CITY OF RICHMOND
CITY FINANCIAL REPORTING
& POLLUTERS PAY
SETTLEMENT FUNDS
City Council Update | October 20, 2026
Emily Combs | Director of Finance
DRAFT
CITY FINANCIAL REPORTING
What this update covers
CITY OF RICHMOND • OCTOBER 20, 2026 02
01 Audited financial results Three years of finalized General Fund results and reserve levels. 02 Financial forecasts How to interpret long-term projections and potential deficits. 03 Settlement funds Payments, interest earnings and estimated balances. 04 Community engagement Dalberg agreement status and upcoming work.
CITY FINANCIAL REPORTING
Three years of audited General Fund results
CITY OF RICHMOND • OCTOBER 20, 2026 03
Fiscal year Revenues Expenditures Surplus / (Deficit) GF reserves FY 2022–23 $226.15M $213.04M $13.11M $55.2M (25%)
FY 2023–24 $240.08M $231.43M $8.65M $65.3M (26%)
FY 2024–25 $277.66M $278.49M ($0.82M) $62.8M (24%)
Reserve percentages are based on budgeted General Fund appropriations.
FY 2025–26 audited results expected to be presented with the ACFR in March 2027.
CITY FINANCIAL REPORTING
General Fund reserves remained above target
CITY OF RICHMOND • OCTOBER 20, 2026 04
FY 2022–23
25%
$55.2M
FY 2023–24
26%
$65.3M
FY 2024–25
24%
$62.8M
21% COUNCIL-ADOPTED RESERVE TARGET
Despite fluctuations in annual results, reserves exceeded the target in each audited year.
CITY FINANCIAL REPORTING
Audited results and forecasts answer different questions CITY OF RICHMOND • OCTOBER 20, 2026 05
AUDITED FINANCIAL RESULTS
What happened?
Finalized revenues, expenditures and
reserves from completed fiscal years.
MULTI-YEAR FORECAST
What might happen?
Reasonable scenarios based on current
assumptions and trends.
CITY FINANCIAL REPORTING
How to interpret a projected deficit
CITY OF RICHMOND • OCTOBER 20, 2026 06
MODEL
Projects what could occur if trends and
assumptions continue.
EARLY WARNING
Identifies fiscal pressures before they
materialize.
PLANNING TOOL
Supports Council prioritization and budget
decisions.
NOT A BUDGET
Does not establish future appropriations or
compensation commitments.
CITY FINANCIAL REPORTING
Settlement payments received to date
CITY OF RICHMOND • OCTOBER 20, 2026 07
$550M
Scheduled over ten years
$100M
Gross payments received
$3.0M
Kids First allocation
$97.0M
Net settlement proceeds
CITY FINANCIAL REPORTING
Estimated settlement balances | September 30, 2026 (unaudited) CITY OF RICHMOND • OCTOBER 20, 2026 08
Description FY 2025–26 FY 2026–27 Total
Gross payments $50,000,000 $50,000,000 $100,000,000
Kids First allocation ($1,500,000) ($1,500,000) ($3,000,000) Net proceeds $48,500,000 $48,500,000 $97,000,000
Unaudited Interest earnings $1,850,000 $850,000 $2,700,000 Unaudited Estimated settlement
balance $50,350,000 $49,350,000 $99,700,000
Unaudited preliminary balances; FY 2026–27 interest earned through September 30, 2026.
CITY FINANCIAL REPORTING
Maintaining funds for future Council allocation
CITY OF RICHMOND • OCTOBER 20, 2026 09
$50.35M FY 2025–26 preliminary year-end settlement balance, including interest
$49.35M FY 2026–27 net proceeds plus interest through September $99.70M Combined unaudited estimated balance as of September 30, 2026
Future allocation pending community engagement and City Council direction.
CITY FINANCIAL REPORTING
Community engagement | Current status
CITY OF RICHMOND • OCTOBER 20, 2026 10
2024 Council adopts settlement-use principles
JAN 2026 Council directs community engagement
APR 2026 Council authorizes Dalberg negotiations
Nov 10, 2026 Council consideration of Dalberg contract and engagement plan
CITY FINANCIAL REPORTING
Next steps
CITY OF RICHMOND • OCTOBER 20, 2026 11
Independent review Continue NHA review of Council-requested financial information.
FY 2025–26 audit Complete the ACFR; audited results expected March 2027.
Settlement reconciliation Finalize settlement balances and interest earnings.
Community engagement Bring proposed Dalberg contract to City Council November 10, with engagement plan and timeline.
CITY OF RICHMOND
FINANCIAL REPORTING &
POLLUTERS PAY SETTLEMENT FUNDS
RECOMMENDED ACTION
RECEIVE the informational update.
City Council • October 20, 2026