The Richmond City Council is wielding its budget knife in response to repeated clashes with the city administration, stinging audits and a cut to the real estate tax rate.

Last night, the council introduced amendments that have the net effect of reducing Mayor L. Douglas Wilder's proposed budget by about $3 million, from $658.1 million to $655.1 million for fiscal 2008-09.

The changes highlight controversies that have made headlines for months.

They would scrap all automobile allowances for city employees, slash by nearly half the budget of the mayor's press secretary and force a reduction in spending by the offices of the mayor and the chief administrative officer.

They also would cut $1 million from what had been budgeted as a profit on fleet operations and $1.6 million on the amount available for the procurement of goods and services. City audits showed both areas as ripe for cuts.

City Council President William J. Pantele said the amendments are designed to reform city spending practices "as best we can from the legislative side of the budget." Administration officials had no comment on the proposed changes last night.

"I feel like the mayor put forth a good budget, but we enhanced it, and we held the line on spending in the administration," City Councilman Bruce W. Tyler said.

Council members started looking to cut the $196,060 allotted for automobile allowances after learning that several dozen employees were getting them.

That group included Wilder, who was collecting a $700 monthly allowance while being given access to a city vehicle through a police-security unit. Wilder repaid $25,900 in allowances last month, saying he hadn't realized he was collecting them.

"It's an area of expense that, much to our surprise, had mushroomed from a couple of city employees to widespread," Pantele said. "It seems like that was an expense that was uncontrolled. Given the reports of some abuse, I think the best thing to do is cut it across the board."

Last night, the council introduced ordinances that would eliminate the mayor's option to receive the allowance and would establish criteria for employees to be reimbursed for automobile expenses incurred for city business.

Another driver of the budget amendments was the council's decision to cut the real estate tax rate to $1.20 per $100 of assessed value. Wilder had proposed keeping the rate at $1.23 and warned that a reduction could affect city services.

"Although we were warned against doing so, I was confident we could have the relief without jeopardizing city services," Pantele said.

The council is scheduled to vote on the amendments May 27. Wilder then will have two weeks to accept or veto the changes. Council members have tried to guard against that by proceeding only with amendments that could garner the six votes needed to override a veto.

City Councilman E. Martin Jewell said the amendments go too far by forcing unnecessary reporting requirements on the city administration.

"When we see staff growing, it's because council wants to manage the managers," he said. "That's not our job."
Contact Will Jones at (804) 649-6911 or wjones@timesdispatch.com.