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Parking, trash collection fees to increase under new city budget

Jeremy M. Lazarus | 6/1/2016, 7:07 a.m.
Beginning July 1, Richmond residents will be charged an extra $3.55 a month for trash collection and recycling services, largely ...

Beginning July 1, Richmond residents will be charged an extra $3.55 a month for trash collection and recycling services, largely to help fund the city’s leaf collection program. That’s an 18 percent bump that will raise the monthly cost from $19.44 to $22.99.

On the same day, the cost of parking at a meter in Downtown will jump 50 cents an hour — from 75 cents to $1.25, a 67 percent increase aimed at providing new revenue.

Raising fees is part of the strategy Mayor Dwight C. Jones and the Richmond City Council employed to balance the city’s operating budget for the 2016-17 fiscal year that will begin in a little more than a month.

City Council voted May 13 to approve the new budget for the next fiscal year, after getting an earful from more than 40 residents disappointed that the nine-member governing body found only an additional $5.5 million for public education, or $10.9 million less than the Richmond School Board had requested.

The city is a major business with nearly 4,000 employees and $1.6 billion in annual revenue — from taxes, grants, public utility services, state funds and a host of other sources, including permits, fines and fees.

The major focus, however, is on the city’s operating budget. In the next fiscal year, the approved budget will represent a $717.1 million slice of the total — equal to about $3,300 for each of the estimated 220,000 men, women and children who make their home in Richmond.

That’s an increase of nearly $28 million in revenue — equal to $125 per person — from the current $689.3 million budget and 1.1 percent more than the $709.1 million that was originally projected. Overall, the city had a 4 percent increase in revenue to allocate.

However, Mayor Jones and the council found that the rise in revenue was not enough to cover all the expenses the city will be facing.

One result: About the only city employees who will get a pay raise are police officers and firefighters, who will advance along steps on their pay scales. Those funds already were built into the mayor’s budget.

In the council’s well-publicized scramble to find the extra $5.5 million it came up with for the public schools, primarily to improve teacher pay, the governing body followed the mayor’s lead and did not provide any funds to increase pay for most other city employees.

To avoid layoffs, the council also approved the mayor’s plan to slash 12 percent from the discretionary operating budgets of departments, tightening the leash on spending and reducing city support for any array of private, nonprofit agencies by 25 percent.

As a result of the spending controls, most city departments have not been able to fill vacancies, leaving departments operating with smaller staffs as the result of turnover.

The impact has been felt in Public Works, which has had to slow efforts to deal with items that the public notices, including grass mowing, tree trimming and pothole repair. In one amendment, the council steered an additional $311,000 to the department to aid it in dealing with such issues after July 1.

One of the big winners in the budget battle — though most supporters would disagree — turns out to be the school system.

About $14.5 million, or half of the city’s new revenue, went to support public education.

That includes $9 million in new revenue the council previously had earmarked for schools in the new budget year and the extra $5.5 million that council added in the amended budget it just approved.

According to Mayor Jones, some of the revenue increase — $8.8 million — essentially is needed to pay for goods and services for which the city already has contracted.

He also proposed, and council approved, providing $5.6 million to allow public safety agencies to hire new people — a move that Richmond Police Chief Alfred Durham has been urging as he faces 40 vacancies he cannot fill for lack of funds.

As part of its amendments, the council also provided extra funds to the commonwealth’s attorney’s office, the city attorney’s office, the city assessor’s office, the voter registrar’s office and the Department of Finance mostly to enable them to fill vacancies or to add needed staff. Finance plans to use the extra $1.34 million it will gain to add staff to go after delinquent taxpayers.

New revenue also will be used to beef up the city’s storm fund that was quickly exhausted by the big snowfalls during the winter. Previously the city set aside $250,000, but after spending $3 million this winter, council agreed to raise the amount in the fund to $1 million.