by Jon Baliles

Today Richmond’s Mayor and City Council will debate (and probably vote) on whether or not to maintain the real estate tax rate at $1.20 per $100 of assessed value or lower it four cents to offer some relief to property owners and renters. The Mayor and some on Council (probably a majority) say that the city has too many needs and cutting the rate four cents will create a $17 million shortfall in the budget that will have to be adjusted midyear; some services will have to be cut back or people laid off, etc.
The cityโs general fund budget grew by $50 million since last year and by $268 million since 2021. While needs have also increased (as they do every year), for a decade there has been no attempt to rein in spending or make sure the money that is spent is effective and accomplishing its mission. In that time, assessments and taxes have gone through the roof and are pricing people out of their homes, making homes and apartments more unaffordable for many. The city is not offering relief nor does it seem to be planning on offering any.
In addition, a presentation given to City Council a year ago in October 2024 outlined a dire financial situation while the Stoney administration argued against a tax rate reduction. Council was told the FY2026 budget would face a $27 million deficit and by 2030, it would rise to $149 million. That presentation showed spending would increase by an average of almost 6% per year but revenue will grow by an average of about 3%. You donโt need to be a math genius to figure out there is a problem there, but nothing was mentioned about making sure spending did not exceed revenue.
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