Provides update on FY28 budget process and proposed measures to counter cost pressures  

Richmond, VA  — The City of Richmond has released its Fiscal Year 2026 (FY26) preliminary unassigned fund balance estimate, provided by Chief Administrative Officer Odie Donald II  to City Council via memorandum earlier today. 

The $28,665,492 unassigned fund balance estimate, reached by the City’s Department of Finance, reflects a raw revenue flow and internal accounting snapshot, but are subject to change as the City works with external auditors to account for year-end liabilities, revenue true-ups, and other accounting adjustments.  

“I am elated about the continued improvements in fiscal administration that we are driving forward on behalf of Richmonders. Our timeliness exemplifies our commitment to timely and accurate reporting that continues to support the strategic decisions of the Mayor and Council to the benefit of our employees and residents,” said CAO Donald.  

“Although these numbers can provide an important snapshot in time," he added, "they are just that. As we look to year-end closeout and as we work with our external auditors, we will arrive at a final, audited number which will be a more accurate representation of the City’s financial condition and a more valuable tool as we move forward in our FY28 budget process.” 

The audited balance, once finalized, will be included in the City’s Annual Comprehensive Financial Report (ACFR), expected by the end of December.  

FY2028 Budget Outlook  

In addition to the unassigned fund balance estimate, CAO Donald reiterated many of the fiscal realities that the City is facing as it heads into FY28 budget negotiations, among them: increased labor investments, capital improvement obligations, federal funding pressure, and more. 

Following up on his Nov. 9 presentation, and in response to these fiscal realities, CAO Donald submitted for Council consideration the limited use of the General Fund balance to close the projected FY28 funding gap. “Should the fund balance be used for this purpose,” the memo reads, “it would be an extraordinary, one-time measure taken to avoid a reduction in the City’s workforce aligned with a tightening of our belts across all expenditures, not an ongoing budget strategy.” 

The Administration will continue to monitor revenues and adjustments through the remainder of FY27 and will make a final determination on proposed use of the general fund balance once the audit has been finalized with confirmed FY26 financials. 

“Sound stewardship of the City’s resources will require difficult choices,” CAO Donald wrote. “As we move forward toward the delivery of a balanced budget, a key next step is our partnership with City Council to decide which priorities will move forward, so that together we can continue delivering essential services to Richmond residents within a sustainable budget.” 

The full memo to Council can be found here .  

Learn more about the City’s FY28 budget process at go.rva.gov/fy28 .