Richmond city manager previews FY 2025–26 budget, flags $48.5M limited‑term funds and asks council for direction

City Manager Shasa Curl presented the draft Fiscal Year 2025–26 operating budget and the first year of the city’s five‑year Capital Improvement Plan at the June 3 meeting, asking the City Council for direction before the final adoption later this month.

Curl told the council the proposed general fund revenue for FY 2025–26 is $306.2 million and that the proposed general fund expenditures are $257.7 million. The presentation flagged a separate pool of $48.5 million in limited‑term revenue (one‑time funds) that staff do not recommend using for recurring salary and benefit increases. The materials posed three illustrative options for the council’s consideration: a) delay commitments until after the council recess and further analysis, b) spend a portion on capital and community projects, or c) set aside amounts for contingency, pension/UAL and strategic programs. Staff highlighted inflationary and federal policy risks, and that bargaining outcomes will affect personnel costs.

Finance and budget staff described the revenue and expenditure assumptions: staff projected modest assessed value growth (4%), a sales tax slowdown and larger interest income tied to current rates; the general fund continues to be personnel‑heavy, with salaries and benefits accounting for roughly 64% of general fund spending.

The draft capital program totals about $170.7 million for the program year and approximately $240 million for the five‑year plan. Staff identified several near‑term projects slated for substantial completion in 2025–26, including Boardman Park revitalization, Lincoln Safe Routes to School and several park field and restroom projects funded in part by ARPA and other sources. The presentation also summarized American Rescue Plan Act (ARPA) obligations and remaining project lists, and noted the city’s $35 million Strategic Growth Council grant for the Richmond Rising Transformative Climate Communities work (TCC), which funds neighborhood‑scale GHG reductions and community investments.

Public speakers used the budget hearing to press several priorities: union leaders urged competitive pay and aggressive hiring to reduce vacancy and overtime; community organizations urged caution and recommended Option A (wait and plan) for the $48.5 million of limited‑term funds so the city can develop a long‑range spending plan and engage residents. Several speakers — including representatives of Healthy Contra Costa and community equity advocates — asked the council to fund a full‑time Race Equity Officer to coordinate implementation of Richmond’s Race Equity Action Plan and to ensure grants and capital investments are equitably distributed.

Council members asked staff for follow‑up material and for precise, line‑level answers in writing. Mayor Martinez and council members directed that written suggestions from councilors be submitted to staff and that staff return with a revised, balanced budget for adoption on June 24 after the required public notices and hearings.