(The Center Square) – Richmond City Council is weighing two real estate tax ordinances that take different approaches to revenue and services.
One proposal, sponsored by Mayor Danny Avula and Council President Cynthia Newbille, would keep the rate at $1.20 per $100 of assessed value. A second, sponsored by Councilmembers Reva Trammell, Ann-Frances Abubaker and Kristen Nye Lynch, would lower the rate slightly to $1.16. Both are above the rollback rate of $1.146 set under state law, according to documents.
Finance staff told council that the numbers add up quickly. Each penny of the rate is worth about $4.3 million for the general fund. A four-cent cut, from $1.20 to $1.16, would reduce projected revenue by about $17.2 million.
For homeowners, the savings vary with assessment. A city chart shows a typical home valued at $426,000 would save about $170 a year under the lower rate. Higher-value properties would see larger dollar savings, according to the chart.
Real estate taxes are Richmond’s single largest revenue source. Slides presented to council show they make up 57% of the general fund, which supports employee salaries, Richmond Public Schools, city services and the capital improvement program.
Staff also pointed to rising costs already in the pipeline. Debt service is projected to grow by $3.8 million from fiscal 2026 to 2030. Retirement costs are projected to grow 5% annually, reaching $65.6 million by 2030. Health care costs are expected to grow 2.5% annually, from $112.6 million in FY26 to $123.2 million in FY30. Collective bargaining is projected to average $29 million a year, totaling about $146.4 million by the end of the decade.
Capital projects also add to the load.
The city lists a $300 million replacement of the John Marshall Court building, more than $100 million in bridge replacements, a $64 million Main Library renovation, over $40 million for floodwall and levee maintenance, and $10.5 million for amenities in parks, buildings and trails.
In a Sept. 22 letter to the council, Chief Administrative Officer Odie Donald warned that the rollback “could compromise essential services and disproportionately benefit wealthier homeowners.”
Donald also wrote that “keeping the rate at $1.20 ensures the City can continue delivering critical programs and services, making meaningful progress on infrastructure, while maintaining core services that so many residents rely on every day.”
The Council continued both tax ordinances to Tuesday, Oct. 14, 2025.
The Center Square reached out to Mayor Danny Avula and Council President Cynthia Newbille for comment but did not receive a response by time of publication.
