Tension builds over Avula's first Richmond budget
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Mayor Danny Avula's first proposed budget since taking office is already causing some tension.
The big picture: Richmond's school board and superintendent Jason Kamras slammed Avula's proposed $9.6 million funding increase for RPS, far below the $30 million the board asked for.
- "It jeopardizes the progress we've made, and our children's future," they wrote in a statement.
- City Councilmember Reva Trammell told RTD the projected 6% increase in real estate assessments is "horrible."
Meanwhile, some people on social media have criticized Avula's giving himself a nearly $45,000 raise (from about $130,000 to $175,000).
- City officials said the mayor's salary had been stagnant for decades, adding that even with the increase, Avula is nowhere near the highest-paid city employee.
Between the lines: Like most localities nationwide, Richmond faces budget uncertainty because of federal cuts, Avula told City Council last week.
- It also faces "some challenges that are unique to Richmond," Avula added, including the amount of state-owned and tax-exempt real estate.
- It's partly why his proposed budget includes $10.6 million in cuts.
Let's dive into major parts of the proposal:
Real estate assessment
Real estate assessments are going up by 6%, which is the lowest increase since 2021.
Yes, but: Officials are preparing for next year's scheduled real estate assessment freeze, which will see revenue stay stagnant as they change the assessment cycle to start in July instead of January.
- The freeze could cause some financial challenges ahead, city officials warned.
- They also noted the potential loss of revenue if thousands of federal employees in Richmond are laid off or required to go back to D.C.
Budget reductions
The proposed budget cuts include removing police officer positions the Richmond Police Department has struggled to fill but still includes hiring 60 more cops.
- Plus: Cutting contributions to nonprofits by over $4 million. The budget notes a recent audit that "raised concerns about the effectiveness and oversight" of the current process.
- That audit found the city in 2023 gave nearly $1.5 million to nonprofits that were ineligible to receive those funds.
New positions
Avula introduced the creation of a transformation manager, which would provide oversight of City Hall, and a transportation director, to handle all things transit.
Major projects
Among the big investments named in the proposed budget:
- Almost $38 million toward water plant improvements (up from the less than $3 million originally planned).
- $21 million to go toward pedestrian safety, traffic calming measures, sidewalks and more.
- $16 million toward redeveloping Mayo Island, which the city bought last year.
- $10.1 million toward The Shockoe Project, which will recognize the city's role in the slave trade.
- Nearly $8 million toward redeveloping Creighton Court.
- $6 million toward revamping Brown's Island.
- $2.5 million toward maintenance needs across RPS.
Salary increases
Salaries for city employees would go up 3.25%.
What's next: City Council is reviewing Avula's budget, will ask the administration questions about it next week and finalize it by the end of April.
- They'd vote on it on May 12.
Go deeper: Richmond utility bills could rise by $13 a month under proposed budget