Richmond City Council Budget Work Session - April 21, 2026

The Richmond City Council held a budget work session on April 21, 2026, to consider amendments to the FY27 budget. Key actions included reallocating $3.168 million from the Gap Grant program to housing initiatives, freeing up general fund dollars for council amendments, and approving multiple funding items by consensus. A major debate centered on providing a cost-of-living adjustment (COLA) for retirees, ultimately resulting in a one-time payment equivalent to a 1% COLA. The session concluded with a commitment to continue discussions on funding for the Richmond Virtual Academy, with a follow-up meeting scheduled for April 23, 2026.

Consent Calendar

• Elimination of new funding for gas new business ($500,000): Approved with 8 co-patrons.
• Dedicated mailing line item for Office of Older Adults and Persons with Disabilities: Noted as already in the budget; no formal amendment needed.
• Transportation and security for RPS after-school programs (Middle School Alliance): Approved at an updated cost of $483,000 (originally $428,000) with 7 co-patrons.
• Forest Hill Avenue traffic study ($100,000): Deemed addressed by city administration via existing resources; no amendment required.
• Increase for Family Crisis Fund ($100,000): Approved with 7 co-patrons.
• 3.25% salary adjustment for all city employees effective July 1: Approved at an approximate cost of $1 million (including benefits), ensuring all employees receive the raise on July 1 rather than a phased approach.
• Youth and senior programming at Southside Community Center ($300,000): Approved with 5 co-patrons.
• Game room and fitness equipment upgrades at Randolph Community Center ($40,000): Approved with 5 co-patrons.
• Richmond Ambulance Authority fleet completion ($800,000): Approved with 4 co-patrons.
• Clark Springs Elementary School redevelopment planning ($125,000): Approved with 5 co-patrons after discussion about alignment with Richmond Public Schools.

Discussion Items

• Reallocation of Gap Grant Funds ($3.168 million): RJ Warren, Chief of Staff, explained that the remaining Gap Grant funds (originally $3.59 million from October 2024) would be redirected to four active housing initiatives (Family Crisis Fund, eviction diversion, real estate freeze, and right to counsel). This releases an equivalent amount of general fund dollars for FY27 amendments. Council members debated whether the funds were one-time or recurring. Clarification was provided that the money was repurposed before being declared surplus, making it available for ongoing programs.
• COLA for Retirees: Multiple options were considered: a one-time bonus of $716,400 (equivalent to a 1% COLA for one year) or a permanent 1% COLA costing $971,000 annually for 10 years. Council members expressed strong support for retirees (Councilwoman Trammell advocated for a permanent COLA), while others noted the one-time bonus would provide a flat benefit benefiting lower-income retirees more. The council ultimately reached consensus on a one-time payment of $716,400, equivalent to a 1% COLA, with a commitment to form a working group to develop a long-term solution.
• Westover Hills Elementary School External Facility Redesign: Councilwoman Abubaker proposed $500,000 for a joint project with RPS to create parking and drop-off areas due to Jank Road construction. A proposed cut to the Sheriff's Office budget to fund it was rejected; instead, the funds were allocated from the $3.168 million pool. Some council members (e.g., Councilwoman Robertson) questioned whether this was a capital project requiring CIP funds, but it was confirmed that general funds could be used. Consensus was reached.
• Richmond Virtual Academy (RVA) Funding: Councilwoman Gibson proposed cuts totaling ~$2.2 million to fund the virtual academy, including reductions to strategic communications, economic development, and neighborhood services. However, city administration noted that many of those positions were in active recruitment or had been filled, and that the cuts would affect collaboration on other council priorities. After extensive debate, the council agreed to provide $1 million toward RVA, using $200,000 from remaining available funds (from the $3.168 pool and FY25 surplus) and tasking the administration with identifying additional sources. A final decision was deferred to the next meeting on April 23.

Key Outcomes

• Approved by consensus: Reduction for gas new business ($500k), RPS after-school transportation ($483k), 3.25% raise for all employees (~$1M), youth/senior programming ($300k), Randolph rec center ($40k), RAA fleet ($800k), Clark Springs planning ($125k), and the one-time retiree payment ($716,400). The Westover Hills project ($500k) was also approved via the reallocation pool.
• No action taken on: Splash pad at Broad Rock Sports Complex ($1.5M) due to insufficient funds and feasibility concerns. Neighborhood displacement investment tax grant ($1.5M) lacked enough funds.
• Deferred to April 23: $1 million commitment for Richmond Virtual Academy, pending identification of additional funding sources.
• Next steps: A working group will be formed to address long-term retiree COLA. Council staff will provide 30-day follow-ups on budget-neutral agreements with administration. The next budget work session is scheduled for April 23, 2026.