Richmond Heights hears plan to borrow up to $5.2 million for citywide road program; municipal advisor proposed

The Richmond Heights City Council heard a presentation from David Connolly of Rock Mill Financial on a plan to issue short‑term municipal notes to finance a comprehensive road improvement program totaling about $5 million and to retain a municipal advisor to oversee the transaction.

City officials said the financing would be issued as one‑year notes, with the city able to renew notes annually or convert to longer bonds later. Connolly told the council that “borrowing is in the neighborhood of 3 and a half percent,” and that, given current city investment returns, “it would make more sense to borrow for significant capital projects.” He described the municipal‑advisor role as the SEC‑regulated responsibility to ensure “the debt is appropriate for the city and that the structure of the debt is appropriate, the interest rate is appropriate, the fees associated with doing the transaction are appropriate.”

Council members and staff discussed the size, timing and repayment strategy. Connolly said the ordinance authorizing the issuance will be drafted by Esquire Boggs and estimated the authorization will be set “not to exceed $5.2 million.” He said the finance department plans to pay the notes down “rather rapidly over a period of 5 years” and that, under current assumptions, the city would pay roughly $1 million per year on principal. Connolly also noted that a grant the city expects — described in the meeting as approximately $1.8 million — will arrive after the project begins and could be used to reduce principal.

Council discussed fees and sources of payment. Staff said the proposed municipal‑advisor fee is $4 per $1,000 borrowed and that the advisor’s payment would come from issuance proceeds. Finance staff identified the city’s special street improvement fund (Fund 410) as the account for project receipts and expenditures; the meeting record referenced an engineer’s estimate of $5,206,111 for the program.

Speakers asked about scope and timing for specific streets. City staff said Brush Road, Douglas and Dunbarton will be repaved in 2025, with new water lines to be completed in coordination with Cleveland Water; Harris Road was described as in poor condition and slated for 2026 work. Staff said the project list was included in the budget already approved by council.

The council did not vote on issuance of debt or on the ordinance at the meeting. Council was presented a resolution to retain Connolly as municipal advisor; Connolly said that engagement would be short term (90 days) and that the council would have time to review the draft agreement and ordinance at a future meeting. No formal vote on that retention resolution occurred during the recorded discussion.

Next steps identified in the meeting: council review of the draft ordinance prepared by Esquire Boggs, formal consideration of a resolution to retain a municipal advisor, and future authorization if council decides to proceed with the note issuance.