The Richmond City Council held a budget work session on April 28, 2025, focusing on the finalization of the city’s budget and revenue forecasts. The meeting was led by City Assessor Richard McKeith, who provided insights into the projected 6% increase in taxable real estate for the upcoming year.

McKeith explained that the forecast is based on historical data, noting that the city experienced significant fluctuations in property values over the past few years. In 2023, the city saw a 13% increase in taxable property, which dropped to 7.7% in 2024, and further decreased to 6.7% in 2025. He emphasized the importance of considering various economic factors, including interest rates and national economic trends, which have influenced the real estate market.

The Assessor highlighted that the current assessment sale price ratios indicate a stable market, with many neighborhoods showing ratios in the high eighties to nineties. He expressed caution in making aggressive forecasts due to the uncertainty surrounding the national economy, including potential recession fears. Despite these challenges, McKeith remains confident in the 6% projection, stating it reflects a healthy market trend.

Council members engaged in discussions about the implications of the budget and the potential for tax rate adjustments. Some expressed concerns about the city's ability to manage revenue surpluses effectively, suggesting that a review of tax rates may be necessary to alleviate the financial burden on residents.

The session concluded with a commitment to continue monitoring economic conditions and adjusting forecasts as needed. The final budget is set to be established and passed on May 12, 2025, marking a critical step in the city's financial planning for the upcoming fiscal year.