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Councilwoman Gray hosting online Second District town hall, introducing two resolutions to help small businesses

Councilwoman Kim Gray (2nd District) issued a statement today calling for the City of Richmond to support small businesses, especially the hard-hit restaurant industry, during the COVID-19 crisis, through two draft resolutions.

RVAHub Staff

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Councilwoman Kim Gray (2nd District) issued a statement today calling for the City of Richmond to support small businesses, especially the hard-hit restaurant industry, during the COVID-19 crisis, through two draft resolutions.

Gray’s first proposed paper asks the City administration for revised revenue estimates for FY 19-20 and FY 20-21, including any assumptions and methodologies used in the revised forecast, by April 3.

A second proposed paper calls for the Administration to find ways to administratively, legally or legislatively accomplish the following:

  1. Rescind the Richmond City meals tax for the months of February, March and April (March, April and May payments);
  2. Refund 50% of the 2020 Richmond Business, Professional and Occupational license taxes paid by restaurants prospectively to the City in January 2020 or later (given that estimates of future restaurant sales for the remainder of the year were based on normal operations, which is no longer a realistic assumption); and
  3. Re-forecast restaurant-related revenues for FY 19-20 and FY 20-21 to allow for timely amendments to the current and proposed annual budgets in order to offset any fiscal impacts.

Both proposed papers also call for the Administration to submit new budget recommendations based on the impact of the effects of COVID-19 to date.

“While the Governor is aggressively addressing the major health and education issues confronting our Commonwealth, City Council needs to prepare for the long-term battle and help pave the way for ultimate economic recovery,” Gray said in a news release. “First and foremost, we need to create a substantial contingency fund to address the many challenges that lie ahead. That will require a revised revenue forecast for the current fiscal year and the fiscal year that begins on July 1, 2020. Creating such a contingency will also require hard choices and due diligence on each and every expenditure by the City.

Equally important will be meaningful and immediate tax relief for our small businesses and especially our restaurants. Richmond restaurants face perhaps the highest tax burden of any industry in the City, and its workers have been the most immediately affected by the COVID-19 crisis.

Finally, the City needs to build long-term COVID-19 prevention into every decision. The dismantling of the Camp Cathy encampment is a case in point: With no long-term plan for the housing of these individuals, they, as well as the community at large, are vulnerable to further transmission of the virus.”

City Council should not be forced to make what will likely be very tough budget decisions on the fly with outdated information,” Gray said. “We need the city government to come together to meet the needs of its citizens, and that may very well require additional tax relief to the most threatened families, individuals and businesses in the City.”

Gray will host a Facebook Live session tonight, Monday, March 30, at 7 p.m. to discuss the proposals and hear from Richmond residents. View her page here.

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