11-26-2024 City Council Truth in Taxation AgendaRICHFIELD MUNICIPAL CENTER, COUNCIL CHAMBERS
NOVEMBER 26, 2024
6:30 PM
Call to order
PUBLIC HEARINGS
1.Conduct a Truth in Taxation Public Hearing regarding the 2025 property tax levy and 2024 Revised/2025
Proposed Budget and proposed 2025 utility rates.
2.Adjournment
Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at least 96
hours in advance to the City Clerk at 612-861-9739.
AGENDA SECTION:PUBLIC HEARINGS
AGENDA ITEM #1.
CITY COUNCIL MEETING
11/26/2024
REPORT PREPARED BY:Kumud Verma, Finance Director
DEPARTMENT DIRECTOR REVIEW:
OTHER DEPARTMENT REVIEW:
CITY MANAGER REVIEW:
ITEM FOR COUNCIL CONSIDERATION:
Conduct a Truth in Taxation Public Hearing regarding the 2025 property tax levy and 2024
Revised/2025 Proposed Budget and proposed 2025 utility rates.
EXECUTIVE SUMMARY:
At the September 10, 2024 City Council meeting the City Council adopted the 2025 Preliminary Property Tax
Levy and announced November 26, 2024 at 6:30 p.m. as the date and time for the statutory Truth in Taxation
Public Hearing.
Hennepin County mailed the proposed 2025 property tax statements to property owners in Richfield. The
property tax statements are based upon the proposed levy, and announce the date of the public hearing.
RECOMMENDED ACTION:
Conduct and close the Truth in Taxation Public Hearing, and by a Motion, schedule the final action on
the 2025 property tax levy, the 2024 Revised/2025 Proposed Budget, and the proposed 2025 utility
rates, at the regular City Council meeting scheduled for December 10, 2024.
BASIS OF RECOMMENDATION:
A.HISTORICAL CONTEXT
None
B.EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS
Holding the Truth in Taxation Public Hearing furthers the Strategic Priority of Operational Excellence
and Sustainable Infrastructure as this ensures the City has the financial capacity to continue to support the
community.
Equity Considerations: Having a Truth in Taxation Public Hearing allows the public to provide commentary on the
proposed budget and tax levy. It allows for more public participation and offers an opportunity of diversity in the
voices involved in the city's financial decision-making processes.
C.POLICIES (resolutions, ordinances, regulations, statutes, exc):
Counties, cities with populations exceeding 500, school districts, and metropolitan special taxing districts are
required to conduct a single meeting that allows for public participation, during which the budget and levy will be
discussed.
This meeting may be part of a regularly scheduled meeting but must occur after 6:00 p.m. Minnesota Statute
mandates the Truth in Taxation Public Hearing must be conducted between November 25 and December 30,
2024.
The City has chosen to conduct the Truth in Taxation Public Hearing on November 26, 2024 at 6:30 p.m.
Because Council announced at the September 10, 2024, City Council meeting, the Truth in Taxation Public
Hearing and adoption of the 2025 Preliminary Property Tax Levy was scheduled for November 26, 2024, at
6:30 p.m., at the Richfield Municipal Center Council Chambers, the requirement to publish the Truth in Taxation
Public Hearing and proposed property tax levy notice is not required.
Hennepin County also mailed the proposed 2025 property tax statements to property owners in Richfield. The
property tax statements are based upon the proposed levy, and announce the date and time of the Truth in
Taxation Public Hearing.
D.CRITICAL TIMING ISSUES:
Schedule the final adoption action for the 2024 Revised/2025 Budget and tax levy and utility rates for
December 10, 2024.
The City must adopt their final payable 2025 property tax levies and its proposed 2025 budget no later than
December 30, 2024.
E.FINANCIAL IMPACT:
The preliminary gross tax levy for taxes payable 2025 is $29,907,569.
The gross tax levy represents a 5.45% increase from the 2024 gross levy.
The City’s tax capacity rate is anticipated to increase from 52.25% to 54.57%.
Included in the 2025 preliminary gross levy is a levy to fund the purchase of rolling stock and technology
equipment of $1,528,800, a levy to fund the Economic Development Authority of $623,343, and a debt
service levy of $4,101,375.
F.LEGAL CONSIDERATION:
The City has scheduled December 10, 2024 for the official adoption of the final levy and budget. Final
adoption of the payable 2025 property tax levies must be completed by December 30, 2024.
ALTERNATIVE RECOMMENDATION(S):
None
PRINCIPAL PARTIES EXPECTED AT MEETING:
N/A