DRAFT
City of Richmond
Draft Budget
Fiscal Year 2025-26
June 3, 2025
Shasa Curl, City Manager
Nickie Mastay, Deputy City Manager – Internal Services
LaShonda White, Deputy City Manager – Community Services Andrea Miller, Director of Finance
Mubeen Qader, Deputy Director of Finance
Jerry Gurule, Accounting Manager
Antonio Banuelos, Accounting Manager
DRAFT
DRAFT
DRAFT
Overview
Budget Development
FY 2025-26 Budget Calendar (Process)
General Fund Revenue Assumptions
Draft General Fund Revenue Budget
General Fund Expenditure Assumptions
Draft General Fund Expenditure Budget
American Rescue Plan Act (ARPA)
Environmental and Community Investment Agreement
Transformative Climate Communities FY 2025-26 Budget
Festivals
Capital Improvement Projects
Next Steps
2 DRAFT
Budget
Development
Challenges
External factors impacting
local government budgets
include:
• National Politics
• Economic Influences
• Trade Tariffs
• Economic Cycles
• Inflation
• Interest Rates
3 4
Completed: FY 2025-26 Budget Development Schedule
ACTION / ACTIVITY DATE
Budget Kick Off Meeting January 23
Budget Input Window January 23 thru February 16
Budget Hearings: City Manager, Finance Director, and
Budget division meet with departments March 6 thru March 14 Union Budget Meeting March 27
Community Budget Meetings
• Community: April 10 & 23
• Richmond Neighborhood
Coordinating Council: April 14
First Draft FY 2025-26 Budget
FY 2024-25 Quarter 3 Budget Update May 6
Recreation Fee Study May 20
5 FY 2025-26 Budget Development Schedule
ACTION / ACTIVITY DATE
Budget Study Session on Proposed FY 2025-26 Operating
Budget and FY 2025-30 Five-Year Capital Improvement Plan and Develop Budget Checklist.
June 3
Review and Direction on Budget Checklist and changes to Proposed Budget June 17
City Council to Adopt FY 2025-26 Operating Budget, FY 2025- 30 Five-Year Capital Improvement Plan, and Gann Limit June 24 Adopted FY 2025-26 Budget available in MUNIS July 1
Recommended
Action
6 RECEIVE the draft Fiscal Year 2025-26 Annual
Operating Budget and Fiscal Year 2025-30
Five-Year Capital Improvement Plan Budget
presentation; and PROVIDE DIRECTION to
staff prior to final budget adoption.
General Fund FY 2025-26 DRAFT Budget
FY 2024-25 FY 2025-26 PCT
GENERAL FUND REVISED BUDGET DRAFT BUDGET CHANGE
TOTAL REVENUES (250,327,835) (306,211,175) 22.3%
TOTAL EXPENDITURES 266,672,389* 257,711,175** -3.4%
LIMITED-TERM REVENUE - 48,500,000*** -
NET (-SURPLUS)/+DEFICIT 16,344,554* - -
* Includes $16.3 Million One-Time Transfer Out for Several Capital Projects and Legal Costs. ** Not Included:
• $550M Total Over 5 Years and $1B Total Over 10 Years for Capital Improvement Program • $396M Total Outstanding for Pension Unfunded Actuarial Liability (UAL) • $63M Total Outstanding for Other Post Employment Benefits (OPEB) • Labor Negotiations in Progress with No Cost-of-Living Adjustments Included • No Additional Programs or Projects
***Includes $48,500,000 in limited-term revenue, which is available for Option A, B, or C. 7 General Fund Revenue Assumptions
8 Revenue Category Assumptions
PROPERTY TAXES
Assessed Value (AV) Growth stems from a combination of factors such as 2 percent Consumer Price Index (CPI) growth for most properties, new valuation for properties that were sold during 2024. Estimated growth of 4.0 percent for Secured Property Taxes and 2 percent for several revenue streams within this category, and a decrease of 12 percent for the Successor Agency Surplus account stemming from actuals received in FY 2023-24 and YTD, leading to overall growth of 1.3 percent for the Property Tax category.
SALES & USE TAX A decrease of 5.1 percent is included per Avenu Insights and Analytics; Vehicle Licenses Fee Backfill Swap is tied to AV growth as well as Secured Property Taxes.
UTILITY USERS TAX (UUT)
The analysis was in part provided by Avenu Insights and Analytics. Historically, growth rates applied to individual revenue streams within the UUT category, such as Cable, and Telecommunications, continue to decrease due to industry changes, while others such as Gas and Electricity continue to increase due to rate increases.
Additionally, the Settlement Amount expired in FY 2024-25; the cap amount paid by Chevron is based on Energy Services CPI for the Bay Area. Overall net increase of
4.6 percent.
General Fund Revenue Assumptions (Continued)
9 Revenue Category Assumptions
OTHER TAXES
Revenue streams in this category vary yearly due to different influences, but most are expected to remain stable. The Documentary Transfer Tax is budgeted using the Guiding Fiscal Policy formula, based on the monthly average since the tiered structure was approved by voters.
LICENSES, PERMITS &
FEES
The primary revenue stream is Business Tax and a growth factor of 8.5 percent based on actual amounts received in the last full year, FY 2023-24, plus a conservative growth factor of 2.0 percent. Net change for the category is 5.6 percent.
FINES & FORFEITURES Net increase of Parking citations and Muni Court Fines of 13.4 percent.
Increase stems from actual amounts received last year and year to date.
USE OF MONEY &
PROPERTY Interest income stemming from interest in pooled cash.
General Fund Revenue Assumptions (Continued)
10 Revenue Category Assumptions
CHARGES FOR SERVICES
Most items entered by corresponding departments based on their estimated level of service. Most amounts are about the same with the exception of additional revenues from Public Works. Net increase of 14.4 percent.
OTHER REVENUE
The Other Revenue category is typically unpredictable with very few items included in the budget line item. However, for FY 2025-26, this revenue category will include the $50,000,000, limited-term revenue. The remaining budgeted revenue funds are estimated by various departments.
RENTAL INCOME Proposed amounts are slightly higher and tied to current year actuals and leases.
GRANTS Only known grants are budgeted
PROCEEDS FROM SALE OF
PROPERTY Based on historical trend
OPERATING TRANSFERS IN
Based on Analysis of the Pension Tax Override (PTORS) fund, estimated AV growth, minus scheduled uses. Left over funds are transferred to the General Fund to be used for eligible Pension expenses.
General Fund Revenue Budget
11 CATEGORY FY 2024-25 REVISED
BUDGET FY 2025-26 DRAFT BUDGET PERCENT
CHANGE
PROPERTY TAXES (57,597,487) (58,329,291) 1.30%
SALES & USE TAX (60,901,150) (57,821,463) -5.10%
UTILITY USERS TAX (62,092,359) (64,943,670) 4.60%
OTHER TAXES (23,405,397) (28,399,659) 21.30%
LICENSES, PERMITS & FEES (16,352,770) (17,274,036) 5.60% FINES & FORFEITURES (176,438) (200,000) 13.40%
INTEREST INCOME (1,796,421) (3,030,545) 68.70%
CHARGES FOR SERVICES (3,255,703) (3,724,495) 14.40%
OTHER REVENUE (142,830) (50,167,500) 35,023.90%
RENTAL INCOME (777,478) (791,157) 1.80%
INTERGOVERNMENT STATE TAXES (125,000) (150,000) 20.00%
INTERGOVERNMENT GRANTS (380,000) (470,000) 23.68%
PROCEEDS FROM SALE OF PROPERTY (15,000) (15,000) 0.00%
LOAN/BOND PROCEEDS (40,400) (40,400) 0.00%
OPERATING TRANSFERS IN (23,269,402) (20,853,959) -10.40% GENERAL FUND (250,327,835) (306,211,175) 22.30%
FY 2024-25 vs. FY 2025-26 General Fund Revenues
12 57,597,487
60,901,150
62,092,359
23,405,397
22,557,040
505,000
23,269,402
58,329,291
57,821,463
64,943,670
28,399,659
75,243,133
620,000
20,853,959
- 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 80,000,000
PROPERTY TAXES
SALES & USE TAX
UTILITY USERS TAX
OTHER TAXES
OTHER REVENUE
GRANTS
TRANSFERS IN
Amount
Revenue Category
FY 2025-26 PROPOSED BUDGET FY 2024-25 REVISED BUDGET
General Fund Expenditure Assumptions
13 Expenditures Category Assumptions
SALARIES AND WAGES
The draft Budget includes annual step increases for staff where applicable.
The draft Budget includes a 11 percent position control vacancy rate City-wide, which is approximately $19.0 million. This assumption has changed from 6 percent approved by the City Council in the adopted FY 2024-25 Budget to achieve a balanced budget, while City staff members continue to focus on retention, recruiting, and hiring. This does not include any cost-of-living increases for any bargaining units pending current labor negotiations.
PAYROLL/FRINGE
BENEFIT
Retirement and Healthcare costs are based on the most recent CalPERS valuation reports and current Kaiser rates, respectively, and will adjust as new information becomes available. Healthcare rates have increased by approximately 13 percent from FY 2024-25.
PROFESSIONAL &
ADMINISTRATIVE Baseline budget
OTHER OPERATING Baseline budget
General Fund Expenditure Assumptions (Continued)
14 Expenditures Category Assumptions
UTILITIES Increased to reflect rate increases from utility agencies EQUIPMENT & CONTRACT SERVICES Baseline Budget
PROVISION FOR INSURANCE LOSS Insurance Premiums
COST POOL
Vehicles, per Equipment Services provided list
General Liability, rates provided by Risk Mgmt. to achieve 80 percent confidence over 5 years
Civic Center Allocation, amount driven from the debt service, cash balance, and square footage used by programs
ASSET/CAPITAL OUTLAY Based on draft Capital Improvement Plan DEBT SERVICE EXPENDITURE Debt Service Schedule, maintained by Treasury A87 COST PLAN REIMBURSEMENT Based on current Cost Allocation Plan GRANT EXPENDITURES Based on the awarded grants
OPERATING TRANSFERS OUT Recurring and onetime subsidies to Non-GF programs. Reimagining Public Safety allocations same as current year.
General Fund Expenditures Budget
15 CATEGORY REVISED BUDGET
FY 2024-25
DRAFT BUDGET
FY 2025-26
PERCENT
CHANGE
SALARIES AND WAGES 95,303,620 95,368,985 0.10%
PAYROLL/FRINGE BENEFIT 70,548,062 73,083,339 3.60%
PROFESSIONAL & ADMINISTRATIVE 23,163,189 24,428,046 5.50% OTHER OPERATING 8,623,649 9,513,865 10.30%
UTILITIES 5,626,060 7,265,830 29.10%
EQUIPMENT & CONTRACT SERVICES 4,495,781 4,610,266 2.50% PROVISION FOR INSURANCE LOSS 37,042 46,500 25.50%
COST POOL 24,750,598 24,297,321 -1.80%
ASSET/CAPITAL OUTLAY 3,284,099 2,842,986 -13.40%
DEBT SERVICE EXPENDITURE 850,905 775,647 -8.80%
A87 COST PLAN REIMBURSEMENT (3,514,373) (3,362,171) -4.30% GRANT EXPENDITURES 52,246 34,497 -34.00%
OPERATING TRANSFERS OUT 33,451,511 18,806,063 -43.80%
TOTAL 266,672,389 257,711,175 -3.40%
FY 2024-25 vs. FY 2025-26 General Fund Expenditures
16 95,303,620
70,548,062
39,656,006
5,626,060
24,750,598
850,905
(3,514,373)
33,451,511
95,368,985
73,083,339
41,476,161
7,265,830
24,297,321
775,647
(3,362,171)
18,806,063
(20,000,000) - 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 120,000,000
SALARIES AND WAGES
PYRLL/FRINGE BENEFIT
PROFESSIONAL AND OPERATIONS
UTILITIES
COST POOL
DEBT SVC EXPENDITURE
A87 COST PLAN REIMB.
TRANSFERS OUT
Amount
Expenditure Category
FY2025-26 PROPOSED BUDGET FY 2024-25 REVISED BUDGET
General Fund FY 2025-26 DRAFT Budget
17 FY 2024-25 FY 2025-26 PCT
GENERAL FUND REVISED BUDGET DRAFT BUDGET CHANGE
TOTAL REVENUES (250,327,835) (306,211,175) 22.3%
TOTAL EXPENDITURES 266,672,389* 257,711,175** -3.4%
LIMITED-TERM REVENUE - 48,500,000*** -
NET (-SURPLUS)/+DEFICIT 16,344,554* - -
* Includes $16.3 Million One-Time Transfer Out for Several Capital Projects and Legal Costs. ** Not Included:
• $550M Total Over 5 Years and $1B Total Over 10 Years for Capital Improvement Program • $396M Total Outstanding for Pension Unfunded Actuarial Liability (UAL) • $63M Total Outstanding for Other Post Employment Benefits (OPEB) • Labor Negotiations in Progress with No Cost-of-Living Adjustments Included • No Additional Programs or Projects
***Includes $48,500,000 in limited-term revenue, which is available for Option A, B, or C.
American Rescue Plan Act (ARPA)
Completed Projects
18 Project Amount Department Status
MLK Park Turf Field 150,000 Public Works & Community
Services Completed
Nevin Community Center - Heating,
Ventilation, Air Conditioning (HVAC)
Improvements
10,250 Public Works Completed
Nevin Plaza Housing Project 1,750,000 Economic Development - Richmond Housing Authority Completed
Environmental Planning Consultant 300,000 Economic Development Completed Recreation Center Administration - HVAC
Improvements 25,025 Public Works Completed
Community Needs Assessment 215,642 Community Services Completed Ferry Point Dornan Pump Station 731,848 Public Works - Waste Water Recovery Completed
Unhoused Flex Funds 50,000 Community Development Completed American Rescue Plan Act (ARPA)
Remaining Projects
19 Project Amount Expended Remaining Department Estimate Completion Date Director
ADA Misc. Sidewalk
Rehabilitation Project 2,360,094 1,891,169 468,925 Public Works 12/31/2025 Daniel Chavarria ARPA Technical Assistance 423,800 168,119 255,681 Finance 12/31/2026 Andrea Miller Booker T. Anderson Community
Center Renovation 429,821 399,926 29,895 Public Works 9/30/2025 Daniel Chavarria Paving 2,144,834 24,937 2,119,897 Public Works 12/31/2025 Daniel Chavarria Main Library Renovation 2,043,306 1,318,781 724,525 Public Works & Community Services 11/30/2026 Daniel Chavarria
LaShonda White
North Richmond Pump Station 1,068,152 713,418 354,734 Public Works - Waste Water Recovery 9/30/2025 Daniel Chavarria
Infrastructure: Booker T
Anderson Center 748,573 623,204 125,369 Public Works 9/30/2025 Daniel Chavarria Stormwater Infrastructure 750,000 0 750,000 Public Works - Stormwater 12/31/2025 Daniel Chavarria
American Rescue Plan Act (ARPA)
Remaining Projects (Continued)
20 Project Amount Expended Remaining Department Estimated Completion Date Director
Nystrom Village 2,000,000 44,456 1,955,544 Richmond Housing Authority 12/31/2026 Nannette
Beacham
Richmond Rapid
Response Fund 1,000,000 701,465 298,535 Community
Development 12/31/2026 Lina Velasco
Small Business Support 652,137 375,864 276,273 Economic Development 12/31/2026 Nannette Beacham
Tenant Protection &
Rental Assistance 1,984,233 647,269 1,336,964 Community Development 12/31/2026 Lina Velasco
Soccer Fields-Parks-
Restrooms 7,703,008 287,472 7,415,536 Public Works 4/01/2026 Daniel Chavarria Youthworks 1,200,000 1,112,029 87,971 Community Services 12/31/2026 LaShonda White Total 27,740,723 11,540,874 16,199,849
Environmental and Community Investment Agreement
FY 2025-26 Budget ($8,700,965)
21 ECIA STRATEGY PROPOSED BUDGET
FY 2025-26
GREENHOUSE GAS (GHG) REDUCTION PROGRAMS
URBAN FORESTRY/TREE CANOPY EXPANSION 350,000
CLIMATE ACTION PLAN IMPLEMENTATION 210,000
ENERGY EFFICIENCY PROGRAMS/SOLAR PANEL INSTALLATION ON INCOME QUALIFYING HOMES & COMMERCIAL ENERGIZE PROGRAM 1,053,367
ELECTRIC BIKE SHARE PROGRAM 286,356
FIRST MILE/LAST MILE MOBILITY MASTER PLAN (PLACEHOLDER FOR FUTURE PROJECTS TO BE APPROVED BY CITY COUNCIL) 1,900,000
GRANT WRITING FOR GHG REDUCTION TRANSPORTATION PROJECTS 100,000 ELECTRIC VEHICLE CHARGING STATION INSTALLATION AND MAINTENANCE 200,000 ON-DEMAND CITY-WIDE SHUTTLE SERVICE (RICHMOND MOVES) 1,500,000 CAR SHARE PROGRAM (OPERATED BY MIO CAR) 200,000
COMMUNITY BENEFITS ORDINANCE COMPLIANCE AND IMPLEMENTATION 100,000 RICHMOND PARATRANSIT SERVICE SUPPORT 150,000
RICHMOND STAFF ADMINISTRATIVE COSTS – TRANSPORTATION/ENGINEERING 300,000 BIKE TO ANYWHERE DAY 5,000
NEW ELECTRIC LIBRARY BOOKMOBILE 396,500
ZERO-EMISSION VEHICLE & INFRASTRUCTURE PLAN 250,000
AUTONOMOUS TRANSIT NETWORK FEASIBILITY STUDY 50,000
Environmental and Community Investment Agreement
FY 2025-26 Budget ($8,700,965) (Continued)
22 ECIA Strategy Proposed Budget
FY 2025-26
COMMUNITY PROGRAMS
ECIA COMPETETIVE GRANT PROGRAM FOR COMMUNITY-BASED
ORGANIZATIONS 1,000,000
POLICE/RICHMOND EXPLORERS 87,000
FIRE/NIXLE, OES CLOUD-BASED SYSTEM, FIRE & RESCUE EQUIPMENT & TRAINING 170,300
FIRE/RICHMOND YOUTH ACADEMY 60,000
FREE INTERNET ACCESS AND FIBER OPTIC INFRASTRUCTURE 382,442 Total Expense 8,700,965
Transformative Climate Communities
FY 2025-26 Budget ($17,651,596)
Transformative Climate Communities Proposed Budget
FY 2025-26
ADA ACCESSIBLE GARDEN 565,044
BASINS OF RELATION 2,090,000
BOSQUE DEL BARRIO 721,346
COMMUNITY ENGAGEMENT 382,500
DISPLACEMENT AVOIDANCE 275,000
E-BIKE LENDING LIBRARY 750,000
E-BIKE SHARE 354,729
GRANTEE COST 300,000
INDICATOR TRACKING 133,750
NEIGHBORHOOD COMPLETE STREETS 4,715,873
ORCHARD FOR ALL! 350,500
RESILIENT HOMES 2,090,000
RICHMOND WELLNESS TRAIL 3,801,154
VEGGIE RX 971,700
WORKFRCE DEVELOPMENT 150,000
Total 17,651,596 23
Draft City of Richmond Festivals
FY 2025-26 Budget ($101,500)
24 City of Richmond Festivals
Approved Budget
FY 2024-25
Proposed Budget
FY 2025-26
CINCO DE MAYO FESTIVAL 20,000 20,000
FIESTAS PATRIAS PARADE (FORMER CINCO DE MAYO PARADE) 6,000 HOMEFRONT/ROSIE THE RIVETER FESTIVAL 5,000 5,000 JUNETEENTH FESTIVAL 20,000 26,000
LITERACY FAIR 5,000 5,000
MARTIN LUTHER KING, JR. DAY SERVICE 5,000 5,000 NORTH RICHMOND SHORELINE FESTIVAL 5,000 0
OAKLAND SYMPHONY 10,000 0
POINT RICHMOND MUSIC FESTIVAL 5,000 5,000
PRIDE FESTIVAL 5,000 5,000
NATIVE AMERICAN POW WOW 5,000 5,000
NORTH RICHMOND BLUES FESTIVAL 5,000 5,000
NOWRUZ-PERSIAN NEW YEAR 5,000 5,000
EL SOBRANTE STROLL 3,000
EL SOBRANTE PRIDE 2,000
OTHER FESTIVALS/COMMUNITY EVENTS 6,500 4,500
Total 101,500 101,500
Draft Capital Improvement Project Budget
by Program Category
25 Program Category Proposed
FY 2025-26
Proposed
FY 2025-26
Proposed
FY 2027-28
Proposed
FY 2028-29
Proposed
FY 2029-30 5-Year Total
Equipment Services 11,683,378 4,893 - - - 11,688,271
General and Public Safety
Facilities 42,101,293 719,467 - - - 42,820,760
Parks and Open Spaces 27,296,905 - - - - 27,296,905
Port of Richmond 12,718,581 2,500,000 2,477,250 300,000 300,000 18,295,831 Sanitary Sewer/Wastewater 24,444,621 5,450,000 5,450,000 5,450,000 5,450,000 46,244,621 Storm Drainage and
Watershed 5,327,151 - - - - 5,327,151
Technology 1,063,243 250,000 - - - 1,313,243
Transportation 46,092,614 19,705,446 7,212,409 7,346,144 7,483,259 87,839,872 Total 170,727,786 28,629,805 15,139,659 13,096,144 13,233,259 240,826,654 Options A, B, & C ($48,500,000)
Option Description
A - Hold and Wait Hold and wait ~6-18 months given
economic uncertainties
B - To Be Determined by Mayor and City
Council May include CIP unfunded needs
C – To Be Determined by Mayor and City
Council
May include Federal Contingency, CIP,
Unfunded Actuarial Liability (UAL)
- $19.5 million – Set aside – federal
contingency
- $19.5 million – Allocated to enhancing
Quality of Life and Community Health.
- $9.5 million – Designated, to improve
the City’s internal infrastructure,
Unfunded Liabilities.
26 Next Steps
27 City staff will incorporate
City Council direction
and respond to their
questions on June 17,
2025.
City staff will review
and adjust the draft
budget for accuracy
and include
adjustments from the
Mayor and
Councilmembers.
City staff will monitor the
Executive Order's impact on
Sanctuary Jurisdiction and
update the proposed FY
2025-26 Operating Budget
and FY 2025-30 Capital
Improvement Plan for the
June 17 and June 24, 2025,
City Council meetings.
A balanced FY 2025-26
budget will be
presented for adoption
on June 24, 2025.
Recommended
Action
28 RECEIVE the draft Fiscal Year 2025-26 Annual
Operating Budget and Fiscal Year 2025-30
Five-Year Capital Improvement Plan Budget
presentation; and PROVIDE DIRECTION to
staff prior to final budget adoption.
Thank You! Question?
29