Richmond council delays vote on up to $11M parks bond tied to new food-and-beverage tax

Richmond — The Richmond City Common Council on March 2 heard detailed financial and legal briefings on a proposal to use proceeds from the newly enacted 1% local food-and-beverage tax to back park improvements, but delayed final action to allow more review.

Beth Fields, the city's director of strategic initiatives, opened the item by describing two linked steps: a short-term bond anticipation note (BAN) to finance roughly $4.5 million in immediate park projects, and a potential long-term bond issuance later this year of up to $11 million to refinance the BAN and fund additional prioritized projects.

"This is related to the bond anticipation note and the bond that are under consideration in ordinance 11 2026," Fields said, describing required advertising timelines and the plan to return to council for final appropriation. Municipal adviser Jason Simler of Baker Tilly told the council the BAN would let the city start visible, shovel-ready projects while collections from the new 1% food-and-beverage tax ramp up. Simler presented a revenue projection that shows a partial year of collections in 2026 (roughly $770,000) and an annualized estimate of about $1.5 million thereafter, and estimated that a 20-year bond at projected sizes would produce roughly $800,000 in annual debt service.

Bond counsel Lisa Lee of Ice Miller summarized legal mechanics and safeguards, including that the reimbursement resolution would preserve the city's option to repay itself from tax-exempt bond proceeds and that the parameter ordinance sets maximums — $5 million for the BAN and $11 million for the long-term bonds — and a maximum interest cap. "It doesn't commit you to do anything," Lee said of the reimbursement resolution, noting the structure is intended to preserve flexibility for the council.

Park Superintendent Denise Ratz outlined priority projects the parks team would target first if BAN proceeds are authorized: equipment and pump repairs at Highland Lake, replacement of aging playground and splash-pad components at Glenn Miller Park, roof repairs for multiple facilities (estimated ~ $350,000 for 14 roofs), pond dredging (last undertaken in 1972), trail resurfacing, signage and venue upgrades, and certain capital equipment.

The public hearing drew supporters and opponents. Nassia St. John of the Wayne County Foundation urged approval, saying local philanthropic partners had committed substantial funds and that visible projects would reinforce the value of the tax. Opponents urged caution: resident Nick Wilson warned the council to "take your time" and "put that money in the bank" to build collection history before committing to bonds; Joe Schroeder warned against using the tax to service debt if revenues fall short.

Council members pressed staff and advisers on revenue assumptions, interest-rate sensitivity and park staffing and maintenance costs. Several members said they wanted more time to review the cash-flow assumptions and to see a project exhibit attached to the appropriation ordinance. After debate, a motion to table Resolution 9 (the reimbursement declaration) and Ordinance 11 (the bonds) passed; council directed staff to schedule a work session before the next meeting and to return the items for consideration at the next agenda.

What happens next: Council scheduled the items to appear on the next meeting agenda and asked the president to appoint a work-session group to review the financing exhibits, project list and revenue sensitivity analyses. Staff said BAN proceeds could be available as soon as April if council and a purchaser approve the note, but the council explicitly declined to authorize long-term bonds without additional collection history and more detailed project exhibits.