Richfield City Council — Agenda
Monday, March 23, 2026
Utility Rate Study and Financial Analysis for Infrastructure Renewal Planning
Votes (1)
Utility Rate Study and Financial Analysis for Infrastructure Renewal Planning
The item served as an informational session and request for direction regarding the long-term financial sustainability of Richfield's water, sewer, and stormwater utilities. Staff highlighted the increasing costs since the Covid-19 pandemic and the need for significant infrastructure investment. The presentation covered financial policies, proposed renewal and replacement funding approaches (e.g., funding an amount equal to annual depreciation expense), preliminary rate study results with proposed rate adjustments (e.g., Water Rate Adj. 16.5% for FY 2027), and various rate design alternatives including debt service charges. The Council's input on these strategies was critical for proceeding with the 2026/2027 budget cycle.
Ordinances & Resolutions (6)
The central document and topic of discussion, analyzing the financial health and needs of the city's utility systems.
Document alongside which utility rates are adjusted; Council direction on rates is needed for the 2026 Revised/2027 Proposed budget cycle.
City's strategic objectives that a thorough review of utility rates supports, including financial capacity, operational capability, affordability, and infrastructure support.
A 2023 study that informs the equity considerations of utility rate discussions.
An attachment to the agenda item summarizing the preliminary rate analyses and findings.
Capital Improvement Plan for each utility, which already addresses some renewal and replacement projects.