Committee recommends forwarding $5.8 million restitution appropriation after public hearing; council debate spotlights Affordable Housing Trust Fund

The committee voted to forward Ordinance 2025‑188, which would transfer $5,800,000 from the delinquent tax sale special fund to a new restitution payments line in the FY 2026 general fund budget for payment under Virginia Code §8.01‑195.13. The ordinance was introduced by administration as the recommended funding source to avoid drawing on general reserves and to preserve fiscal policy reserves.

A public speaker, Steve Salzberg, spoke in opposition on legal and enforcement grounds, arguing that the city has not followed the statute in prior years and urging compliance with the code for affordable housing funding. Council members then debated two distinct issues: the immediate obligation to fund a court‑ordered restitution and broader compliance and transparency questions about funds that by…