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Richmond administration presents modified 2026 budget, moves purchasing oversight for >$5,000 to council
Summary
City Controller Tracy told the Committee of the Whole on Oct. 15 that the administration’s modified 2026 budget balances most funds, sets a 15% cash-reserve goal, and transfers all general-fund line items over $5,000 into a new council review process that requires a resolution before purchase orders are issued.
Tracy, the city controller, presented a modified 2026 budget to the Committee of the Whole on Oct. 15, saying the administration had balanced 34 of the 39 funds under review and that the team aimed for a 15% cash reserve in each fund. "This collaboration makes it possible for me to stand here before you tonight representing the city team and presenting a modified 2026 budget proposal," Tracy said.
The administration described three budget types it used in planning—"funded," "balanced," and "sustainable"—and emphasized that sustainability, not one-year fixes, is the goal. Tracy said the plan uses one-time funds and selective shifts between funds to ensure 2025 obligations are met while beginning to "right-size" city operations.
A key policy change would move oversight of all general-fund purchases that exceed $5,000 into the city council budget. Under the new process, a department seeking such funds will request a resolution from the controller’s office and the department head will present to council; council may approve the resolution that night or refer it to the finance committee. Purchase orders will continue to flow through the purchasing manager and the controller, but a designated council member will review and approve the PO in the city's BSNA software prior to final approval.
Tracy framed the changes as part of a longer-term effort to balance recurring revenues—property taxes and other stable sources—against ongoing expenses such as salaries, benefits and infrastructure maintenance. She also noted the administration’s continued use of a five-year forecast maintained with municipal advisor Baker Tilly.
The committee agreed to place the modified budget on Monday’s council agenda for first reading, scheduled a public hearing on the 20th, and targeted final adoption for the 30th. The meeting adjourned after the schedule was confirmed.
Why it matters: The changes alter how mid-sized purchases are routed and give council earlier review of general-fund items over $5,000, which could increase transparency but also add steps to departmental procurement. The administration warns right-sizing will be multi-year work; council members pressed for ongoing updates and more detailed breakdowns of savings and structural changes.
The next procedural step is first reading at the upcoming council meeting, followed by a public hearing and final adoption dates already advertised.
