Finance director: Richmond posts unmodified audit opinion, general fund revenues exceed budget; council seeks more detail on amendments and nondepartmental

Sheila White, the City of Richmond’s Director of Finance, and Sean Walker, principal at CLA (the city’s external auditor), presented highlights from the city’s Annual Comprehensive Financial Report (ACFR) for the fiscal year ending June 30, 2024.

White said the auditors issued an unmodified opinion — the highest level of assurance — on the financial statements and that total net position for the primary government increased by about $206.6 million to $1.783 billion. White said the general fund ended the year with a fund balance of $268.6 million and that actual general fund revenues exceeded the original budget by $62.6 million and exceeded the amended budget by about $42.8 million; the presentation attributed revenue gains in part to stronger collections of property and other local taxes.

Walker told the committee the audit cleared two prior-year findings and had only one current-year finding related to a complex pension-related debt accounting matter; he described the audit process as successful and commended finance staff for their responsiveness during the audit.

Discussion at the committee focused on transparency about midyear budget amendments, the magnitude of nondepartmental expenditures, and the timing and basis for revenue collections. Councilmember Gibson requested a consolidated list of all budget amendments and explained that the budget documents members review in the spring typically show the adopted budget rather than subsequent amendments; finance staff said annual CAFR reports show year-end numbers and that council will be provided with a list of amendments and an updated monthly financial report (the fifteenth of the month) with year-to-date collections.

Committee members asked for additional detail on a $206.1 million actual spending figure shown for nondepartmental expenditures and asked whether some of that amount reflects roll-forwards, ARPA or other grant funds, or transfers. White and staff said some amounts represented roll-forwards and previously authorized appropriations and that detailed line-item information would be provided to council members.

Members also pressed on the city’s debt and ratings. White noted the city had attained a Fitch AAA rating in May 2024 and maintained strong credit ratings from Moody’s and S&P; she said the rating supports efficient borrowing but does not itself change the city’s legal borrowing capacity.

Other council questions touched on enterprise funds (gas, water, wastewater, stormwater) and large long-term commitments: Vice President Jordan asked for a future briefing on gas-utility long-term supply and transmission contracts that extend through 2054 and the approximately $1.1 billion aggregate commitment disclosed in the ACFR. Council members also asked staff to provide copies of the ACFR presentation and to walk the Finance Committee through specific sections by page reference.

The committee asked the finance staff to provide: (1) a full list of budget amendments and the current amended FY25 budget totals; (2) supporting detail for the nondepartmental actual expenditures; (3) the monthly financial report with year-to-date collections on the fifteenth; and (4) a future briefing on gas enterprise long-term contracts and commitments.

The presentation and audit result prompted acknowledgements from committee members that the city’s financial picture has improved since prior years, but most members requested additional documentation and a deeper walkthrough of the CAFR and specific line items prior to final budget adoption.