The Richmond City Council finance committee Thursday voted to continue consideration of dueling real estate tax proposals — again.
Councilwoman Reva Trammell, who represents the 8th District, previously proposed a 4-cent reduction to the city’s real estate tax rate. City Council President Kristen Nye, who represents the 4th District, submitted a paper that would maintain the city’s current rate of $1.20 per $100 of assessed value.
City Council President Kristen Nye, who represents the 4th District, listens to a tax proposal Thursday at City Hall. Nye submitted a paper that would maintain the city’s current rate of $1.20 per $100 of assessed value.
Margo Wagner photos, Times-Dispatch
The legislative body had debated both proposals last month before ultimately tabling them to allow Mayor Levar Stoney’s administration to weigh the fiscal impacts and come up with a proposal of their own.
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What happened: The Richmond City Council Finance Committee on Thursday voted to delay a decision on a plan to cut the municipal real estate tax rate by 4 cents following debate during the meeting.
The background: City Council President Kristen Nye wants maintain the current rate of $1.20 per $100 of assessed value. Mayor Levar Stoney has proposed a one-time, 4-cent tax rebate through a pilot grant program called “RVA Stay.”
What comes next: The City Council will discuss the proposals at a meeting next week.
Stoney did that on Monday — pitching a one-time, 4-cent tax rebate and a pilot grant program called “RVA Stay.” If approved by City Council, it would provide $1,200 to residents who spend more than 30% of their income on housing and participate in financial management training.
The committee was set to vote on the proposals — plus a last-minute compromise pitched by 1st District Councilman Andreas Addison — Thursday afternoon.
But the members once again were unable to reach consensus, advancing both proposals without a recommendation and punting on the issue a second time. The issue will now be considered at the next City Council meeting on Oct. 15.
Council members unable to find deal
The decision came after fierce debate — with Trammell defiantly defending her tax cut, Stoney’s administration urging the legislators to vote against her and Addison trying to broker a deal.
Deputy Chief Administrative Officer Sabrina Joy-Hogg laid out the case against slashing the rate. She said such a move would be detrimental to city services, would put the city’s freshly earned AAA credit rating at risk and would compromise its future financial obligations.
Real estate tax revenue is the single largest source of the general fund, Joy-Hogg pointed out, making up nearly half of that fund.
“There’s no doubt that a reduction in the tax rate will impact the level of the services we provide today,” she said. “If the tax rate is reduced, we will lack funding for … education, public safety” and numerous other government resources.
The city has other upcoming financial commitments too, Joy-Hogg said, such as $26 million for collective bargaining agreements during fiscal year 2026.
And even at the current real estate tax rate, the city is projecting budget deficits in coming years, Joy-Hogg said. Those anticipated deficits include a shortfall north of $140 million in fiscal year 2030.
So if City Council votes to decrease the rate, they need to find an “alternative revenue source,” Joy-Hogg insisted.
Stoney on Monday countered Trammell’s tax cut with the rebate and with RVA Stay. He said the $4 million pilot grant program is an alternative to both an across-the-board tax cut, which he said would most benefit the wealthy, and targeted tax relief, which currently is not permitted under Virginia state code.
The mayor’s proposal also includes real estate assessment freezes for homeowners who are senior citizens or have disabilities and make less than $125,000 a year.
But Trammell simply wasn’t having it.
“I am just sick and tired of, every time we try to do something, the administration comes back and says ‘we don’t have the money,’” Trammell said, aiming her angst at Chief Administrative Officer Lincoln Saunders. She said she has been trying to reduce the rate since 2022.
Councilwoman Reva Trammell, who represents the 8th District, speaks to Chief Administrative Officer Lincoln Saunders during a debate Thursday at City Hall. Trammell previously proposed a 4-cent reduction to the city’s real estate tax rate.
Margo Wagner, Times-Dispatch
Chief Administrative Officer Lincoln Saunders listens to 8th District City Councilwoman Reva Trammel during a debate over tax proposals Thursday.
Margo Wagner, Times-Dispatch
“I have knocked on over 2,000 doors,” she said, and people are begging for tax relief. “Stop wasting the damn money that’s being wasted at City Hall, like a runaway train,” Trammell said. She cited large salary increases for top city officials.
“I don’t care if we’re here until 5 o’clock today,” Trammell yelled.
Saunders responded to her charge.
“We are at the table and willing to keep this conversation going,” he said to Trammell. “But I hope it is understandable that, when we have a tax paper in front of us to reduce revenues, … it’s important to make sure there’s equity.”
“Our fiduciary responsibility extends beyond balancing the current fiscal year,” he continued. “It can be a tough conversation, and we can’t say yes to everything.”
Ellen Robertson — the 6th District councilwoman who has added her name to Trammell’s proposal — offered her colleague some support. It is not only seniors, Robertson said, who are struggling under the weight of rising real estate assessments — the median of which went up 7% this year.
“Richmonders are saying ‘we can’t afford to live in the city,’ and we can’t afford to lose a large number of our residents,” Robertson said to Saunders. “Tell me how we can support a reduction in the real estate taxes.”
“Every time it (comes up), you say, ‘You’re going to lose your police, and you’re going to lose your firefighters,’” Robertson said. “I mean, that is classic … are you telling us that, if (the rate) is $1.16, you will not be able to afford (it)?”
6th District Richmond City Council Representative Ellen Robertson listens to Chief Administrative Officer Lincoln Saunders during a debate over tax proposals on October 10, 2024, at City Hall in Richmond, Va.
Margo Wagner
Saunders replied that he was not able to say exactly when or how the city could afford a real estate tax cut — but he conceded that the city could theoretically survive such a reduction.
“But I have not made that the focus of our argument,” he said.
Katherine Jordan, 2nd District councilwoman, expressed concern about the financial planning sessions that RVA Stay grant applicants must attend to be eligible to receive the funds. She said some people don’t have “even a spare minute” to attend such sessions.
“Obviously we want to provide these opportunities,” Jordan said. “But not everyone is able to take advantage of them.”
“It is my understanding it was drafted as a requirement,” Saunders said in response, but he assured Jordan that the administration is interested in councilmembers’ opinions on whether that should be the case.
1st District Richmond City Council Representative Andreas Addison listens to Chief Administrative Officer Lincoln Saunders during a debate over tax proposals on October 10, 2024, at City Hall in Richmond, Va.
Margo Wagner
Addison suggests a compromise
Addison urged officials to meet in the middle. He said portions of both Trammell and Stoney’s proposals have merit.
“I want to look at what we can do to support and send a message … to residents: ‘We hear you,’” he said.
He pitched a compromise: a 2-cent tax rate reduction as opposed to the 4-cent cut Trammell had proposed, coupled with a one-time, 2-cent tax rebate for 2025. Addison said the combination of the smaller tax cut and rebate would offer residents the tax relief they need without forcing officials to make long-term decisions.
The city’s projected $12 million real estate tax revenue surplus for fiscal year 2025 gives officials room to provide tax relief without breaking the bank, Addison argued. And by halving the proposed reduction, the cost of that tax relief would also be halved — from $16 million to $8 million annually.
“I don’t want to be stuck on one or the other,” he said. “We have … an opportunity to do ‘yes, and.’”
Addison also called on his colleagues to support RVA Stay.
Nye did not address either proposal specifically, but reminded the committee that “a decision has to be made.”
“We are on a time crunch,” she said. “The latest we can approve this is Nov. 12.”
City Council’s full body — all nine members — will now weigh the proposals during its Tuesday meeting.
Paul Goldman speaks during public comment at City Council’s debate over tax proposals on Thursday at City Hall.
Margo Wagner
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This is the eighth of our stories previewing local races on the ballot, outside of the mayoral race, in Richmond’s nine voting districts.
This is the ninth of our stories previewing local races on the ballot, outside of the mayoral race, in Richmond’s nine voting districts.
Samuel B. Parker (804) 649-6462
sparker@timesdispatch.com
“Stop wasting the damn money that’s being wasted at City Hall, like a runaway train.”
— Councilwoman Reva Trammell
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