RICHMOND, Va. β Richmond Chief Administrative Officer Odie Donald II announced the city has a $22 million budget surplus for 2025, prompting questions from city council members about timing and transparency.
In a report released on Nov. 15, Donald explained the city took in an estimated $22 million more than it spent in 2025. The surplus will be divided three ways: 50% going into the downturn reserve fund, 40% into the capital maintenance reserve and 10% into the special purpose reserve.
The large surplus surprised some Richmond City Council members, including Stephanie Lynch.
"It's not a terrible thing to have surplus, obviously. But I was, you know, kind of shooting for $8, maybe $10 million based on our previous years," Lynch said. "I think, like most folks, it was a little... Seeing another double digit surplus was... People are asking some questions."
Councilwoman Reva Tramell expressed discontent with both the large sum and the timing of its release. Last month, she asked the city to share how much leftover money it had while pushing for council to lower the real estate tax from $1.20 to $1.16. The city said it was unable to share that amount at that meeting, and ultimately the board voted 5-3 to not approve the tax decrease.
"I think it's a shame we didn't know about the surplus of $22 million before we took the vote," Tramell said. "How can we trust the admin or finance department or the CAO or the mayor if we were told that, 'Hey, if we reduce it, the rain could be pouring down on us,' Well now look."
Councilwoman Kenya Gibson also shared her thoughts on the report's release in a statement that reads in part: "This information is both relevant and critical to having an informed discussion about the property tax rate. The deadline was changed last year. My office is working on revisions to ensure we receive this information sooner."
When asked about the timing of the release, a city spokesperson said in a statement: "The City's Chief Administrative Officer delivered the surplus report to City Council on November 15, the deadline required by code. Importantly, the report provides only an unaudited estimate of the surplus amount, which will then be updated after finalized."
While the city emphasized that the $22 million is an estimation and that the final audit released in 2026 will have the exact amount, Lynch reiterated that council and administration need to do all they can in the future to ensure residents are getting the best rate.
"If our commitment is really to the Richmond residents and to make sure that folks can stay in their homes, you know, we just, we have to look at every angle. It's about it's not just the tax rate. It's affordable housing," Lynch said.
In a new resolution, Lynch is asking the administration to base its next proposed budget on a lower real estate tax rate of $1.16, hoping this will help create a better foundation for next year's real estate tax rate discussion. Lynch says council could vote on that in the next few weeks.
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