Richmond presents $550 million FY26 capital plan; officials warn $300M courthouse would breach debt policy

Sabrina Joy Hogg, interim chief administrative officer for Richmond City, told the council the proposed fiscal year 2026 capital improvement plan (CIP) totals $550,000,000 and the five‑year plan totals about $2.1 billion.

The plan, Hogg said, relies primarily on general obligation (GO) bonds, utility revenue bonds, pay‑as‑you‑go cash, prior appropriations and federal, state and regional grants. She warned that a $300 million to $350 million courthouse included in some discussions would violate the city’s debt policies and “be a mark against us on Wall Street.”

Why it matters: capital decisions made now can carry 20‑ to 30‑year repayment implications and affect Richmond’s credit ratings and interest costs. Hogg emphasized that rating agencies evaluate reserves, liabilities and demographic trends when setting credit ratings, and the city must weigh capacity versus affordability when authorizing long‑term debt.

Key elements of the FY26 proposal: transportation projects account for nearly half of the five‑year general capital total; school construction and renovation account for about 24%; capital investments such as affordable housing and park projects about 10%; capital maintenance another 10%; and a fully cash‑funded vehicle replacement program represents about 7%.

Hogg described several named projects included in the plan or under way: replacement of multiple fire stations and a police…