RICHMOND, Va. (WWBT) - The Stoney administration is now projecting a net surplus of $13.75 million at the close of FY2020.
The surplus is about 2 percent of the general fund budget and shows “successful cost-saving measures and conservative revenue forecasting in the early stages of the pandemic.”
“Our financial reporting continues to indicate that the city has weathered the economic impacts of this pandemic locally,” said Mayor Levar Stoney. “This surplus is derived from fiscal responsibility and prudent management of our taxpayers' dollars.”
As required by an ordinance, 50 percent of the surplus goes to “rainy day” reserves, 40 percent goes to the capital maintenance reserve and 10 percent goes to special purpose reserves.
Stoney said he is recommending that the special purpose reserve goes toward funding the city’s equity study, initiatives to address racial health disparities, and post-employment benefit liabilities.
“We are pleased to report that local tax collections ended up even better than our most recent projections,” said Director of Finance John Wack. “This, coupled with such efficiencies as a temporary hiring freeze and moratorium on discretionary spending, is leading to even stronger rainy day reserves as we close out the fiscal year.”
The Comprehensive Annual Financial Report will include the final audited amounts for the reserves. The report will not be available until near the end of the year.
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