Because of the pandemic, state and local government officials are viewing looming budgets with uncertainty. But today, one Virginia locality is actually celebrating a financial win.
Four years ago, Petersburg was in such a deep financial crisis that Virginia lawmakers were worried about the impact on the commonwealth as a whole. The city owed money to the state and it had no cash reserves.
But this week city officials announced that three years of disciplined financial management have paid off. The city manager says they’ve gone from being $8 million in debt, to now having $8 million in reserves. The city’s credit rating has also rebounded.
One big reason is that the city has managed to bring tax collection rates up from 60-percent to a high of 85-percent.
Petersburg officials hope to build on the momentum and put away even more in reserves.
