While the nation and the world are severely impacted by the recent turmoil among financial markets, the situation closer to home at City Hall, while under close monitoring, poses no cause for alarm or panic.
The City of Richmond is on solid financial ground and should be able to weather the economic storm without any major disruptions to City services or large-scale layoffs.
You would not know this from the caterwauling of mayoral candidates, however.
We are better prepared than most cities to weather the storm because we have been vigilant in balancing expenditures and revenues, but there is no doubt we will be sailing through heavy seas.
We are working NOW to deal with cutbacks in state revenues and a sluggish economy and we are not waiting until the ship is listing to one side. Our stability is due to solid and consistent financial planning and budgeting during the last four years.
The City's actions so far include a targeted hiring freeze, capping the rate of spending in City departments, and re-examining large purchase obligations.
Even when I warned City Council in March that times were tight and the City needed to conserve every available dollar, Council cut the real estate tax rate and took away $6 million in annual revenues from the City's coffers. In good economic times, this could be expected. In bad times, it is folly.
The City's financial track record is evidenced in this chart that shows a
consistent pattern of spending since 2005. The City's revenues reach their peak in May when real estate tax collections are due. The lowest point comes in the winter months, when the City borrows short-term bonds to meet expenditures.
Our government can further increase efficiency by rooting out waste, corruption and fraud. Much of the systemic abuse that plagued Richmond for decades has been eliminated, but we still address those isolated pockets that represent ongoing challenges for any government or private business.
Budget deficits, however, are not the result of such malfeasance; instead, they are linked to overall economic swings and poor planning. Presently the entire nation, the states, and all localities are in facing a down swing.
The despair of some other cities is pronounced. Chicago recently laid off 1,000 workers and Hartford might lay off up to 20% of its workforce. Fairfax County faces a $430 million deficit, forcing spending cuts of at least 10%. Norfolk faces a $22 million hole, while Portsmouth has a $13 million shortfall.
In Richmond, we will balance out FY2008 by a razor thin margin. FY2009 will be challenging as lower sales tax receipts, lower home assessments, and reduced state aid all combine to pinch the budget.
I remain confident that our continued fiscal responsibility will keep any required adjustments minimal in nature.
Initially, a few complaints were registered when the Councilman proposed the legislation because he claimed that not enough questions were answered. However, two of three neighborhood associations and another involved Councilman whose district borders the intersection have all supported the roundabout. 
