Richmond council rejects ordinance to automatically divert 10% of future surpluses to retirees’ fund

Richmond City Council declined to adopt an ordinance that would have amended city code to require 10% of each year’s future budget surplus be routed automatically to a special-purpose reserve for one-time payments to Richmond Retirement System recipients.

Council Member Trammell, the ordinance’s principal patron, urged action for retirees and said the city must do more to support former employees who have not received cost-of-living adjustments in years. "They should matter," Trammell said, arguing the policy would help retirees "be made whole." She also asked for additional board-level information and follow-up from staff before binding future surpluses.

From the administration, Mr. Warren summarized the mechanics of the proposed code change, saying the amendment would alter sections of city code so that, in future years, 10% of a reported surplus would be directed automatically to a one-time payment to Richmond Retirement System recipients and would not change the current resolution for the present surplus.

Several council members urged caution. Some expressed support for retirees but warned that an automatic allocation could limit the council’s ability to use surplus funds for other needs such as rebates or emergency uses in later years. "Tying our hands" and committing ongoing surpluses without broader reform of the surplus formula were recurring concerns during debate.

The council called the question and took a roll-call vote. The clerk recorded: Yes — Miss Jones, Miss Robertson (2); No — Mister Bridal, Vice President Jordan, President Newbill (3); Abstain — Miss Gibson, Miss Lynch (2). The paper was not adopted.

Council members asked administration staff for follow-up information, including CAFR timing and projections of potential surplus sizes, and said they would continue discussion at future meetings. The mayor’s budget presentation was scheduled for the next day.