Mayor Avula releases $80 million enhancement requests ahead of the 2027 fiscal year budget

RICHMOND, Va. (WRIC) -- The City of Richmond has announced that it has submitted enhancement requests made by City departments totaling $80 million ahead of the 2027 fiscal year (FY) budget release.

The announcement came on Thursday, Jan. 15, and according to the release, the FY 2027 budget proposal will focus on delivering core services, meeting the City's existing commitments to employees and critical obligations, as well as finding efficiencies.

According to this ordinance, along with submitting the budget release, the city requires a side-by-side comparison of the mayor's budget submission with agency-level budget request documents.

In Fall 2025, each director from each department was asked to compile a list of no more than five "increased contractual obligations enhancements" to their department's 2026 FY 2026 budget with "appropriate justification."

Per the release the City said that these requests could include either or both operating expenses and personnel expenses. 

The enhancements were reviewed by the Department of Budget and Strategic Planning, the deputy chief administrative officer (if applicable), and the chief administrative officer (CAO).

Mayor Avula stated that he is grateful to all leaders for their thoughtful work and the submission of these requests.

"I will be working hard over the next two months to prepare a balanced budget that helps move us toward our goal of a Thriving Richmond," Avula said.

Avula continued by adding that there are several difficult decisions ahead for "us" given the reality of the coming fiscal year, but that he remains committed to "stewarding" the taxpayer’s dollar with great care.

In the release the City of Richmond also notes that the 2027 FY budget presents challenges

• Real estate: The real estate assessment freeze will align property assessments with the City's budget cycle, and early estimates project FY 2027 revenue growth is approximately $15 million less compared to $42 million in FY 2026. 
• Federal outlook: Uncertainty in state and federal funding allocations will likely pass the responsibility of funding vital services down to local taxpayers.
• Workforce: "The Administration’s has committed to maintain initial collective bargaining agreements, which results in a significant investment in the City’s workforce in FY27."
• Public school budget: "he City has invested in Richmond Public Schools at historic levels. The administration is committed to maintaining this level of investment, which currently is equivalent to 25% of the total general fund budget."

The FY 2027 budget will be introduces on March 11.