Work SessionItem 2.aDiscussed
Preview of Preliminary 2026 Budget, Utility Rates, City Fees, and 2026-2030 Capital Improvement Plan
Staff previewed a proposed 2026 property tax levy of $31,693,831 (a 5.97% increase), raising the average homeowner's city tax bill from $1,743 to $1,821 annually (+$78, or about $6.50/month). The proposed General Fund budget of $35,079,115 (up 7.18%) includes new fees for Community Development, Public Safety, Public Works, and Recreation Services, plus proposed 5% water rate and 5% stormwater rate increases and a 2% wastewater increase. The council also previewed a $23.3 million 2026 Capital Improvement Budget and a $132.76 million 2027-2030 Capital Improvement Plan covering projects like the Nicollet Avenue and Penn Avenue reconstructions and the new Wood Lake Nature Center.
informational or procedural item — no vote taken
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Key figure: $31,693,831 — Proposed 2026 total property tax levy, a 5.97% increase over 2025
Potential benefit
The preview lets residents see proposed tax, fee, and utility rate changes months before they take effect, giving time to comment before the September 9 preliminary levy vote and the November 25 Truth in Taxation hearing.
Concern to consider
The proposed 5.97% levy increase and higher utility/fee rates will raise costs for nearly every household and business in Richfield starting in 2026.
What happens next: The council will review department budgets in more detail on August 26, 2025, adopt a preliminary tax levy on September 9, 2025, hold a Truth in Taxation public hearing on November 25, 2025, and certify the final levy and budget on December 9, 2025.
Sources: Work Session agenda (city portal) ↗
City CouncilItem 7.AApproved
Approval of Disbursements and Claims
The Council approved $3,554,842.87 in city disbursements as part of the consent calendar, including $2,173,806.65 in accounts payable checks issued between July 19 and August 7, 2025, and $1,381,036.22 in payroll for August 1, 2025, which included August health insurance premiums.
Passed 5-0
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Key figure: $3,554,842.87 — Total disbursements approved, including A/P checks ($2,173,806.65) and payroll ($1,381,036.22, including August health insurance premiums)
Potential benefit
Approving disbursements keeps city payroll, vendor payments, and employee health benefits running on schedule.
Concern to consider
These are routine, previously budgeted expenditures with no new tax or fee impact disclosed.
Sources: City Council agenda (city portal) ↗
City CouncilItem 7.BApproved
First Reading: Ordinance Amending City Code Section 601 – Multi-Family Recycling Requirements
The Council approved the first reading of an ordinance amending Section 601 of the Richfield City Code to add new definitions and require multifamily residential buildings (four or more units) to provide weekly recycling capacity of at least 0.09 cubic yards per unit (one cubic yard per 11 units), aligning city code with Hennepin County Ordinance 13. A second reading and public hearing is scheduled for August 26, 2025.
Passed 5-0
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Potential benefit
The ordinance guarantees renters in multifamily buildings adequate recycling capacity, addressing buildings that previously had only a single 96-gallon cart for 10+ units.
Concern to consider
Property owners/managers of multifamily buildings will need to verify and potentially expand recycling capacity to meet the new per-unit minimum, and city staff will enforce compliance on a complaint basis.
What happens next: A second reading and public hearing on the ordinance is scheduled for the August 26, 2025 Council meeting.
Sources: City Council agenda (city portal) ↗
City CouncilItem 7.CApproved
Resolution Supporting Livable Communities Demonstration Account Grant Application for Small Business Center at 6440 Nicollet Avenue South
The Council adopted Resolution No. 12331 supporting a $300,000 Metropolitan Council Livable Communities Demonstration Account grant application for Herspace, LLC to acquire and rehabilitate 6440 Nicollet Avenue South—the former home of Richfield Medical Group, which is relocating to the Hub—into a small business center/coworking space franchised through The Coven. The city would serve as grant applicant and fund administrator.
Passed 5-0
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Key figure: $300,000 — Livable Communities Demonstration Account grant requested from the Metropolitan Council for site acquisition
Potential benefit
The project would create affordable coworking and office space for entrepreneurs, with a scholarship model prioritizing women, people of color, LGBTQ individuals, immigrants, veterans, and people with disabilities.
Concern to consider
The $300,000 grant, if awarded, requires the City to act as applicant and administrator, adding administrative responsibility, though the funds come from the Metropolitan Council, not city taxes.
What happens next: The city will submit the grant application to the Metropolitan Council; if awarded, the $300,000 would fund site acquisition for the project.
Sources: City Council agenda (city portal) ↗
City CouncilItem 7.DApproved
Design and Engineering Agreement for Veterans Memorial Park Improvements
The Council approved an agreement with Udris Burgess Architecture and Design, Inc. to provide professional design and engineering services for planned improvements to Veterans Memorial Park.
Passed 5-0
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Potential benefit
This moves forward planning for physical improvements to Veterans Memorial Park, a public space honoring local veterans.
Concern to consider
No specific budget figure or design details were disclosed in the minutes, so the scope and eventual construction cost remain unclear.
What happens next: Udris Burgess Architecture and Design will proceed with design and engineering work; construction plans and costs would come before Council at a later date.
Sources: City Council agenda (city portal) ↗
City CouncilItem 11.AApproved
Resolution Amending City Manager Katie Rodriguez's Employment Agreement
Following a performance evaluation covering June 2024 through July 2025, conducted at meetings on July 8 and July 22, 2025, the Council adopted Resolution No. 12332, the Third Amendment to the Employment Agreement with City Manager Katie Rodriguez, reflecting a salary adjustment based on her performance review.
Passed 5-0
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Potential benefit
The evaluation and resulting agreement amendment help retain experienced city leadership responsible for overseeing city services and staff.
Concern to consider
No specific dollar figure for the salary adjustment was disclosed in the minutes, limiting transparency into the exact cost to the city budget.
Sources: City Council agenda (city portal) ↗
City CouncilItem 14.AOutcome pending
Review and Update of City Council Rules of Procedure and Decorum
The Council discussed proposed updates to its Rules of Procedure and Decorum, including adding a monthly Liaison Reports item, easing restrictions on discussion when appealing the presiding officer's ruling, allowing the Mayor to vary agenda order with Council input, increasing the Open Forum comment limit from 15 to 30 minutes (extendable by majority vote), and limiting public hearing speakers to 3 minutes (extendable by majority vote). No formal vote was taken on the revised rules at this meeting.
recorded in the approved minutes — tally not yet extracted here
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Potential benefit
Doubling the standard Open Forum time from 15 to 30 minutes would give residents more opportunity to speak directly to the Council at each meeting.
Concern to consider
A new 3-minute limit per speaker at public hearings, extendable only by majority Council vote, could restrict how long individual residents can address specific proposals.
What happens next: City staff will incorporate the Council's feedback into a revised Rules of Procedure and Decorum document for future formal adoption.
Sources: City Council agenda (city portal) ↗