FAQs

Frequently Asked Questions About Richmond’s Budget

1. What is the City of Richmond’s budget for FY 2026?

The adopted FY 2026 Annual Fiscal Plan totals $3.03 billion across all funds. The General Fund, which covers most city services, is $1.06 billion, a 5.5% increase from FY 2025. Other funds include Special Revenue, Enterprise (utilities), Internal Service, Debt Service, Capital Improvement Plan (CIP), and Richmond Public Schools.

2. How is the budget funded?

The largest source of revenue is General Property Taxes, which make up about 57.5% of General Fund revenues. Other sources include local taxes (sales, meals, lodging), permits and fees, state and federal aid, and charges for services.

3. Will property taxes increase in FY 2026?

No. Richmond has maintained the same real estate tax rate of $1.20 per $100 of assessed value for 18 consecutive years. Real estate assessments are projected to grow by 6%, which helps increase revenue without raising the tax rate.

4. What are the City’s top priorities in this budget?

The FY 2026 budget focuses on seven strategic priorities:

• A Thriving City Hall that improves customer service and efficiency.

• Thriving Neighborhoods with affordable housing and safe communities.

• Thriving Families with strong education and childcare support.

• A Thriving Economy that creates equitable opportunities.

• Inclusive Communities that protect civil rights and health equity.

• A Sustainable Built Environment with climate resilience and green infrastructure.

• A City that Tells Its Stories, honoring Richmond’s history and culture.

5. How much is invested in Richmond Public Schools?

The City will contribute $248.9 million to Richmond Public Schools in FY 2026, a 4% increase over last year and a 64% increase since FY 2017. Additional funds are allocated for school facility maintenance and long-term capital improvements.

6. What is the Capital Improvement Plan (CIP)?

The CIP funds major infrastructure projects like roads, parks, public buildings, and housing. For FY 2026, the CIP totals $549.6 million, including investments in:

• Affordable housing development.

• Street and sidewalk improvements.

• Park and playground upgrades.

• Public safety facilities.

• Cultural projects like the Shockoe Heritage Campus.

7. How does the budget address affordable housing?

Richmond is investing $49.2 million in housing initiatives, including:

• $7.9 million for Creighton Court redevelopment.

• Affordable Housing Performance Grants to developers.

• Eviction diversion and homelessness prevention programs.

8. What steps are being taken to improve customer service?

The City is upgrading RVA 311, expanding service hours, and adding a callback feature. A new business portal allows online tax filing, license applications, and payments. These improvements aim to make city services faster and more user-friendly.

9. How is the City supporting employees?

Through the ARM (Attract, Retain, Motivate) initiative, Richmond offers:

• A $20/hour minimum wage (one of the highest in Virginia).

• Competitive salary increases (10.3% for sworn police/fire; 3.25% for general employees).

• Disability insurance and health clinic access.

10. How can residents get involved in the budget process?

Residents can:

• Attend Budget Town Halls (in-person or virtual).

• Complete the Budget Priority Survey.

• Explore tools like the Taxpayer Receipt and Budget FAQs on this platform.