City announces additional progress in advancing fiscal stewardship and discipline 

Richmond, VA  — The City of Richmond is proud to announce additional milestones made in the advancement of fiscal stewardship and discipline, including the official closing of its FY2025 accounting, receipt of the 2025 Achievement of Excellence in Procurement Award from the National Procurement Institute, and the earning of a Aa1 bond rating by our Department of Public Utilities (DPU). 

“Making good on our promise to be a ‘City Hall that gets things done’ sometimes means getting back to basics,” said Mayor Danny Avula referencing Pillar One of his Mayoral Action Plan . "These achievements are important markers of progress, affirming to our residents and to our partners that we are committed to doing the hard work necessary to build a financial system that is capable and resilient.” 

FY2025 Annual Comprehensive Financial Report (ACFR) 

Last Friday, February 27, the City received its unmodified audit opinion from external auditor CliftonLarsonAllen (CLA) confirming that the FY25 audit is complete, and the City’s books are officially closed for the Fiscal Year 2025. A few key highlights on the City’s financial footing which are detailed in that audit and in the linked memo : 

• The City ended FY2025 in a stable and positive financial position
• General Fund revenues slightly exceeded expenditures
• Bond ratings were reaffirmed or improved by all major rating agencies
• The surplus totals $12.6 million 

The City will publish the full and complete audit by March 16, 2026 and will present to City Council shortly thereafter.  

National Procurement Month and the Excellence in Procurement Award 

On March 1, in recognition of National Procurement Month and of the Department of Procurement for earning their second consecutive Achievement of Excellence in Procurement Award, Mayor Danny Avula issued this proclamation officially naming March 2026 as National Procurement Month.  

The Achievement of Excellence in Procurement Award, issued by the National Procurement Institute, recognizes organizations which demonstrate a commitment to innovation, professionalism, productivity, and leadership in the field of procurement. This City has received this award for two consecutive years. 

Last Fall, the Virginia Association of Governmental Procurement also awarded the City of Richmond with its Leading Light Award, recognizing the department as a statewide leader in procurement. 

DPU Retains Aa1 Bond Rating  

In late 2025, the Department of Public Utilities was reaffirmed by Moody’s with an Aa1 Bond rating, signaling strong fiscal health and creditworthiness for potential investors. The rating, which is one step below the top spot, paints a stable outlook for the utility system and allows borrowing at more favorable rates, producing cost savings which could reach into the millions.  

The bond rating is an important milestone for DPU as they look towards infrastructure improvements aimed at affordably improving service delivery across the City.  

The announcement builds on momentum from last month’s Finance and Economic Development committee meeting , in which Chief Administrative Officer Odie Donald II  championed key milestones achieved in fiscal management, long-range planning, and budget execution. Those milestones include, in part; the issuance of accurate and timely real estate tax billing , enhancements to the RVAPay portal , and the hiring of new staff and leadership to ensure top tier service delivery and oversight. 

“Good government starts and ends with sound fiscal policy and administration and Richmond, we are working on all fronts to deliver just that,” said CAO Donald . “While there is still work to do, announcements like this are evidence that we are advancing the priorities of Richmonders, day-in and day-out. This is the beginning with more good news to follow.” 

Key investments include more than $5 million to support small businesses, arts and culture, and neighborhood commercial districts  

Richmond, VA -- Today, Mayor Danny Avula outlined a few key investments in Pillar Four: Thriving Economies, including more than $5 million to strengthen Richmond’s economy and support the small businesses, entrepreneurs, and creative communities that bring life to the Richmond. 

Pillar Four focuses on supporting small and minority-owned businesses and employers by expanding access to quality, living-wage job opportunities. It also prioritizes creating pathways for disadvantaged residents to move from poverty to stability and wealth-building, while directing investments to neighborhoods that have historically been overlooked. 

Some of the key FY27 proposed investments supporting a Thriving Economy include: 

• $4.9 million for Economic Performance Grants to support major economic development projects that create jobs, activate underused spaces, and drive long-term economic growth;
• $250,000 for commercial façade improvements to help small businesses invest in storefront upgrades that strengthen neighborhood commercial corridors and attract customers; and
• $125,000 in funding to support a Business Improvement District (BID) in Carytown , strengthening business vitality through cleaner sidewalks, safer streets, and coordinated support for local businesses. 

“Richmond’s economy is powered by the creativity and local pride that shows up in every neighborhood,” said Mayor Danny Avula . “We see it in our small businesses where people gather, in the incredible arts and culture scene that makes our city vibrant, and in the historic buildings that hold so much potential. My proposed investments help us build on those strengths while creating new opportunities for Richmonders and businesses that call our city home.” 

These investments are part of a broader strategy to ensure Richmond’s economic growth is neighborhood-driven and reflective of the entrepreneurship that defines the city. 

This preview is part of a series of early looks at how the FY27 proposed budget advances the Mayor’s vision for a Thriving Richmond — including Thriving Neighborhoods, Thriving Families, and Thriving Economies. 

The full FY27 proposed budget will be presented publicly on March 11 and submitted to City Council for review and deliberation. For more information about the FY27 budget process, visit FY27 Budget Season | Richmond.    

Posted March 5, 2026

Richmond, VA – The 30-day grace period for red-light running violations ends in a few days.

Over the past month, drivers who failed to stop at red lights received warning notices instead of citations. This educational grace period was designed to increase awareness, encourage safer driving behavior, and give motorists time to adjust. 

Starting on the dates below, $50 citations will be issued to the registered vehicle owner for each red-light violation, per the Code of Virginia.

Ticketed enforcement begins March 8, at the following locations:

• Belvidere at Cary Street

• 25th Street at Main Street

Ticketed enforcement begins March 24, at the following locations:

• Chamberlayne at Laburnum

• Chamberlayne at Brookland Park Boulevard

"Intersections are critical zones where multiple users share space and where better driver behavior saves lives," said Richmond Department of Transportation Director, Andy Boenau. "By adhering to red signals and posted speed limits, we can prevent heart-breaking tragedies and better protect our community. Our Safety Camera Program underscores our consistent goal to provide safer streets for everyone."

The City encourages drivers to follow these safe driving practices:

• Slow down when approaching intersections

• Anticipate yellow lights and prepare to stop

• Come to a complete stop at red signals

• Come to a complete stop before turning right at a red light and check for people walking before proceeding

• Avoid distractions while driving, especially at intersections 

• Buckle-up, seat belts are required for all passengers

• Stop for people in crosswalks – marked or unmarked, at all intersections

• Drive at or below the posted speed limits

  • Lower speeds significantly reduce injury risks

• Keep your driver’s license current – renew it on time

This initiative is part of Richmond's broader Vision Zero commitment to eliminate traffic fatalities and severe injuries for all users, including people who walk, roll, bike, and drive, by modifying anti-social driving behaviors like running red traffic signals. For Vision Zero details visit rva.gov/visionzero.

We’re Social! For updates on traffic safety initiatives with the Department of Transportation go to X @RVA_DOT and for DPW-related projects, activities and events visit us on X @DPW_RichmondVA 

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The City of Richmond Department of Public Works (DPW) is one of only 225 currently accredited public works agencies in the United States. DPW’s portfolio comprises a wide array of services to include leaf collection; street, sidewalk, and alley maintenance; trash collection; recycling; grass cutting; graffiti removal; urban forestry; civil engineering and capital improvement projects along with the Department of Transportation (DOT). DPW delivers essential services that keep the city clean, safe, and healthy. The DOT plans, builds and maintains the city’s transportation system to ensure safe, reliable, and equitable mobility for all users. The department is responsible for traffic operations, street signs, traffic signals, pavement markings, bike lanes, and transportation programs that support economic vitality, environmental sustainability, and quality of life. Guided by the city’s Vision Zero commitment, the DOT works to eliminate traffic-related fatalities and serious injuries through data-driven policies, street design, and community partnerships. In addition, the DOT issues permits for working in the city’s right-of-way; manages Main Street Station and the RVA Bike Share Program. Report service requests to RVA311.com or call 3-1-1.

Early Voting Parking Guide

To help voters safely access the early voting location at 2134 W Laburnum Ave, the Office of Elections has created the parking guide below outlining where to enter and park.

Download the Early Voting Parking Guide (PDF)

How are schools funded in Virginia?  

Pillar Three of the Mayor Avula’s Mayoral Action Plan supports Thriving Families, where every child has the chance to succeed.  

In a city in which over one in four children live in poverty, and which still bears the legacies of racial segregation, supporting quality public education is one of the most important things the City of Richmond can do. For many young Richmond residents, their Richmond Public Schools education is the most significant opportunity they will ever have to develop their potential and build a positive future. 

In Virginia’s system of government, funding of schools is a shared responsibility between the Commonwealth of Virginia and localities. The Standards of Quality, or SOQ , is the primary stream of state funding for local public education which is governed by the Local Composite Index (LCI) formula. Each county and independent city in Virginia is assigned an LCI index score, intended to reflect a locality’s fiscal capacity to fund public education.  

Problems with the LCI have long been studied and recommendations to address them have been made, but not taken up. Unfortunately, the component parts of the LCI formula measure wealth (the property tax base, adjusted gross income, and retail sales) rather than poverty. That means that the City of Richmond is classified as a locality with relatively high fiscal capacity. In fact, Richmond's current LCI of .58 is the highest in Central Virginia. This means Richmond is expected by the state to meet 58% of SOQ-mandated funding, compared to 43% in Henrico and 36% in Chesterfield. Richmond currently has 28% of its children living in poverty , compared to 11% in Henrico and 9% in Chesterfield.  

The LCI formula impacts the funding Richmond receives from the state to fund school needs by millions of dollars, year after year.  

Richmond does benefit from a second funding stream, the “At-Risk Add-On,” intended to provide support for localities with higher economic need. Increases in At-Risk Add-On expenditures is one strategy for mitigating the inequitable impact of the LCI on the City of Richmond.  

Equally important, the Commonwealth of Virginia has historically underfunded public education. A 2023 Joint Legislative Audit and Review Commission (JLARC) report found that school funding per student in Virginia was 14% lower than the fifty-state average. As explained below, these are promising efforts to move state funding in the right direction. 

A decade of increased local investment  

In recognition of these challenges, the City of Richmond has not waited for state policy to change or state funding for public education to significantly increase.  

In FY 2017, the City of Richmond’s contribution to Richmond Public Schools was $151.5 million, accounting for about 41.6% of RPS operational funding and about 21.1% of the City’s total General Fund budget. In FY 2026, the annual City of Richmond contribution to Richmond Public Schools is $248.9 million, accounting for about 47.5% of RPS operational funding and approximately 23.6% of the City’s total General Fund budget.  

• This increase over a nine-year period was, controlling for inflation, some 22%. The City allocation to RPS increased 64% from 2017-2026, compared non-RPS items in the city budget which only increased 43%. 
• The City's contributions to RPS grew over 60% faster than State contributions over these years.
• Per student City funding increased even more rapidly in this period. The per student City of Richmond contribution to RPS in FY 2017 was $6,322, compared to an estimated $11,487 in FY 2026—a 35% increase, adjusted for inflation. 

By any standard, support of Richmond Public Schools has been a top priority of the City of Richmond over the past decade—and remains a top priority for Mayor Danny Avula.  

This long-term investment has paid off. Richmond Public Schools’ academic outcomes are rising as measured by graduation rates and growth in test scores, and teachers have some of the highest starting salaries in the region. Recent positive trends instill confidence that an investment in RPS is a good investment. 

Building a path forward  

This year Mayor Avula will meet his commitment to increase allocation to Richmond Public Schools at the same rate as overall general budget growth, excluding one-time sources of funding. 

As for every City agency, this coming fiscal year presents a specific, one-time challenge for RPS, as revenue growth is limited this year due to the real estate assessment calendar realignment.  

Under the City’s governance structure, the Richmond School Board has ultimate authority for making difficult decisions in the event total available resources from city, state, federal, and all combined sources fall short of planned expenditures.  

At the same time, Mayor Avula applauds the General Assembly’s efforts to increase the Commonwealth’s commitment to public education. Budget proposals under consideration include increased funding for the At-Risk Add-On, special education, school construction assistance, and other student needs.  

While final funding levels for RPS will remain uncertain until the Commonwealth adopts its FY27-28 budget, proposals from both the House and Senate, including those advanced by Richmond’s delegation, would increase state investment beyond what was proposed in the introduced budget.  

The City is hopeful that these proposals will be realized and encourages residents to advocate for strong support for Richmond Public Schools.  

At the same time, Mayor Avula is committed to taking a consistent and reliable approach to school funding that continues to expand local investment in RPS in a predictable way, while maintaining fiscally responsibility across all core City needs.