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To amend ch. 12, art. I, of the City Code by adding therein a new section 12-26, concerning the creation and publication of a general fund expenditure growth policy for the City of Richmond.
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THE CITY OF RICHMOND HEREBY ORDAINS:
§ 1. That Chapter 12, Article I, of the Code of the City of Richmond (2026) be and is hereby amended by adding therein a new section numbered 12-26 as follows:
Sec. 12-26. Expenditure growth policy.
(a) Beginning with the fiscal year commencing July 1, 2027, and ending June 30, 2028, by no later than March 11 of each year, or such other date on which the proposed budget for the ensuing fiscal year is submitted to Council in accordance with section 12-11, the Mayor shall introduce a resolution proposing a policy statement detailing a target percentage range for the annual growth in discretionary general fund expenditures (hereinafter, “the expenditure growth policy”), to be developed with the Director of Finance, or their designee, and the Director of Budget and Strategic Planning, or their designee. The policy statement shall include reference to benchmarks of the relative cost of local government for city of Richmond residents, including targets for the growth in year-over-year per-capita or per-household general fund expenditures compared to growth in personal income and to recorded inflation as measured by the United States Average Consumer Price Index for All Urban Consumers. For the purposes of this policy, allocations to reserve funds such as the downturn reserve and the capital maintenance reserve shall not be considered general fund expenditures.
(b) The expenditure growth policy shall solely constitute a goal or policy statement and shall not be interpreted as a restriction on the budgeting and appropriations powers of the Mayor and Council.
(c) Upon adoption of the expenditure growth policy, the Director of Budget and Strategic Planning shall cause to be published on the City’s website the expenditure growth policy, along with the most recent version of the City’s debt policy.
(d) At least once every three years, the Mayor shall cause the expenditure growth policy to be reviewed and, if necessary, introduce a resolution of proposed amendments to the expenditure growth policy.
§ 2. This ordinance shall be in force and effect upon adoption.
DATE: November 9, 2026
TO: The Honorable Members of City Council
THROUGH: RJ Warren, Council Chief of Staff
THROUGH: Maria Garnett, Council Policy Analyst
FROM: The Honorable Ellen Robertson, Councilmember 6th District
RE: To amend ch. 12, art. I, of the City Code by adding therein a new section 12-26, concerning the creation and publication of a general fund expenditure growth policy for the City of Richmond.
CNL-2025-0076
PURPOSE: This ordinance seeks to affirm the City’s commitment to fiscal responsibility and sustainability by requiring a policy related to growth in discretionary general fund expenditures, similar to the city’s debt policy. The non-binding expenditure growth policy, from which allocations to reserve accounts would be excluded so as not to disincentivize prudent fiscal practice, would be required to include reference to benchmarks for the growth in general fund expenditures per resident or per household in comparison to recorded inflation, helping to ensure the City’s leaders pay continuous attention to the costs of government compared to the cost of living overall.
BACKGROUND: As the City of Richmond (and its tax base) grows, so do its expenditures-and so does the overall cost of living for residents. Just as the City uses a debt policy to guide its fiscal decisions and activities related to that aspect of fiscal management, it would be prudent to establish a non-binding expenditure growth policy that could inform key fiscal decisions such as tax rates and appropriate ranges for across-the-board salary increases or retiree cost-of-living adjustments. A discretionary expenditure growth policy featured among the possible steps the City could consider taking to better ensure budgetary structural balance in the presentation provided to the Organizational Development committee by PFM Group on October 5, 2026.
COMMUNITY ENGAGEMENT: Residents, civic associations and community organizations care about transparency and fiscal accountability in City Hall. This ordinance is part of a broader push from Councilmember Robertson to maintain focus on affordability for Richmond households and to improve the clarity and usability of the City’s financial information.
STRATEGIC INITIATIVES AND OTHER GOVERNMENTAL: A Thriving City Hall
FISCAL IMPACT: Implementing this ordinance should not incur additional expenses.
DESIRED EFFECTIVE DATE: Upon adoption
REQUESTED INTRODUCTION DATE: November 9, 2026
CITY COUNCIL PUBLIC HEARING DATE: December 14, 2026
REQUESTED AGENDA: Consent
RECOMMENDED COUNCIL COMMITTEE: Finance & Economic Development
AFFECTED AGENCIES: Office of the Chief Administrative Officer
Department of Finance
Department of Budget and Strategic Planning
RELATIONSHIP TO EXISTING ORD. OR RES.: None
ATTACHMENTS: None
STAFF: Maria Garnett, Council Policy Analyst, (804) 298-5052