Richmond's overhead in fiscal 2007: $52 million - Search

Richmond's overhead in fiscal 2007: $52 million

Amount of $267 per resident is sixth most in Va., but city says the total was incorrectly tallied

Sunday, Feb 17, 2008 - 12:09 AM Updated: 12:49 AM

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So how much did Richmond spend on administering local government?

Officials told the state Auditor of Public Accounts the figure was $51.8 million in the fiscal year that ended June 30. That amounts to $267 per resident, sixth highest in the state after three Northern Virginia cities and the tiny communities of Charles City County and Buena Vista.

When the Richmond Times-Dispatch asked about the number, Chief Financial Officer Harry E. Black said he was planning to correct it.

He said he expects the final figures will show that the city cut administrative spending from 2006's $59.7 million to $46.1 million last year.

Black said the main reason is that some spending was counted as administrative spending when it shouldn't have been. The spending will be counted as "nondepartmental" instead, he said. That includes:

$6.3 million paid in 2006 to subsidize the Greater Richmond Convention Center. Although Black said the city still covers half the center's costs, it will not report the total as administrative spending.

$5.1 million in meals-tax collections paid in 2006 for a downtown performing-arts center project. The 2007 payment was $2.8 million. Black said the amount would not be counted as administrative expense in the corrected figure.

An unspecified transfer to the city's internal insurance fund.

If taxpayers think of the spending on the two centers and the insurance as part of the city's overhead, its ranking for per capita spending wouldn't change.

If taxpayers agree with Black that those are not administrative overhead expenses, then the city's ranking for per capita spending slips two notches, to rank below Manassas in Northern Virginia and the city of Franklin.

--David Ress