Senior Richmond City Hall officials would be eligible to receive up to a full year’s salary in severance pay under a more generous policy proposed by Mayor Danny Avula’s administration.

Under current city policy, severance for departing employees is calculated based on years of service. Longer-serving employees can receive higher amounts, but severance is capped at an amount equivalent to 36 weeks of salary for officials with at least 15 years of full-time service.

The pay plan attached to Avula’s $1.1 billion budget proposal for the next fiscal year would change that, creating a new severance policy for “senior executives.” Under the new policy, senior officials could receive up to a year’s salary in severance, or about 52 weeks, regardless of how long they’ve worked for the city. 

The Avula administration says the change will bring Richmond more in line with the benefits other cities offer to top government administrators.

“This is something that occurs in many of your best-run cities around the country,” Chief Administrative Officer Odie Donald II told the City Council Monday during a budget work session.

A city spokesperson characterized the proposal as a way to help the city’s recruitment efforts.

“The Mayor agreed to revisit and improve the severance policy for some senior employees,” said Avula spokesperson Mira Signer. “The proposed policy is based on best practice standards, and is a recruiting tool that will help attract top talent to very senior roles. All councilmembers were briefed on the proposed policy.”

The proposed severance policy for senior executives also allows for lump-sum payouts, a shift from an existing rule that requires severance to be spread across regular city payroll cycles for all employees. Based on the salaries City Hall offers, that could translate to one-time severance payments in the $200,000 to $350,000 range for top administrators and department heads.

Though severance pay is a common benefit in local government to allow mutually beneficial exits for high-ranking officials, it’s been a touchy subject in Richmond.

Severance payouts have occasionally been used when officials are being asked to leave City Hall under a cloud of controversy. Payouts for departing employees are often coupled with broader separation agreements that are treated as confidential but can include provisions prohibiting former employees from suing or criticizing the city.

Severance given to several departing appointees of former Mayor Dwight Jones made headlines in early 2017 after former Mayor Levar Stoney took office and realized the $166,000 in payments would come out of the budget he was inheriting.

In a list of written questions about the Avula administration’s budget proposal, Council staff members asked what safeguards were in place to prevent budget shortfalls if a departing leader at City Hall were to OK “large payouts to senior staff before an incoming administration takes office.” The Avula administration has not yet answered that question in writing and it didn’t come up during Monday’s discussion.

Avula has committed to releasing severance pay information on an annual basis, but it’s unclear how much detail would be immediately available if a top city official were to suddenly depart.

The proposed severance change seems likely to spark debate among City Council members reviewing Avula’s budget proposal.

During Monday’s meeting, Councilor Kenya Gibson (3rd District) said she was concerned about large payouts and whether they would help or hurt staff consistency.

“If someone could make a $200,000 payout by leaving, I’m not sure that serves our residents best,” Gibson said.

Donald said the proposed severance policy would help make the city a “model employer.”

Referring to himself as one of the most “sought-after” public administrators in the country, Donald said he was unlikely to take a job anywhere “without an agreement to have a severance of at least a year.”

The possibility of a severance payout can be an important staff protection, he said, especially in a “very politicized environment.”

“This is a tough environment to work in,” Donald said. “I can tell you that myself. It’s just not easy.”

There is no specific amount of money budgeted for increased severance in Avula’s budget proposal. Donald indicated any payouts would likely be funded through vacancy savings or other measures.

The Council recently started its process of reviewing the mayor’s proposed budget for fiscal year 2027, which begins July 1.

Council members will propose amendments to the budget within the next few weeks. A final vote is expected on May 11.

Contact Reporter Graham Moomaw at gmoomaw@richmonder.org