The Richmond City Council passed a spending plan for the next fiscal year, giving Mayor Danny Avula his first budget with a few changes.
The $3 billion spending plan includes the 2026 fiscal year operating budget — which runs from July 1 through June 30, 2026 — and the capital improvement plan for long-term projects in FY26–FY30.
But Monday night’s vote wasn’t unanimous; the budget passed 6–2. (8th District Councilor Reva Trammell was absent.) Two freshman councilors who have been outspoken about their issues with the budget process voted against the proposal.
“My vote is a protest of process, not policy,” 4th District Councilor Sarah Abubaker said before voting “no” on the plan. Kenya Gibson, of the 3rd District, was the other no vote.
Several councilors voiced frustration with the process that left Avula’s proposal largely intact, fueling talks of changing how things are done — even from councilors who voted for the budget.
“Until you’re on this side of the desk and you really see it, it is hard to understand just how challenging it is to meet the unattainable need and the need that exists in our community and do that in a budget that’s already baked,” 5th District Councilor Stephanie Lynch said.
Lynch and other councilors who supported the spending plan echoed calls from Abubaker and Gibson to start the budget process sooner in the future so Council has more time to consider budget amendments.
The FY26 budget includes money for 3.25% salary increases for city workers and $9.6 million more for schools. Amendments from council set aside more funding to help people cover bills and pay for projects voted for by residents.
Avula’s spending plan will lead to an average utility tax hike of $12.83 per month for city residents, but doesn’t include a real property tax increase.
Richmond code requires the city’s budget to be balanced, meaning any additional funding needs to have matching cuts. This forced councilors to find consensus where they could on their proposed amendments.
In the end, the City Council agreed on some of their spending priorities and a mix of reductions proposed by staff and the Avula administration.
Council approved nearly $1.89 million for proposed operating budget amendments and $1.94 million in cuts. Councilors also found consensus on spending $2.2 million for long-term projects, with matching cuts in the capital plan.
One of the approved budget amendments adds $480,000 for the Family Crisis Fund — which gives people money for rent, bills and other needs — on top of the $520,000 Avula proposed.
Councilors also agreed to set aside $200,000 in additional funding for legal representation for residents facing evictions as well as the city’s eviction diversion program.
The council approved $350,000 more for the Positive Youth Development Fund, which provides grant funding for out-of-school programs run by local nonprofits.
Cuts to the operating budget include removing vacant positions from the Office of Community Wealth Building and an empty park ranger position.
Avula’s administration found ways to fund some of the councilors’ priorities, including money for infrastructure projects and other upgrades voted for by residents during the participatory People’s Budget program.
For schools, Avula proposed a $9.6 million increase over fiscal 2025 to the city’s district — which leaves the school district roughly $20 million short of the $270.1 million it requested. A proposed council amendment to give RPS $6.9 million more didn’t make it into the final spending plan.
Under the approved budget, rates will increase for residents’ water, wastewater, gas and stormwater bills through the Department of Public Utilities.
Here are the average utility rate increases under Avula’s FY26 budget:
- Gas: $4.88 per month
- Wastewater: $4.55 per month
- Water: $2.36 per month
- Stormwater: $1.04 per month
“With investments in Richmond Public Schools, housing affordability, and government efficiency, we continue to build on our city’s belief that every resident can thrive,” Avula and Council President Cynthia Newbille (7th District) said in a joint statement.
Council is scheduled to meet next on May 27.
