Richmond council hashes out FY2026 budget amendments: capital repurposing, program restorations and heated pay-raise debate

Richmond City Council held a budget work session to finalize proposed FY2026 budget amendments, reviewing capital reductions and enhancements, operating reductions the administration proposed, and a slate of council-solicited program restorations. Council members and staff reached consensus on many items but did not reach agreement on a councilmember amendment to partially limit cost-of-living raises for employees paid above $175,000.

At the start of the session Council President Newbill asked staff to begin discussion of FY2026 budget amendments and called forward interim Chief of Staff Matthew Slatz and other staff. Daniel Wagner, interim deputy chief of staff, and other staff outlined capital changes that would be funded via cash or general-obligation bonds (GO Bonds). Council discussed repurposing roughly $959,617 remaining in an active Laburnum widening project to support Pine Camp facilities in the Third District and a set of cash-funded reductions that together total proposed capital savings and re‑allocations. Wagner emphasized that bond-funded projects must be long-lived assets (typically 20+ years) to match debt financing.

Fleet replacement: the council’s reduction package included a $2,214,617 total reduction across capital and operating, with $1,255,000 in cash-funded reductions that reduce the 25-vehicle replacement bucket but explicitly hold harmless emergency response vehicles (police, fire) and refuse trucks. Staff said the remaining $1,390,600 would remain in the fleet replacement program for administration prioritization; council members asked repeatedly for a detailed breakdown of which non-emergency vehicle types…