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08-14-2024 Work Session CITY COUNCIL MEETING MINUTES Richfield, Minnesota City Council Work Session August 14, 2024 CALL TO ORDER Mayor Supple called the work session to order at 5:02 p.m. in the Bartholomew Room. Council Members Present: Mary Supple, Mayor; Simon Trautmann, Sharon Christensen; Sean Hayford Oleary, Ben Whalen Staff Present: Katie Rodriguez, City Manager; Kumud Verma, Finance Manager; Jay Henthorne, Police Chief; Karl Huemiller, Recreation Services Director; Mike Dobesh, Fire Chief; Joe Powers, City Engineer; Kristin Asher, Public Works Director; and Kelly Wynn, Administrative Assistant ITEM #1 PREVIEW THE PRELIMINARY 2025 BUDGET AND PROVIDE LONG-TERM FINANCIAL PLANNING UPDATE AS SUMMARIZED IN THE KEY FINANCIAL STRATEGIES (KFS) SPREADSHEET. PREVIEW PROPOSED UTILITY RATES, PROPOSED CITY FEES AND THE PROPOSED 2025 CAPITAL IMPROVEMENT BUDGET (CIB) AND 2026-2029 CAPITAL IMPROVEMENT PLAN (CIP). City Manager Rodriguez provided a summary on the agenda and turned the first item over to Director Verma. Director Verma gave a summary of the budget update. She displayed a timetable for approving the 2025 budget and levy and discussed the proposed 2025 preliminary levy. Director Verma compared the gross tax levy history to the 2025 levy and noted the proposed tax levy will increase by $9.92 per month. She provided an overview of the general fund revenues. Council Member Christesen asked for details on what transfers listed on the slide entail. Director Verma noted the transfer items include any transfer made into the general fund for taxes, detailing services, etc. She listed the general fund expenditures by department. City Manager Rodriguez explained in detail why they have the fund balance reserve. Council Member Hayford Oleary asked why the revised 2024 public safety budget is lower than the 2025 proposed budget and if this was due to staffing. City Manager Rodriguez noted the budget decrease is due to staffing shortages in public safety. City Council Work Session Minutes -2- August 14, 2024 Mayor Supple asked for an explanation of the Finance Department's budget drop. Director Verma explained the City of Richfield contracted assessment services through Hennepin County, and effective in 2025, the County will no longer charge the City of Richfield an annual fee to conduct the assessment function and that is the reason for the 26% budget drop. She reported the general fund expenditure history. City Manager Rodriguez explained the staffing update and changes. She gave an overview of the positions they are proposing to add. Council Member Whalen shared he is surprised that they are hiring for so many new positions. He noted that he feels it is premature to hire two full-time police positions. He asked for the Council's opinions on waiting to add the police positions. He discussed his worries on the topic. Mayor Supple asked if there is flexibility for positions inside each department to switch, or if they are locked into the specific position. City Manager Rodriguez explained that they have recently added three new fire positions due to call increases but have yet to add police positions. Chief Henthorne noted that they are also planning to make some organizational changes to allow for more officers on the street. He also explained that they are looking for grant money to fund the alternative response team. Council Member Trautman asked how large of a benefit it realistically is to add the two police positions. Chief Henthorne explained that it will not only help with the streets, but also with investigations. Council Member Hayford Oleary agreed that this may be premature. He is also concerned about the budget if two police officers are added. City Manager Rodriguez shared details of the staff study done in the Public Safety Department. She discussed that the residents’ top concerns are public safety related. Fire Chief Dobesh discussed the staffing problems they have been having. He added that they must be flexible and aim to help the problems of the residents. Mayor Supple noted that it may be reasonable to add the two police positions. She discussed that the Council may need to look to broaden the conversation on the essential services that are needed in the community. Council Member Hayford Oleary added that if they are looking to broaden the conversation on needed essential services, it may not make sense to add the two new positions at the moment. City Manager Rodriguez explained that the staff additions have been reviewed by the departments and it fits into the proposed budget. Council Member Whalen shared that adding more police officers may not be the only solution to solving issues in public safety. They may want to look into more solutions to the problems that are being brought up by residents. City Council Work Session Minutes -3- August 14, 2024 Council Member Christensen added that they should look into being proactive in planning for the future. She also noted that this would help officers to work in a healthier manner and enable them to do a better job. Chief Henthorne discussed that the Police Department is falling behind and needs to make some department changes before it is too late. Council Member Whalen asked if the hiring capacity is higher if they have six open positions rather than four. City Manager Rodriguez explained that it may not help immediately in the short term, but it will hopefully balance out the staffing shortages in the long run. This also signals to the department that they understand the struggles they are facing. Council Member Christensen asked who the positions are for. Chief Henthorne explained that the positions would be for street officers but give the department flexibility to move more experienced officers to investigation positions. Director Verma displayed the City’s capital reserves. Mayor Supple asked for an explanation on what the transfers have done for the ice arena and pool. Director Verma explained the forecast of the planned money to be spent from the City reserves. She reported what is planned to be spent on the ice arena and pool. She also displayed the long-term financial planning document. Council Member Hayford Oleary asked if there is a goal for the capital reserve. City Manager Rodriguez stated that her goal is to remain at $5 million but she has not looked into an official goal. Manager Rodriguez explained the fee increases in the proposed budget. Council Member Trautman asked what the 3% fee includes. City Manager Rodriguez stated that it includes the support services fees. Mayor Supple asked why all language regarding electrical services has been removed. City Manager Rodriguez noted that the State is now handling the electrical inspections. Council Member Christensen asked what the fee increase will be for the adult cannabis and LPHE registration. Director Huemiller shared that they do not yet have the exact number, but it should not be much. Director Asher presented the proposed utility fund rates. She gave an overview of the water fund outlook and compared Richfield’s water rates to surrounding cities’ rates. Director Verma overviewed the process of developing and presenting the capital budget. She presented a graph displaying the division of the capital budget. City Council Work Session Minutes -4-August 14, 2024 Engineer Powers provided details on each Public Works capital project as well as the cost and timeline of each project. Director Huemiller provided details on each recreation services capital project. He summarized the cost of each project and the timelines for construction, noting they are looking into grants to fund parts of these projects. Council Member Trautman asked if the plan at Veterans Park is still to focus on accessibility around the park. Director Huemiller explained they plan on having at least one paved path around the whole park for wheelchair access. ADJOURNMENT Mayor Supple adjourned the work session at 6:48 pm. Date Approved: September 10, 2024 Mary B. Supple Mayor Katie Rodriguez Kelly Wynn Administrative Assistant City Manager