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City manager: State auditor removes Richmond from high‑risk list; $1 million for immigrant legal services moving forward
Summary
City Manager Shasta Krolls announced the state auditor removed Richmond from its high‑risk local government list citing fiscal improvements; she also updated the council on a $1 million allocation for immigration legal services and several upcoming community events.
City Manager Shasta Krolls told the Richmond City Council on Oct. 7 that the California State Auditor removed Richmond from its high‑risk local government list, crediting the city’s progress on fiscal controls and oversight.
"The state of California auditor officially removed the city of Richmond from its high risk local government agency list, recognizing the city's remarkable progress in restoring fiscal sustainability and accountability," Krolls said. She told the council that the auditor’s follow‑up report noted Richmond’s general fund revenues exceeded expenditures since fiscal year 2021–22, and cited stronger reserves, debt management and workforce planning.
Krolls thanked finance staff by name for their work, including Deputy City Manager Nikki Mastay, Director of Finance Emily Combs and Deputy Director Mubeen Carter.
Krolls also briefed the council on city programs and upcoming events. She said the city has allocated $1,000,000 to immigration legal services and is finalizing contracts with three direct‑service providers: East Bay Sanctuary Covenant, Catholic Charities of the East Bay and Multicultural Institute. "This is an example of a policy area where our staff did not have expertise," she said, noting staff completed research and outreach to community‑based organizations to design the program.
Other items Krolls flagged: an Economic Development Commission manufacturing tour Oct. 8 at Verde (1414 Harbor Way), a community design session for the MLK Community Center and park planning Oct. 9 at Nystrom Elementary School, and an Arbor Day event Oct. 18 on the Richmond Greenway with Groundwork Richmond and the Urban Forestry Advisory Committee.
Krolls also advised the council about HUD funding during the federal government shutdown: HUD told public housing agencies that operating fund payments for October and November would continue on schedule and that capital funds were accessible without additional review; however, she said the Richmond Housing Authority is considered "non‑essential" by HUD because it remains in substantial default with monitoring, which may limit HUD prioritization for non‑emergencies if a shutdown extends.
Krolls said the city will keep the council informed about any changes to federal guidance or HUD funds.
