Richmond Heights council approves hiring municipal advisor, debates issuing $5 million in notes to expand road program

Richmond Heights City Council approved a resolution to retain Rock Mill Financial Consultants as the city's independent municipal advisor and spent an extended period discussing whether to issue short-term debt to expand this year's road program.

The council and administration told residents that the city of Cleveland proposed piggybacking on Richmond Heights' planned work to replace water lines, increasing the project scope by a reimbursement amount of $11,808,000. That change prompted staff and the city's financial advisor to recommend issuing short-term note financing (approximately $5,000,000 discussed in the meeting) rather than drawing down general-fund cash, citing economies of scale in bidding and the need to preserve reserves.

Why it matters: council members and multiple residents said issuing notes would preserve flexibility if revenues weaken during a possible recession and would attract more, larger contractors by packaging a larger project. Administration and the advisor also noted the city holds roughly $8,000,000 in reserve and earns four to four-and-a-half percent on those…