Mayor, council reach budget accord

Mayor L. Douglas Wilder and City Council compromised on a two-year budget that would increase spending for police and schools and rely on increased real-estate tax revenue despite a cut of nearly a nickel in the tax rate.

At Monday's Council meeting, which included closed-door meetings and awkward silences, Wilder's staff and the council also found ways to trim the budget, agreeing to:

Cut spending across the board in all city departments -- including the council's budget -- by 1.5 percent for a savings of nearly $5.1 million;

Budget for a higher turnover rate in City Hall positions, trimming spending by $3.8 million;

Eliminate $800,000 worth of city positions. The mayor's office has not yet identified which ones will be axed;

Pay only half of the city's bills on economic development deals associated with Richmond Marriott, SunTrust Mortgage and the Greater Richmond Convention Center, saving $2.7 million. Council members say Wilder plans to renegotiate those deals and possibly save the city money. Otherwise, the council could be forced to pay the rest of the bills next year.

Details about the new budget, and an article about Council's plans for the future of the foundation behind the proposed downtown Arts Center, in Tuesday's Times-Dispatch.

What are people saying about mortgages today:

Rates on 30-year mortgages edged down last week to a seven-month low. Mortgage-giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages fell to 6.3 percent, down slightly from 6.31 percent two weeks ago. It put rates at the lowest level since they were at 6.24 percent the first week of March.

Bank of Hawaii, Central Pacific Bank, Territorial Savings Bank and Wells Fargo Home Mortgages all cut their 30-year mortgage rates to 5.75 percent this week.

Most people think of a mortgage as a means to an end. After all, you buy a house, not a home loan. But a mortgage is much more than the path to homeownership. It is a financial instrument that must be managed, just like any other financial investment.