Posted on March 27, 2025

Richmond, VA - Today, Mayor Danny Avula presented a balanced $3 billion budget proposal to City Council that addresses Richmond's most pressing needs. The Mayor delivered a balanced budget without raising taxes. This was accomplished despite having to close a $50 million budget gap, rising costs due to inflationary pressures, and fiscal uncertainty coming from Washington.

The budget represents the Mayor's vision of a healthy and thriving city with abundant opportunity, where everyone's rights are protected, and no one is left behind. This proposal takes initial steps towards realizing that vision through strategic investments in key priority areas.

"My team and I have built a balanced, $3 billion budget that reflects our shared priorities. It is a fiscally responsible plan that does not raise taxes." said Mayor Danny Avula. "And I believe that, despite the challenges we're facing, despite the uncertainty surrounding us, we can be optimistic about our City's future. Because I know that each of you - Councilmembers, City staff in the audience, Richmonders watching from home - are dedicated to this place you - and I - i love deeply."

Thriving families

• This budget increases RPS general fund support by $9.6 million over last year, bringing our total investment to a record $248.9 million

• Nearly one quarter of the general fund budget is devoted to supporting Richmond Public Schools

• $500,000 provided for the Early Childhood Care and Education Trust Fund

• $520,000 invested in the Family Crisis Fund

Thriving Neighborhoods

• Invests nearly $50 million in housing, including $10 million to the Affordable Housing Trust Fund and fully staffing the Department of Housing and Community Development.

• Provides the City's first responders with the resources they need to protect residents, including funding for 60 additional sworn police officers, 4 new fire trucks, 16 new police vehicles, and an average increased salary of 10.3% for police officers and firefighters.

• $300,000 for the Trauma Healing Response Network, to reduce the impact of gun violence in our City

Thriving sustainable built environment

• $21 million for safe and complete streets initiatives

• $11 million for the Fall Line Trail

• $10.1 million for a multi-use cultural heritage campus in Shockoe

• $6 million to support the public-private investment in Brown's Island

• $2.4 million for a connection to the James River in Manchester

• $250,000 for the Neighborhood Climate Resilience Grant Program

Thriving City Hall

• Creates a new position for a Chief Transformation Officer. The person in that role will champion a performance management framework to hold city departments accountable to clear metrics

• Invests $18.6 million more in City staff

• Increases salaries by at least 3.25% for all eligible general employees

• Invests in the Finance Department and 311 to improve customer service

• Implements strategic budget reductions of $10.6 million

Utility System Enhancements

• More than $60 million in planned capital improvement plan investments to fund water treatment plant improvement projects, including $38 million proposed for next year, which is a significant acceleration in funding

• Another $207 million in the five-year CIP is planned for water transmission and distribution system improvements

• That's in addition to a series of other planned investments to enhance wastewater treatment operations, strengthening our stormwater management, improving our gas utility system, and proactively upgrading the City's combines sewer system

• The budget includes previously scheduled modest increases to water, wastewater, and gas rates

• On average, the combined increase amount to about 42 cents per day

During remarks to City Council, Mayor Avula referenced several legacy factors that represent significant revenue constraints that impact budget development. That includes Richmond's limited 62-square-mile footprint which is home to a significant share of tax-exempt properties occupied by state government entities, aging infrastructure, increased school funding responsibilities, and federal fiscal policy uncertainty.

To address these challenges while improving service delivery, the budget includes the creation of a new Transformation Manager position focused on process improvements and organizational culture change across City Hall.

Looking ahead, the Mayor also forecast an even tighter budget next fiscal year due to a planned change in the City assessment calendar. To help enhance City revenues, the Mayor also emphasized the importance of continued economic development initiatives like the Diamond District and City Center to grow Richmond's tax base.

Next steps in the budget process involve City Council reviewing the Mayor's proposal prior to final adoption later this spring.

A Note on Elected Officials Salaries

This budget also increases the Mayor's salary from $130,725 to $175,000.

The Mayor's salary has been largely fixed for two decades. The budget proposes adjusting the Mayor's salary to $175,000, which still falls well below what the 2025 salary would be if fully adjusted for cost of living increases over the past 20 years.

The Mayor's proposed salary is in line with the median pay range ($171,271) for Deputy Director salaries and below the median pay range ($188,403) for Department Director salaries based on positional pay ranges in the FY 25 compensation plan. If City Council adopts the proposed salary increase, the Mayor would be the 61st highest paid City employee.

After a 2024 change in state law, City Council voted to increase councilmember salaries by $20,000, raising the annual compensation to $45,000, effective July 1, 2025. Prior to those adjustments, Council salaries had remained flat for nearly two decades.

• Read Mayor Danny Avula's remarks as prepared.
• Download the proposed FY26 Budget.
• Download the FY26 budget factsheet.