RICHMOND, Va. — Members of Richmond City Council offered mixed reactions to the city administration’s efforts to transform the finance department after it was the subject of criticism over tax collection and billing issues.
Earlier this year, dozens of restaurant owners came forward to express frustration with unexpected and dramatic meals tax late fees and accounting concerns, which put the finance department’s operations under the spotlight.
“I do think the meals tax issue that we had at the beginning of this year was sort of a tipping point, and at that time, council did work closely with the mayor’s office to put in some financial reform,” Council President Kristen Nye said.
In recent years, the department also sent incorrect personal property tax bills to tens of thousands of residents and was under investigation by the inspector general’s office for allegedly failing to notify taxpayers of credits on their accounts.
“I think a lot of the headlines we’ve been seeing over the last several months have been indicating a challenge within the operations of our Finance Department and other core functions related to how we bill our residents, businesses, etc.,” Councilmember Andreas Addison said.
The city has largely acknowledged the concerns of citizens and business owners and committed to making process improvements.
This year, the city contracted help from an outside consultant for $200 per hour to help turn the department around, began implementing an online billing system called RVAPay, and the city council made sweeping changes to tax policy.
The department has also made some personnel changes.
WATCH: Fired finance department worker put Richmond Mayor Stoney on blast
Fired finance department worker put Richmond Mayor Stoney on blast
Last week, three terminated employees spoke out to CBS 6 saying they were fired without cause and called the circumstances unfair.
“Why they let me go yesterday? I have no idea. They wouldn’t give me any reason,” Janice Bishop told CBS 6 last week. “We did not get any written notices, any warnings, nothing prior to.”
The city would not comment on personnel matters, but the employees, two of which were hired through the city’s own job fair, said they entered a work environment that was dysfunctional and unorganized.
The former employees were only hired a couple of months prior to their terminations and claimed they were not given proper training and had to use antiquated systems to do their jobs.
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While a city spokesperson disputed claims that employees are not trained, some city council members told CBS 6 the former workers’ concerns were consistent with feedback they’ve heard from other city employees dating back many years.
“I think we’ve had these issues for a long time. I don’t think that’s anything new, but I do believe it is today’s problem to solve,” Addison, who is also running for mayor, said. “I also know that training is very short in City Hall, and a lot of the training is done on the job at the desk, kind of learn as you go.”
“I do think that we need to really invest in our training, not just in the finance department, but really citywide,” Nye said.
“Give them what they need. Give those employees, if they want more training, give them more training,” Council member Reva Trammell said. “I do not think the finance department had the tools that they needed to do their jobs.”
Training problems aside, Nye and Trammell said they were generally supportive of how Finance Director Sheila White is addressing systemic problems they say have been neglected for years.
“I really see them taking more of a holistic approach to making changes in the finance department. And yes, it’s painful, and yes, some people are being let go and reorganized,” Nye said. “Instead of just reacting to the fire, it seems like they’re really trying to make some systematic changes so that we’re more responsive to our citizens.”
“I think it’s headed in the right direction. I think Ms. White is now on top of things, looking at things and making some hard decisions,” Trammell said.
Council member Stephanie Lynch said White was presented an uphill battle when she came into the position in 2021 amid “historic dysfunction and cultural issues in that department” due to a “lack of structural integrity.”
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Meanwhile, four council members including Ann-Frances Lambert, Ellen Robertson, Cynthia Newbille, and Nicole Jones said in a recent candidate forum that they would not support keeping White on the job.
CBS 6 asked each of those council members, who are seeking re-election, why, and only Jones responded.
Jones said her position has nothing to do with White’s performance. Instead, she said she’d like to see a fresh start in light of all the controversies.
It’s important to note council members set policy, make budget decisions and provide oversight. They do not appoint city directors. That’s the responsibility of the mayor’s administration.
WATCH: Richmond Finance Director holds meeting after employee firings, tells staff: ‘We’re not hitting the mark’
Richmond Finance Director holds meeting after employee firings, tells staff: ‘We’re not hitting the mark’
Last week, Mayor Levar Stoney said he did not believe any leadership issues were at play within the Finance Department and that White is the best director in over a decade.
Addison did not entirely agree, saying the department’s troubles are not the fault of lowe-level employees.
“It’s definitely not the employees’ issue,” Addison said. “I believe our employees have just as much of a fair share of saying, ‘leadership is to blame of engaging me and helping make the problem better.’”
He added that technology and system fixes may be “putting band-aids on surgery wounds.”
Councilor Lynch expressed similar concerns, saying the “finance department is tragically behind the times on IT implementation” and its system “lacks sophistication.”
System issues were documented back in 2018 when the city auditor’s office noted outdated technology didn’t allow employees to be “effective and efficient in performing their jobs.” The auditor recommended the city upgrade its systems by 2020, but that did not happen.
But moving forward, Lynch said migrating from legacy systems presents a “huge risk” if strong organizational change management procedures are not in place and enforced.
In a secretly recorded staff meeting, White was heard telling staff that she’s focused on ensuring the right people, systems, and processes are in place after years of neglect.
She acknowledged her department was “not hitting the mark” and she was disappointed in the service being delivered to citizens.
“We are continuing to optimize our processes and policies. The overwhelming majority of Finance employees are committed to raising the bar and providing the excellent customer service that our residents expect,” city spokesperson Margaret Ekam said in a statement.
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