Work SessionItem 1Outcome pending
Presentation of the 2023 Revised/2024 Proposed Budget and Tax Levy
The 2023 Revised and 2024 Proposed Budget and Tax Levy was scheduled for presentation to the City Council at this work session, giving council members an opportunity to review figures and provide direction to staff before a formal vote. The proposed 2024 tax levy was a 5.90% increase over the 2023 adopted levy, with the General Fund budget proposed to grow 6.76% over the 2023 adopted level. Finance Director Kumud Verma was expected to walk through general fund revenues and expenditures, staffing updates, utility rates, and long-term financial forecasts, with formal approval of the preliminary levy scheduled for the September 12, 2023 City Council meeting.
final tally arrives when the city publishes the minutes
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Key figure: 5.90% increase — Proposed 2024 tax levy increase over the 2023 adopted levy
Potential benefit
This work session was an opportunity for the public to understand how city services are funded before a final vote. The budget was noted to include a balanced General Fund, and the city's aquatic facility was reported to no longer be operating at a deficit, potentially reducing pressure on taxpayers in that area. Long-term financial forecasts and capital improvement planning were also on the agenda, signaling attention to fiscal sustainability.
Concern to consider
A proposed 5.90% tax levy increase and a 6.76% General Fund budget increase would directly affect property tax bills for Richfield residents and businesses. If approved, these increases would outpace modest inflation expectations for many households, placing additional financial pressure on fixed-income residents and small business owners.
What happens next: Formal approval of the 2023 Revised/2024 Proposed Budget and preliminary tax levy was scheduled for the September 12, 2023 City Council meeting.
Sources: Work Session agenda (city portal) ↗
Work SessionItem 1Outcome pending
Change Order Approval for Soil Retention System on 65th Street Reconstruction Project
A change order was on the agenda to design and install a soil retention system along 65th Street as part of the ongoing 65th Street Reconstruction Project, after unexpected soil conditions were discovered near the Lynvue Apartments requiring an H-pile with timber lagging wall. The estimated cost for this unplanned work was approximately $850,000, far exceeding the project's remaining contingency of roughly $10,848. Staff was expected to investigate potential funding sources and whether any external parties, such as developers, could share responsibility for the added costs.
final tally arrives when the city publishes the minutes
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Key figure: $850,000 — Updated estimated cost to design and construct the soil retention system, modify utility design, and cover potential project delay costs
Potential benefit
The soil retention system would allow the 65th Street Reconstruction Project to continue on schedule, preventing further delays and protecting nearby infrastructure, residents, and the broader corridor improvements including new pedestrian paths and flood mitigation measures.
Concern to consider
The $850,000 cost estimate drastically exceeds the project's remaining $10,848 contingency, requiring identification of new funding from sources such as utility funds, franchise fees, Municipal State Aid, TIF pooled funds, or capital reserves — none of which had been confirmed at the time of the meeting.
What happens next: Staff was expected to continue investigating funding sources and legal options for cost-sharing with external parties. A Council memo was anticipated once updates became available, with the final funding plan to be determined as design work on the retention system proceeded.
Sources: Work Session agenda (city portal) ↗
Work SessionItem 2Outcome pending
Authorization for Sanitary Sewer Crossing Construction Work Order with MnDOT (I-494 Project 1)
Authorization for the City Engineer, City Manager, and Mayor to execute a construction work order with MnDOT and the I-494 Project 1 design-build contractor was on the agenda, covering the construction of a new sanitary sewer crossing beneath I-35W. The existing 9-inch clay sewer at that location serves the 77th Street business district, has a long-standing flow capacity issue, and conflicts with proposed I-494 bridge abutments — making the timing of the broader I-494 project a cost-saving opportunity. The city's estimated net expense was approximately $500,634, to be funded from the sanitary sewer utility fund.
final tally arrives when the city publishes the minutes
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Key figure: $635,634 — Total estimated cost of the sanitary sewer crossing construction project beneath I-35W
Potential benefit
Replacing the aging clay sewer would eliminate a known flow capacity problem and resolve a conflict with new I-494 infrastructure. Coordinating with MnDOT's existing project reduces costs — a $135,000 credit for addressing the bridge abutment conflict offsets a portion of the $635,634 total project cost, saving taxpayers money compared to doing the work independently later.
Concern to consider
The sanitary sewer utility fund would need to absorb approximately $500,634, and a rate study was expected to evaluate whether future utility rate adjustments would be necessary to cover the cost — potentially affecting water and sewer bills for residents.
What happens next: If authorized, the City Engineer, City Manager, and Mayor were expected to execute the work order with MnDOT as soon as design work was finalized, in order to avoid delaying the broader I-494 Project 1 construction. A utility rate study was also anticipated to assess whether sanitary sewer rates would need to be adjusted to fund the project.
Sources: Work Session agenda (city portal) ↗
Work SessionDiscussed
2024 Budget Preview and Preliminary Levy
A 2024 budget preview and discussion of the preliminary property tax levy was scheduled as part of the city's annual budget planning process, with the proposed 2024 levy of approximately $28.27 million representing a 5.55% increase over 2023. Key cost drivers included labor increases, inflation, and a 39% jump in the rolling stock, equipment, and technology levy, partially offset by a significant $1.35 million increase in Local Government Aid. The average Richfield homeowner with a $318,000 home was projected to see roughly a $98 annual increase — about $8.19 per month — in city property taxes.
informational or procedural item — no vote taken
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Key figure: $28,270,904 — Proposed 2024 total tax levy, a 5.55% increase over the 2023 levy of $26,784,954
Potential benefit
A $1.35 million increase in Local Government Aid helped reduce the burden on local property taxpayers compared to what the levy increase would have been otherwise. No new city debt was planned for 2024, and no new staff positions were proposed, reflecting fiscal restraint while maintaining service levels.
Concern to consider
The 5.55% levy increase, combined with a 39% jump in the rolling stock and technology levy and a 3.5% EDA levy increase, adds to the overall property tax burden. Long-term capital reserve projections show negative fund balances in the Ice Arena and Pool facilities that will require sustained transfers to resolve by 2028.
What happens next: The preliminary levy was scheduled for adoption by the City Council on September 12, 2023. A Truth in Taxation public meeting was planned for November 28, 2023, with final levy certification and budget adoption also set for that date.
Sources: Work Session agenda (city portal) ↗