Richmond mayor’s proposed FY2026 budget projects $1.1 billion general fund; council presses for more time, detail

Mayor Avila’s administration on Monday presented its proposed fiscal year 2026 revenue and operating budget to the Richmond City Council, laying out a $1.1 billion general fund proposal and warning of a multi-year gap between revenues and expenditures that will make fiscal 2027 especially difficult without additional reserves or revenue.

Sabrina Joy Hogg, the city’s interim chief administrative officer, said the city’s budget “is a budget built on resiliency,” and walked council members through a five‑year revenue forecast, the effects of a recently adopted assessment‑cycle change, and key operating and personnel drivers in the mayor’s proposal.

The administration framed the budget as constrained but forward‑looking: general fund revenues are projected to increase by $54.6 million (about 5.5%), producing a $1.1 billion general fund. That growth is driven mainly by real estate tax revenue (about $41.3 million, roughly 76% of the increase). The proposed budget packages a 3.25% across‑the‑board pay increase for general employees, a 3% increase for constitutional officers, and an average 10.3% increase for sworn police and firefighter employees; personnel changes account for about $37.9 million of the revenue growth.

Why this matters: Hogg told council that an alignment of the city’s property assessment cycle with the fiscal year will produce an “assessment freeze” effect in 2027 because the 2026 land book values will also be used for 2027 tax bills. The administration said that 1 penny on the real estate tax rate equals roughly $4.2 million in general fund revenue, and urged a combined strategy of raising revenue, increasing efficiency, and reducing expenditures to manage the forecasted gap.

Key budget details and proposals

- Aggregate size: The administration described the FY2026 all‑funds budget as roughly $3.0 billion (about $2.6 billion net of transfers). The general fund proposal is $1.1 billion.

- Revenue mix and drivers: Real property taxes…