Tuesday, October 18, 2011

Mayor Applauds RMA Board Vote

~City to receive $62.3 million repayment~

Mayor Dwight C. Jones today applauded the Richmond Metropolitan Authority (RMA) for voting 11-0 to repay approximately $62.3 million owed to the City of Richmond.


“I am pleased that the RMA has taken this action as it was the right thing for the City and also benefits the RMA. There are many things this administration has been working to set right for the City of Richmond. Where our financial picture is concerned, our paramount goal has been to move us toward AAA bond rating. We have taken several important steps, like changing to twice a year tax collections, which saves $1-3 million per year and eliminating the Broad Street CDA, which saved the City approximately $12 million. Securing this repayment of outstanding debt is a critical piece of our effort to position the City to obtain the desired bond rating.


"As I have said throughout this process, this is a sound financial decision and is in the best interest of the City. The RMA Board has also acted in its best interest fulfilling its fiduciary responsibility. Moreover, getting our money back now does not change the fact that the asset will ultimately revert back to the City nor does it prevent us from exploring other options in the future.


"As we consider the use of these funds, there are some guidelines I feel we should be governed by. These funds can help to repair some of the issues caused by displacement of families and businesses, and we have the opportunity to invest wisely by taking actions like getting our undesignated fund balance to 10% and paying off some of our own outstanding debt.


"As we move forward, I want to stress that we will be working with the residents of our city and City Council as we decide how to best invest this money for our future in a way that is wise, prudent, and generates the greatest return on our investment for our city."