Inside Richmond: The City's Pulse

Episode 21 - Inside Richmond: The City's Pulse | How Richmond’s Proposed '1% Food & Beverage Tax' Would Work

• City of Richmond • Episode 21

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Inside Richmond: The City's Pulse, hosted by Lindsay Darnell, welcomes Parks Superintendent Denise Retz and Councilman District 3 Bill Engle to discuss how a small line on your dinner receipt could transform Richmond’s parks. Together, they break down the proposed 1% food and beverage tax, what is taxed, what is not, why state property tax caps created the funding gap, and how council oversight keeps every dollar tied to visible, high impact park projects.

Using the community built master plan as the guide, the conversation walks through the first wave of priorities. These include replacing the 26 year old Glen Miller playground and splash pad, dredging and restoring key park features, and moving shovel ready gorge activation forward with 9.5M in partner funding already aligned.

The numbers are simple and transparent. On a 20 meal, the tax is 20 cents. On a 100 family dinner, it is 1 dollar. Prepared foods at restaurants qualify. Hot items from grocers qualify. Groceries cooked at home do not. About 40% of the revenue comes from visitors because of I70 travel and the number of regional diners who treat Richmond as a hub. Restaurants treat it as a pass through in their point of sale systems, just like many other Indiana communities, and the city, Chamber, and operators are working together to make setup easy.

Accountability stays at the center. Funds go into a dedicated account. The park board and staff make recommendations based on community surveys. City council makes appropriations. Annual audits verify spending. The focus is simple. Sustain what we have, improve what needs attention, and create new destinations that strengthen quality of life and local business. If approved, the tax could take effect the following month with an estimated 1.5M in the first year based on current receipts.

For anyone who wants direct answers, review the Q and A for the FAB Tax at https://www.richmondindiana.gov/resources/richmond-food-and-beverage-tax-fab

If this episode brings clarity, share it and invite more neighbors into the conversation.

SPEAKER_02:

Welcome back to another episode of Inside Richmond the City's Pulse. I'm Lindsay Darnell, your host, and today I have Denise Retz, Park Superintendent, and Bill Ingle, District 3 Councilman, joining me. Thank you guys. Thank you for having me.

SPEAKER_00:

Great to be here.

SPEAKER_02:

Yeah. So I really wanted to get you guys on here about the food and beverage tax. There's been some buzzing going around. It was uh presented to council as a resolution, uh, last council meeting. And so I just wanted to talk about the food and beverage tax, clarify some information. Uh, let's talk about the misconception of the tax and really just let the community know what this is going to be and how is it going to affect our community? Absolutely. So, what exactly is the food and beverage tax and how would it affect the meals I buy in Richmond?

SPEAKER_00:

The food and beverage tax is a 1% tax on all prepared food. So if you go out to eat, you will pay the 1% tax or a penny on a dollar. If you go to the grocery store, you will not pay that tax. So, and the purpose of this, of course, is uh the legislation was earmarked to support our uh parks, our parks, trails, and the project in the gorge.

SPEAKER_02:

And this is something that is really going to help with spearheading these projects, correct? Because we have been losing money due to the property tax caps. Uh, I believe that was in 2010. Um, so we really do need something like this to kind of help push our parks forward and enhance the quality of life in Richmond.

SPEAKER_01:

Absolutely. In the last five years, um, we've lost over uh just over a million dollars in our budget alone in the parks department. Those are things that are outside of our control. Those are things like insurance, um, property and liability, uh and the in the like you're saying, the property tax caps and um things like that. So, you know, those are things outside of the parks department's control. Um, and so again, about a million dollars just shy of it in the last five years. Um so there's also been some other things that have have come and come and gone. But um, yes, we've we've had to kind of accommodate that. So we've had more to take care of and um less uh to do that with and less resources. Uh our team does a great job um pivoting and making sure that we can take care of what we have for uh what we what we what we get. But um we do want to make sure that we can and and this community does deserve uh the best. And so we want to make sure that we, you know, we we do seek out donations, we seek out grants, and we work hard to make sure that we have more for this community because honestly, the services that we render, at least in the parks department and throughout the city, um, we want them to be the best for this community for sure. Oh, definitely.

SPEAKER_00:

And that's something that I'd like to remind everybody that we we have a terrific park system. You know, I absolutely believe in it. We have a great pool, a golf course, we have pickleball courts, we have Glenmiller Park, which is just, you know, our centerpiece park. And it it is uh difficult to keep uh all the upkeep with them. So uh we uh instead of struggling with that, we want to get out in front of it and make sure that we maintain what we have that's so important.

SPEAKER_02:

I agree. We don't want to see our parks falling apart because we just don't have the funding to keep that upkeep and maintenance of the proactive than reactive.

SPEAKER_01:

And um, you know, uh we've been there before, you know, we've been there before where there has been neglect. And, you know, we've done things that have been um called out in our master plan. Uh we've transferred properties, we're trying to streamline, um, make parks more modernized. Um, you're working through these things in our master plan that were called out in 2020. In 2020, there was also supposed to be a master plan um bond, and we haven't got to that point yet where we've been able to do some of these projects that the community has called out. Um, but we hope with this food and beverage tax, we can do some of those major projects that were called out into our master plan. Um, but it's because the community deserves that and uh it, you know, it deserves a park system uh that can be destination and and want people to stay here, live here, play here.

SPEAKER_02:

And so anybody that wants to review or take a look at the parks master plan that is on our website.

SPEAKER_01:

Absolutely. And you can go to Richmondrising.com. All of our plans are there. You can see our gorge activation plan that was a subplan off of our master plan. You can see our farmers market plan, you can see the city's comprehensive plan, you can see all the plans there listed, and then um our our park master comprehensive master plan. It's 256 pages of wonderful.

SPEAKER_02:

Yes. Okay, so uh why is the city considering this tax now? What's driving the need for it?

SPEAKER_00:

Well, if you understand uh the recent session of the Indiana legislature, I I believe it's their uh effort, the legislator's effort, to uh wean us away from property tax. And so they are lowering the amount of property tax we we will be getting in 26 and into the future. 27 may be as difficult. And in doing that, they have uh given us the opportunities to levy our own taxes, um, like a wheel tax, like a food and beverage tax, maybe a safety tax. So um we have to to seize these opportunities to make up for dollars lost. You know, our we don't want our park system to go away. We don't want it to go backwards, we want it to go forward. So we will, you know, we will use what is available, the tools that are available to us to to make up the difference.

SPEAKER_02:

And so the parks department, you guys put on so many events throughout the year. You guys have JUCO during the summer, which is free for the kids to come. You guys provide a meal to them. Um, I know they go to the municipal. I don't, is it once a week? Twice a week. Twice a week. Um, you have the senior center. Um, I know that is a small membership fee.

SPEAKER_01:

$25 a year for the senior recreation center. Um, there are a lot of opportunities that we have, but all those opportunities that you just named are things outside of our budget. So those are those are things outside of our operations budget. We raise money for all of those opportunities. Um, so that will not also not be included in this food and beverage tax. So things that you just named will be, we'll still be raising money for and doing grants for and seeking out um, you know, generous donations for. Um, that will not change. What the food and beverage will actually be doing, um, it will give us the opportunity to do major projects within our parks department that people will see almost instantly for those things that we haven't been able to do yet. Uh some of those projects that you can see when you go onto the website, and you'll be able to see because we did form a team for that food and beverage that consisted of, and Bill spearheaded that. Um, you know, it was it was four members of council, two members of the park board, and then some administration, but we identified priority projects that um were called out in the master plan, but also priority needs of the park system that are are needing to be done sooner than later. Some of those major projects uh the community will really be very excited about. I know we are excited about. Um, and it will they really are into three different main buckets. So sustain what we have, make necessary improvements, and create new destinations. So really that sustain what we have are you know, preserving that natural beauty that makes our park so special, right? And then that make that necessary improvements, that is just really creating vibrant, family-friendly atmosphere and and um invite joy into our places, right? So, and then that create new destinations, those are investing in the gorge and honoring our music legacy, and then creating spaces for community events and um and attract visitation. So, you know, really that create new destinations are those are those gorge projects that are shovel ready already. So, you know, we we did receive a lot of partnerships for those gorge projects, but there's still a lot of projects to be done. We do already have$9.5 million from those partnerships, but there are still a lot of projects to be be um forthcoming. So we're very excited about that. And then the make necessary improvements, we have our Glenn Miller playground that is 26 years old and a splash pad's just as old. So that came in our bond from 1999. And you know, with the wear and tear that that playground sees from that flagship park, that playground really needs to have an emphasis on um replacement. So we're working through that on making that more of a uh a priority and along with that splash pad. So that's probably one of the major projects they're gonna see if this passes um right away. So that's very exciting. And then, you know, invest in some of the foundation and the restoration that you see. You're gonna see um, you know, working on dredging the pond, Eck Glenn Miller, and then some of those other options like the fountain at the rose garden and some of those other major, um, major focal points that people are very, very excited about that they're they've been asking about for so many years. So um uh, you know, I'm I'm excited to get some of those things done with some influx of cash that'll be coming through. And I think that one thing that is important about this food and beverage tax is that um, you know, council has the say. Um, council has the the ultimate um, you know, responsibility here on what is done with the with the influx of cash and with that food and beverage that comes in. They'll be the ones appropriating these funds, they'll be the ones saying what the funds are being um, you know, aligned for. And I'll just be making those recommendations um based on our master plan. And the master plan is a community-driven master plan. So really the community is the one making those recommendations. So I'll put forth the recommendations that community has brought um from these plans, right? And we'll be also working on a community uh-driven um Glenn Miller improvement plan alongside. So we're gonna be bringing all these community um data enhancements and all these things. We're gonna gather all this surveys and all this information and bring those to council and say, here are our ideas and our recommendations, and the community will be will be behind that.

SPEAKER_02:

And I will say too, during our branding of the city, our survey that we sent out had 844 responses. And the number one issue that they wanted to see improved was parks. So it is community driven, not just from your guys' parks master plan and your surveys, but also with branding the entire city with a new tagline, logo, and identity. Um, parks was always number one. Uh, you can go to the park and enjoy it for free. And we we really want to keep it nice for the residents. And then we ask the residents to in return keep it nice when they're there. Absolutely. So would this uh would this tax affect my grocery bill? I know we've kind of talked about that, but I I want to kind of, you know, what will it affect at the grocery store? There will be some uh foods that will be taxed with the food and beverage tax. So at the grocery store, what kind of foods am I looking at that will have the food and beverage tax?

SPEAKER_00:

Again, it's a tax on prepared food. So if your grocery store is preparing chicken, for instance, uh for sale, then there would be a food and beverage tax on that. If you're buying frozen chicken or frozen shrimp or whatever it is, there's no tax on that. That's um that will be a normal uh state sales tax. So it is on prepared food, not on groceries.

SPEAKER_02:

So ready to eat food that they'll hand to me, I can open up with a spoon or a fork or a napkin and just start eating. Okay. And then who would pay most of this tax? Would it be local residents or visit visitors coming to Richmond?

SPEAKER_00:

I think the estimates that we've that I've seen is that uh about 40% of the sales tax, of the food and beverage tax, will be paid by visitors to our uh uh community. We have a lot of visitors on along I-70, a lot of restaurants on there. So I'm assuming that will be the case. But also, if you know uh Richmond is kind of the hub for this surrounding area where people come from Ohio and come from uh Randolph County or Union County or even uh uh Henry County to eat here. So those people will also be paying this tax.

SPEAKER_01:

Yeah, there's uh, you know, a lot of people go out to eat and they may not even realize that there's a food and beverage tax where they're eating because they don't check their um receipt. Uh but I mean Marion County, they have a 2% food and beverage tax. Um, you know, uh Henry County has a food and beverage tax. You may not realize that if you go over to Newcastle and eat, uh Delaware County has a food and beverage tax, you may not realize that if you go to Montsee and eat. Um, there's a few, you know, areas that people probably just never realize. They never thought about that. Um, but uh, you know, 43 jurisdictions in Indiana have that. You have to be eligible to have it. Uh, we're eligible. In fact, we were we were approved to have this in 2005. If we started collecting in 2006, and just for instance, if it was$1.5 million collected a year, we've missed out on$30 million since then.

SPEAKER_02:

Wow.

SPEAKER_01:

So if you put that into perspective,$30 million could have been coming into our city that we could have been utilizing um for projects, major projects. Um, yes, missed opportunities, right? So we, you know, if we don't want to think about that, right? We just want to think about, okay, what about now? And um, how can we utilize this? And so um, you know, parks feels feel we feel blessed to be the beneficiaries of this. We didn't ask for that. Um, we we didn't ask to be the beneficiaries. The let the legislation decided this for us. Um, it wasn't something we lobbied for. Um, and so when they decided that parks, trails, and the gorge were something that they felt was a focused approach for this food and beverage for the city of Richmond, we do. We feel blessed. So what we want to do as our park system is we want to leverage these dollars as much as we can. So any funds, if we are able to get this passed, if this is something that council wants us to go forward with, um, and this is something they feel important, um, that this is something we want to take the next step in, then we're gonna leverage as much as much of these dollars as we can because obviously this is important. Um, and we know that um no one wants to be taxed, even if it's a choice tax, right? Um, so uh we want to make sure that every dollar is spent the best way possible, as efficiently and effectively as possible, and that we want to leverage as many pennies uh that we can leverage. And so we have we have uh plans for that um in in most of these projects. And so that's it very exciting, I feel, to make everyone's funding go further.

SPEAKER_02:

So is this tax already approved or is it just being proposed and discussed?

SPEAKER_00:

At this point, it is being proposed. Um remember Monday night uh council approved a resolution to move forward with the the uh an ordinance, food and beverage tax ordinance, which uh will be coming to council on uh December 15th. Um we will ask uh the uh council president Larry Parker to set a meeting, uh very specific meeting to to discuss the food and beverage tax and to get community input for uh uh prior to that meeting on the 15th. And then uh uh once we have the public uh hearing on that and get public input, then it will be uh on to council for consideration and possible vote.

SPEAKER_01:

Yeah, I think that we had um the public hearing is it's set for the 15th at 6 p.m. Yes, yes, yes. So the public hearing is set for the 15th at 6 p.m. and then the the ordinance is going on the 1st, uh December 1st. Oh okay. Yeah, yeah. Yeah. Um so yeah, yeah.

SPEAKER_00:

Might as well get that straight. Yes.

SPEAKER_01:

No, no, no. It's good. Um and so the the public hearing um people will have a chance to come on the on the 15th at 6 p.m. Um and so uh that'll be where people can come and show their their support. Um hopefully that's where they want to pack the room and say this is a great thing for these projects that have been defined. And then um, and then the council meeting will go on from that, and then they'll be able to the only thing on the agenda on the 15th will be the food and beverage um tax. And then council can take action that that evening, right? Right. Yeah, that's what I was thinking. Council can take action that evening, or they can um push it until that council meeting the next time, or they can decide to hold it. So it's it's completely up to council what they want to do from there. But uh it will be advertised 10 days in advance um if that's what council chooses. But I'm pretty sure that that's what um the determining, I think that's what they had decided. Um I'm I'm pretty sure.

SPEAKER_00:

I'm pretty sure that's correct.

SPEAKER_01:

Yeah, 15th at 6 p.m.

SPEAKER_00:

You asked before about oversight also, and uh city council will have oversight over the uh expenditures on projects, and the park board would also have input on that as well.

SPEAKER_02:

So the uh parks board, you Denise, will give your recommendation on which project it'll then go in front of council, and council will ultimately make that decision. Yes or no, we're gonna put money towards this project, or no, we're not.

SPEAKER_01:

It'll be in a separate fund, food and beverage. Only council will have the opportunity and um authority to appropriate all funds from the food and beverage.

SPEAKER_02:

Okay. So how much would more would I personally pay on a typical meal? For example, a$20 dinner.

SPEAKER_00:

If you had a$20 uh dinner, it would cost you 20 cents.

SPEAKER_02:

So that's minimal. I know I've heard people saying, well, we'll just go out of town to eat, but really you're gonna be spending that plus more in gas just driving to a different location to avoid this tax. And we really want to stress again that it is a user tax. So if you're not eating out, you're not paying for it. Um and if you really think about it, let's say uh my family and I go out to Texas Roadhouse, our bill is$100. We're only paying a dollar extra for that tax. Um, plus we're paying the sales tax, 7%. So instead of$7, it's gonna be$8. So it's very minimal if you're thinking, you know, at it, like looking at it in a bigger picture. It's a minimal tax, but it's going to benefit greatly for our community and our parks.

SPEAKER_01:

And I think it's a mentality. Um it's a mentality thing. You know, when I when I first became park superintendent in 2016, um, you know, there's a lot of, I guess, mentality changes that, you know, I we went through as well, um, where people felt like all taxes should pay for everything, right? We shouldn't ask for any um donations, shouldn't have to get any grants, that our taxes should pay for everything that we need for the parks department. Well, it's just not the case. I mean, it depends on what you want to have, right? It depends on what you, if you don't want to have any programming, if you don't want to have any events, if you don't want to have the extra improvements or additions to your park, then unfortunately, you know, you got to raise more than what you just have, right? There's a big, big pie and uh parks only gets a little sliver. Um, maybe sometimes not even with whipped cream, right? So that's just how it works. So um, you know, we we try really hard to get that extra um, you know, the extra on top, right? And so um when we when we think about this, it's about a mentality change, right? It's about um kind of thinking outside the box and thinking, okay, if I'm gonna go out and I'm gonna support my local food establishment, right? And I'm gonna support my local food in my my favorite restaurant. Not only do I get to support my local food establishment, but I also get to support my local parks at the same time. How amazing is that? And so that's what I get to do, not what I have to do. So it's it's about a mentality change at this time. It's it's not, you know, um, wow, now I have to spend 20 cents on parks because I spent$20 on my meal at my favorite restaurant. Now it's look, I just spent$20,$20 at my favorite restaurant, and now I just spent 20 cents on supporting my local parks too. This is amazing what I get to do. So I know that's it's gonna be hard and it's uh it's a different, different um, you know, perspective um and perception, but uh nobody likes to be taxed, and we don't want to have to tax people on property taxes across the board. I think that was kind of one of our our uh our things through Parkboard and and you know, Bill serves as a liaison to Parkboard as well. And so, you know, nobody wants to put uh you know non-choice tax out there to do all of these projects. So a user tax and pass-through tax um, you know, is something that looks a lot more uh interesting and uh favorable than something as a tax that we have to put on everyone, for sure.

SPEAKER_02:

So has there been conversations with local restaurants about the food and beverage tax and how do they feel about it?

SPEAKER_00:

Yes. Um actually Denise has handled a lot of that. Um we have talked to the Chamber of Commerce here and the Chamber of Commerce's issues and advocacy group and also the tourism bureau and the uh depot merchants group. And the the response that I've heard has been positive for the most part. And Denise might be able to explain.

SPEAKER_01:

Yeah, I've met with uh several local restaurants as well, as all of the the people and some other um presentations that we've made to other local organizations and local businesses and um local groups. And so yeah, it's the the the response has been overwhelming um and and supportive. Um and so uh it's been really great. We've we've welcomed all feedback, uh, positive, negative, uh mid-range, you know, and and and taken that feedback and really brought it back to the team and said, this is what we're hearing, these are some of the concerns. And then we've kind of talked through those and and discussed those a lot. We've welcomed, like I said, any type of uh constructive criticism or or or feedback that has come from any um any establishment and um and talked through those things and people have been really supportive. And so we wanted to gauge kind of the thoughts um throughout the community, and people have been really great and responsive and and very supportive. And so, you know, again, this is a pass-through. So when you go spend your money at that restaurant, uh it comes up on their bill, but it's you paying that tax. They're just um they're passing that through to the Department of Revenue, and then that department of revenue is sending us that check. So um they're really just that pass-through for us. Um, and they're changing their POS POS system to to make those arrangements and all of that. So it's just it's a little bit more work on their end, but it's something that their POS systems um are set up for. Um and uh, you know, people who who also have restaurants in other places are are very aware of this type of thing. So um and then we we also will will work through uh FAQ with them and um work with the chamber on the 600 businesses that they represent as well.

SPEAKER_02:

So if this pass uh or this tax was to pass, when will it go into effect?

SPEAKER_00:

It will go into effect the month after it passes. Okay. So if we pass it in December, it would go into effect in January. And if we pass it in January, it'd go into effect in February. So it's yeah, it's pretty pretty prompt that it'll be in effect.

SPEAKER_02:

And what was the estimate of what it would bring in the first year? I know you said this was a very kind of you know fluid number, if you would say.

SPEAKER_01:

Um the the number that we have currently, um, so we're working with our accountants and determining that, but um what about$1.5 million or so, and that's obviously 2003's numbers, um, because it's always in the rear. So we're working through the what 2024's numbers look like right now, and then um we'll we'll have those numbers hopefully soon um to talk through some things with them probably in the next week or so.

SPEAKER_02:

So I just want to kind of recap everything. It's going to be a 1% to the dollar on prepared foods, ready to eat. Um, it could go into effect a month after it's approved. It is only going to go to parks, projects for our quality of life, enhance it for visitors, tourists, residents. Um what else?

SPEAKER_00:

Well, it's park projects specifically. It's not adding staff or anything like that or expanding the parks. It is it is maintaining what we have and doing these projects that will be very special to our community. We absolutely believe that.

SPEAKER_02:

So, and just kind of to really get it out there, you're not going to be able to use it to increase your salary or any other staff's salaries. It'll only go to projects, four parks, council will have the final say-so of approval for the projects.

SPEAKER_01:

I mean, we're audited every year, just like everybody else. Um, you know, we every department's audited by the state board of accounts. Um, you know how how hard it is to get a contract or do purchasing. Yes. Um, there's a lot of there's a lot of uh, you know, things that we go through just to spend money. And um, so so yeah, so it'll be no different. It'll just be the same thing of of we're, you know, going to council every single time we need to utilize these funds as well. Um so it's it's it's not gonna be any different than um than those kinds of things, but they will be the ones making the the determination of how the funds are are being spent. Um yes, and then the public meeting. We want to remind people about the public meeting on December 15th at 6 where they'll be able to make sure that they can come and support. Um, if they're they do have any feedback, you know, they're welcome to to give us a call. We're happy to talk through anything with them. Um they can call the park office or, you know, get a hold of their their counselor. Um, you know, they're we're I'm sure that anyone would love to speak to them about any concerns that they might have as well. Um, and we could talk through it. A lot of this is education. A lot of this is, you know, listening, understanding their concerns and trying to um help with those. And um, you know, it is it is change is hard, change is different. And um, you know, again, the the differences we we just don't we don't want to put a a tax burden on property tax for everyone. This is a choice tax. Um, it definitely looks better than the than the latter.

SPEAKER_02:

So no, I agree. So um definitely check out our website, check out your guys' parks master plan. Uh, we also have a food and beverage tax uh QA. QA on the website. Uh we'll have that pop up on the screen. Uh December 15th, 6 p.m., the public meeting. Uh anyone with public comment can is more than welcome to come. We want to hear your input on the food and beverage tax. And hopefully this will get passed for us so we can have uh better parks, better trails, and the gorge activation. I know I'm really excited to see movement down in the gorge. Is there anything? Anything else you want to say to the community about the food and beverage tax? Any last words or comment?

SPEAKER_00:

I guess my only other comments would be that uh I I value the park system here. And I think Denise has done a terrific job uh finding money and and getting donations and things. And this is a really strong, solid effort, ongoing effort to make sure that our parks live and and thrive and be safe places for all our residents. So that's you know, we're that's our goal and that's what we are aiming for.

SPEAKER_02:

Yeah.

SPEAKER_01:

Thank you for having us.

SPEAKER_02:

Yes, thank you for coming. I think this was great information for the community. I've been seeing a lot of misconception and you know, a lot of questions on Facebook. So I kind of wanted to take some of those in and talk about it because these this is an excited time for our city. Um, I know, like you said, nobody likes taxes, but like you said, hey, I just spent$20 at my favorite local restaurant. I also got to donate or help put 20 cents in towards my parks to enhance it. Thank you guys.

SPEAKER_00:

Yeah, thank you.

SPEAKER_02:

That's Inside Richmond, the city's pulse. Make sure to join us next time.