The City of Richmond today launched the COVID-19 First Responder Meal Program in an effort to support both the local restaurant industry and the city’s diligent first responders. 

Through the program, first responders on duty will be given options to order a meal from different local restaurants each day, ensuring that small businesses are given priority in nourishing the hardworking essential employees that protect civilians and organize emergency response every day. 

The city invites local restaurants within city limits who employ fewer than 25 employees at each location to apply to participate in the program. Once a restaurant is approved to participate, the program administrator will assign the restaurant one or more dates when the program will pay the cost of the first responders’ meal. 

The assigned restaurants will change day-to-day to give as many restaurants as possible in the city the opportunity to benefit from the program.  

“This program is a simple and delicious way for the city to expand our support for small businesses,” said Mayor Stoney. “Our first responders deserve food that nourishes the body and the soul, and I know Richmond’s restaurants can deliver.”

Interested restaurants should access the application and program guidelines here, on RVA Strong.

Go to the “For Businesses” section of  to learn more about resource to support our business community during COVID-19. 

New FY21 budget based on nearly 5% reduction in projected revenue due to COVID-19

The Stoney administration today unveiled the adjusted FY2021 proposed budget, which was designed to align with a $38.5M projected general revenue fund decrease.

Budget and council staff have been working together tirelessly since the mayor declared a state of emergency in the City of Richmond, aiming to adapt the proposed FY21 budget to the new restrictions posed by the economic effect of the pandemic. 

The FY21 budget outlined in Mayor Stoney’s March 6 presentation was based on a $782.6M general fund revenue projection. That projection has been updated and is now estimated to decrease by $38.5M and now stands at an estimated $744.1M. That represents a decrease of 4.9 percent from the budget presented to City Council on March 6th. 

The city is now projected to face a shortfall at the end of FY20; a surplus was originally expected. The city has implemented cost-saving measures such as a hiring freeze and a moratorium on all discretionary spending to help offset the effect. 

Currently, the updated budget still aligns with Richmond’s priorities: supporting schools, fixing roads and sidewalks, and making the city a more equitable, safe place to raise a family. 

The revised FY21 budget will still allocate more to RPS than the city did in FY20, following council-approved guidance to dedicate a certain percentage of real estate tax revenue to schools. A total of $181M will now go to RPS, compared to roughly $175M in FY20. 

The City of Richmond also remains dedicated to supporting nonprofit partners who meet the needs of the Richmond community. Knowing that many non-profit partners are facing challenges due to COVID-19, the mayor worked to ensure that partners budget did not receive a cut from their FY20 allocations through the city’s non-departmental budget.  

Richmonders will no longer see utility rate increases in FY21, which has a $2.5M impact on projected general fund revenues - in the form of a PILOT (payment in lieu of taxes) payment to the city. The city has adjusted for this change by making further cuts to department budgets. 

“This international crisis is forcing local governments everywhere to make tough, sometimes heartbreaking decisions when it comes to budgets,” said Mayor Stoney. “In Richmond, we’re blessed with a team unified around our shared values: equity, opportunity, and fiscal responsibility to our residents. This adjusted budget reflects those values.”

The following lists do not include all changes. The finalized amendments will be available once they are formally submitted to Richmond City Council by April 20.

The following items funded in the original FY21 budget have been eliminated:
2 percent salary increase for employees; 
Step increases for public safety personnel and base salary increases for public safety recruits;
Nearly $9.4M in currently funded full-time and part-time employee positions, and the elimination of 12 proposed new positions throughout the administration, including in Citizen Service and Response, Parks and Recreation, Human Services, and the City Attorney’s office, among others;
Parks, Recreation and Community Facilities workforce development program for returning citizens;
Doula program run through the Richmond City Health District; 
History and Culture Commission operating budget; and
Several non-departmental allocations to nonprofits that did not receive funds in FY20. 

The following items saw an increase in the original FY21 budget but have now been brought to FY20 funding levels:
The Affordable Housing Trust Fund, which was slated to receive $3.5M but will now receive $2.9M;
The Eviction Diversion Program, which was slated for a $201k increase but will now receive $485k; and
Many non-departmental allocations to nonprofits that received funds in FY20. 
  
The budget amendments will be formalized and submitted to Richmond City Council by April 20, at which point they will become publicly available. 
 

The City of Richmond successfully sold $333.7 million in Public Utility Revenue and Refunding Bonds, of which $150.9 million was for new money projects and $182.8 million was to refund existing debt service for interest rate savings.

The cost of funds for the city’s new money projects was approximately 3.09 percent, which is near the lowest cost of funds in several decades. In addition, the city took advantage of the low interest rate environment to refund its 2013A bond issue, which will result in the city reducing its existing debt service by $22.7 million over the next 23 years. Those savings will be spread across the city’s gas, water, and wastewater enterprise funds and will alleviate a portion of the expected future year rate increases.

The bonds were highly rated by all three national credit rating agencies: Moody’s, Standard & Poor’s and Fitch (Aa1, AA and AA, respectively). Investor interest appeared to be enhanced by the utilities credit rating upgrade the city received from Moody’s two weeks before the sale.

“The extraordinary amount of competitive demand to purchase our utility bonds, which drove down the interest costs and will ultimately benefit our customers, demonstrates the confidence that investors have in the effectiveness of our system,” said Mayor Stoney.

David Rose, Senior Vice President and Manager of Public Finance at Davenport & Company LLC, the city’s financial advisor, said, “The Moody’s upgrade and overall credit quality was significant and undoubtedly showed real momentum, as the city saved many millions compared to initial pre-pandemic planning.”

“The results of this bond sale reaffirm that the city’s utility system is well run and well respected by investors,” said Acting Chief Administrative Officer Lenora Reid