City real estate rate stays put as Council avoids major service cuts

Richmond City Council has voted to maintain the city’s real estate tax rate at $1.20 per $100 of assessed value, avoiding $17 million in cuts to essential public services. The move follows the passage of Ordinance 2025-207, a proposal backed by Mayor Danny Avula to preserve funding for schools, public safety, infrastructure, and neighborhood services.

The decision to hold the tax rate steady comes as local leaders face increased demands on city services and rising costs. Each cent of the real estate tax rate generates approximately $4.2 million in revenue. A rate reduction would have required cuts to key services across the city.

“Richmonders expect and deserve stability,” said Mayor Avula. “With the passage of this ordinance, we’re protecting the progress we’ve made together – investing in our schools, keeping our neighborhoods safe, and strengthening infrastructure that supports smart growth and opportunity.”

City Council President Cynthia I. Newbille echoed the focus on fiscal responsibility, calling the vote a demonstration of the city’s commitment to meeting residents’ priorities without sacrificing critical services. “Council is committed to building a strong community by ensuring stable funding for education, safety, health, sanitation, roads, and infrastructure,” Newbille said.

The Service Employees International Union (SEIU) Virginia 512 also applauded the decision. “Today’s vote is a win for Richmond’s frontline workers, working families, and the public services that keep our city strong,” said Felicia Boney, the Richmond Chair of SEIU Virginia 512. She highlighted that maintaining the rate helps protect union jobs and ensure a living wage.

Council moves ahead on affordable housing and green energy

In addition to securing funding for core services, Council approved Ordinance 2025-226, which advances the construction of at least 246 units of affordable housing throughout Richmond. The new homes will be located near public transit, parks, and job centers.

“Affordable housing is essential to creating thriving, inclusive neighborhoods,” said Merrick Malone, Director of Housing and Community Development. “This project reflects the kind of progress we need to make a real difference.”

Council also advanced the city’s climate and sustainability goals with the approval of Ordinance 2025-191. The measure authorizes a 35-year lease for a solar farm and pollinator meadow on a former landfill site in the East End, developed with input from the surrounding community. The initiative is part of the broader RVA Green 2050 plan, and includes a Community Benefits Agreement to support additional neighborhood-led projects.