The City of Richmond is projected to have ended the fiscal year without needing to use the revenue stabilization fund.

The report, prepared by the Department of Budget and Strategic Planning, indicates that the city continues to recover from the economic effects of the pandemic through a steadfast reliance on conservative budgeting practices.

The revenue stabilization fund, also known as the city’s “rainy day fund,” is kept for the purpose of addressing budgetary or other emergencies, like an unforeseen financial downturn or a natural disaster. That the fourth quarter report projects that the city will not have to dip into the fund suggests Richmond’s responsible, conservative budgeting approach serves the city’s fiscal health well.

While the report does project a minor shortfall to close out the fiscal year, this is due to a larger than normal encumbrance amount, or a commitment to pay for goods and services not yet received. 

Quotes from leadership:

“After a tough fiscal year, Richmond is once again projected to come away from this challenge strong and secure,” said Mayor Stoney. “This is what our city can do when we buckle down, do the work and govern with fiscal responsibility at the core of every decision we make.”

“This is a result of sharp, intentional budget management by the entire city administration,” said Acting Chief Administrative Officer Lincoln Saunders. “Interim Director Jason May and his team played a critical role in this successful management of our overall budget, Director of Finance Shelia White and her team ensured we optimized our revenues and every city department tightened their belts to meet the challenging fiscal environment. I want to thank city council, council staff, and the administration leaders for their shared dedication to this city’s fiscal health.”

Interested parties can find the report here. Click here to view the entire repository of reports from the Office of Budget and Strategic Planning.

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