~Proposal includes bonus for City employees, assumes no tax increases, and covers employee and retiree health care cost increases~
Mayor Dwight C. Jones today submitted his 2012-2013 Biennial Fiscal Plan and Capital Improvement Plan (CIP). The two-year plan for the general fund budget totals $1.4 billion. For the first fiscal year, FY 2012, the planned spending totals $656.6 million with the remainder dedicated to the Rainy Day fund balance. For the second year, FY 2013, the planned spending totals $657.2 million with the balance falling to fund balance. One of the key goals of the Fiscal Plan is to increase the City's fund balance with an eye towards a ten percent rainy-day fund balance.
The five-year Capital Improvement Plan totals $807.1 million with FY 2012 including $193.8 million in capital improvements. The construction of the four new schools and Justice Center consume $63.1 million or 61 percent of the FY 2012 General Fund projects.
The Biennial Fiscal Plan includes no tax increases, no furloughs or layoffs.
Spending priorities include the following:
Continued commitment to K-12 education:
$123.8 million dedicated each year to Richmond Public Schools
$57.6 million recommended in capital spending to pay for the construction of four new schools and other school-related projects
Consolidation of grounds maintenance as our next step on ongoing efficiencies and productivity improvements;
A $1,000 bonus for all eligible full-time City employees in July 2011;
Covering health care cost increases in FY 2012 for employees and retirees so that participants pay the same next year as they do this year;
Aggressive implementation of alternatives to incarceration including:
increased electronic monitoring,
the mental health docket,
substance abuse services, and
an assessment center;
More than a 100 percent increase in Enterprise Zone Program funding as well as additional funding for the Commercial Area Revitalization Effort (CARE) loan program that support economic growth;
Investment in the Enterprise Resource Plan (ERP) system which will create efficiencies, savings, and improved business processes for administrative functions throughout the City;
Business requirements and system planning funding for a new Customer Relationship Management system to support our 311 and MPACT programs;
Funding for tourism and bicycle coordinator positions along with two positions dedicated to employee wellness and training. Even with these four new positions and the absorption of nine positions from Richmond Public Schools, the overall personnel complement has dropped from 4,028 positions in FY 2009 to 3,858 proposed in FY 2012;
For the CIP, priorities include:
Investment of FY 2012 general fund cash totaling $5.8 million for demolition and blight abatement as well as fleet replacement;
Increased funding for roadway improvements including pavements, one-way street conversions for two-way traffic, sidewalks, pedestrian and bicycle trails and paths;
Final design and construction funding for the Justice Center along with the four new schools; and
Adoption of a five-year equipment replacement strategy for needed equipment, including heavy fire apparatus, police vehicles, mobile data networks, and technology on our desktops.
Speaking about his biennial budget, Mayor Jones said, "The responsibility of preparing a fair and balanced budget during these lean economic times is no less significant today than it was when I presented my first biennial budget just two years ago at the start of this administration. The enormous costs of the country's financial crisis and lagging economy have continued to force hard choices and this Plan reflects our priorities as well as those focused efforts to become a Tier One City. Our efforts towards greater efficiencies have worked. We have not raised taxes, there have been no furloughs or layoffs, and we have not interrupted core services. Like many Richmond families, we have worked to do more with less and today's proposal allows us to attend to current day priorities while positioning us for the future."
Richmond City Council will now consider the Mayor's proposed budget over the next six weeks with a final budget vote due on May 23, 2011.
Click here to view the 2012-2013 Biennial Fiscal Plan.
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