Richmond council and mayor cooperating on budget

Richmond isn't likely to see a repeat of last year's budget fight between the mayor and the City Council.

However, local nonprofits could be preparing for one of their own.

After scuffling with then-Mayor L. Douglas Wilder last year, City Council members are working closely with Mayor Dwight C. Jones on changes to his $629.6 million plan for fiscal 2009-10.

The council will hold a public hearing on the budget today at 6 p.m. at City Hall, 900 E. Broad St.

The council and Jones agreed to keep the real estate tax rate at $1.20, and members recently backed off several potential amendments, including one that would have used the "rainy-day" reserve fund to help balance expenses.

"The mayor made it absolutely clear that he did not want to tap into the rainy-day fund," Councilwoman Ellen F. Robertson said.

In some instances, council members have outlined amounts to be cut in various areas but are giving the administration flexibility on how that's done. Other suggested cuts to a teen-pregnancy prevention program and the Hispanic liaison office have been dropped altogether.

City Council President Kathy C. Graziano said the council and the mayor are working together partly out of necessity.

"We're under such economic constraints, we've got to work it out together," she said, citing the recession.

The council is looking to boost Jones' proposal to provide money for a second leaf collection this fall and to support youth-employment initiatives this summer. Members also are recommending additional allocations to address staffing and salary concerns in the offices of the sheriff and commonwealth's attorney and the Department of Finance. For now, the council is working toward a plan of $630.5 million.

"We have come a long way on the budget," Councilman Bruce W. Tyler said. "I appreciate that we've seen the cooperation from parties. This is a new day."

Last year, the council largely rejected Wilder's spending plan, and he returned the favor, declaring the council's budget invalid and imposing his plan. The council worked with Jones after he took office in January to resolve the matter.

To support next year's budget, Jones and the council are recommending that most nonprofit groups be charged a service fee based on the assessed value of their properties.

Richmond has had a fee on its books for years but it was never imposed, and the council recently exempted most organizations. However, a proposal to reinstate the fee beginning in January will be considered next Monday.

The Virginia Network of Nonprofit Organizations is opposing the fee and said it will challenge the city's interpretation that it can be imposed.

Executive Director Deborah Barfield Williamson said she had received assurances from city officials that the fee wouldn't be brought back without a review of its potential impacts on nonprofits. She said the current consideration of it "flies in the face of that good-faith effort."

Tyler said he's also concerned that the fee could backfire, by forcing nonprofits to spend less on programs that benefit residents.

"The reality is these are organizations that are under extreme stress right now," he said.

With the Jan. 1, 2010, start date proposed by the council, the fee is expected to generate about $415,000 for next year's budget to offset the costs of fire and police service, as well as trash collection. Jones' budget has included $830,000 in revenue from the fee, anticipating July and January billings.

On the proposed capital budget, council members are suggesting to cut $3 million that Jones had recommended toward the purchase of riverfront parkland identified in the downtown master plan. The council's changes would add money for various sidewalk, park and gateway-improvement projects, as well as leave $991,000 for undesignated paving and other road projects.

"We've got a lot of things we need to fund that take priority over more parkland," Graziano said.

Overall, Jones is recommending $7 million be set aside in the next three years to buy the additional parkland. The budget plan doesn't identify the sites for purchase, but the downtown plan recommends Mayo Island and the sites of the proposed Echo Harbour development and the Lehigh Cement Co.

Jones had no comment on the potential amendments. "We'll be ready to comment on matters when they're settled," press secretary Tammy D. Hawley said.

The council is scheduled to adopt the budget May 26. After that, Jones will have 14 days to veto any particular items.

Contact Will Jones at (804) 649-6911 or .