City Council Updates
Richmond’s City Council will meet Tuesday, June 3, to discuss next year's budget, weigh a proposed ordinance targeting corporate land acquisition practices, and vote on a series of public safety and community initiatives, including support for the city’s Juneteenth celebration.
$644 million budget, three options for Chevron funds
Richmond city officials have proposed a $644 million budget for fiscal year 2025-26, which includes Chevron funds that could address unfunded infrastructure projects or serve as a contingency for federal funding.
The proposed budget includes $257.7 million from the General Fund and $386.3 million from non-General Funds, according to a staff report for the upcoming City Council meeting on June 3, 2025. The General Fund revenue is projected at $306.2 million, representing a 22.3 percent increase from the current fiscal year’s revised budget.
These are funds from the 10-year, half-billion-dollar agreement with Chevron, which significantly boosted the “Other Revenue” category by more than 35,000 percent.
Richmond City Council approves settlement with Chevron, removes refinery tax ballot measure
Richmond City Council approves settlement with Chevron, removes refinery tax ballot measure
Soren Hemmila
City Manager Shasa Curl and finance department officials outlined three options for utilizing the substantial, limited-term revenue windfall. Option A would hold the funds for six to 18 months due to economic uncertainties. Option B leaves the allocation to be determined by the mayor and City Council, potentially funding unfunded capital improvement projects totaling $104.7 million. Option C would split the money between a federal funding contingency, infrastructure improvements, and pension obligations.
The budget reflects significant changes in revenue streams. The Utility Users Tax is expected to increase by $2.9 million to $64.9 million, driven by a forecasted rise in payments from Chevron tied to inflation in energy services. Property taxes are projected to grow by $731,804 to $58.3 million, based on a 4 percent assessed valuation growth forecast.
However, sales tax revenue is expected to decrease by $3.1 million to $57.8 million, reflecting the economic slowdown and reduced short-term sales tax revenues. The Documentary Transfer Tax, included in the “Other Taxes” category, is projected to generate $13.6 million, contributing to a $5 million increase in that revenue category.
On the expenditure side, the budget allocates $168.4 million for salaries, wages, and fringe benefits, representing the largest expense category. The city plans an 11 percent vacancy rate citywide, generating $19 million in vacancy savings to help balance the budget while addressing natural attrition and onboarding time for new hires.
The council will also hold a required public hearing on vacancy rates during the meeting.
According to a staff report, Richmond reported a 20.4 percent vacancy rate across its workforce, with 165 of its 808 full-time positions unfilled as of December 31, 2024. Staff attributed much of the shortage to 55 newly created positions that accounted for roughly one-third of the vacancy rate. The city processed over 6,400 applications last year and successfully filled 112 positions while making 65 internal promotions.
Healthcare costs are expected to increase by 13 percent, or $1.9 million, while workers’ compensation costs are projected to rise by 5 percent. The required contribution to CalPERS for unfunded actuarial liability is expected to increase by $3.8 million compared to the current fiscal year.
Utility costs are projected to surge by 29.1 percent, or $1.6 million, with electricity and water expenses increasing by 50 percent and 27.4 percent, respectively.
The city faces significant unfunded liabilities, including $396 million in pension obligations and $63 million in Other Post Employment Benefits. Officials recommend using $9.5 million of the limited-term revenue to address these growing obligations.
Federal funding uncertainty presents another challenge. President Trump’s executive order targeting sanctuary jurisdictions could affect Richmond’s federal grants and programs, including Employment and Training services and the Richmond Housing Authority. City staff recommend creating a $19.5 million federal contingency fund to protect these programs.
The Capital Improvement Plan spans five years with a total budget of $240.8 million, including $170.7 million for fiscal year 2025-26. Major categories include transportation projects ($46.1 million), general and public safety facilities ($42.1 million), and parks and open spaces ($27.3 million).
Several major projects remain unfunded, including the $40 million Martin Luther King Jr. Community Center renovation, $12 million for solar installations on city buildings, $11 million for pavement management, and $7 million for the fire station alerting system.
Richmond will also maintain support for annual festivals and community events with a $101,500 budget covering celebrations, including Cinco de Mayo, Juneteenth, and Pride festivals.
The council will review the budget on June 17, 2025, before its final adoption, scheduled for June 24, 2025. Staff will monitor the potential impacts of federal executive orders on sanctuary jurisdictions and make necessary adjustments to the proposal.
Other budget-related items include setting the tax rate for the city’s pension override at 0.14 percent for fiscal year 2025-2026 and approving updates to the fee schedule. The council will also consider preliminary engineers’ reports for two maintenance districts that fund landscaping and lighting in the Hilltop and Marina Bay areas, with public hearings scheduled for June 24.
Other new business includes Councilmember Soheila Bana’s item to develop an ordinance banning land grab practices and promoting housing accessibility. This item was continued from the last meeting.
The item would direct city staff to study federal and state legislation regarding land grab practices by for-profit corporations and investors and return to the council within 180 days with recommendations regarding the viability of enacting a local ordinance.
Allocation of $6,000 to Support the 2025 Juneteenth
Councilmember Jamelia Brown has an item for a one-time appropriation of $6,000 to support the 2025 Juneteenth Celebration, which will assist with key components of the event, including youth-centered activities, community engagement, and cultural programming.
On the consent calendar
The council will also consider a series of measures at an upcoming meeting, including proclamations recognizing Gun Violence Awareness Month and Juneteenth, as well as budget items and public safety initiatives.
All consent calendar items are considered routine and non-controversial, typically approved together without individual discussion unless a council member requests separate consideration.
The consent calendar includes a proclamation declaring June 2025 as Gun Violence Awareness Month in Richmond, with individual recognitions planned for local organizations, including the Office of Neighborhood Safety, Faith in Action East Bay, and Moms Demand Action’s Contra Costa Chapter. The proclamation will also honor the families of gun violence victims Maciyah Brown and Joseph Alexander II.
In public safety matters, the council will vote on adopting fire hazard severity zones within the city as recommended by the California Department of Forestry and Fire Protection. The measure represents the second reading of an ordinance to formally designate these zones.
The Police Department is seeking approval for contract amendments with three towing companies, increasing payment limits by a combined $160,000 to handle rotational tow and automotive services through December 2025.
Other items include accepting a $34,058 contract for automatic defibrillator battery replacements, approving a revised resolution for affordable housing grant funds, and establishing biannual reporting requirements for the city’s Arts and Culture Division to provide updates on art projects being developed in the city.
Councilmembers will also consider a proclamation recognizing Juneteenth and the contributions of African Americans to Richmond.
The council will also approve a cooperative cost pool agreement with the Richmond Rent Board and make appointments to the Commission on Aging and Youth Council.
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