Richmond council debates proposed property tax cut; administration warns of $17.3 million shortfall

Mayor Bullard and city officials discussed a proposed reduction to Richmond's real estate tax rate during an informal City Council session, with the administration warning the cut would reduce revenue by roughly $17.3 million and urging caution before altering the budget the council already adopted.

The city's chief administrative officer, Odie Donald, told council members: "For every penny, we'll call it about $4,300,000 in revenue," and said a four-cent cut would reduce the city's revenue by about $17,300,000 and would also remove roughly $50,000,000 in capital project support from the budget. Donald said the shortfall could mean "potentially 150 or so staff across the entire operation," a "13% reduction in our operating budget," or significant cuts to school funding.

The presentation followed a proposal to lower the real estate tax rate by four cents that was co-patroned by President Newbill, which the mayor said he supported conceptually but believed "this is not the time for that decision." Council members questioned timing, equity and the magnitude of the benefits to residents.

Why it matters

The council just adopted a budget that the administration says is…