Stoney administration projects $4.7M net surplus at close of FY2020

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Conservative forecasting and cost-saving measures turn projected $6.6M deficit into projected $4.7M surplus

At the end of FY2020, the City of Richmond administration is projecting a net surplus of roughly $4.7 million based on financial data as of June 30. This surplus constitutes slightly under one percent of the general fund budget, indicating the success of cost-saving measures and accuracy of prudent budget modifications made in the early stages of the pandemic.

 

“The city is projected to have weathered the economic impacts of this pandemic locally,” said Mayor Stoney. “This projected surplus was made possible by channeling fiscal responsibility, by neither over-correcting nor underreacting.”

 

At the close of the third quarter of FY2020, city administration was prepared to draw over $6 million from its contingency reserve, or rainy-day fund. However, it is projected that FY2020 revenues surpassed the conservative expectation reflected in the modified FY2020 budget. As a result, the city is not anticipated to utilize its rainy-day fund, instead projecting a net surplus of over $4 million.

 

“The city prioritizes its fiscal health, now more than ever,” said Budget Director Dr. Jay Brown. “In a challenging time, we turned to conservative budgeting and proper fiscal management for a solution. We will continue to use those guiding principles in decisions going forward.”

 

The admission, prepared food (meals) and transient lodging tax revenues were impacted by the pandemic but overall surpassed the expectations reflected in the modified FY2020 budget.

 

In regard to expenditures, the city effectively broke even without cutting vital services through establishing a moratorium on discretionary spending and implementing a temporary hiring freeze. 

 

The Comprehensive Annual Financial Report (CAFR) will be the final indicator of how the city has managed its finances throughout the fiscal year. The CAFR will not be available until near the end of the calendar year. This projected surplus is currently unaudited.

 

Says Dr. Brown: “We will continue this careful stewardship into FY2021.” On a monthly basis, the city administration meets with the Richmond City Council Chief of Staff’s office to review the FY2021 budget as it stands. 


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