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City Council vote on meals tax hike set for Feb.12

Jeremy M. Lazarus | 2/9/2018, 5:47 p.m.
Proving more adept at corralling a majority of City Council votes on a big issue than former Mayors L. Douglas …
The Rev. A. Lincoln James Jr., pastor of Trinity Baptist Church, talks up his support for the meals tax at a City Hall press conference Tuesday. Mayor Levar M. Stoney, left, listens as 17 other ministers and Sheriff Antionette V. Irving, right, demonstrate the community support for his plan to generate money to build several new schools. Ron Carrington/Richmond Free Press

Proving more adept at corralling a majority of City Council votes on a big issue than former Mayors L. Douglas Wilder and Dwight C. Jones, Mayor Levar M. Stoney is rushing to gain quick approval of his plan to raise the city’s current 6 percent meals tax by 1.5 cents.

His promise: That the tax increase will raise $9 million a year, a revenue stream allowing the city to borrow $150 million for the construction and renovation of several new public schools over the next five years.

Even though Mayor Stoney lacks a fleshed-out and fully vetted plan on how the money would be spent — something he promised in September — and the funds to be raised would fall far short of the $225 million that the School Board needs for the first phase of its schools improvement plan, Mayor Stoney and his five City Council allies are rejecting any delay on the vote for the tax.

The tax would go into effect July 1.

The push to get the tax increase on the books was in full view Monday night as the nine members of City Council convened for the Organizational Development Committee meeting to consider whether to send the meals tax proposal for a vote at council’s next regular meeting on Monday, Feb. 12.

Three and a half hours later, at least 25 people had come forward to speak for or against the measure — from restaurateurs to School Board members and citizens. The council committee then voted 5-3, with one abstention, to pave the way for Monday night’s vote.

The abstention came from Councilwoman Reva M. Trammell, 8th District, who was incensed after members voted 5-4 to kill her motion to delay the vote for at least 30 days. She said she wanted time for council members to hold district meetings and hear from constituents.

Council members Kim B. Gray, 2nd District; Kristen N. Larson, 4th District; and Parker C. Agelasto, 5th District; joined Ms. Trammell in calling for additional time.

Mr. Agelasto, whose district includes restaurant-rich Carytown, appealed to his colleagues to avoid a rush and to spend some time considering other options.

“I’m not opposed to a meals tax increase, but the mayor’s plan does not go far enough,” Mr. Agelasto said. He argued that there are ways to raise more revenue for schools, including passing a tax on cigarettes that council previously rejected.

The response was a swift, sharp no.

Led by Council President Chris A. Hilbert, 3rd District, and Council Vice President Cynthia I. Newbille, 7th District, the majority showed its support for full speed ahead.

The majority also included council members Ellen F. Robertson, 6th District; Michael J. Jones, 9th District; and Andreas Addison, 1st District, who had publicly opposed the increase before the meeting.

“You say, ‘Just wait.’ I can’t wait any longer,” said Ms. Newbille in an impassioned plea. She said children in her district are attending a 100-year-old school, George Mason Elementary, that is in miserable condition.

She and Mr. Jones acknowledged that the mayor’s plan still will leave the majority of city students attending decaying schools in five years. Both said the mayor’s meals tax plan should be described as more of a beginning to tackling the projected $800 million challenge of replacing about 35 outdated city schools.

Mr. Addison said he wants to take this step on behalf of children and believes that other options for raising money for school construction can be considered when the council takes up the 2018-19 budget next month.

Mr. Jones said he needs new schools now to relieve the overcrowding in his district. “This is not the answer,” he said, but “it is one small piece to get the ball rolling.”

The city’s financial advisers have told the mayor and the council that Richmond used up its debt capacity building a new jail and four new schools in the past five years. Between 2023 and 2028, the city is expected to gain $320 in new debt capacity as a result of paying off a portion of its current debt.

But until then, the city’s credit card is maxed out, in their view.

Several council members warn that rushing the meal tax hike through will cost the mayor and others community goodwill.

“People understand when they don’t win the vote. They don’t understand if they’re not allowed to voice their opinion,” said Ms. Gray, who noted that her district also has a 100-year-old school building and others plagued with troubles that might not be addressed for years to come.

However, at least one person is content Mayor Stoney is taking a tough approach.

“The mayor has put himself in a box,” said Paul Goldman, leader of the School Modernization Committee that put the school construction issue on the front burner and pushed the mayor into initiating a plan.

“He has told the public there is only one way to go — raise taxes,” said Mr. Goldman, who successfully put a referendum on the November ballot that was approved by 85 percent of voters.

The referendum, which is now before the General Assembly, called on the mayor to deliver a fully funded plan. The current tax plan appears to have been the mayor’s response.

Mr. Goldman said Wednesday that he would roll out his proposal to use current funds to pay for school construction funding ahead of council’s scheduled vote next week.

He said his proposals would promote “a shared sacrifice” and show what could be done “if building new schools is the No. 1 priority.”