2025-08-12 Work Session MinutesCITY COUNCIL MEETING MINUTES
Richfield, Minnesota
City Council Work Session
August 12, 2025
ITEM #1 CALL TO ORDER
Mayor Supple called the work session to order at 5:15 p.m. in the Bartholomew Room.
Council Present: Mary Supple, Mayor; Sharon Christensen, Walter Burk, Sean Hayford
Oleary, Rori A. Coleman-Woods
Staff Present: Katie Rodriguez, City Manager; Sack Thongvanh, Assistant City Manager;
Steve McDaniel, Budget, Cash, and Debt Manager McDaniel; Jay
Henthorne, Director of Public Safety/Chief of Police; Karl Huemiller,
Recreation Services Director; Kate Aitchison, Communications and
Engagement Manager; Joe Powers, City Engineer; Kristin Asher, Public
Works Director; Matt Hardegger, Transportation Engineer; Michelle
Friedrich, City Clerk; Courtney DesCamps, Senior Analyst; and Mark
McKinley, Administrative Assistant.
ITEM #2 ITEM DISCUSSION
A.Preview the preliminary 2026 Budget and provide a long-term financial planning update as
summarized in the Key Financial Strategies (KFS) spreadsheet. Preview proposed utility
rates, proposed City fees, and the proposed 2026 Capital Improvement Budget (CIB) and
2027-2030 Capital Improvement Plan (CIP).
City Manager Rodriguez opened the meeting with a summary of the agenda before turning to
Steve McDaniel for the first item.
Budget, Cash, and Debt Manager McDaniel outlined the timeline for the budget review and
approval process and provided an update on the budget. He noted that labor force participation
remains below pre-pandemic levels, inflationary pressures are expected to persist into 2026, and
license and permit revenues for 2026 are projected to align closely with 2025 revisions and 2024
actuals. He also presented the proposed 2026 levy, which includes a 5.97% increase, bringing the
total levy to $31,693,831. In response to a question about how surrounding cities are levying, City
Manager Rodriguez explained that she has not yet conducted a survey but will provide that
information to Council soon.
Budget, Cash, and Debt Manager McDaniel reviewed the gross tax levy history over the past eight
years and presented the proposed 2026 general fund budget of $35,079,115, reflecting a 7.18%
increase from the 2025 adopted budget. He walked through general fund revenues, prompting
City Council Work Session Minutes -2-August 12, 2025
Council to request clarification on the charges for services line item. City Manager Rodriguez
provided further explanation, outlining the circumstances that fall under this category.
Turning to expenditures, Budget, Cash, and Debt Manager McDaniel reviewed both current levels
and historical trends before offering a staffing update. The 2025 revised budget proposes two new
positions: a Finance Senior Financial Analyst to be hired in September 2025 and a Public Works
Asset Management/GIS Analyst in November 2025. Two temporary positions are also proposed.
He additionally reviewed the City’s long-term capital reserves, with City Manager Rodriguez adding
more detail on the reserves forecast.
City Manager Rodriguez then presented the proposed Community Development fee increases.
Director of Public Safety Henthorne followed with fee updates for Public Safety and Support
Services. Public Works Director Asher detailed the proposed Public Works fee increases.
Recreation Services Director Huemiller concluded this portion with Recreation Services’ proposed
fee adjustments.
Public Works Director Asher presented the 2026 utility update, beginning with proposed water rates
and service charges. She noted that future increases will be guided by the 2025 rate study. She
compared 2025 water rates to those of surrounding cities and also addressed wastewater rates,
the fund outlook, and stormwater rates for 2026. In doing so, she reviewed debt service versus
annual revenue, shared the stormwater fund outlook, and displayed 2025 wastewater and
stormwater rates in comparison with nearby communities.
Budget, Cash, and Debt Manager McDaniel returned to provide an overview of the capital
budgeting process. He shared a breakdown of the proposed 2026 capital improvement budget,
outlined project totals for 2027–2030, and reviewed capital improvement funding by source.
City Engineer Powers highlighted upcoming public works projects, including the Nicollet Avenue
and Penn Avenue reconstructions, as well as multiple sidewalk improvements. He also described
several joint projects with the utility department.
Recreation Services Director Huemiller reported that the new Wood Lake Nature Center building is
expected to open in winter 2026. He also provided updates on the Veterans Memorial Park
Complex, the new $55 million Community Center building, and the Parks Master Plan. Finally, he
noted that the Donaldson Park building project has been placed on hold.
ITEM #3 ADJOURNMENT
Mayor Supple adjourned the work session at 6:43 p.m.
Date Approved: August 26, 2025
Mary B. Supple
Mayor
Michelle Friedrich Katie Rodriguez
City Clerk City Manager