Richmond projected to end fiscal year with $4.7M net surplus

Richmond projected to end fiscal year with $4.7M net surplus

RICHMOND, Va. (WWBT) - The City of Richmond is projecting a $4.7 million net surplus at the end of the fiscal year, based on financial data as of June 30, according to a release from the city’s administration.

At the close of the year’s third quarter, the city’s administration was prepared to withdraw more than $6 million from its contingency reserve, or rainy-day fund. Instead, revenues surpassed conservative estimates made as a result of COVID-19.

“The city is projected to have weathered the economic impacts of this pandemic locally,” said Mayor Levar Stoney. “This projected surplus was made possible by channeling fiscal responsibility, by neither over-correcting nor underreacting.”

In the early stages of the pandemic, the city took cost-saving measures and underwent budget modifications. A $4.7M surplus would account for slightly less than 1% of the general fund budget.

“The city prioritizes its fiscal health, now more than ever,” said budget director Jay Brown. “In a challenging time, we turned to conservative budgeting and proper fiscal management for a solution. We will continue to use those guiding principles in decisions going forward.”

The Comprehensive Annual Financial Report, available near the end of the calendar year, will be the final indicator of how the city has managed its finances. The projected surplus is currently unaudited.

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