City Council is backing Mayor Levar M. Stoney’s proposal to cut $38.5 million from his initial budget plan for the 2020-21 fiscal year that begins July 1, even as some members aren’t sure it’s enough.

On Monday, the council cleared the way for passage of the mayor’s amended budget plan at their next meeting on Monday, May 11.

At the same time, the council cleared the way for a tax amnesty that would allow real estate and vehicle owners to delay tax payments due in June for up to two months without penalty and interest charges for paying late.

The passage of the budget plan is essentially a done deal. While the public will be able to comment, a majority of council members is committed to passing it, with the caveat that the Stoney administration provides monthly updates after July and proposes amendments if revenues fall short of expectations.

Councilwoman Kim B. Gray, 2nd District, again expressed her concern that revenue projections are too rosy and would need to be reduced along with other city spending next year.

The major changes in the revamped budget will impact City Hall’s general fund. Among other things, the mayor’s updated budget eliminates pay raises for city employees, including police officers and firefighters, and limits the school system to a $6 million increase, or about $10 million less than first proposed.

The mayor did not include any layoffs, furloughs or pay reductions for city employees in the proposed changes. The council also agreed with the mayor on eliminating rate increases for utilities.

The only change the council made to the mayor’s proposal was an amendment by Councilwoman Stephanie A. Lynch, 5th District, to create a $300,000 COVID-19 relief fund.

To create the fund, Ms. Lynch proposed reducing the money for a smoking cessation program to be launched by the Richmond City Health District from $600,000 to $300,000. That funding is a portion of the more than $3 million the city is gaining from the 50-cent a pack cigarette tax that went into effect last July.

Along with cuts in departmental spending, the proposed budget also reduces or eliminates payments to such nonprofits as the YWCA, the Richmond Police Athletic League, The Salvation Army, Housing Opportunities Made Equal, the Capital Area Health Network and the Boys and Girls Clubs of Greater Richmond.

Officially, the personal property tax on vehicles and business equipment would need to be paid by June 5 and the taxes on homes and real estate would be due June 16.

Under the legislation spearheaded by Ms. Gray; Councilwoman Kristen N. Larson, 4th District; and Councilwoman Reva M. Trammell, 8th District, the city would accept payment until Friday, Aug. 14, without penalty for late payment.

The council previously approved a similar business tax amnesty on overdue payments of meals, lodging and amusement taxes, but the ability to pay late without penalty expires Tuesday, June 30, according to the legislation.

Businesses currently in arrears must either set up a payment plan before the deadline or make payments by the deadline, otherwise the penalties and interest would be applied, the ordinance states.