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 funds, a factor they said helps manage rollover risk if short-term rates rise.

Details of the discussion: David Conley, the city's retained financial consultant, explained that enlarging the scope makes the project more attractive to bidders and likely improves competitive rates. He and others cautioned that prices for materials and services are increasing and that delaying the work could raise total project cost. Conley described the plan as short-term note financing with a one-year rate lock and the option to convert to longer-term bonds later, and he warned of the risk that short-term rates could spike when notes roll (historical one-year spikes were mentioned as a risk scenario).

Several council members and residents pressed for fiscal clarity. Councilwoman Nelson said the council had previously paid about $40,000 under an earlier consulting contract and had not yet received the five-year forecast she expected; she asked for invoices, receipts and an explicit deliverable schedule before renewing or extending the consultant's contract. Administration and other council members said Conley is engaged on multiple, ongoing tasks beyond a single forecast (including capital recommendations and sewer-related guidance), that the work is continuous and that staff will provide requested documentation. After discussion, the council voted to retain Rock Mill Financial Consultants (Resolution No. 52-2025) and later held a separate renewal/related resolution (Resolution No. 53-2025) at first reading so Councilwoman Nelson could receive additional documentation and invoices.

Formal actions recorded during this agenda item: council approved a resolution retaining Rock Mill Financial Consultants to serve as the city's municipal advisor; the council also approved a motion to remove the word "bonds" from an ordinance indicated on the agenda (the motion passed on roll call). The council agreed to hold one renewal resolution at first reading to allow staff time to provide the records requested by Nelson.

What councilmembers said (selected): Conley described the financial tradeoffs of using notes rather than spending cash: "If you only go out for . . . a $500,000 project, you're not gonna get many people . . . If it's a $5,000,000 project, you're gonna get . . . a lot more companies" (David Conley, financial consultant). Councilwoman Nelson asked for a clear accounting of prior contract work: "We paid you, I think it was a sum of $40,000 for a projection in the first contract, and we haven't gotten that projection" (Councilwoman Nelson).

Next steps: the administration said draft ordinance language and the consultant contract would be circulated to council in the following days; the council agreed to place the ordinance on the next regular meeting agenda once members had the requested documentation. The council also agreed to keep the road-financing plan under close review and to return to the council with final ordinance language before issuing debt.

Ending: The expenditure-approval and consultant-retention discussions will return to a future meeting after staff provides the forecast deliverables and invoices requested by Councilwoman Nelson. In the meantime, the administration said it would proceed with technical preparations for the road program and short-term financing option analysis.