Record pay increases for Richmond city employees, along with hikes in spending on youth programming, affordable housing, public education and street paving.

Those are among the areas that Mayor Levar M. Stoney emphasized Monday as he rolled out his seventh budget plan since taking office and the first ever to top $3 billion as the financial blueprint for Richmond and presented it to City Council.

Mayor Stoney emphasized two elements of his proposed financial package for the 2023- 24 fiscal year that begins July 1 that are of the most concern to the council and the public — the general fund into which taxes, fees and state funding flow, and the capital budget that includes spending on buildings roads and other infrastructure and mostly involves borrowing.

In his budget address, Mayor Stoney said his proposal, fueled by a $110 million jump in general fund revenue, which could be the largest single-year increase ever, seeks to continue the work to make Richmond a better, more equitable place to live.

The council plans to hold a public hearing 6 p.m. Monday, March 27, to hear public comments before considering amendments, and has set a schedule for approving the final package in early May.

The mayor’s proposal calls for a $949 million general fund, representing an unprecedented 13 percent jump from the current $838 million budget. The proposal calls for an expenditure of about $4,100 for each of the city’s 230,000 residents, an increase of $500 per resident from the current budget.

He did not include any request for an increase or cut in any tax rates, but Richmond residents are anticipated to pay $106 more per year for water, wastewater, gas and stormwater services as a result of a proposed increase in basic rates.

Growth in consumer spending as pandemic worries recede helped propel revenue proposal, with the city projected to see a 22.5 percent jump in the sales tax on goods and services, a 19.2 percent increase in tax collections from restaurant meals. Another key is the continued growth in tax revenues on real estate, which the budget plan estimates will be up $61 million or 16.2 percent over the current levels.

City employees, who are on the verge of unionizing, are among the biggest winners. Seeking to match Henrico County’s proposal, the mayor’s budget plan proposes investing $26 million to raise general employee pay 8 percent and provide at least an additional 5 percent increase for firefighters and police who got a major raises this year. His proposal also includes funding for new programs to

help employees buy homes and cover tuition costs for college. He also proposed boosting the city’s contribution to Richmond Public Schools to $221 million, a 10 percent increase from the current $200 million that would largely cover the cost of raises for the already unionized teachers and other RPS employees. His proposal represents a $70 million increase in city taxpayer contribution to RPS since he first took office in 2017.

The mayor’s proposal, though, would be at least $7.5 million less than RPS requested, forcing the School Board to make cuts in its spending plan. The mayor’s proposal also is $22 million less than the share that a now defunct council policy once promised.

Along with operating cash, the mayor, also as anticipated, included $200 million for RPS in the capital budget to develop a new George Wythe High School, now projected to cost $154 million.

To the delight of at least two council members, he also proposed providing an additional $15 million in the capital budget to cover the full cost of rebuilding burned-out Fox Elementary School in the Fan. The cost is pegged at $25 million, but RPS is only anticipating receiving $10 million from its insurance coverage.

“It is my hope that the Richmond School Board will act swiftly to start the construction of George Wythe High School and begin the process for construction of a new Fox Elementary,” Mayor Stoney said.

Other budget proposals include:

• $2.5 million to maintain the 44 existing school buildings, at least 13 of which are 100 or more years old.

• $14 million in the capital budget to address the city’s $200 million backlog of deferred maintenance.

• $10 million for the Affordable Housing Trust Fund, which mostly aids developer financing of income-restricted housing and proposed that an additional $10 million be provided each fiscal year through 2028. If approved, the trust plans use part of the money to encourage building of affordable single-family homes.

• $500,000 for a new initiative to assist residents purchase manufactured housing or mobile homes, and $1.75 million toward the future development of a year-round homeless shelter.

• $6 million in the capital budget to enable development of a new building at the Southside Community Center in the 9th District. An existing appropriation of $15 million proved insufficient due to inflation in construction costs.

• $7 million for park improvements, plus $1 million to improve after-school programming at city recreation centers.

• $800,000 in additional funding to enable the city’s library system to cover the cost of providing Sunday operating hours at four libraries.

• $1.7 million to fund a tuition assistance program for Richmond high school graduates enrolling in a community college.