itself economically.

By: Will Jones | Times-Dispatch
Published: March 22, 2010

Richmond Mayor Dwight C. Jones is proposing a $637.3 million budget for next year that includes no raises for employees but also no cuts in services.

The plan, released to City Council this afternoon, is an increase of $7.3 million over this year's budget and about $200,000 more than what was forecast a year ago for fiscal 2010-11. Officials had predicted a shortfall of $33.6 million but managed to avoid deep cuts in services by offering a series of administrative changes to either boost revenues or cut spending.

"The public won't see any dimunition of services," Chief Administrative Officer Byron Marshall said.

The plan is based on keeping the real-estate tax rate at $1.20. It calls for 11 layoffs, as well as the elimination of eight vacant positions, plus a new $30 administrative fee for people who are late paying their real-estate and personal property taxes. The new fee is expected to generate an additional $1 million.

The would be other changes. For example, officials proposing to switch from an annual to a semi-annual collection of real-estate taxes.

If approved by the City Council, the change would not affect the total tax bill for individual payers, but it would allow the city to avoid interest payments associated with short-term borrowing, which has been necessary to maintain cash flow. Officials say the switch would produce a saving of $1.7 million.

Jones also is proposing to dissolve the Broad Street Community Development Authority and have the city restructure the authority's debt at a lower interest rate. The city has been dipping into its general fund to meet its obligation to help the CDA cover annual debt payments on a series of sidewalk and parking improvements in downtown. Officials expect the move to save the city $2.5 million annually.

Overall, the budget compares with a $630 million plan for this year and a $637.1 million plan that was anticipated last year for fiscal 2010-11, which starts July 1.

Officials also are encouraging residents to attend several community meetings about the budget. The sessions are scheduled for:

•Wednesday, 6 to 8 p.m., at Franklin Military Academy, 701 North 37th St.

•Thursday, 6 to 8 p.m., at Westover Hills Elementary School, 1211 Jahnke Road

•Monday, 6 to 8 p.m., at Richmond Main Public Library, 101 East Franklin St.

City Council is scheduled to expected to adopt a budget May 24.

Earlier today, Jones proposed spending $90.2 million on capital projects next year, with an emphasis on city facilities and roads.

The total marks a significant increase from the $66.5 million for fiscal 2010-11 that had been planned as part of the five-year capital improvement program adopted last year.

The $90.2 million includes $3.6 million for Richmond Public Schools, $11.7 for street, sidewalk and traffic improvements,$6.2 million for economic and neighborhood development and $68.7 million for city facilities.

The capital-spending plan also includes $57.7 million for utilities projects next year.

Over its five years, the plan totals $813.7 million through fiscal 2014-15. Last year's five-year total was $942. million.

The mayor's administration gave the Planning Commission an overview of the plan this afternoon but did not immediately release the detailed five-year plan.