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City of Petersburg, Virginia

Academic, Operational & Administrative Performance Assessment (2013–2015)

Executive Summary

Engaged during a severe fiscal crisis, The Robert Bobb Group was brought in to stabilize City operations, restore financial credibility, and lead a multi-year financial recovery effort that materially improved the City’s fiscal position and bond rating trajectory.

The Challenge

  • $18.8 million structural deficit and acute liquidity crisis

  • Inability to meet vendor payment obligations and mounting legal exposure

  • Significant erosion of fund balance and financial controls

  • Declining bond ratings, including a downgrade to BB with negative outlook

  • Leadership and operational instability during a period of fiscal emergency

Our Role

RBG was engaged to assume leadership of the City’s financial and operational stabilization, including:

  • Taking control of City operations and financial management during the crisis period

  • Stabilizing cash flow and negotiating settlements and payment plans with vendors and creditors

  • Reducing outstanding liabilities owed to vendors, the Virginia Retirement System (VRS), and other parties

  • Securing short-term financing to ensure payroll continuity and uninterrupted City services

  • Supporting the recruitment and placement of key leadership roles, including City Manager and Finance Director

  • Rebuilding financial controls, reporting discipline, and governance structures

The Outcome

  • Reduced outstanding liabilities from approximately $18.8 million to approximately $5.8 million

  • Stabilized City operations and restored fiscal order and management discipline

  • Improved bond rating trajectory, including:

    • Upgrade from BBB- to BBB+ by Standard & Poor’s Global Ratings

    • Three consecutive years of bond rating improvements

  • Restored credibility with creditors, vendors, and capital markets

  • Re-established a sustainable foundation for long-term fiscal governance and financial stability

Capabilities Applied

  • Financial Recovery & Turnaround

  • Crisis Management

  • Fiscal Restructuring

  • Governance & Controls

  • Executive Leadership

  • Public Sector Stabilization

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