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2025-11-12 WS City Council Agenda Richfield City Council Agenda November 12, 2025 -- 5:45 PM Richfield Municipal Center Council Chambers 6700 Portland Avenue South 1. Call to Order 2. Item Discussion a. City Council and Department Directors Effective Governance Dinner and Meeting 3. 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. Includes Materials - Materials relating to these agenda items can be found in the Council Chambers Agenda Packet book located by the entrance. The complete Council Agenda Packet is available electronically on the City of Richfield website. Page 1 of 14 City Council Meeting 11/12/2025 Agenda Section: Item Discussion Agenda Item: 2.a. Report Prepared By: Courtney DesCamps, Senior Analyst Department Director: Katie Rodriguez, City Manager Item for Consideration: City Council and Department Directors Effective Governance Dinner and Meeting EXECUTIVE SUMMARY The Council and department directors met on January 31, 2025, to focus on team building and onboarding new council members, and on February 1, 2025, to review progress on the Strategic Plan. One goal coming out of the meeting was to schedule more informal time to connect. The intent of the work session is to provide a more unstructured setting to discuss emerging topics on team dynamics or strategic issues. Each year, City Council and directors complete a survey that includes 10 questions on behaviors related to effective governance, including trust, role definition, communication, shared vision, strategy and being able to effectively respond to conflict. Results of the survey are attached, but there will not be a formal presentation at the meeting. The 2023–2026 Strategic Plan serves as the City’s guiding framework for aligning operations, budgeting, and decision-making with the community’s long-term vision. The plan outlines five strategic priorities: Operational Excellence, Community Development, Sustainable Infrastructure, High-Quality Workforce, and Equity and Inclusion. Progress on the plan is summarized in a mid-year report that is attached. A more comprehensive year-end 2025 update will be presented to City Council in February 2026. The intent of this work session is to provide the City Council with a high-level update on leadership team effectiveness, progress on the Strategic Plan and invite informal discussion on emerging issues as staff continues to operationalize the plan through 2026. The discussion will also help inform the agenda for a more formal meeting on these topics at the City Council-department director annual retreat next February. HISTORICAL CONTEXT City Council and department directors continue to meet quarterly on team effectiveness and review of strategic priorities; the first quarter focuses on the previous year's progress on the Strategic Plan and team building at the annual retreat, the second quarter focuses on Council policy proposals and work plans, the third quarter focuses on budget and the fourth quarter focus is a more informal time to discuss emerging issues. RECOMMENDED ACTION Page 2 of 14 For discussion only. No formal action required. EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS The Strategic Plan is centered on advancing equitable outcomes across all City services and community initiatives. Regular tracking of performance measures allows staff to evaluate whether City actions are achieving the intended equitable outcomes and to make data-informed adjustments where needed. POLICIES (RESOLUTIONS, ORDINANCES, REGULATIONS, STATUTES, ETC.) CRITICAL TIMING ISSUES FINANCIAL IMPACT LEGAL CONSIDERATIONS ALTERNATIVE RECOMMENDATION(S) ATTACHMENTS 1. Strategic Plan Report: January 1, 2025 - June 30, 2025 2. Effective Governance Survey Annual Comparison Updated Nov 2025 Page 3 of 14 Strategic Priority Desired Outcome Key Outcome Indicator Target Target Status Focused City leadership Initiatives completedStrategic plan modifications 80% of Strategic Plan initiatives completed by 2026 Some Disruption Increase non-resident revenues On Track Maintain AA+ bond rating On Track Maintain modest levy and fee growth Some Disruption Office 365 Feature Improvements by 2026 On Track Process improvements in each department implemented annually On Track Essential services study in place by 2026 On Track Executive Summary Focused City leadership: Financial capacity to deliver essential services: Operational capability to deliver essential services: Strategic Priority Strategic Initiative What We've Done Strategic Initiative Status Progress Create strategic plan for Richfield and make progress on initiatives The City is over half way through the plan and continues to make progress on the initiatives. We currently have 27 initiatives: 7 completed (25.9%), 7 on track (25.9%), 8 with some disruption (29.6%), 4 with major disruption (14.8%), and 1 discontinued (3.7%). Overall, 51.8% of initiatives are completed or on track. Some Disruption 63% Develop long-term financial plans for capital and operations The City contracted with its financial advisor, Ehlers, in 2024 to develop a more comprehensive financial planning tool, a Financial Management Plan. The work was delayed due to finance staff turnover. Work will resume later this year and should be completed in time for the 2027 budget process in 2026. Some Disruption 30% Establish essential services study The City has hired Rapp Consulting Group to facilitate the Essential Services Study. Work will begin in October 2025 and will wrap up in Spring 2026.On Track 25% Create organization-wide continuous improvement plan Staff update an excel document that summarizes their work plan each year as part of the budget process. The document details if the planned action is a policy or process improvement. This information is then provided to City Council to summarize the annual improvements. The 2025-2026 report lists 35 projects across all departments. On Track 75% Develop organization-wide tech plan While the development of an organization-wide technology plan was on hold during the IT leadership transition, several related initiatives have already been underway. These include ongoing cybersecurity improvements, departmental needs assessments through IT meetings with each department, the integration of GIS with the IT department to centralize technology services, and capital projects like the employee device refresh, network infrastructure replacement, and city-wide IP phone upgrades. These efforts will be part of the formalized city-wide technology plan, with a draft anticipated in the second quarter of 2026. Some Disruption 20% Update development review process and procedures All departments are online with CitizenServe. Remaining work is to annually evaluate processes and procedures for refinements and improvements. On Track 95% Create customer service rating increase strategy Work on developing a customer service rating improvement strategy has not yet begun, largely due to turnover and retirements within the Human Resources and Deputy Registrar. This initiative remains a priority, and progress is expected once staffing stabilizes and capacity allows. Major Disruption 0% Strategic Priority #1 - Operational Excellence: Desired Outcomes Operational Excellence Strategic Priority #1 - Operational Excellence: Initiatives Operational Excellence Financial capacity to deliver essential services Amount of non-resident revenues Bond rating Tax levy Fee growth Operational capability to deliver essential services System gaps closed Process improvements Service levels identified, met The City prepares an annual operating and capital budget which ensures funding for essential services. In addition, the City must regularly review the scope of services to best meet resident needs with limited resources. An ongoing Essential Services study will be completed next year that will guide future scope of service and funding decisions. Office 365: SharePoint Internal Training has started and continuing to be developed, additionally m365 policies and group management have been adjusted to match city needs. Current Employee Intranet will be migrated to SharePoint. Process Improvements: City staff continue to develop process improvements to increase productivity. Staff provide a summary of their work plans, linked to the Strategic Plan’s priorities and outcomes, as part of the budget process. The work We currently have 27 initiatives: 7 completed (25.9%), 7 on track (25.9%), 8 with some disruption (29.6%), 4 with major disruption (14.8%), and 1 discontinued (3.7%). Overall, 51.8% of initiatives are completed or on track. Leadership focus remains aligned to our adopted mission, vision, and values by prioritizing resources toward strategic priorities. Page 4 of 14 Strategic Priority #1 - Operational Excellence: Targets Focused City leadership Financial capacity to deliver essential services 43% 14% 61% 0% 10% 20% 30% 40% 50% 60% 70% 2023 2024 2025 Percentage of Non-Resident Capital Budget Revenues 6.60%5.89%5.45% 0.00% 5.00% 10.00% 15.00% 2023 2024 2025Percentage IncreaseGross Tax Levy Increase $22,353,336 $5,197,500 $28,224,100 $28,381,500 $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 $45,000,000 $50,000,000 2023 2024 2025 2026CIB TotalAnnual Capital Improvement Budget $2,038,711 $3,392,552 $3,410,633 $3,448,397 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 $5,000,000 2023 2024 2025 2026LGALocal Government Aid Received Completed26% On Track30% Some Disruption18% Major Disruption22% Discontinued4% Percentage of Strategic Plan Initiatives Completed Page 5 of 14 Strategic Priority Desired Outcome Key Outcome Indicator Target Target Status 500 new housing units by 2026 Major Disruption 15 new business in DT by 2026 On Track 12% increase in commercial tax base Major Disruption 20% increase in multifamily tax base Major Disruption 33% of the tax base is from non-single-family properties by 2026 Major Disruption Decline in cost-burdened households Some Disruption 66 units 30%, 29 units 31-50%, 26 units 51-80%Some Disruption Maintain current number of existing housing units at 30/50/60/80% AMI Some Disruption Executive Summary A vibrant downtown: Diversified tax base: Maintain Richfield as an affordable place to live: Strategic Priority Strategic Initiative What We've Done Strategic Initiative Status Progress Develop a downtown strategy The City is currently working with CivicBrand, a national consultant, to develop a branding and placemaking strategy for downtown, which should be completed by early 2026. Hennepin County provided grant funds for the project through its Business District Initiative Program. On Track 40% Establish strategy for pooled TIF funds Strategy is complete and implementation is underway. HRA committed Spending Plan and AHTF funds to NOAH preservation in February 2025. Legislature approved a one-year extension to 12/31/26 for committing Spending Plan funds (revised Spending Plan will be brought to HRA and Council by the end of 2025). On Track 93% Develop comprehensive HRA redevelopment plan related to HRA- owned land The HRA owns and holds various properties in Richfield for future redevelopment projects. Two HRA-owned sites have been approved for redevelopment of multifamily housing--Penn Station and Aster Commons. Staff has strategic conversations with developers on an on-going basis regarding HRA-owned sites in relation to priorities in the Strategic Plan and the City's Comprehensive Plan. Current economic conditions have caused development to slow. Some Disruption 35% Create community affordability strategy HRA Housing Program Evaluation completed in June 2025. Staff applied for Met Council grant to help facilitate implementation of the Evaluation Next Steps. Penn Station (42 affordable units) received tax credit award in 2024 and is moving towards construction start by the end of 2025. In early 2025, HRA approved financial assistance for NOAH Preservation (236 units), and Council agreed to 4d tax classification. HRA awarded Bring It Home Minnesota funding ($1 million) for state rental assistance program. Disruption caused by failure of Aster Commons (38 units of supportive housing) to receive tax credits in 2024. All-affordable housing (300+ units) proposed for Legion Site; reviewed at work session. Analysis of impacts of 4d tax classification for affordable housing added to work plan and anticipated for Fall 2025. Higher anticipated LAHA funding expected in 2025 ($653,000 vs. $400,000). Some Disruption 55% Strategic Priority #2 - Community Development: Desired Outcomes Community Development Housing: The Lynvue opened in 2023, adding 161 new downtown housing units. Current economic conditions have caused development to slow, however.Businesses: 11 new businesses opened in downtown between 2023-2024, and 3 new businesses have opened to date in 2025, including a variety of restaurants, salons, and medical offices. Growth in commercial/industrial and multifamily property values will help diversify the tax base. City staff meets with developers on an on-going basis to bring new developments to Richfield. Current economic conditions have caused development in general to slow, however, and recent changes in the office market have affected commercial property values throughout Hennepin County. The new Penn Station development will increase the tax base by putting tax forfeited property back on the tax rolls. Penn Station, 42 units of affordable workforce housing, received a federal tax credit award along with City and HRA approvals. Funding and 4d tax status was committed to preserving 236 units of Naturally Occurring Affordable rental Housing. Evaluation of the HRA's Housing Programs was completed and implementation of "Next Steps" has begun. The HRA received an award of state rental assistance funding. An analysis of the impacts of the 4d tax classification is anticipated in Fall 2025. Strategic Priority #2 - Community Development: Initiatives A vibrant downtown _#_ of new DT housing units _#_ of new DT business Diversified tax base #% increase in commercial tax base #% increase in multifamily tax base #% non-single family tax base #/% of households paying more than 30% of income on housingProgress toward Met Council Comprehensive Plan 30/50/80% AMI need allocation#/% of existing housing units at30/50/60/80% AMI Maintain Richfield as an affordable place to live Community Development Page 6 of 14 A vibrant downtown Diversified tax base Maintain Richfield as an affordable place to live Strategic Priority #2 - Community Development: Targets 161 0 100 200 300 400 500 600 ProgressNew Housing Units AddedNew Housing in Downtown (Progress to Goal of 500) 2023 2024 2025 4 7 3 0 2 4 6 8 10 12 14 16 New Businesses AddedProgress New Businesses Added (Progress to Goal of 15) 2023 2024 2025 $0 $500,000,000 $1,000,000,000 $1,500,000,000 $2,000,000,000 $2,500,000,000 $3,000,000,000 $3,500,000,000 $4,000,000,000 Residential Multifamily Residential Commercial/Industrial Estimated Market Value by Property Type 2023 2024 2025 2023, 69% 2023, 17% 2023, 14% 2024, 69% 2024, 17% 2024, 14% 2025, 71% 2025, 16% 2025, 13% Share of Tax Capacity by Property Type Residential Multifamily Residential Commercial/Industrial 19%21%22% 42%38% 43% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 2021 2022 2023 Cost Burdened HouseholdsHouseholds experience cost burden when their housing costs are 30% or more of their gross income Owner Households Renter Households 279 1,871 2,193 1,545 1,271 144 1,654 2,742 1,750 1,061 201 2,519 2,310 1,485 1,303 0 500 1000 1500 2000 2500 3000 ≤ 30% AMI 31-50% AMI 51-60% AMI 61-80% AMI > 80% AMI Housing Affordability of Rental Units in Relation to Area Median Income (AMI) 2021 2022 2023 148 432 1,854 6,009 1,303 229 425 2,060 5,516 1,532 125 278 332 3,995 5,054 0 1000 2000 3000 4000 5000 6000 7000 ≤ 30% AMI 31-50% AMI 51-60% AMI 61-80% AMI > 80% AMI Housing Affordability for Ownership Units in Relation to Area Median Income (AMI) 2021 2022 2023 Page 7 of 14 Strategic Priority Desired Outcome Key Outcome Indicator Target Target Status City infrastructure supports service needs Asset plans adopted Replacement plan compliance Adopted comprehensive asset management plan by 2025 Major Disruption Sustainable infrastructure financing Utility rate, tax base, debt capacities External revenue source usage Adopted comprehensive funding strategy for infrastructure by 2026 Some Disruption Climate resilience is a priority CAP initiatives approvedCAP priorities funded 3 highest priority Climate Action Plan projects completed by 2025 Completed Executive Summary City infrastructure supports service needs: Sustainable infrastructure financing: Climate resilience is a priority: Strategic Priority Strategic Initiative What We've Done Strategic Initiative Status Progress Create comprehensive asset management plan Staff is still underway with inventory and condition assessments of some city assets, including government buildings and park amenities. PW will be hiring an Asset Management/GIS Analyst FTE in early 2026 to build and implement an internal asset management system in lieu of contracting for software through a vendor. This effort was delayed in part by our pivot to an internally built asset management system. The timeline for this overall effort is lagging what was originally proposed but progress continues towards to desired outcome. Some Disruption 50% Create comprehensive capital funding strategy Finance is adding an analyst position to help catch-up and oversee projects, including working with the City's financial advisor Ehler's to develop a more comprehensive long-term financial planning tool. Information from the ongoing project to assess the condition and future maintenance needs of capital assets will be incorporated into the tool. Utility Rate Study undertaken in mid-2025 to understand if our utility rates and revenues are aligned with our maintenance and capital needs in the coming decade(s). Final report and recommendations anticipated in late 2025. Some Disruption 25% Establish a coordinated communication and education campaign for the Climate Action Plan Staff worked with Barsuhn to establish a communications and branding campaign for sustainability projects. It has been used in the Sustainability newsletter, Richfield recap, and on the city website.Completed 100% Reduce municipal building energy use Municipal building energy efficiency has improved due to lighting retrofits in five city buildings (City Hall, Fire #2, and three liquor stores) done with the EECBG funding. This decreases our energy usage and increases financial savings.Completed 100% Evaluate municipal fleet for EV/PHEV replacement The fleet conversion study and charging infrastructure study showed that 24/68 vehicles monitored would be good candidates for switching to EVs. This number could increase with policy changes around take home vehicles, charging during the day, and more. Completed 100% Strategic Priority #3 - Sustainable Infrastructure: Initiatives Sustainable Infrastructure Staff worked with Barsuhn to establish a communications and branding campaign for sustainability projects. Municipal building energy efficiency has improved due to lighting retrofits done with the EECBG funding. A fleet study was conducted by Sawatch Labs, with final reports delivered in early 2025. Strategic Priority #3 - Sustainable Infrastructure: Desired Outcomes Sustainable Infrastructure Staff is still underway with inventory and condition assessments of some city assets, including government buildings and park amenities. Public Works will be hiring an Asset Management/GIS Analyst FTE in early 2026 to build and implement an internal asset management system in lieu of contracting for software through a vendor. This effort was delayed in part by our pivot to an internally built asset management system. The timeline for this overall effort is lagging what was originally proposed but progress continues towards to desired outcome. There are five planned and ongoing studies that will provide the information needed to develop plans to fund infrastructure; a Utility Rate Study, a review of all City capital assets (see above), development of a more comprehensive financial planning tool, an Essential Services Study and a Parks Master Plan. The comprehensive information will shape future infrastructure funding plans, however securing sufficient funding is likely a longer term goal. Page 8 of 14 Strategic Priority Desired Outcome Key Outcome Indicator Target Target Status A well-trained workforce Training goals met Training completed 95% of all employees meet or exceed training goals by 2026 Some Disruption Staff capacity to meet service demands Retention rate improvement Maintain annual turnover rate at 10% or lower Some Disruption Healthy Council-staff relationships Council-staff trust, relationship survey results Senior leadership team’s annual survey scores 85% or better by 2024 On Track Executive Summary A well-trained workforce: Staff capacity to meet service demands: Healthy Council-staff relationships: Strategic Priority Strategic Initiative What We've Done Strategic Initiative Status Progress Enhance professional development plan During the first half of 2025, Human Resources experienced significant staff turnover, resulting in short-term staffing challenges. Despite these constraints, other departments supported several successful trainings this past year, including DEI, enhanced IT system trainings, professional writing, and a multi-city leadership training program. Additionally, the team is actively exploring the integration of individualized professional development plans into the annual performance evaluation process. Some Disruption 20% Develop recruitment and retention strategy In Q3, HR implemented a comprehensive scoring system in evaluating candidates to promote better hiring decisions. Due to turnover, there has not been more progress.Major Disruption 15% Conduct compensation and classification study The City conducted a compensation and classification study and the results were implemented in May 2024.Completed 100% Establish departmental succession plans There has been major disruption here however, in 2026, HR will explore opportunities to deliver professional development training to leadership to prepare staff for future promotional opportunities, building on changes to position descriptions and performance evaluations. Major Disruption 0% Develop Council-staff relationship/workplan process Council and department directors continue to meet quarterly; the first quarter focuses on the previous year's progress on the Strategic Plan and team building at the annual retreat, the second quarter focuses on Council policy proposals and work plans, the third quarter focuses on budget and the fourth quarter focuses on the mid-year Strategic Plan Dashboard update. As part of the retreat, the Council- Director Team complete an annual survey that includes 10 questions on behaviors related to effective governance including trust, role definition, communication, shared vision, strategy and being able to effectively respond to conflict. The Council- Director Team's average response was 92% at the end of 2024. This means that the team believed they demonstrated these behaviors most of the time. The previous survey average in 2023 was 87% reflecting a 4% increase. The most recent survey average exceeds the target of 85% by 2024. Completed 100% Council and department directors continue to meet quarterly; the first quarter focuses on the previous year's progress on the Strategic Plan and team building at the annual retreat, the second quarter focuses on Council policy proposals and work plans, the third quarter focuses on budget and the fourth quarter focuses on the mid-year Strategic Plan Dashboard update. As part of the retreat, the Council-Director Team complete an annual survey that includes 10 questions on behaviors related to effective governance including trust, role definition, communication, shared vision, strategy and being able to effectively respond to conflict. The Council-Director Team's average response was 92% at the end of 2024. This means that the team believed they demonstrated these behaviors most of the time. The previous survey average in 2023 was 87% reflecting a 4% increase. The most recent survey average exceeds the target of 85% by 2024. Strategic Priority #4 - High Quality Workforce: Initiatives High Quality Workforce Limited progress was achieved through increased opportunities for staff training in Leadership Development, DEI, enhanced IT system trainings and professional writing. In 2026 a formal staff training format will be introduced for tracking purposes and evaluation. In 2026, HR will take a closer look at turnover and retention rates of all departments to identify opportunities for improvement. A supervisory training will include a focus on talent management with the intent to retain and develop current employees thus reducing turnover. Strategic Priority #4 - High Quality Workforce: Desired Outcomes High Quality Workforce Page 9 of 14 Staff capacity to meet service demands Healthy Council-staff relationships Strategic Priority #4 - High Quality Workforce: Targets 46.29% 89.18%95.24% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00% 2022 2023 2024 2025 2026ScoreSenior Leadership Team’s Annual Survey Scores Score Target (≥ 85%) 12.38% 10.26% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% Overall Overall Overall Overall 2023 2024 2025 2026 Turnover Rate Overall Turnover Target (≤ 10%) Page 10 of 14 Strategic Priority Desired Outcome Key Outcome Indicator Target Target Status Reduced racial inequities and barriers for traditionally excluded groups Proportion of cost-burdened households by race/ethnicity Percentage of those who feel positively about their neighborhood being a place to live (BIPOC vs White) Percentage of those who feel positively about the overall customer services by Richfield employees (BIPOC vs White) Percentage of households whose family income is less than 185% of the federal poverty threshold Progress on reducing racial inequities measured by citywide metrics by 2025 Major Disruption Staff reflects the diversity of the community Major Disruption Increase underrepresented leadership Major Disruption Increase BIPOC employees Major DisruptionCouncil and Commissioners reflect the diversity of the community Major Disruption Increase BIPOC Commissioners Major DisruptionBIPOC turnover rate =/< overall rate Some Disruption Equity-based framework is applied to decision-making # % decisions using equity lens 60% of City Council decisions include the equity lens by 2026 On Track Executive Summary Reduced racial inequities and barriers for traditionally excluded groups: Staff, Boards and Commissions reflect the diversity of the community: Equity-based framework is applied to decision-making: Strategic Priority Strategic Initiative What We've Done Strategic Initiative Status Progress Develop strategy to hire DEI coordinator Brittany Bartlett was hired in July 2023.Completed 100% Create equity plan Strategic Diversity Initiatives (SDI) was hired in Q2 2024. They facilitated the DEIA Climate Survey in August 2024, provided the results in December 2024, and facilitated the staff Equity Planning Workshop in January 2025. There was some disruption with staff turnover at SDI in February 2025. The Equity Plan is being completed by the Equity Coordinator, and will be reviewed by the City Manager and directors for approval by December 2025. On Track 85% Refine hiring and onboarding process to prioritize inclusivity and minimization of bias The Equity Coordinator will collaborate with Human Resources to review and refine hiring and onboarding processes. There has been significant staff turnover in Human Resources in Q1 and Q2 2025 that has slowed the progress.Major Disruption 15% Develop and implement strategy for increasing participation in commissions for underrepresented groups Staff are implementing strategies for increased advertising in City channels, increased promotion at events, and increased external partnerships in promotion City Commissions. On Track 70% Develop and implement equity decision-making framework - equity lens The equity lens was created and rolled out in October 2024. The Executive Department is now tracking how many staff reports include the equity impacts.Completed 100% Develop and implement equity decision-making framework - equity toolkit City staff felt that the Equity Toolkit would be a significant time commitment for staff and would not provide much value in making decisions based on equity. City Council agreed at the 2025 retreat that they were in alignment in discontinuing this initiative so staff time could be better spent on more valuable tasks. Discontinued 0% Strategic Priority #5 - Equity and Inclusion: Desired Outcomes Equity and Inclusion Staff, Boards and Commissions reflect the diversity of the community Racial diversity change for staff, boards, and commissioners BIPOC turnover rate Overall turnover rate Staff: The Equity Coordinator will collaborate with Human Resources to continue to improve recruitment, hiring, and onboarding practices with a goal of increasing underrepresented staff and leadership. Staff turnover in HR has impacted progress. Commissions: Staff is continuing efforts to increase diversity of applicant pool and commission makeup through strategized marketing and regularly evaluating barriers to applicants. Staff is providing a survey to outgoing commissioners to better understand their experience. The internal equity strategy is being finalized in the Equity Plan. Some of the action items in the plan will have positive impacts in the community. As our internal foundation is set, staff will have more opportunities to focus on external impacts as the budget allows. So far, 75% of staff reports written in 2025 include an equity lens. Strategic Priority #5 - Equity and Inclusion: Initiatives Equity and Inclusion Page 11 of 14 Reduced racial inequities and barriers for traditionally excluded groups Staff, Boards and Commissions reflect the diversity of the community Strategic Priority #5 - Equity and Inclusion: Targets 21.80%29.70%29.00%26.00%33.30%37.50% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Average percentage of cost-burdened households by ethnicity (2024) 0%5%10%15%20%25%30%35%40% 18–24 years 25–34 years 35–44 years 45–54 years 55–64 years 65+ years Prefer not to say Boards and Commissions: Applicants by Age Group 2025 2024 2023 0%10%20%30%40%50%60% High school Associate's Degree Bachelor's Degree Master's Degree Ph.D. or higher Trade school Boards and Commissions: Applicants by Education Level 2025 2024 2023 0%10%20%30%40%50%60% Female Male Nonbinary or other Transgender Prefer not to say Boards and Commissions: Applicants by Gender 2025 2024 2023 0%20%40%60%80%100% Yes No Prefer not to say Boards and Commissions: Applicants by Hispanic or Latino Ethnicity 2025 2024 2023 0%5%10%15%20%25%30%35%40%45% $25,000 to $49,999 $50,000 to $74,999 $75,000 to $99,999 $100,000 to $149,999 $150,000 to $199,999 $200,000 to $299,999 Boards and Commissions: Applicants by Household Income 2025 0%10%20%30%40%50%60%70%80%90% American Indian or Alaska Native Asian Black or African American Native Hawaiian or Other Pacific Islander White Other Prefer not to say Boards and Commissions: Applicants by Race 2025 2024 2023 0%20%40%60%80%100% Renter Owner Prefer not to say Boards and Commissions: Applicants by Housing Status (Renter or Owner) 2025 2024 2023 88%91% 69% 86% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% BIPOC White Percentage of residents who feel positively about their neighborhood being a place to live 2020 2024 73% 89% 65% 79% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% BIPOC White Percentage of residents who feel positively about overall customer service of Richfield employees 2020 2024 7.00% 4.70% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 2018 2023 Percentage of Population whose family income is less than 185% of the federal poverty threshold 0%20%40%60%80%100%120% Black Indigineous Hispanic/Latinx Asian Other/Multiracial White BIPOC Representation: Employees, Leadership, and Residents 2024 Residents Leadership Employees 0%10%20%30%40%50%60%70%80%90% Black Indigenous Hispanic/Latinx Asian Other/Multiracial White BIPOC Representation: Employees, Leadership, and Residents 2023 Residents Employees Page 12 of 14 Equity-based framework is applied to decision-making 58% 75% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2024 2025 Percentage of City Council Decisions Including Equity Lens Percentage Target (≥ 60%) 12.38% 13.93% 10.26% 14.04% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% Overall BIPOC Overall BIPOC 2023 2023 2024 2024 Turnover rates reflect all full-time and part-time employees, excluding seasonal and liquor store clerk positions. Overall Turnover Rate Compared to BIPOC Turnover Rate Page 13 of 14 November 2025 CC-Director Teambuilding Survey Results Summary Questions 2022 2023 (Feb) 2023 (Oct)* 2024 (Dec) 2025 (Nov) Change 2024 to 2025 Are the members of the senior leadership team (Council & Directors) clear about their roles and responsibilities?Almost Always-Mostly 25%85%100%100%100%0% Does the senior leadership team have a clear vision for the future of Richfield?Almost Always-Mostly 33%77%75%92%100%8% Are members of the senior leadership team passionate and genuine in the discussion of issues?**Almost Always-Mostly 58%77%100%92%100%8% Do council meetings have deliberate, thoughtful discussion (don't just go through the agenda items mechanically)?Almost Always-Mostly 50%85%100%100%100%0% During council meetings (regular and work sessions) are the most important and difficult issues are openly discussed by the senior leadership team?Almost Always-Mostly 67%85%83%100%100%0% Does the council provides staff a safe environment for staff to share their viewpoints during the meetings even if they are unpopular? Almost Always-Mostly 33%77%83%92%100%8% When conflict occurs are members of the senior leadership team able to respectfully address the issue?Almost Always-Mostly 58%85%91%92%100%8% How often does the senior leadership team engage in long-term strategic thinking?At least quarterly 0%25%58%67%69%2% Does City Council function as a team?Almost Always-Mostly 33%54%92%100%100%0% Does the CC-Director group function together as a team?Almost Always-Mostly 42%77%92%83%92%9% Average 40%73%87%92%96%4% * Changed scale from Always-Usually in 2022 and 2023 Feb. **Question only referred to council in 2022 and 2023 Feb. Page 14 of 14