Richmond City Council Budget Work Session - April 22, 2026

The Richmond City Council held a budget work session on April 22, 2026, to discuss amendments to the Fiscal Year 2027 budget using the FY25 surplus and to address outstanding items. Key topics included clarification of a one-time payment for retirees, reallocation of funding to cover salary increases, budget transparency for complete streets, and the future of the Richmond Virtual Academy (RVA). The council reached consensus on several amendments and set next steps for final adoption.

Discussion Items

• COLA Clarification for Retirees: Councilmember Trammell addressed confusion in the media, emphasizing that the approved payment for Richmond Retirement System beneficiaries is a one-time payment equivalent to a 1% cost-of-living adjustment (COLA), not a bonus. RJ Warren, Council Chief of Staff, explained that the one-time payment amounts to $716,000 and is the equivalent of a 1% COLA for one year, but does not commit to ongoing COLAs. Councilmembers agreed to hold a future meeting to explore permanent COLA solutions.

• Salary Adjustment Funding Gap: The council learned that moving all city employee salary adjustments (3.25%) to July 1 instead of a phased January start would require an additional $113,092 beyond the remaining $600 available from the surplus. Councilmember Lynch proposed reallocating $125,000 originally earmarked for a Clark Springs feasibility study to close the gap, which would leave $11,908 remaining. The council consensus moved those remaining funds to the Randolph Community Center for equipment replacement.

• Transparency and Revenue Questions: Councilmember Gibson questioned the $3.168 million figure from the FY25 amended budget, arguing that $3.9 million in recurring revenue should have been carried forward. CAO Donald explained that the $12 million in additional assessments from FY25 were recurring revenue used for one-time purposes due to assessment-cycle misalignment, and that the $3.168 million remaining is the unspent balance of that one-time allocation. He assured council that the assessment freeze would align future budgets. Councilmember Breton supported Gibson's inquiry, noting that the FY26 budget base did not reflect the FY25 amended amounts.

• Complete Streets Budget Transparency: Councilmember Breton proposed breaking the $21 million complete streets line item into four subcategories (paving, sidewalks, CIP support, and engineering/planning) to improve transparency. CAO Donald offered to provide a supplemental page in the budget book detailing the planned breakdown without restricting flexibility. The council appeared supportive, and staff will work with the administration to finalize the approach.

• TJ High School Athletic Lights: Councilmember Breton proposed reducing the car wash budget from $200,000 to $100,000 and redirecting the savings to fund athletic training lights at TJ High School. The council agreed to allocate $100,000 to the Richmond Education Foundation (or directly to RPS if necessary) to leverage matching grants and private donations.

• Richmond Virtual Academy (RVA): Superintendent Jason Kamras confirmed that without additional funding, RVA will not continue. He stated that all current RVA students (including those with disabilities) will be served in person, and that RVA's 25 staff members (mostly licensed teachers) will be offered positions in other schools. Several councilmembers expressed concern, but Kamras emphasized that nearly all students with disabilities in RPS already attend in-person schools and that the virtual program is not the least restrictive environment for most. Councilmember Gibson noted that transitions are hard and urged the school board to consider a scaled-back version. Councilmember Robertson acknowledged the difficult choices and thanked the superintendent for his work.

Key Outcomes

• Consensus on Budget Amendments: The council agreed to the following amendments:
  • Reallocate $125,000 from Clark Springs study to cover the salary adjustment funding gap.
  • Allocate the remaining $11,908 to Randolph Community Center for equipment.
  • Cut $100,000 from the car wash budget and direct it to TJ High School athletic lights through the Richmond Education Foundation.
  • Maintain previously agreed-upon items from the Monday session (e.g., positions for assessor's office, sustainability coordinator, attorney, investigator, PDR; text amendments for gap grant reallocation, affordable housing trust fund language, pay plan severance language, and Ponticello park encumbrance).
• Text Amendments: The council will include: (1) directive to use remaining gap grant funds for housing initiatives, (2) correction of affordable housing trust fund language, (3) removal of severance package language from the pay plan, and (4) encumbrance of remaining funds for Ponticello park improvements. A request by Councilmember Robertson for performance measures to be provided by July 1 was accepted, and the administration agreed to update the budget book using three quarters of data.
• Next Steps: Council staff will work with the city attorney and administration to draft amendments for the formal council meeting on April 27, 2026. A public hearing and final vote on the budget are scheduled for May 11, 2026.