## Richfield City Council Agenda August 25, 2026 -- 4:30 PM ## Richfield Municipal Center ## Bartholomew Conference Room ## 6700 Portland Avenue South 1. Call to Order ## 2. Item Discussion a. Presentation of the 2026 Revised/2027 Proposed Budget and Tax Levy. 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 361 ## City Council Meeting 8/25/2026 ## Agenda Section: Item Discussion Agenda Item: 2.a. ## Report Prepared By: ## Steve McDaniel, Budget, Cash, and Debt Manager ## Department Director: ## Mary Bogie, Interim Finance Director ## Item for Consideration: Presentation of the 2026 Revised/2027 Proposed Budget and Tax Levy. ## EXECUTIVE SUMMARY At the August 12, 2026 City Council work session, staff provided the City Council with a preview of the preliminary 2027 Budget summary and levy, proposed 2027 Capital Improvement Budget (CIB) and 2028-2031 Capital Improvement Plan (CIP), proposed utility rates, and a review of City fees. The preliminary 2026 Revised and 2027 Proposed Budget and Tax Levy will be presented to the City Council for review. The proposed 2026 City tax levy is a 4.55% increase over the 2026 tax levy. The budget includes a balanced General Fund budget and also includes Special Revenue funds, Enterprise funds, Internal Service funds, Debt Service funds, and Capital Improvement projects budgets. The City Council will be asked to approve the preliminary 2026 Revised/2027 Proposed budget and preliminary tax levy at the September 22, 2026 City Council meeting. ## RECOMMENDED ACTION ## HISTORICAL CONTEXT Staff present the proposed budget and tax levy to the City Council at a special budget work session prior to approval at a City Council meeting in September. ## EQUITABLE OR STRATEGIC CONSIDERATIONS OR IMPACTS The proposed budgets fund positions and projects that advance strategic priorities, including equity. The budget message highlights examples of progress. ## POLICIES (RESOLUTIONS, ORDINANCES, REGULATIONS, STATUTES, ETC.) The preliminary 2026 Revised/2027 Proposed budget and preliminary tax levy will be presented to the City Council at the September 22, 2026 City Council meeting for approval. ## CRITICAL TIMING ISSUES The proposed 2027 City tax levy is a 4.55% increase over the 2026 adopted levy. Page 2 of 361 The increase in the City’s General Fund budget for 2027 is 2.16% over the 2026 adopted budget. ## FINANCIAL IMPACT ## LEGAL CONSIDERATIONS ## ALTERNATIVE RECOMMENDATION(S) ## ATTACHMENTS ## 1. 2026-2027 Workplan Action Steps - R1 2. 2026 Department Highlights - R1 3. 2027 City of Richfield Budget Book for 8.25.26 - R1 ## 4. 2027 Proposed Budget Presentation - R2 Page 3 of 361 Action stepPriority/ ## Outcome ## Process ## Improve- ment ## Assigned toYear ScheduledNotes ## Oversee Facility Assessment Needs Study and incorporate projects into the 5-year CIB/CIP and 10-year Financial ## Management Plan 3bYAdministrative Services - Building ## Services/Public Works/ Recreation 2025-2027Lead and assist in the implementation of the Wold's Facility Assessment Needs Study. Added projects, guided by the consultant's priority criteria, to capital budgets and to the Financial Management Plan, with identified funding. Projects and funding will still need to be studied and refined over time. Improved process of Election Administration1cYAdministrative Services - City Clerk2027Strengthen election records security, chain-of-custody procedures and emegency procedures. Develop Data Request Process/PolicyYAdministrative Services - City Clerk2027Establish a consistent citywide data-request workflow policy. Provide annual data practices training for departments and employees who routinely handle data requests. Conduct quarterly audits of closed data requests and strengthen records compliance. Improve public-facing information about requesting city data. Implement Even Year Elections1cYAdministrative Services - City Clerk2027 (Final odd year school board election)Worked with ISD280 to transition to even year election cycles and realize cost savings by removing odd year elections. Develop Data Management System - City Wide1,3,4YAdministrative Services - City ClerkOngoingUpdate and standardize records retention procedures. Establish an annual records disposition process. Inventory of databases and drives, which department is responsible for them, and applicable retention requirements. Develop a records-management dashboard to track retention reviews, training completions, records destruction, and any complaint or compliance issues. Implement CivicPlus agenda management system to improve staff report workflow for public meetings. 1cYAdministrative Services - City Clerk/ExecutiveOngoingContinue to train Council and staff in 2027 on agenda software options. Develop a brand guide for consistency of staff reports. Develop basic Crisis Communications Plan.1a, 1c, 4aAdministrative Services - Communications2027Develop basic communications plan and train. ## Develop Digital Accessibility Plan to meet Web Content Accessibility Guidelines (WCAG) by April 2028. 1c, 5aAdministrative Services - Communications2026-2028Deadlines were extended by 1 year in April 2026. City of Richfield must be in compliance by 4/26/2028. WCAG guidelines apply to all digital spaces and content, including website content, social media channels, email communications and third-party apps and vendors. Launch a new external-facing website and internal-intranet.1c, 5a, 4aYAdministrative Services - CommunicationsCompletedContracted with CivicPlus to build new website. Launched February 2026. Intranet will move to Sharepoint. Will relaunch web team as part of this initiative. Network Switch Replacement Program1c & 3aYAdministrative Services - IT2027Begin the multi-year replacement of network switches, prioritizing equipment based on manufacturer end-of-support dates to improve network reliability, security, and long-term infrastructure sustainability. Cybersecurity Protection Improvements1cYAdministrative Services - IT2027Modernize endpoint cybersecurity protection to strengthen threat prevention, detection, and response capabilities across City workstations and systems. Microsoft 365 Platform Expansion1cYAdministrative Services - IT2027Expand utilization of Microsoft 365 and SharePoint to improve collaboration, document management, and departmental business processes. Computer Replacement Program1c & 3aYAdministrative Services - IT2027Continue the four-year workstation replacement program by replacing scheduled desktop and laptop computers and improving lifecycle tracking of City technology assets. IT Policy & Cybersecurity Standards1cYAdministrative Services - IT2027Complete and implement updated IT and Cybersecurity Policies to establish consistent technology and security standards, responsibilities, and practices across the organization. Cameras and Door Access1c & 3aYAdministrative Services - IT/Building ServicesOngoing - 2027This project upgrades and expands physical security systems. Phase 1 (Fall 2025-Completed): Replace City Hall cameras and add new cameras at Public Works, the Ice Arena, and Fire Station 2. Phase 2 (2026): Install new cameras and S2 door access at the new WLNC building. Develop ( Implement a "Key Holder" position for each liquor store 4bYAdministrative Services - Liquor Operations2026-2027Work with H/R & Payroll to develop a "shift" pay plan for this "Intermittent" position. Implementation of this position will allow for each store to schedule and function more effectively with very minimal financial impact. (Status: this has been approved, we are in the process of implimentation) ## Develop Capital Replacement Scehdule for Liquor ## Operations-Buildings 3bAdministrative Services - Liquor Operations2026-2027Review and implement a replacement schedule of common building maintenance items including estimated costs. Roof, HVAC, Boiler, Cooler compressors, ETC... This will be in conjuction with Public Works. (WOLD STUDY Status: 2026: $7,500 for a new cooler compressor at the Cedar Point Store, 2027: $660,095 for belowgrade water proofing and sidewalk replacement at ## Richfield Liquor Downtown and Cedar Point locations) Implement and utilize our "Point of Sale" time clock for all hourly employees 4aYAdministrative Services - Liquor Operations2026-2027Create a user profile in the "POS" for all employees with a unique username and password. Train all hourly employees on how to puch in and out using the "POS" to log their hours. Ultimately eliminating physical timecards. (Status: Employee ID badges have been created and user profiles in our POS are in the implimentation stage.) Point of Sale1b, 1cYAdministrative Services - Deputy Registrar2027Research the cost of a new point of sale system to help wtih the record keeping and organization of the motor vehicle and passport office Passport Process1cYAdministrative Services - Deputy Registrar2027Implement a "No Show" fee for passport appointment to ensure customers report to the the appointment to minimize lost opportunities and/or revenues. Customer Service Feedback Survey4bYAdministrative Services - Deputy Registrar2026-2027Offer a customer service feedback survey to find out what customer's needs are and better communicate the value of our core services to residents, elected officials and staff. Page 4 of 361 Develop an "Apartment Navigator" program to expand connections with apartment communities. 2c, 5aCommunity Development20262026 work plan item, as staff capacity allows. Award additional social service ARPA funds.2c, 5aCommunity Development2026Small amount of funding remains to be spent by Reach for Resources and the Hoarding Program. All funds to be spent by end of 2026. ## Policy Request: Study source-of-income non-discrimination policy & extended eviction notice policy 2cCommunity Development2026-2027 Comprehensive Plan2a-c; 3a,c; 5aCommunity Development2026-2028Required decennial update begins 2026. Consultant hired, engagement kick off to begin with Penn Fest 2026. Policy Request: Study impacts of reduced 4d(1) tax classification rate and recommend policy approach. 2b,cCommunity DevelopmentCompletedFollow-up work (adjusting related policies) underway and to be completed by EOY. Cross-training and process improvements to Inspections Division4a,bYCommunity DevelopmentOngoingHiring challenges continued. Fully-staffed as of July 2026. Inspections divisions (Housing & Commercial) combined under Building Official to strengthen cross training and build pipeline for advancement. Review process of bringing a development to Council/residents. 1cYCommunity DevelopmentOngoingFoster a better understanding of "vested entitlements" granted in the zoning code. Provided LMC short-course to Council and add'l appointed policymakers. Utilized Esri storymaps for MR-2/MR-3 code updates. Comp Plan engagement is opportunity for community education around process. Model the type of development and investment that we want to see in the Community 2b, 2c,3cCommunity DevelopmentOngoing-2026Construction is underway on a duplex at 6326 14th. An RFP will be issued for 6808 14th later in 2026. Three loans have closed at Woodlawn Terrace on new, larger units, using affordability gap grant funds from Metropolitan Council. Anticipate spending the remainder of the grant by the end of 2026 on 1-2 additional units. Update housing work plan2cCommunity Development 2026Housing Specialists are in the process of developing new rehab program(s) in response to gaps and opportunities identified in the 2025 housing evaluation. LAHA funds in the amount of $699,000 will be received in 2026 and will support the new rehab program(s) and emergency rental assistance needs. The HRA received an award of Bring It Home Minnesota funding for rental assistance and anticipates issuing the first vouchers in September 2026. Create economic development plan within budget and staffing constraints 2a,bCommunity Development 2026 and beyondThe Richfield REVIVE Program was approved by the EDA in 2025. Launch delayed to address impacts of Operation Metro Surge on business community through creation and launch of Richfield Small Business Resiliency Program, which provided $65,000 to assist 10 businesses. Staff is preparing to roll out the REVIVE program. Other economic development activities include implementing the Small Business SAC Assistance Program, the Energy Efficient Business Rebate Program, partnering with Hennepin County on Elevate Hennepin, and providing business assistance information through the Richfield Business Bulletin and one on one communications. Develop plan to market HRA owned sites for redevelopment 2b, cCommunity Development 2026 and beyondDevelopment conditions continue to be very difficult. A marketing brochure has been developed for the site at 1600-1710 78th St. Staff meets with and stategically sends site information to prospective developers of HRA -owned sites. Develop a strategy for marketing downtown and attracting new businesses. 2a, bCommunity Development OngoingThe EDA approved the Downtown Richfield Branding and Placemaking Playbook in February 2026, developed by CivicBrand. The EDA received a $25,000 Business District Initiative grant from Hennepin County for banners and signage, which will be supplemented by EDA funds to help promote the area, support local businesses, enhance downtown, and implement the wayfinding plan and placemaking playbook. Essential Services Study 1b Executive2026Complete the Essential Services Study with Rapp Consulting Group and present the final to City Council in September 2026. The Study provides a structured review and classification of all municipal services, and recommendations to improve service quality, cost effectiveness and alignment with priorities. Update the City Charter1aExecutive2026Supported updates to the City Charter to bring petition requirements into compliance with state law. Continue standardizing commission processes in a manual. Provide training for commissioners and staff liasions. 1a & 5bYExecutive2026-2027Creating standard operating procedure for commission liaisons. Training for new and existing commissioners is offered yearly and led by the City Attorney. Collecting demographic data on commission applicants and appointees. Sending a survey to current commissioners in 2026 to guide future improvements in recruitment and retention. Summarize progress on the 2023-2026 Strategic Plan with updated dashboards and reports. Develop the 2028-2030 Strategic Plan in 2027. 1aExecutive2026-20272026 is the last year for the current Strategic Plan. In 2027, the Council-Director team will develop a new 3 year Strategic Plan (2028-2030) that will be informed by the Financial Management Plan, the Parks Master Plan, and the Essential Services Study. Continue detailing and standardizing processes and procedures in the Executive Department. 1cYExecutiveOngoingCreated standard operating procedure for internal process improvement including but not limited to, staff memorandums, commission recruitment, and proclamations. Partner with local legislators, state agencies and regional partners to advance key city priorities. 1-5Executive/All DepartmentsOngoing 2026 Legislature included $2M in the bonding bill for Nicollet Avenue and the city was able to secure $1.092M in Community Project Federal funding for the Emergency Water System Interconnect project. Staff continues to communicate the negative impacts of local cost shares for transportation projects, eliminating local group home inspections, and 4d tax changes. Review worker's comp self-insurance program and evaulate contracting with LMCIT 1b & 1cYExecutive/Finance/HR2025-2027Exploring a transition to to the League of Minnesota Cities Insurance Trust (LMCIT) for worker's compensation insurance coverage, currently self-insured. Recruit and onboard new City Manager1-5Executive/Human Resources2026-2027Hired an exective recruitment firm, GMP Consultants, to guide recruitment and onboarding. New city manager to start Q1 2027. Page 5 of 361 Develop and implement training programs for management staff4aExecutive/Human Resources2025-2027Exec staff coordinated the second year of a multi-city leadership training program, 28 staff participated in 2026. Directed a consultant to design and provide a supervisor skills training program, 48 staff participated in the first session. Target process review, improvement and documentation1b, 3b, 4bYFinanceOngoingStaff transition highlighted the need to review processes and develop standard operating procedures. Our focus will be strategic financial management, best practice and internal control compliance. Targeted areas will include: allocations, internal loans/leases, cash forecasting and management, chart of accounts use, implementing EFT vendor payment (EFT currenting in use for invoices grater than $300,000, priority for 2027), and other areas as time allows. Improve monthly/quarterly financial reporting 1bYFinanceOngoingBudget/actual reports for operations and capital projects have not been timely (staff turnover/transition) and can be better designed to meet the needs of decision makers. In addition to developing new reports, Finance will meet regularly with departments to review. Reconcilaitions are up to date enabling more timely reporting going forward. Optimal staffing to meet service demands. Support recruitment and retention, maintain workforce capacity 1c, 4bFinanceOngoingPlanning for new Finance Director hire 4th qtr 2026 and moving consultant to a project/mentoring role. Maintaining full staffing in a tight labor market is key for Department to continue strides made in the last year. Implement Tungsten for Accounts Payable 1c & 3aYFinance/Administrative Services-IT2026Streamline data entry and routing of invoices, significant staff time savings and improved accuracy. Staggered roll-out with Liquour and IT currently using. Goal is to have all departments on board by the end of 2026. Develop and implement the Financial Management Plan, a 10- year finacial planning tool 1b, 3bYFinance/Executive2025-2026Contracted with Ehlers to develop the FMP, integrated into the 2026-2027 budget process and presented to council August 2026. Develop a Workforce Sustainability Plan 1c, 4b, 5bYFire2027Develop a workforce sustainability plan focused on staffing models, succession planning, and strategies to manage long-term absences, turnover, leave coverage and special projects. Critical due to current workforce challenges; ties directly to budget impact and continuity of operations Launch an Officer and Training Development Program4a, 4bYFire2027Strengthen leadership capacity and improve operational consistency by creating standardized lesson plans, officer development pathways, and accountability expectations across shifts. Thus, builds a sustainable and structured leadership pipeline and raises performance standards for daily operations and future growth. Strengthen Fire Prevention and Risk Reduction Initiatives 2c, 3a, 4a, 4b, 5aYFire2026-2027Strengthening fire prevention and community risk reduction reduces fire risk, injury, and property loss before emergencies occur. Proactive inspections, consistent follow-up, and public education—especially with seniors, schools, and vulnerable groups improve safety and reduce barriers. Using data to target high-risk properties and partnering with businesses and community organizations enhances overall fire safety while supporting sustainable infrastructure, affordability, and equity. Implement Data-Driven Decision Tools1c, 2cYFireOngoingImplement analysis of call data. staffing patterns, and workload distribution to guide operational and budget decisions. Supports evidence-based budgeting, operational efficiency, and improved accountability. ## Piloting Alternative Response Team with RPD and Edina ## Police and Fire 1c, 4bYFire/Public Safety2024-2027Collaborated with Hennepin County, Richfield PD, Edina PD, and Edina Fire to develop a program that connects residents with appropriate resources for their needs, including mental health support and to reduce the reliance on emergency room visits. Ongoing evaluation in 2026-2027. Employee Survey1, 4Human Resources2026The cycle has been every two years to survey staff on employee experience, satisfaction and solicit feedback. Depending on staff capacity to complete this in 2026, this may go into 2027. Organizational culture training4 a,bHuman Resources2027Continue the training for all staff (timelines depend on staff capacity). Update our overall training offerings (safety, respectful workplace, AWAIR etc.) including review and possible implementation of the NeoGov Learn module. 4aHuman Resources2027AWAIR training in MN referes to Workplace Accident and Injury Reduction (AWAIR) training, which is required under MN OSHA regulations. In order to ease delivery of this and other important training offerings, HR will review implementation of the NeoGov Learn software which is a centralized solution for departments to track training taken externally, access training from an extensive training library and even record our own training. Evaluating MN Paid Leave current vendor4Human ResourcesEvaluating in 2026 for 2027Continue to evaluate how MN Paid Leave is administered. Review and improve employee recruitment process including development of a new hire checklist. 4YHuman Resources 2026Continue to evaluate our new hire process and implement the new hire checklist that HR developed. Update Employee Handbook/Policies 1Human Resources 2027Our goal is to finalize a comprehensive update to the employee handbook in late 2026 with a goal of implementation in early 2027. Update and create HR processes/policies that align with equity and inclusion goals. 5bYHuman Resources-Equity2026-2027Worked with HR to refine hiring/onboarding processes, train employees for inclusive interview practices, be present during interview processes cross-departmentally, and improve recruitment. ## Maintain 1,700 hours of Community Oriented Policing despite staff shortages. 1,3a- c,4,5a/b Public Safety2023-2027Expand our programming to reach the varied demographic populations within the city. Continually review what we are providing with Bloomington Public Health and survey what the communities needs are for services and support. The opioid settlement money will be planned and spent over the next 18 years. Continue robust recruitment to fill vacancies due to tight labor market and maintain diversity. 1a,4,5a-cPublic Safety2024-2026Have maintained 20% female sworn staff. This percent is above the national average for law enforcement agencies. RPD is also over 23% officers of color. Hired 5 officers in the last year and will have 3 officers starting in 2026 with goal to be at full complement by fall 2026. Page 6 of 361 ## Established an Officer Wellness Program addressing spiritual, physical, and financial health to help officers with stress management and resiliency. Program will also provide better resources to cope after crticial incidents. 1,4, 5Public Safety2024-2027We have presented several wellness topics through our in-house department training in 2026. This will be an ongoing process as we evaluate what is working through meeting with staff. Looking at a new firm to provide an in-house wellness program to come out quarterly to meet with officers to do baseline testing. Policy 360 will be our new department policy platform will be implemented in 2026, which is application based and will have health and wellness applications called MAGNUS ONE to be implemented in 2027. Enviromental health and Business licensing implemented and are monitoring the short term retal program. New software implementation coming soon 1,3,5Public Safety2024-2027 Staff are finalizing the new management software launch for the STR ordinance and continually updating other ordinances as they relate to property maintenance and health issues in the community. Vacant home numbers continue to rise and GUDS are being addressed via ARPA funding for abatement. STR monitoring software will be implemented in Quarter 1 2027. Public Safety Aid Money to be used for the Public Safety Budget on recruitment and retention. 1,3,4,5Public Safety2024-2030City Manager, Public Safety and Fire met to draft criteria for future projects, including recruitment and retention. A plan was developed in July of 2025 to spread the dollars and interest out to cover items in the public safety general fund that is in compliance with the legislative requirements. This money for public safety will be evaluated each year to determine if the money needs to be transferred into the public safety budget. Anticipating alot of attrition in the next several years through 2030. Strengthen community partnerships through the JCPP and other programs, including hosting outreach events. 1c ,3a, 4, 5a-c Public Safety2026-2027Partnering with 30 civic organizations and hosting 21 community outreach events. Through our flagship programs, Home Alone, Nite to Unite, Unity and the Community, and Heroes for Helpers, we are looking to create more diversity in our outreach by teaming up with new community organizations. Added Drivers License for all training and completed 6 classes. Working on additional programming for 2026 - 2027. Emergency Management/Response for continued support of COVID, addition training, preparation for man-made and natural disaters. Outreach to underserved communities. We will be looking at using the remainder of the ARPA money to replace an existing Communications Van that is close to 30 yearsold and needs replacement. 1,3,4,5a-cPublic Safety2025-2026Awarded $150k in ARPA funding to achieve our goals of emergency planning over the next 3 years. Planning is taking place to move this forward. We will be looking at using the money to replace an aging communications van. This will be completed in 2026. Instituited 20 police statutory changes that were passed by the Legislature and the POST Board on mandated policies. Anticipate additional reforms will be put into place in 2027 1,3,4,5Public Safety2025-2027Worked internally to complete and process new reform measures through development, training, and education, and implementation of equipment. Worked through and completed updated POST Board Mandates, working on other legislative mandates for 2025. Anticipate further police reform changes during the 2027 legislative session. Moved to Hyper-Reach community notification system. We are able to send alerts out that will automactically go to social media platforms. 1a- c,3,4,5a/bYPublic SafetyCompletedHyper-Reach is new and will be implemented and tested. Have been FEMA certified to issue IPAWS notices to the community that will be delivered to all devices. While we are certified to do IPAWS notices, the state of Minnesota will not allow municipalities to issue the warnings, required to be done at the county level. Added a Therapy Dog named "Ritchie" for the city with a legislative grant. 1,3,4,5YPublic SafetyCompletedOur Therapy dog was provided by a grant from the legislature and will be used throughout the city for employees. Training is completed. Support Services continues to evaluate properties and perform complaint based/proactive inspections to ensure properties are well maintained and in compliance with city code. Also regularly reviewing and updating relevant code in Support Services. 1,3a-c,4,5Public SafetyOngoingWe worked with numerous properties and home owners concerning property maintenance violations. We have maintained a 95 percent compliance rate for the past 5 years. Significant progress has been made on code updates and new ordinances related to adult-use cannabis. One cannabis registration remains open and staff are now focused on first year compliance for cannabis and LPHE retailers. Work is ongoing on tobacco violations and kratom health concerns. Inspect properties and provide reports on how to lower crime through crime prevention of the property as in Crime Prevention through Environmental Design, “CPTED”. Performing security assessments for schools and businesses. 1,3,4, 5a/cPublic SafetyOngoingBased on the number of "Active Shooter" incidents occurring around the country, increased requests for onsite security assessments. This is ongoing as we contiue to recieve requests from local schools and businesses. Working with schools and businesses on safety protocols for critical incidents. Complete various comprehensive plan updates.1c, 3a, 3b, 3cPublic Works2026-2027Department will be updating the Water Supply Plan, Sanitary Sewer Comprehensive Plan, Surface Water Management Plan and Bicycle Master Plan. As well as working closely with CD on development of the Transportation Chapter of the Comprehensive Plan. Successfully complete the city-wide water meter replacement program by the end of 2023. 3aPublic Works CompletedMeter replacement project complete as of spring 2026. Traffic Calming Policy5cPublic Works 2027Explore a traffic calming policy/program for the city. This will involve the Transportation Commission and City Council direction, as well as a funding source if a program is utimately developed and moves forward into implementation. New Public Works storage facility.1c, 3aPublic Works2025-2027DELAYED due to supply chain. Design engineering is underway and the City intends to let the project in late summer 2026 with site construction starting in the Fall and substantial completion by Spring of 2027. Page 7 of 361 Update Inflow/Infiltration (I&I) ordinances in accordance with the Sanitary Sewer Comprehensive Plan and adopt and implement a Fats, Oils, and Grease (FOG) ordinance 3aPublic Works2025-2027Richfield utilities leadership actively participated in MCES’s task force for the development of policies and programs relating to FOG in 2024. With the change in regulations and requirements for our annual lead copper sampling for 2025, among many other things, staff has not yet found the time to make substantial progress on updating these ordinances. The revised completion target for this effort is 2026. Construct the Emergency Water System Interconnect3a, 3bPublic Works2027Construct an emergency water interconnect system between the City of Minneapolis and Richfield. Collaborate with state and county officials to examine the equitability of regional cost share policies 2c, 3bPublic Works2027A revised cost share policy was adopted by MnDOT in 2026 and includes "ability to pay" language that aims to cap local costs on state projects. Hennepin County is currently undergoing a cost share policy review with input from cities. That effort is scheduled to be completed in Q1 2027. Nicollet Avenue Reconstruction3a, 3b, 5a, 5cPublic Works 2026 - 2027Cooperative Construction Agreement with Hennepin County to deliver new streetscape and underground utilities. 69th Street Reconstruction 3a, 3b, 5a, 5cPublic Works 2026 - 2028Currently in the public engagement phase of project development, will determine the future streetscape in 2027 and move into the design phase for 2028 construction. Penn Avenue Reconstruction 3a, 3b, 5a, 5cPublic Works 2026 - 2029Currently approaching preliminary design selection and will move into the design phase for 2028-2029 construction. Continue to address inequities and reinvest in the public right-of- way by utilizing the Public Works Public Engagement Process and Guiding Principles when designing reconstruction and improvements. 3a, 5cPublic WorksOngoingPublic works is underway with various public engagment efforts in summer 2026 with the aim of designing and building projects that best serve all of Richfield's residents and right-of-way users. Current projects include, but are not limited to: Nicollet Ave (in- construction); Penn Avenue (in Public Engagement); 69th Street (in Public Engagement); various sidewalk improvement projects. Inventory and condition assessment of goverment buildings, park assets, utility infrastructure, fleet, & roadway elements 1c, 3a, 3bPublic Works/Administrative ## Services/Recreation Services OngoingInventories and condition assessments are being completed for many city assets including; park assets, government buildings, infrastructure elements and underground utililites. Recreation is underway with Ice Arena and Pool inventory and assessment with internal staff. A necessary GIS software update is complete and Public Works is in the process of hiring an Asset Management/GIS Technician FTE which will help us tie all this together into an asset management system. Parks Master Plan & 10 year CIP1b, 3a, b, c, 5ayRecreation Services2025 - 2028Complete community Engagement in 2026; finalize Park plans and 10-year CIP in 2027. Incorporate into the 2028 CIB/CIP process. Explore additional recreation funding sources1b, 3a,bRecreation Services2026 - 2029Apply for Hennepin County Youth sports grant; identify other funding sources to implement the Parks Master Plan. Update and adjust program offerings1b,c, 4b, 5aYRecreation Services2027 - 2030Shift programming based on findings from the Parks Master Plan. ## Nature Center Construction1b, 3a,b, 5a,c Recreation Services2023-2026Funding has been secured; construction commenced in September 2025. The budget will need to be managed through the end of the project in Fall 2026. Substantial completion is expected in October 2026, with a Grand Opening in November 2026. Develop and implement operational plan for rentals and ## programming at new Wood Lake Nature Center Building 1c, 3b, 4a,b 5a,byRecreation Services2026 - 2029A new Event Coordinator (split with Ice Arena/Pool) will be hired in fall 2026. Processes for event space rental and catering procedures will need to be developed. A new scalable staffing structure for educational programming needs to be developed and implemented to maximize utilization of the new space. Processes around maintenance and daily facility operations will need to be developed and refined. Veterans Park Construction3a,b,Recreation Services2023 - 2028Funding has been secured through the Local Options Sales Tax, State DNR Outdoor Recreation Grant, and liquor store profits to improve the Pool, Ice Arena, and general Park amenities. The Pool portion of the project will be completed in late 2026. The Ice Arena improvements will be completed in early 2027. Park improvements will take place in 2027, including trails, pavilion, and other general park improvements. Develop and implement operationsal plan for Ice Arena/Pool birthday party rentals, integrate new Event Coordinator into current processes. 1b,c, 3b, 4a,bYRecreation Services2026 - 2028Updating procedures for the new Ice Arena lobby space. A new Event Coordinator will be hired (split with Wood Lake) in the fall of 2026. Processes for birthday rentals at the Ice Arena and Pool will need to be developed. Community Center Project1c, 3a,b,c, 4a, 5a2026 - 2031In 2026, as part of the Master Plan process, a statistically valid survey will be conducted on the desired amenities for a new Community Center, and an operational analysis will be completed for the new community center. An RFP will go out for architectural work on the new community Center in late 2027, with construction anticipated to start in 2030. Natrual Resources Enhancements1b,c, 3c, 4a,byRecreation Services2025 - 2030The Natural Resources Plan will be completed in fall 2026. A new Natural Resources Coordinator will be hired in January 2027 and begin building capacity to implement the plan through partnerships, developing a volunteer corps, and securing grant funding. They will also start developing policies related to natural resources work. Organized Hauling Contract1c, 2c, 5ayRecreation Services2026 - 2028Resident engagement on organized hauling will begin in late 2026. An RFP will be developed in 2027, and a new contract will be finalized by October 2028. Conduct an electric vehicle sutability/assessment, and continue evaluating fleet for EV/PHEV replacement opportunities. 3a,b,cYRecreation Services2025-2027Council prioritized CAP goal - Initial vehicle assessment completed in 2025; fleet evaluation and assessment of leasing will occur in 2027 ## Increase Climate Action Plan Education with community and city staff 3c, 5cYRecreation ServicesOngoingIncludes informal and formal opportunities. WLNC classes, Farmer's Market tabling, Eco-fair, work with Sustainbility Commission, outreach regarding CAP, etc. Sub branding completed, initial communication has begun. Page 8 of 361 ## 2026 Department Highlights ## Administrative Services ## City Clerk • Continued to develop and enhance the data management system city-wide. • Reviewed retention schedule by department and developed a quarterly process for destruction of expired retained documents. • Along with the Hennepin County Elections Department, administered a successful election process for two elections: Primary Election and General Election. ## Deputy Registrar • Researched the cost of a new point of sale system to help with the record keeping and organization of the motor vehicle and passport office. • Offered a customer service feedback survey to better understand customer needs and to better communicate the value of our core services to residents, elected officials and staff. • Continued to work with legislators regarding financial sustainability for deputy registrars. ## Building Services • Continued to refine user charges and operating costs to ensure a balanced operation. • Implemented the facilities assessment study and developed a long-range financial plan. ## IT • Completed the Citizenserve sync workflow into the Laserfiche repository to support data retention requirements. • Upgraded and migrated the City’s GIS environment to AWS GovCloud to improve system reliability, security, and long-term support. • Upgraded multiple existing and new Laserfiche workflows, including Personnel Action Forms (PAFs), invoices, leave slip submissions, and search functions. • Implemented new public Laserfiche WebLink access for record searches related to Council, Commission, and Board records. • Expanded door access and camera systems to additional City facilities. • Assisted with the migration of the City’s intranet to SharePoint to improve internal access to staff resources and information. Page 9 of 361 • Expanded the use of cybersecurity training to improve staff awareness of common threats and strengthen the City’s overall security posture. • Completed the migration to a modern IP telephony phone system to improve communication services and support future system enhancements. ## Communications • Led, or assisted with, public information campaigns related to: Operation Metro ## Surge, Officer-involved shooting, Parks Master Plan, initiation of Comprehensive Planning, project updates related to the Our Legacy, Our Future campaign at Wood Lake Nature Center and the Richfield Outdoor Pool. • Held biannual meetings with departments to identify relevant content, updates and reminders to share across channels to residents, visitors and local businesses. • Launched a new enhanced, responsive municipal website. The new website includes the following integrations: Chatbot to assist in multilingual communications and after-hours customer service, search functionality across agenda management software, municipal code repository and website, and a mobile-first design to ensure functionality across desktop, tablet and mobile devices. • Launched a new internal intranet site on SharePoint for staff resources and engagement. This replaces the previous web-based platform for the content. • Worked with staff to develop an approach to meeting the Web Content Accessibility Guidelines for the city’s 2028 deadline. • Continued to maintain and grow the city’s social media accounts (Facebook, Instagram, LinkedIn and YouTube). • Guided discussion on whether or not to remove comments from social media platform(s). • Transitioned from GovDelivery platform to Mailchimp application for e- newsletters. • Sent out approximately 175 bulletins, or e-newsletters to more than 23,000 subscribers across various topics. • Maintained an average engagement-rate of 33% across all topics. • Broadcasted approximately 48 public meetings live on Channel 16 and the city’s YouTube channel. • Continued developing the rebranded Hometown Guide (formerly the Recreation Services Program and Activities Guide). Added ten pages of content to guide, which is delivered to 16,000 households three times per year. • Facilitated interviews, advertisements and photo opportunities for city staff and local media. Page 10 of 361 • Facilitated the Employee Engagement Committee and its events and programming. • Assisted staff with the promotion and marketing of more than 20 citywide events and activities. • Spearheaded the 2026 Summer Kickoff (formerly State of the City/Community), which welcomed more than 250 people to city hall to celebrate a thriving Richfield. ## Liquor Operations • Two Shift Lead vacancies were reclassified to permanent part-time 20-29 hours per week in lieu of permanent part-time 30-39 prior to being filled. • Implemented Tungsten financial software at the liquor stores to process invoicing/receiving more efficiently. • Public Works & Liquor Operations utilized the Public Tree Planting Fund to plant seven trees in the public green space at the Cedar Point store. • Annual “Toast to Richfield” is scheduled for Thursday, October 8, 2026. • The 2024 MN State Auditor’s ranked Richfield second among municipal liquor operations in total sales for the year. ## Community Development ## Planning & Zoning • Worked with cannabis retailers to find allowable locations in Richfield. • Translated several planning handouts into Spanish. • Created and implemented metal detector rental program for residents. • Continued to improve plan review and permitting processes to improve efficiency and customer service. • Worked with Engineering Division on the Low Salt Design Pilot Project sponsored by the Nine Mile Creek Watershed District – resulted in better plan reviews and a best practices handout and checklist. • Worked through land use applications (e.g. MICC, former American Legion site). • Continued to work with developers/owners to explore potential development opportunities (e.g. 101 66th, vacant lot at former Lyndale Gardens site). • Solicited for consultants to assist with the 2050 Comprehensive Plan update, conducted interviews, negotiated a scope of services, and entered into a contract. • Kick off Comprehensive Plan process and complete Phase One of public engagement plan. • Hire and onboard new planner. Page 11 of 361 ## Inspections • Brought in a retired plan review professional to help get staff trained in doing commercial and residential plan reviews. • Sending the less-senior inspectors out to commercial building sites to do inspections with senior staff so that we can grow our future senior inspectors from within our current staff. • Implemented Bluebeam software to help with our inspection corrections on large building sites. • Completed digitizing of building plans for long-term efficiency and sustainability purposes. • Supported legislative actions to restore rental licensing option for State-licensed group homes. ## Finance • Worked with Ehlers to update Key Financial Strategies model with a comprehensive Financial Management Plan. • Continued review of daily operations and processes including Tungsten (Logis) implementation, streamlining vendor invoices to payment processing. • Planning for general obligation debt issue November/December 2026. ## Fire • Navigated a difficult transition in department leadership with the departure of the Fire Chief and hiring of their replacement. This was compounded by the fact that the deputy chief position has been vacant since June 2025 and the administrative assistant since December 2025. • Recruited, hired, and onboarded a department administrative assistant. • Dedicated an existing FTE previously assigned to shift coverage to prevention to address opportunities identified in the Essential Services Study. • Expanded technology used to enhance the Records Management System (RMS), improving data collection, pre-planning, recordkeeping, and operational tracking. • Maintained uninterrupted minimum shift coverage and provided an incredibly high level of customer service and satisfaction during staffing shortages caused by military deployments, parental leave, extended injuries, and large personnel leave banks. • Completed the Civil Service testing process to establish an updated firefighter eligibility list for immediate openings as well as future hiring. ## Human Resources Page 12 of 361 • Increased recruiting, hiring and onboarding for city employees due to increased turnover in the past several years. • Secured candidates for 110 positions, mostly seasonal, and conducted leadership searches to fill management level positions of HR Director, Project Engineer and Utility Engineer. • Settled four contract negotiations at the end of 2025 and one in early 2026. • Implemented the Minnesota Paid Leave program, including policy development, employee communication, and payroll coordination. • Partnered with a consultant to develop and launch a new supervisory training program for City supervisors. • Transitioned to a standalone department and hired a Human Resources Director. • Integrated the Equity Coordinator position and related initiatives into the Human Resources Department to better align organizational equity efforts with employee programs, policies, and practices. • Hired an HR consultant to review citywide policies and suggested changes and additions for new policies. • Attended a Labor Management Committee training with the Fire Union facilitated by the Bureau of Mediation Services. ## Legislative/Executive ## City Council • Participated in the annual City Council-Staff Retreat, emphasizing the Council’s ownership of the City’s strategic plan—its purpose, priorities, direction, and accountability. Staff, guided by the Council, is responsible for implementing the plan, determining methods, and measuring performance related to its goals and action steps. • Quarterly meetings to focus on long-term vision and planning, and to maintain a high functioning team. • Fostered community engagement by serving as liaisons to City boards and commissions. Improved commission recruiting procedures and provided onboarding for new commissioners with separate training for commission chairs. • Met with residents and supported a variety of community initiatives, including Juneteenth, the 4th of July, Penn Fest, and the third State of the Community (Summer Kickoff) event. • Advocated for City priorities at the federal, State, and County levels to help shape key regional projects and statewide reforms. • Increased Richfield’s regional presence by partnering with regional organizations like the I-494 Corridor Commission, I-35W Solutions Alliance, Greater MSP, and Regional Council of Mayors. Page 13 of 361 • Contracted with Craig Rapp Consulting for an essential services study to better define essential services, prioritize services and programs, and explore more efficient and effective service delivery models. • Joined the Cities for Safe and Stable Communities coalition to strengthen advocacy efforts on issues impacting local government finances, public safety, housing, and quality of life. ## City Manager • Coordinated training options for staff, including but not limited to leadership training and supervisor training. • Organized City Council-Staff retreats to help build constructive operating norms and expectations to enable a high-functioning team. Council and Directors worked to identify policy proposals for the coming year during quarterly effective governance meetings. • Assisted in the development of the Essential Services Study, providing Council and staff with service categorizations and recommendations. • Coordinated the City Manager executive search process, including development of the Request for Proposals (RFP), proposal evaluation, Council interviews, and firm selection. • Initiated the City Manager recruitment process by selecting and contracting with an executive search firm to guide the City Council through the recruitment and selection of the City's next City Manager. • Completed the final update and reporting for the current Strategic Plan in preparation for development of the City's next strategic plan. • Supported updates to the City Charter to bring petition requirements into compliance with state law. • Partnered with the Finance Department to evaluate the City's workers' compensation program and develop a recommendation on whether to remain self-insured or transition coverage to the League of Minnesota Cities Insurance Trust. • Transferred administration of the City's lodging tax to the Minnesota Department of Revenue. • Participated in mediation efforts for the Fire Union. • Participated in Bureau of Mediation Services (BMS) Path Forward and Labor Management Committee (LMC) training for the Fire Union. ## Other Agencies • Awarded $97,584 in contracts to seven non-profit agencies to provide services to Richfield residents. Page 14 of 361 ## Public Safety • Presented and participated in numerous events throughout the year that reached 1000’s of residents. ## Police • Therapy Dog Ritchie has been requested throughout the Metro due to various critical incidents that have occurred, bringing accolades to our department and to the city due to our willingness to deploy to help those in need. • Staff has participated in reintegrating students who experienced trauma from the Annunciation School shooting back into their school. Students learned about the police department as part of their therapy, discussing the jobs we do to serve the community and roles that the police play in critical incidents as the “Helpers.” • JCCP Program responded and assisted the community by attending community forums and having meetings with community members on responses and roles as it related to Metro Surge. • Actively transitioning to “Policy 360” which is a mobile application for our department policies, which will allow officers quicker access to information and will expedite our accreditation, accreditation is a certification program from the Minnesota Chief’s of Police Association that certifies polices as best practice. Should be completed late 2026 or early 2027. • Received an award from the City of Brooklyn Park for our assistance in the apprehension of suspect Vance Boelter, which was the biggest law enforcement search and apprehension in the State of Minnesota’s history. • Assigned an officer to the West Metro Drug Task Force to combat the rise in narcotic activity we are seeing in the community. • Expanded on a program called “Active Outdoors” with Partnership Academy, bringing in various coaches to teach different sports to students. • Clearance rates for cases of violent crimes are above the national average and the average for Law Enforcement agencies in the State of Minnesota. 2025 Clearance ## Rates ## National ## Benchmark ## Minnesota Benchmark ## Richfield Police ## Department ## Overall Violent ## Crime Clearance 40–45% 45–50% 74% Homicide 57–62% 76% 100% ## Aggravated ## Assault 48–50% 50% 76% Robbery 27–30% 30-35% 46% Rape 25–30% 30% 55% Page 15 of 361 ## Support Services • Two cannabis dispensaries and ten low potency hemp edible (LPHE) retailers have registered and opened. • New short term rental management platform being purchased in late 2026. • Support Services saw the first significant turnover in staff in three decades and all positions are now filled and/or are in background. ## Emergency Management • Working with Hennepin County Emergency Management to have all 7 of our outdoor warning sirens replaced with new control panels. ## Public Works • In collaboration with Public Works managers, completed assessment of existing services provided/delivered with consideration of priority level, quality of service, staffing, financial commitments, and regulatory requirements. • Secured $2 million in state bond funding for the Nicollet Avenue reconstruction project. • Partnered with the Recreation Department to develop a Natural Resources Plan. ## City Utilities and Water Resources • Implemented cybersecurity upgrades to improve and protect our network SCADA system. • Undertook development of construction documents and a bid letting for the Emergency Water Systems Interconnect project. • Continued proactive maintenance of the wastewater collection system by jetting/proofing the entire city on an annual basis, including televising and root sawing. • Rehabilitated approximately 5 miles of sanitary sewer main. • Began design of a sanitary sewer project to provide capacity for a new residential development along Portland Avenue South. • Began design of Sanitary Lift Station 6 Rehabilitation Project. • Began update of Sewer Comprehensive Plan as required by Metropolitan Council in conjunction with Citywide Comprehensive Plan update. • Began sanitary sewer structure adjustments required for the Nicollet Avenue Reconstruction Project. • Transitioned to in-house water quality monitoring for lakes and ponds, which was consultant-led historically. Page 16 of 361 • Began updates to the City’s Surface Water Management Plan and the Richfield ## Bloomington Watershed Management Organization’s Comprehensive Plan, which are both updated on a 10-year cycle. • Completed a utility rate study and development of a forward-looking rate structure that accounts for our capital and maintenance programs. ## • Completed Risk and Resiliency Assessment and Emergency Response Plan, which are legislative requirements to satisfy the Federal Safe Drinking Water Act as a water utility permittee. • Initiated Water Supply Plan update, due to Minnesota Department of Natural Resources in March 2027. • Hosted 150 chemistry students from Richfield High School for water treatment plant tours. • Began design of water treatment plant generator replacement project. • Completed site investigation and began in-house design of the Norby’s Pond Reconstruction Project. ## Engineering • Completed the 2026-2030 Engineering Consultant Pool solicitation, selection process, contract negotiations, and executed approved agreements with all nine (9) consultants selected for the pool. • Constructed the Safe Routes to School project on 64th Street and Russell Avenue and began construction of the sidewalk project on 73rd Street. • Began reconstruction of Nicollet Avenue in collaboration with Hennepin County. • Continued planning and design with Hennepin County for the full reconstruction of Penn Avenue. • Began design and engagement for the 69th Street reconstruction project. • Began design and engagement for the 76th Street and Knox Avenue intersection improvement project. • Submitted six projects for Regional Solicitation grant applications. • Represented Richfield’s interests and coordinated with the City Council related to the future I-494 corridor planning. ## Streets/Forestry, Park, and Fleet Maintenance • Completion of the USDA Forest Service Urban and Community Forestry Inflation Reduction Act Grant to enhance urban tree canopy by focusing all planting effort in census tracts identified by CEJST as disadvantaged communities, contributing to the goals of Justice40. • Completed Park Asset Inventory and Condition Assessment data collection and turned it over to Recreation divisions as detailed in the Strategic Plan. Page 17 of 361 • Continued administration of the pavement management plan to protect the major investment into the residential Mill & Overlay program. • Provided technical review and construction inspection services for private redevelopment projects throughout the City, specifically as they relate to rights- of-way, utility, and stormwater impacts. ## Recreation Services ## Administration • Completed Pool and Ice Arena Local Option Sales Tax renovation projects. • Completed Natural Resources Management Plan for Richfield Lake Park, Taft Park, Veterans Memorial Park and Wood Lake Nature Center. • Began Parks Master Planning process. • Collaborated to conduct a recreation facility assessment. • Constructed a playground at Donladson Park. ## Recreation Programming • Developed a new partnership model with RecLeaguer to offer adult grass volleyball leagues. • Implemented new gardening and kitchen programs supported by the Urban AGRI grant. • Partnered with VEAP to offer monthly mobile food pantry in response to the Fare for All program ending. • Staff supported community volunteer committees to offer the Richfield 4th of July Celebration and Penn Fest. • Secured grants and sponsorships for Entertainment in the Park allowing for higher quality bands and Food Trucks at all evening performances. ## Wood Lake Nature Center • Completed the construction of a new Wood Lake Nature Center building using Local Option Sales Tax, Meeting regularly with the building project team. • Managed the natural resources of Wood Lake Nature Center to allow for access, safety, and biodiversity, securing grant and donation funding. • Moved FOWL to a higher level and more diverse styles of fund raising. Held successful FOWL dinner in November. • Provided new programming while maintaining traditional programs at two sites while the Nature Center is under construction. ## Sustainability • Updated Climate Action Plan. Page 18 of 361 • Complete fleet electric vehicle assessment. • Started monthly Fix-it clinics • Installed solar panels on Ice Arena and Public Works Building using State and Federal Funding. Page 19 of 361 ## CITY OF RICHFIELD ## 2027 BUDGET ## JANUARY 1, 2027 - DECEMBER 31, 2027 ## 6700 PORTLAND AVENUE , RICHFIELD, MN 55423 Page 20 of 361 ## 2027 BUDGET TABLE OF CONTENTS ## Page No ## INTRODUCTORY SECTION ## Letter of Transmittal3 ## City Officials17 ## Administrative Organization Chart18 ## City Fund Structure19 ## BUDGET SUMMARY INFORMATION ## Summary of 2026 Revised Budget - All Funds22 ## Summary of 2027 Budget - All Funds23 ## Comparative Analysis of Revenue - All Funds24 ## Comparative Analysis of Expenditure - All Funds25 ## OPERATING BUDGETS ## General Fund Analysis Comparative Analysis of 2026 Adopted, 2026 Revised and 2027 Budget - General Fund28 ## Comparative Analysis of Fund Balance - General Fund29 ## Comparative Analysis of Revenues - General Fund30 ## Comparative Analysis of Expenditures - General Fund31 ## General Funds ## Legislative/Executive - Summary34 ## City Council/Mayor35 ## Other Agencies39 ## City Manager41 ## Legal45 ## Administrative Services - Summary48 ## Administration49 ## Deputy Registrar52 ## City Clerk56 ## Human Resources - Summary63 ## Human Resources64 ## Finance - Summary69 ## Finance70 ## Public Safety - Summary74 ## Support Services75 ## Police80 ## Emergency Services87 ## Fire - Summary92 ## Fire93 ## Community Development - Summary98 ## Community Development Administration99 ## Planning & Zoning103 ## Inspections106 ## Public Works - Summary112 ## Administration113 ## Engineering117 ## Street Maintenance122 ## Park Maintenance126 ## Recreation Services - Summary132 ## Recreation Services Administration133 ## Recreation Programs 137 ## Wood Lake Nature Center141 1 Page 21 of 361 ## 2027 BUDGET TABLE OF CONTENTS ## Page No ## Special Revenue Funds ## Liquor Contribution Fund146 ## Tourism Administration147 ## Communications Fund148 ## Elections Fund150 ## Drug/Felony Forfeiture151 ## Public Safety Compliance152 ## Recreation Services Contributions153 ## Nature Center Contributions154 ## Public Health Grants155 ## Wood Lake Half Marathon156 ## Franchise Fees157 ## Ice Arena159 ## Swimming Pool161 ## Special Facilities162 ## Sustainability163 ## Opioid Settlement Fund165 ## Public Safety Aid166 ## Street Light User Fee Fund167 ## Enterprise Funds ## Liquor Operations Fund - Summary169 ## Liquor Operations171 ## Richfield Liquor Downtown172 ## Richfield Liquor Cedar Point177 ## Richfield Liquor Penn Central181 ## Richfield Liquor Shops at Lyndale185 ## Water and Wastewater Utilities - Summary189 ## Water Utility192 ## Wastewater Utility204 ## Stormwater Utility - Summary213 ## Stormwater Utility215 ## Internal Service Funds ## Central Garage - Summary229 ## Information Technologies - Summary237 ## Insurance/Risk Management - Summary245 ## Building Services - Summary252 ## Debt Service Funds ## Debt Services Mission Statement259 ## General Obligation Improvement Bonds260 ## General Obligation Improvement Bonds Scheduled Debt Service Requirements261 ## Capital Improvement Funds ## Capital Improvement Budget and Plan Mission Statement263 ## Budget Summary Capital Improvement Funds - 2026271 ## Budget Summary Capital Improvement Funds - 2027272 ## 2027 Capital Improvement Budget & 2028-2031 Capital Improvement Plan273 ## Capital Improvement 2027 Sources and Uses275 ## Full-Time Regular Budgeted Personnel276 2 Page 22 of 361 ## S eptember 22, 2026 ## Council Members: ## I n accordance with the Charter of the City of Richfield, submitted for your consideration are the recommended budgets for the City of Richfield for the period of January 1, 2027 to December 31, 2027, and for the remainder of the calendar year 2026. A City Council work session was held on August 12 and 25, 2026, to review the revised and proposed budgets. ## P ursuant to State law, the City Council must certify the new budget and the revenue required to be raised by ad valorem tax levy to the County Auditor. The deadline for the certification is December 28, 2026. A proposed 2027 tax levy must be submitted to the County Auditor on or before September 30, 2026. Any amendments to the proposed budget, which would increase the property tax levy, must be made prior to the September 30, 2026 proposed levy certification deadline. No increases in the tax levy are permissible after that date, only reductions. ## T he resolution required to certify the 2027 Adopted Budget and tax levy, as well as the 2026 Revised Budget is presented within the final adopted budget document completed in December. ## T he Budget Document includes the General Fund, Special Revenue Funds, Internal Service Funds, Enterprise Funds, Debt Service Funds and Capital Improvement Projects. A diagram of the fund structure is included in the Introductory Section (page 19). Budgets for the General Fund and Special Revenue Funds are adopted on a basis consistent with generally accepted accounting principles. Budgetary control for the Capital Projects Funds is accomplished through the use of project controls and for the Debt Service Funds by bond indentures. An administrative organizational chart, which summarizes all departments and divisions in the City, is included in the Introductory Section (page 18). This chart indicates the divisions for which each department is responsible. The 2027 Proposed Budget includes total appropriations from all funds of $112,958,448, including all inter-fund transfers. 3 Page 23 of 361 ## OVERVIEW Ultimately, budgets are a spending plan, calibrated to economic conditions, and rooted in the City’s priorities and values. The recommended 2026 Revised Budget and 2027 Proposed Budget represent progress on the Council’s strategic priorities. Highlighted below are some examples of how these priorities are reflected in the 2026 Revised Budget and the 2027 Proposed Budget (see Strategic Progress). The City continues to navigate challenging fiscal constraints and economic conditions. Funding Richfield’s operations and capital needs with a modest tax base and goal of minimal tax increases is always challenging. Worsening economic uncertainty and persistent inflation have added to the challenge (see Economic Condition). The City completed several studies and plans in 2026 to strengthen financial planning, better prepare for economic challenges and guide investments to serve residents for decades to come. More details on recent development efforts, infrastructure and personnel investments are presented below. Later sections provide a budget summary of the City’s main operating fund, the General Fund, which funds most City services, followed by a summary of the remaining fund budgets. The General Fund is primarily funded by property taxes (73% of total revenues): t he recommended 2027 City tax levy is a 4.55% increase over last year. The increase is due to three main factors: growing service demands, higher labor costs, and the need to invest in technology, infrastructure and service improvements. ## STRATEGIC PROGRESS The pace of change has placed higher expectations on local government. To prioritize investments, the City’s policies, budgets and programs are guided by a four-year strategic plan which concludes at the end of 2026. Strategic planning focuses Council and staff leadership by regularly reviewing results and progress on policy priorities. The City will assess the results of the 2023-2026 plan in 2027 and develop a new three-year strategic plan for 2028-2030. Developing the new plan will include engagement with residents, policymakers, local partners and staff. The 2023-2026 strategic plan prioritizes operational excellence, community development, sustainable infrastructure, high-quality workforce and equity. ## Operational Excellence: Focused City leadership (1a); Financial capacity to deliver essential services (1b); Operational capability to deliver essential services (1c) In 2026, the City launched an upgraded website after a two-year process. The City completed an Essential Services Study, including a full review and categorization of municipal services, and recommendations to improve service quality and efficiency. Examples of improved services and efficiency include a more robust fire prevention and risk reduction program, expansion of M365 and AI options for staff and implementing a more automated accounts payable program. Finally, in 2026, the Finance Department partnered with our financial advisors to implement a new long-term financial planning tool, the Financial Management Plan. Additional analysis and detailed information in the financial plan will help inform the development of a new 2028-2030 Strategic Plan. 4 Page 24 of 361 Community Development: A vibrant downtown (2a); Increased tax base (2b); Maintain Richfield as an affordable place to live (2c) Implementation of a downtown branding and placemaking plan began in 2026, including banners and signage to help promote the area. Following an evaluation, the HRA developed new housing programs to fill gaps and guide priorities for $699,000 in Local Affordable Housing Aid (LAHA) funding from the state in 2026. The Housing and Redevelopment Authority ( HRA) received funding for rental assistance through the state’s new Bring It Home Minnesota program and will issue the first vouchers in September. A summary of ongoing community development projects is detailed later in this document under Strategic Development. Many of the programs are funded by the City’s HRA and Economic Development Authority (EDA) budgets. In 2025, those programs directly assisted 557 households and businesses in Richfield. Sustainable Infrastructure: City infrastructure supports service needs (3a); Sustainable infrastructure financing (3b); Climate resilience is a priority (3c) Progress on stewardship of the City’s human, financial, built and natural resources is evident throughout the operating and capital budgets. The new Wood Lake Nature Center, funded with local sales tax, state and federal grants, will open in late 2026. The City also completed several Veterans Park improvements in 2026, including upgrades to the Pool and Ice Arena. The City completed a facilities assessment in 2026 to better identify and prioritize needed building improvements which have been incorporated into budgets and long-term financial plans. The proposed budgets increase funding for IT, rolling stock and building maintenance to better align funding with ongoing and future equipment and maintenance needs. The City updated the Climate Action Plan in 2026 and will begin negotiating a new contract for organized hauling in 2027. High-Quality Workforce: A well-trained workforce (4a); Staff capacity to meet service demands (4b); Healthy Council-staff relationships (4c) Strengthening the City’s recruitment and retention programs to maintain a high- quality workforce is an ongoing effort, especially given the tight labor market for some government positions. Staff retention has improved in the past 3 years, and several improvements will build on that momentum. Staff were provided with several new training options in 2026, including leadership and skills programs for supervisors. HR is planning safety, skills and personnel policy training for all staff in 2027 The City will survey all staff in late 2026 or early 2027 to better understand needs. Equity and Inclusion: Reduced racial inequities and barriers for traditionally excluded groups (5a); Staff, Boards and Commissions reflect the diversity of the community (5b); Equity-based framework is applied to decision-making (5c) Equity and inclusion is a priority in the strategic plan and integral to the City’s vision and values. A major focus will be digital accessibility improvements to the City’s website and other communication platforms in 2027. Work continues to update HR processes to better align with equity and inclusion goals. The City hired a summer intern to assist with HR equity projects, including research on a potential pay increase for those forward- facing staff with needed language skills. 5 Page 25 of 361 ## ECONOMIC CONDITIONS Minnesota economic indicators reflect a stressed labor market, persistent inflation and a sluggish real estate market. Some of the negative trends could still be the result of Operation Metro Surge, which disrupted the local economy in late-2025 and early-2026. While the most severe impacts have eased, unpredictable federal policy adds to financial uncertainty. According to the Minnesota Management and Budget’s (MMB) February forecast, the FY 2026- 27 biennium will result in a projected surplus of $3.7 billion and the projected general fund balance for the FY 2028-29 biennium is $377 million. The July update reports that net general fund revenues totaled $2.4 billion, $133 million (5.9%) more than the forecast in February. • Minnesota’s seasonally adjusted unemployment rate increased by 0.6% to 4.4% in June 2026 compared to June 2025. Minnesota’s rate exceeds the U.S. rate, 4.1%, for the first time since 2007. • The Consumer Price Index, measuring inflation, for the upper Midwest spiked to 4.3% in May 2026 but returned to 3.1% by July, which is still 0.4% higher than one year ago. Both regional and national inflation rates are being impacted by the Iran war. • Minnesota’s wage growth has slowed compared to inflation in 2026. Wage growth outpaced inflation in 2024 and much of 2025, but the trend reversed in late 2025 and 2026. • Real estate development continues to face headwinds, including high interest rates and higher wage, insurance and material costs. Interest rates are down from their peaks in 2023 and 2024 but remain high; the 30-year fixed mortgage rate was 6.67% during the second week of August, which is essentially flat compared to last year. Given persistent inflation, the Federal Reserve chose not to reduce rates at their recent meeting. • The commercial real estate market has been particularly hard hit since the COVID-19 pandemic, leaving a glut of empty space in the Twin Cities. In Richfield, this has resulted in lower or flat commercial values in the last decade, compared to increased residential values, reversing the previous t rend of commercial property gains outpacing residential. • Uncertainties in federal policy and funding commitments add to local fiscal stress, specifically cuts to federal programs, the impact of immigration enforcement, tariffs and ongoing military conflicts. The City lost over $500,000 in federal grant funding last year. ## DEVELOPMENT Given the slowdown in commercial and multi-family development, the focus is on supporting the local economy, preserving and investing in our existing resources and positioning the City for future opportunities. A number of initiatives are underway: • A branding and placemaking “playbook” for downtown Richfield was adopted in 2025.Thanks to additional Hennepin County grant funds, and funding from both the City’s HRA and EDA, a significant investment in implementation is beginning. • New business initiatives, created by the City’s EDA, are providing assistance to help small businesses grow and thrive in the community and invest in outdated commercial spaces. After a delay to allow for the creation of an emergency loan program for 6 Page 26 of 361 businesses impacted by the Federal Operation Metro Surge, Richfield REVIVE will launch in late-summer 2026. • Construction of Penn Station, 42 units of affordable workforce housing, is underway on formerly blighted commercial property at Penn Avenue and 65 th Street, bringing investment and new residents to the corridor and adding tax-forfeited property back to the tax base. Construction is expected to be completed in December 2026. • Through its HRA and EDA, the city continues to support investment in its housing stock and our residential neighborhoods. Having recently completed an evaluation of its many housing programs, the city has reorganized staffing and added hours to focus on the creation of policies and programs that meet Richfield’s housing priorities. • A new duplex is under construction thanks to the HRA’s Richfield Rediscovered program, and an EDA Transformation Home Loan has helped to fund the construction of a new ADU. Through demonstration projects, the HRA and EDA are working to create market comps and demonstrate the options made possible by zoning code updates. • Strategic conversations with potential developers are ongoing to market properties owned by the HRA for future redevelopment. ## INFRASTRUCTURE The 2027 Capital Improvement Budget (CIB) reflects funding for numerous projects throughout the city. In 2027, efforts will include finishing the Nicollet Avenue Reconstruction project, new sidewalks along 73 rd Street/Diagonal Avenue (Portland to Cedar) and 64 th Street (Lyndale to Portland). The CIB also includes funding for several utility projects, including an emergency water connection to the Minneapolis water system, sanitary sewer main lining and a new elevator and generator at the Water Treatment Plant. Finally, the 2027 CIB recommends funding for recreation and open space improvement projects, including Veterans Park trail updates, replacement of playground equipment at Adams Hill Park, a new sand filter and shade structures for the Pool and locker room and flooring repairs at the Ice Arena. The 2028-2031 Capital Improvement Plan (CIP) includes several major arterial roads to be reconstructed or improved. Hennepin County plans a full reconstruction of Penn Avenue in 2028- 29 and the City is expected to contribute according to the county’s local cost-share policies. The reconstruction of 69th Street and improvements to 76th Street at Knox Avenue are planned for 2028 and 2029 respectively. The recommended CIP also includes funding for a new Community Center building with design beginning in 2027 and construction in 2030. The plan also funds major maintenance for City buildings, including mechanical system upgrades and new roofs at City Hall, the Public Works building and the Ice Arena in 2029. The 2027 budget substantially increases the City’s equipment levy to ensure sufficient long-term funding for rolling stock, buildings and technology equipment. 7 Page 27 of 361 ## PERSONNEL One additional full-time position is recommended for the 2026 Revised Budget and one full- time position for the 2027 Proposed budget • Recreation plans to add an Event Coordinator position to oversee facility rentals which will increase once the new Wood Lake Nature Center is completed and increase again once the new Community Center is built. • Recreation plans to add a Natural Resources Coordinator position to oversee natural area management and secure grants to fund improvement projects. Personnel costs are also increasing due to a 3.00% cost of living adjustment for all employees, step increases for eligible employees, and an 11.49% increase in the cost of health insurance. Negotiated salary increases range from 3.00% to 4.00% for the five bargaining units’ contracts for 2026-2027; costs increases are included in the revised and proposed budgets. ## GENERAL FUND The General Fund serves as the main operating fund of the City. It accounts for all financial resources, except those required to be accounted for in another fund. ## Revenues The General Fund, which provides for most of the traditional services that residents have come to expect, receives the majority of its funding from property taxes. Other sources of funding come from intergovernmental revenue, charges for services, licenses, permits and transfers from other funds. The 2027 Proposed Budget was prepared with the strategy that the primary funding source for the General Fund operations now, and in the future, will come from property taxes. This is the result of the fact that cities are limited in the type and extent of revenues that they can generate. In addition, as the City continues to expand and diversify its tax base there will be reductions in Local Government Aid (LGA) funding from the state. The result is a continued shift in General Fund revenues. In 2001, LGA, which historically was a major General Fund revenue source, accounted for 24% of General Fund revenues. In 2027, it will account for 9.76%. Conversely, property taxes have grown from 40% of revenues in 2001 to 73.45% in 2027. The 2023 legislature increased funding for the LGA program which increased Richfield’s allocation by $1.35 million in 2024 to $3.39 million. Since then, allocations have increased modestly and the 2027 LGA allocation is $3.5 million. Richfield remains a net-receiver of the metropolitan Fiscal Disparities Program. The program is a mechanism for tax base sharing for new commercial/industrial property development. Under the program, a certain percentage of new commercial/industrial growth in the metropolitan area is contributed to a pool. The tax base growth is then redistributed to cities in the seven-county metropolitan area using a needs-based formula. The metropolitan pool increased in value in 2024 after a few years of lower commercial values. The increase, coupled with Richfield’s increased population, resulted in an additional $61,165 to be distributed in 2026 and a total distribution of $4.9 million for 2027. 8 Page 28 of 361 The 2027 budgeted General Fund revenues of $35,893,555 represent a 2.16% increase from the 2026 Adopted budget. The sources of General Fund revenues, with the exception of property taxes and intergovernmental revenues, have remained relatively comparable to the prior years’ budget levels. In 2026, the General Fund will receive: $335,860 from the Liquor Operations fund to offset administrative costs related to the liquor division operations. A comparison of actual General Fund revenues from 2026 to 2027 is shown in Figure 1 below. Figure 1 ## Expenditures The City’s General Fund accounts for most of the services that the City provides to its residents, such as police, fire, public works, inspections, zoning, parks, recreation and general administration. Richfield’s General Fund is organized into nine major departments; Legislative/Executive, Administrative Services, Community Development, Finance, Fire, Human Resources, Public Safety, Public Works and Recreation Services. The Human Resources function was added as a department in 2026 and removed as a division from the Administrative Services Department. Each department encompasses divisions that provide an array of services, either directed to the public or in support of other City services. Over a period of years, the type and mix of City services would likely change as the community changes. However, in a mature community such as Richfield it is also important that a consistent balance of services be maintained, even in the face of budgetary constraints. Richfield's mix of services, as seen through an expenditure analysis of the nine major departments, reflects a stable, consistent approach. The 2027 expenditures are consistent with the expenditures from 2026 (Figure 2 ). In the 2027 Budget, 59% of the total expenditures are designated for Public Safety and Fire Department operations, while an additional 16% is designated for Public Works operations. While there have been adjustments, the total balance of services provided by the major departments remains relatively constant. In response to the internal and external constraints, City staff made every effort to limit 2027 expenditure increases for all departments of the General Fund to maintain the current level of City services. 5% (5%), Charges for ## Services 1% (1%), Fines & ... 16% (16%), Intergov't ## Revenue 3% (3%), License & Permits 73% (72%), ## Taxes 2% (3%), Misc. Revenue/Trans ## 2027 (2026) General Fund Revenues 9 Page 29 of 361 Figure 2 The most significant issues for the 2026 Revised and 2027 Proposed General Fund Department Budgets are summarized in the following section. ## 2026 REVISED AND 2027 PROPOSED DEPARTMENT BUDGETS ## Legislative/Executive The Legislative/Executive Department 2026 Revised Budget reflects a 3.86% decrease due to the transfer of the Equity Coordinator position and related equity projects to the Human Resources budget during part of 2026. The 2027 Proposed Budget reflects a decrease of 5.59% due to the transfer of the remaining equity projects to the Human Resources budget and reductions in charges allocated to other City funds. ## Administrative Services The Administrative Services Department 2026 Revised Budget reflects a decrease of 2.82% due to savings related to personal services in the Deputy Registrar division. The 2027 Proposed Budget reflects an increase of 6.99% due changes in internal service chargebacks and the Administrative Services share is more appropriately reflected in the 2027 Proposed Budget. ## Human Resources The Human Resources Department 2026 Revised Budget reflects a 14.31% increase over the 2026 Adopted Budget. The increase is primarily due to the transfer of the Equity Coordinator position and related projects from the City Manager budget to the Human Resources budget. The 2027 Proposed Budget reflects a 56.01% increase over the 2026 Adopted Budget. The increase is primarily due to increase personal services costs, the transfer of the remaining equity-related expenses from the City Manager budget, increase professional development costs, and higher subscription and membership costs, partially offset by decrease spending on professional services. 3% (3%), Admin Svsc 2% (1%), Human ## Resources 4% (4%), Legal/Exec. 2% (2%), Finance 8% (7%), Recreation 16% (17%), Public Works 5% (5%), Comm. Dev. 19% (19%), Fire 40% (39%), Public Safety 0% (2%), Fund Balance and ## Paid Family Medical Leave 1% (1%), ## Transfers ## 2027 (2026) General Fund Expenditures 10 Page 30 of 361 ## Finance The Finance Department 2026 Revised Budget reflects an increase of 15.74% from the 2026 Adopted Budget to account for a higher allocation, and more equitable share, of the annual financial audit cost between the general fund and enterprise funds. The 2027 Proposed B udget increases slightly from the 2026 Adopted Budget. The minor increase of 0.49% is related to the change in internal service chargebacks and the Finance Department share is more appropriately reflected in the 2027 Proposed Budget. ## Public Safety The Public Safety Department 2026 Revised Budget reflects a decrease of 2.28% due to savings related to personal services. The 2027 Proposed Budget reflects a 4.91% increase over the 2026 Adopted Budget. The increase is related to personal services costs and the change in internal services chargebacks as the Public Safety Budget’s share has increase in building rental and data processing rental. The Public Safety Department share is more appropriately reflected in the 2027 Proposed Budget. ## Fire The Fire Department 2026 Revised Budget reflects a decrease of 3.24% due to savings related to personal services. The 2027 Proposed Budget reflects a 3.09% increase over the 2026 Adopted Budget. T he increase is related to personal services costs related to union contracts and health insurance increases. ## Community Development The Community Development Department 2026 Revised Budget reflects a 1.66% decrease due to savings related to the change of the Senior Office Assistant position moving from full- time to half-time. The 2027 Proposed Budget reflects a 2.94% increase over the 2026 Adopted budget. The Planning and Zoning Division shows the largest increase related to increases in personal services due to staff moving through step and merit increases and health insurance increases. The internal service chargebacks related to data processing rental are also more appropriately reflected in the 2027 Proposed Budget for Community Development divisions. ## Public Works The Public Works Department 2026 Revised Budget reflects a 1.22% increase over the 2026 Adopted Budget due to the inclusion of $50,000 related to office space additions at the Public Works facility. The 2027 Proposed Budget reflects a 2.38% decrease from the 2026 Adopted Budget related to the completion of the USFS grant to remove and replace trees in 2026. ## Recreation Services The Recreation Services Department 2026 Revised Budget remains mostly unchanged when compared to the 2026 Adopted Budget. The 2027 Proposed budget reflects a 12.11% increase over the 2026 Adopted budget. The increase is mostly due to two new positions at the Wood Lake Nature Center and increase expenses in 2027 related to the new building operations. The new Event Coordinator position begins near the end of 2026 and the new Natural Resources Coordinator position begins in 2027. ## SPECIAL REVENUE FUNDS ## Liquor Contribution Fund The Liquor Contribution Fund receives profits from the municipal off-sale liquor operations through the transitory ordinance process. These revenues are then used to fund various park capital projects. Expenditures from the fund are restricted in use to financing capital 11 Page 31 of 361 improvements that would otherwise be financed by a General Obligation bond issue. In 2027, a transfer-in of $475,000 will fund different City projects. ## Tourism Administration Fund This fund accounts for the collection of lodging tax revenues and the pass-through of these funds to the Richfield Tourism Promotion Board. The Tourism Promotion Board promotes the city as a visitor destination and promotes civic activities to enhance the city's image. ## Communications Fund The Communications Fund is maintained to account for the quarterly cable franchise fees received, cable television and community communication activities. The fund covers wages and salaries for the Communications and Engagement Manager (FT), Communications Specialist (PT) and Video Production Assistant (intermittent). The team is responsible for the City’s website, social media, cable bulletin board, press releases and other internal and external communications. ## Elections Fund The Election Fund was established to isolate the large fluctuation over time in election costs from year to year. The fund provides voter registration services, voter information services and election administration. Funding for the costs of elections services is derived from rental revenues from cellular telephone carriers who rent space for their antennas on City infrastructure. ## Drug/Felony Forfeiture Fund The Drug/Felony Forfeitures Fund receives its revenues as a result of cash and property seized related to drug and/or felony criminal activity. The revenues received are used to purchase equipment for public safety purposes and to provide funding for training. ## Public Safety Compliance Fund Revenue from this fund is derived from fines levied against businesses that fail alcohol and tobacco compliance checks. The monies received from the fines are then used to fund the costs involved in performing compliance checks. This fund will also account for the Community Emergency Response Team (CERT). ## Recreation Services Contribution Fund The Recreation Services Contributions Fund serves as a method to account for donations received that are intended to benefit activities of the Recreation Services Department. Uses of the donations include staffing costs, the purchase of supplies and equipment and to help fund park-related construction projects. ## Nature Center Contribution Fund The Nature Center Contribution Fund serves as a method to account for donations received that are intended to benefit Wood Lake Nature Center. The source of the donations comes from fundraising activities of the Friends of Wood Lake (FOWL). The donations are used to supplement the Wood Lake Nature Center operating budget and for the purchase of supplies, equipment and to help fund nature center construction projects. ## Public Health Grants Fund This fund accounts for the receipt of federal grant funds used by the City to assess and enhance the capacity of local public health departments to respond to bio-terrorism, infectious diseases and other threats to public health. 12 Page 32 of 361 ## Wood Lake Half Marathon Fund This fund was established to provide an alternative revenue source to fund the Wood Lake Nature Center’s environmental education curriculum for Richfield Public School students. Funding for the program is derived from proceeds from the annual Urban Wildland Half Marathon and 5K races. ## Utility Franchise Fees Fund This fund accounts for gas and electric franchise fees collected from the public utilities. The majority of fees collected will be directed to the pavement management program and toward the debt service for the bonds issued to help fund the accelerated mill and overlay program. This may cause a decrease in the fund balance. ## Ice Arena Fund The Ice Arena maintains two sheets of ice for skating lessons, open skating, and hosts figure skating competitions. It also rents ice to local high schools for hockey practices and games and to youth associations for clinics, practices, games and tournaments. ## Swimming Pool Fund This fund accounts for all activities related to the swimming pool operation. It strives to provide users with an outstanding outdoor recreational swimming experience for all ages and groups. ## Special Facilities Fund This fund maintains the City’s mini-golf course which is run by Wheel Fun Rentals, Inc. through a concession agreement with the City. The operation also provides a picnic shelter to be used by the Richfield Farmers Market and park users. ## Sustainability Fund The fund manages City’s Sustainability and Organized Hauling Program, for transparent and accurate tracking of financial activity of operating these programs. ## Opioid Settlement Fund The fund manages the opioid settlement funds provided to each Community Health Service Agency, from or through an opioid settlement administrator to work on providing services in the area of opioid prevention, treatment and recovery. ## Public Safety Aid Fund This is a newly established fund. In December 2023, City received $1,604,296 in one-time public safety aid included in the 2023 MN State omnibus tax bill. The funds cannot be used for general purposes but must be used to “provide public safety”. The fund ensures transparency, compliance and separate tracking of the aid received. ## Street Light User Fee Fund This is a newly established fund to track the operations of street lighting system. The City includes a fee for street light service on the quarterly utility bills. The fees collected fund payment of the electricity charges, along with maintenance and replacement of street lights. The City also intends to replace its streetlights with energy efficient LEDs, as funding permits. This switch should save electricity and maintenance costs, and make public lighting infrastructure more versatile, flexible and efficient. 13 Page 33 of 361 ## ENTERPRISE FUNDS ## Liquor Stores Fund The City of Richfield operates four municipal liquor stores. Total sales for the four liquor stores for 2026 are projected to be $13.70 million and modestly increase to $13.75 million in 2027. Operating expenses budgeted for 2027 for the four stores total $3.28 million. This reflects an increase from the 2026 adopted operating expenses. For the four stores, the projected profit before transfers for 2027 is expected to be $848,855 with budgeted transfers to the Special Revenue Fund of $475,000 and $335,860 to the General Fund for administrative costs, police duty and payments in lieu of taxes. ## Water and Wastewater Utility Fund The Water and Wastewater Utility Fund accounts for the operation and maintenance of the City's water plant and sanitary sewer lines. Operating revenues for the Water Fund for 2027 Proposed reflect an increase of $1.3 million from 2026 revised budget levels. This accounts for the additional revenue due to the proposed rate increase. The Water Fund continues to reinvest in its infrastructure in 2026 and 2027. Included in the current budgets are capital improvements totaling $720,000 in 2026 and $7.95 million in 2027. The 2027 improvements relate to replacement of the water plant elevator, emergency water system interconnect, water plant generator, water plant chlorine storage area, SCADA cybersecurity upgrade, water plant restroom renovation, water plant personnel safety system improvements and well #3 water service improvements. The Wastewater Utility Fund provides collection of sanitary wastewater from approximately 10,800 accounts in the city. The 2027 Sanitary Wastewater Operating Budget is approximately $5.4 million. The most significant expense is the wastewater treatment charges paid to Metropolitan Council Environmental Services (MCES). The MCES 2027 charges are expected to increase from the budgeted 2026 level of $2,6 million to $3.0 million, a 15.95% increase. A 16.5% rate increase is proposed for 2027 across the three tier levels for residential water. The wastewater rates are proposed to increase by 9% for 2027. ## Storm Water Utility Fund The Storm Water Utility Fund provides for the disposal of storm water for the city and is funded through user fees. The fund provides for routine maintenance and major capital improvements to the system. A 17% rate increase is proposed for 2026. ## INTERNAL SERVICE FUNDS ## Central Garage Fund The Central Garage Fund accounts for the acquisition, maintenance, and repair of all motor vehicles and motor-driven equipment used by the City. It is funded by internal operating user fees charged to other City departments and funds. Fees for 2027 will increase 5% over 2026 levels. The funding for the replacement of equipment that the operation maintains will be accomplished through a general tax levy in the amount of $1.7 million. The increase is in response to increased costs incurred in the purchase of rolling stock and equipment. Additionally, it is projected that for 2026 and 2027, the fund may not cash flow. The operating transfers are planned to battle inflationary pressures and depleting reserves. The fund is scheduled to make purchases in 2026 of $1.39 million and $1.78 million in 2027. The significant purchases planned for 2027 are: 14 Page 34 of 361 • Flush Truck/Roff-Off at $350,000 • Dump Truck at $320,000 • Fire Truck at $302,100 • Squads - Police Detective (3) at $160,000 • Squads - K9 Patrol (2) at $120,000 • Parks - Ford F250 (2 ) at $120,000 ## Information Technologies Fund The Information Technologies (IT) Fund’s primary purpose is to provide computer hardware and software support, programming and training to City staff. As with the Central Garage Fund, the purchase and replacement of equipment in the IT Fund will be funded through a general tax levy in the amount of $421,845. The fund is scheduled to make capital purchases in 2026 of $89,910 and $147,330 in 2027. The IT Fund also purchases and pays license fees for equipment and software which is not capitalized and provides office supplies and copying services for all City departments. ## Insurance/Risk Management Fund The Insurance/Risk Management Fund accounts for all the City's costs for claims related to workers' compensation, unemployment insurance benefits, property insurance, flexible benefits, dental insurance and all other City self-insurance costs. For 2027, the fund has increased property/casualty and workers compensation rates. Operating results of the fund are dependent on the number and scope of claims paid during any given year and consequently, results can fluctuate from year to year. ## Building Services Fund The Building Services Fund is responsible for the maintenance and upkeep of the Richfield Municipal Center and Fire Station #2. The Municipal Center was built in 2011. After this amount of time the increased maintenance costs are expected in the operating budget. User fees will continue to be adjusted on an annual basis to keep pace with operating costs and to provide funding for replacement costs of fixtures within the building. ## DEBT SERVICE FUND The Debt Service Fund is used to record financial operations from special assessments, tax increment, and, as necessary, property taxes to meet debt service payments and outstanding bond issues. General Obligation improvement bonds are payable through 2043, with outstanding principal at the beginning of 2027 of $35.3 million. The fund balance, along with debt service tax levies, special assessment collections and interest earnings are pledged to service the debt. ## FINANCE POLICY City policy requires that all budgeted expenditures under $1,000 must be approved by a division manager. Any expenditure over $1,000 and up to $5,000 must be approved by the division manager and department director. Any expenditure over $5,000 must be approved by the division manager, department director and Finance Director. All expenditure over $25,000 requires additional approval of the City Manager. Any expenditure over $175,000 must be approved by the City Council. 15 Page 35 of 361 Capital expenditures represent all tangible or intangible assets that are used in operations, that have initial useful lives extending beyond a single reporting period and whose dollar value is greater than $25,000. ## CAPITAL IMPROVEMENTS BUDGET The Capital Improvement Budget recommends $26,382,595 of expenditures in 2027. The projects invest in improvements to right-of-way (streets, sidewalks and underground infrastructure for water, sanitary sewer and stormwater), facilities and parks and open space. The capital budget is funded by a wide variety of sources, including federal, state and county grants, state transportation funding, utility payments, property taxes, franchise fees and liquor store profits. Of note, the 2026 Minnesota legislative session provided $2 million to offset Hennepin County local cost shares for the Nicollet Reconstruction Project. The City also received $1.1 million in federal funding to construct a back-up water source with Minneapolis in the event of an emergency. ## CONCLUSION The information presented in this budget document provides the background and funding plans to address opportunities and challenges so that the City can be a thriving community into the future. I would like to take this opportunity to thank Budget, Cash and Debt Manager, Steve McDaniel, and all City departments for their input and help in preparing the 2027 budget. In addition, I thank the City Council for providing the vision, values and priorities that guide our work. Respectfully submitted, ## Katie Rodriguez ## City Manager 16 Page 36 of 361 ## CITY OFFICIALS ## Term of Office 4 Years 4 Years 4 Years 4 Years ## MAYOR - MARY SUPPLE ## COUNC ## IL MEMBER - SHARON CHRISTENSEN ## COUNCIL MEMBER - WALTER BURK ## COUNCIL MEMBER - SEAN HAYFORD OLEARY ## COUNCIL MEMBER - RORI A. COLEMAN-WOODS 4 Years ## ADMINISTRATIVE STAFF ## KA TIE RODRIGUEZ - CITY MANAGER ## MARY BOGIE - F ## INANCE DIRECTOR ## MICHELLE FRIEDRICH - CITY CLERK ## Term Expires January 12, 2027 January 12, 2027 January 9, 2029 ## January 9, 2029 January 9, 2029 17 Page 37 of 361 ## Residents ## Fire ## City Clerk ## Information ## Technology ## Communications ## Government ## Buildings ## Liquor ## Operations ## Emergency ## Services ## Engineering ## Central Garage & Equipment ## Park ## Maintenance ## Street ## Maintenance/ ## Forestry ## Stormwater Utiity & ## Equipment ## Waste Water ## Utility ## Water Utility ## Ice Arena ## Recreation ## Programming ## Special ## Facilities ## Sustainability ## Swimming Pool ## Wood Lake ## Nature Center ## Economic ## Development ## EDA Planning and ## Zoning ## Inspections ## HRA ## Public SafetyAdministrative ## Services ## FinanceHuman ## Resources ## Public WorksRecreation ## Services ## Community ## Development ## Executive ## Support ## Services ## Police ## Operations ## City AttorneyCity Council ## City Manager ## Deputy Registrar (Motor Vehicle) ## City of Richfield Organizational Chart 18 Page 38 of 361 ## Improvement ## Bonds ## Redevelopmen t*Right of Way ## BondsImprovements ## Special FacilitiesPublic ## AidFacilities ## Special Recreation ## Opioid ## Settlement ## Enterprise Funds Internal Services Funds ## Public Safet y ## Streetlight*Municipal LiquorCentral Garage & Equipment ## Water & WastewaterInformation ## Utilit yTechnologies ## Storm Sewer ## Utilit y ## Insurance/Risk ## Management ## Building ## Services ## Compensated ## Absence s *General Fund ## Debt Service ## Funds ## Capital ## Project Funds ## Recreational ## Development ## Aid ## User Fee ## Fund ## Elections ## Drug/Felon y ## Forfeiture ## Special Revenue Funds ## Wood Lake ## Half Marathon ## Compliance ## Recreation Services ## Contributions ## Nature Cente r ## Contributions ## PROPRIETARY FUNDS ## Liquor Contribution ## Tourism ## Administration ## Communications ## Grants ## GOVERNMENTAL FUNDS ## Public Safety ## Public Health ## Ice Aren a ## Swimming ## Pool ## Programs The City's budget is prepared using a modified accrual basis of accounting for all governmental funds and an accrual basis of accounting for proprietary funds. 19 Page 39 of 361 ## THIS PAGE WAS LEFT BLANK INTENTIONALLY 20 Page 40 of 361 ## BUDGET SUMMARY 21 Page 41 of 361 ## SUMMARY OF 2026 REVISED BUDGET ALL FUNDS ## Fund BalanceFund Balance FUNDDecember 31, 2025RevenuesExpendituresDecember 31, 2026 ## General 13,766,406$ 34,911,587$ 34,168,855$ 14,509,138$ ## Special Revenue Funds ## Liquor Contribution160,445 476,000 475,000 161,445 Tourism Administration62,815 7,150 5,440 64,525 ## Communications1,850,126 281,000 398,070 1,733,056 ## Elections869,686 382,898 328,331 924,253 Drug Felony/Forfeiture312,155 93,400 51,600 353,955 Public Safety Compliance413,194 55,500 25,000 443,694 ## Recreation Contributions100,133 130,000 123,000 107,133 Nature Center Contributions499,428 192,000 290,000 401,428 Public Health Grants145,849 51,214 51,214 145,849 ## Wood Lake Half Marathon128,745 70,000 72,000 126,745 Franchise Fees2,988,358 2,500,000 2,155,000 3,333,358 Ice Arena(1,148,869) 2,035,270 1,634,371 (747,970) Swimming Pool208,840 678,480 652,510 234,810 Special Facilities79,206 69,980 69,590 79,596 Sustainability303,926 484,829 442,472 346,283 Opioid Settlement336,294 57,113 12,000 381,407 Public Safety Aid1,430,579 50,000 - 1,480,579 ## Street Light User Fee236,446 387,000 332,000 291,446 ## Enterprise Funds * ## Liquor6,515,374 13,776,760 13,590,545 6,701,589 Water & Sewer Utility**21,743,911 10,909,000 10,428,540 22,224,371 Storm Sewer Utility **10,339,091 2,842,100 2,462,490 10,718,701 ## Internal Service Funds * Central Garage6,091,919 3,097,530 2,618,770 6,570,679 Information Technologies657,838 1,917,141 1,872,710 702,269 Insurance/Risk Management4,557,038 1,216,690 1,707,802 4,065,926 Building Services1,198,754 1,324,610 1,092,350 1,431,014 Compensated Absences346,847 - - 346,847 ## Debt Service Funds ** G.O. Improvement Bonds9,250,848 8,415,730 7,445,273 10,221,305 ## Capital Improvement Funds ## Recreational Development8,709,745 20,484,067 20,484,067 8,709,745 Right-of-Way Improvements4,183,744 6,706,200 6,706,200 4,183,744 Public Facilities- 1,675,000 1,675,000 - ## Buildings, Fleet and Technology1,800,000 3,444,836 3,444,836 1,800,000 ## TOTALS98,138,871$ 118,723,085$ 114,815,036$ 102,046,920$ * In municipal accounting, all capital outlay acquired by the Enterprise and Internal Service Funds is recorded at cost. This cost is charged as depreciation expense over the estimated useful life of the asset. ** Bonds are not recorded as current expenditures, but rather as adjustments to the cash position. Bond proceeds are not recorded as current revenues. 22 Page 42 of 361 ## SUMMARY OF 2027 BUDGET ALL FUNDS ## Fund BalanceFund Balance FUNDJanuary 1, 2027RevenuesExpendituresDecember 31, 2027 General14,509,138$ 35,893,555$ 35,893,555$ 14,509,138$ ## Special Revenue Funds Liquor Contribution161,445 476,000 475,000 162,445 Tourism Administration64,525 7,150 5,440 66,235 Communications1,733,056 285,000 429,830 1,588,226 Elections924,253 448,960 298,960 1,074,253 ## Drug Felony/Forfeiture 353,955 23,500 57,000 320,455 Public Safety Compliance443,694 43,210 25,000 461,904 Recreation Contributions107,133 140,000 123,000 124,133 Nature Center Contributions401,428 87,000 80,000 408,428 Public Health Grants145,849 51,214 51,214 145,849 Wood Lake Half Marathon126,745 70,000 72,000 124,745 Franchise Fees3,333,358 2,477,775 2,375,000 3,436,133 Ice Arena(747,970) 2,149,435 1,556,778 (155,313) Swimming Pool234,810 714,080 780,048 168,842 Special Facilities79,596 72,430 66,342 85,684 ## Sustainability 346,283 513,161 437,630 421,814 Opioid Settlement381,407 57,113 12,000 426,520 Public Safety Aid1,480,579 50,000 - 1,530,579 Street Light User Fee291,446 387,000 340,000 338,446 ## Enterprise Funds * Liquor6,701,589 13,841,950 13,716,905 6,826,634 Water & Sewer Utility**22,224,371 13,263,140 11,025,050 24,462,461 Storm Sewer Utility **10,718,701 3,231,220 3,078,540 10,871,381 ## Internal Service Funds * Central Garage6,570,679 3,567,854 2,922,070 7,216,463 Information Technologies702,269 1,984,475 2,051,160 635,584 Insurance/Risk Management4,065,926 1,196,570 1,346,460 3,916,036 Building Services1,431,014 1,371,075 1,140,967 1,661,122 Compensated Absences346,847 - - 346,847 ## Debt Service Funds ** G.O. Improvement Bonds10,221,305 8,455,442 8,215,904 10,460,843 ## Capital Improvement Funds Recreational Development8,709,745 3,235,768 3,235,768 8,709,745 Right-of-Way Improvements4,183,744 10,038,000 10,038,000 4,183,744 Public Facilities- 9,375,000 9,375,000 - Buildings, Fleet and Technology1,800,000 3,733,827 3,733,827 1,800,000 ## TOTALS102,046,920$ 117,240,904$ 112,958,448$ 106,329,376$ * In municipal accounting, all capital outlay acquired by the Enterprise and Internal Service Funds is recorded at cost. This cost is charged as depreciation expense over the estimated useful life of the asset. ** Bonds are not recorded as current expenditures, but rather as adjustments to the cash position. Bond proceeds are not recorded as current revenues. 23 Page 43 of 361 ## COMPARATIVE ANALYSIS OF REVENUES ALL FUNDS 2025202620262027 ## ActualBudgetRevisedBudget *General Fund 33,609,625 35,134,115 34,911,587 35,893,555 ## Special Revenue Funds Liquor Contribution Fund480,617 476,000 476,000 476,000 Tourism Administration9,825 7,150 7,150 7,150 Communications344,280 276,500 281,000 285,000 Elections544,597 379,600 382,898 448,960 Drug Felony/Forfeiture92,429 38,500 93,400 23,500 Public Safety Compliance166,374 46,300 55,500 43,210 Recreation Contributions228,220 165,000 130,000 140,000 Nature Center Contributions282,038 85,000 192,000 87,000 Public Health Grants190,491 51,214 51,214 51,214 Wood Lake Half Marathon65,109 70,000 70,000 70,000 Franchise Fees2,611,823 2,500,000 2,500,000 2,477,775 Ice Arena2,450,648 2,065,270 2,035,270 2,149,435 Swimming Pool636,940 710,810 678,480 714,080 Special Facilities70,155 69,980 69,980 72,430 Sustainability540,750 526,789 484,829 513,161 Opioid Grant67,768 57,113 57,113 57,113 Public Safety Aid54,269 50,000 50,000 50,000 Street Light User Fee380,825 380,000 387,000 387,000 ## Enterprise Funds* Liquor13,828,055 13,745,200 13,776,760 13,841,950 Water & Sewer Utility10,883,975 10,925,000 10,909,000 13,263,140 Storm Sewer Utility2,617,770 2,792,100 2,842,100 3,231,220 ## Internal Service Funds Central Garage3,125,657 3,097,530 3,097,530 3,567,854 Information Technologies1,885,730 1,902,141 1,917,141 1,984,475 Insurance/Risk Management1,214,077 1,212,720 1,216,690 1,196,570 Building Services1,102,159 1,126,610 1,324,610 1,371,075 Compensated Absences- - - - ## Debt Service Funds G.O. Improvement Bonds7,613,988 8,415,730 8,415,730 8,455,442 ## Capital Improvement Funds* Recreational Development13,013,646 6,725,000 20,484,067 3,235,768 Right-of-Way Improvements6,117,683 9,926,500 6,706,200 10,038,000 Public Facilities1,993,551 1,525,000 1,675,000 9,375,000 Buildings, Fleet and Technology2,649,639 3,799,636 3,444,836 3,733,827 ## Total 108,872,713$ 108,282,508$ 118,723,085$ 117,240,904$ * These funds represent major funds of the City. Major funds represent the significant activities of the City and basically include any fund whose revenues or expenditures, excluding other financing sources and uses, constitute more than 10% of the revenues or expenditures of the appropriated budget. 24 Page 44 of 361 ## COMPARATIVE ANALYSIS OF EXPENDITURES ALL FUNDS 2025202620262027 ## ActualBudgetRevisedBudget *General Fund Legislative/Executive1,263,572$ 1,360,777$ 1,308,195$ 1,284,677$ Administrative Services922,615 1,067,194 1,037,066 1,141,770 Human Resources290,336 360,783 412,420 562,852 Finance550,482 701,628 812,080 705,066 Public Safety12,680,033 13,642,788 13,332,315 14,312,605 Fire6,239,563 6,641,729 6,426,700 6,846,680 Community Development1,688,854 1,916,110 1,884,350 1,972,361 Public Works5,377,729 5,949,340 6,021,680 5,807,520 Recreation Services2,506,587 2,561,200 2,561,799 2,871,320 Operating transfers352,250 372,250 372,250 388,704 Miscellaneous- 560,316 - - Subtotal31,872,021$ 35,134,115$ 34,168,855$ 35,893,555$ ## Special Revenue Funds Liquor Contribution Fund475,000 475,000 475,000 475,000 Tourism Administration5,440 5,440 5,440 5,440 Communications383,315 412,420 398,070 429,830 Election2,070,300 328,331 328,331 298,960 Drug Felony/Forfeiture60,407 34,100 51,600 57,000 Public Safety Compliance53,286 25,000 25,000 25,000 Recreation Contributions232,859 148,000 123,000 123,000 Nature Center Contributions45,137 78,864 290,000 80,000 Public Health Grants183,989 51,214 51,214 51,214 Wood Lake Half Marathon28,242 90,000 72,000 72,000 Franchise Fees2,073,796 2,464,700 2,155,000 2,375,000 Ice Arena1,536,783 1,399,878 1,634,371 1,556,778 Swimming Pool638,056 663,320 652,510 780,048 Special Facilities66,604 68,680 69,590 66,342 Sustainability589,660 443,273 442,472 437,630 Opioid Settlement32,299 12,000 12,000 12,000 Public Safety Aid134,000 446,095 - - Street Light User Fee328,826 332,000 332,000 340,000 ## Ent erprise Funds* Liquor13,362,413 13,794,795 13,590,545 13,716,905 Water & Sewer Utility9,274,854 10,389,360 10,428,540 11,025,050 Storm Sewer Utility3,240,913 2,357,460 2,462,490 3,078,540 ## Internal Service Funds Central Garage2,844,767 2,618,580 2,618,770 2,922,070 Information Technologies1,690,116 1,872,703 1,872,710 2,051,160 Insurance/Risk Management(331,448) 1,618,602 1,707,802 1,346,460 Building Services916,652 1,137,319 1,092,350 1,140,967 Compensated Absences- - - - ## Debt Service Funds G.O. Improvement Bonds4,977,107 6,990,210 7,445,273 8,215,904 ## Capital Improvement Funds* Recreational Development13,013,646 6,725,000 20,484,067 3,235,768 Right-of-Way Improvements6,117,683 9,926,500 6,706,200 10,038,000 Public Facilities1,993,551 1,525,000 1,675,000 9,375,000 Buildings, Fleet and Technology2,649,639 3,799,636 3,444,836 3,733,827 Total100,559,913$ 105,367,595$ 114,815,036$ 112,958,448$ * These funds represent major funds of the City. Major funds represent the significant activities of the City and basically include any fund whose revenues or expenditures, excluding other financing sources and uses, constitute more than 10% of the revenues or expenditures of the appropriated budget. 25 Page 45 of 361 ## THIS PAGE WAS LEFT BLANK INTENTIONALLY 26 Page 46 of 361 ## GENERAL FUND 27 Page 47 of 361 ## COMPARATIVE ANALYSIS OF 2026 ADOPTED, 2026 REVISED AND 2027 BUDGET - GENERAL FUND ## Adopted/ Proposed % ## Increase/ Adopted 2026Revised 2026Proposed 2027(Decrease) ## REVENUES Property Taxes25,223,647$ 25,223,647$ 26,364,102$ 4.52% Licenses and Permits1,130,850 1,123,340 1,157,740 2.38% Intergovernmental Revenue5,766,368 5,874,730 5,589,988 -3.06% Charges for Services1,830,300 1,909,370 1,891,465 3.34% Fines and Forfeitures220,000 225,000 225,000 2.27% Miscellaneous Revenues129,255 167,900 329,400 154.85% Transfers833,695 387,600 335,860 -59.71% Total Revenues35,134,115$ 34,911,587$ 35,893,555$ 2.16% ## EXPENDITURES Legislative/Executive1,360,777$ 1,308,195$ 1,284,677$ -5.59% Administrative Services1,067,194 1,037,066 1,141,770 6.99% Human Resources360,783 412,420 562,852 56.01% Finance701,628 812,080 705,066 0.49% Public Safety13,642,788 13,332,315 14,312,605 4.91% Fire6,641,729 6,426,700 6,846,680 3.09% Community Development1,916,110 1,884,350 1,972,361 2.94% Public Works5,949,340 6,021,680 5,807,520 -2.38% Recreation Services2,561,200 2,561,799 2,871,320 12.11% Transfers372,250 372,250 388,704 4.42% 0.44% related to PFML115,000 - - -100.00% 40% GF Reserve445,316 742,732 -100.00% Total Expenditures35,134,115$ 34,911,587$ 35,893,555$ 2.16% The2027ProposedGeneralFundbudgetreflectsa 2.16%increaseinrevenuesandexpenditures ascomparedto the2026 Adoptedbudget. The2026Revisedbudgetreflectsa 0.63%decrease when comparedto the2026 Adopted budget. ## REVENUES Theprimarysourceofrevenuesfor theGeneralFundcontinuestobe property taxes, chargesforservices, intergovernmental revenuesandthetransferinofrevenuestofundgeneral fund operations. Forthe2027 Proposed budget these four sources account for 94.70%of totalGeneral Fund revenues. ## EXPENDITURES Thelargest expenditures incurred bytheGeneralFundremainthoseforpublicsafety,fireand publicworks. The proposed 2027taxlevyfortheGeneralFunddoes not evencoverthebudgeted 2027 expendituresofthese three departments. 28 Page 48 of 361 ## COMPARATIVE ANALYSIS OF FUND BALANCE - GENERAL FUND 2025202620262027 ## ActualBudgetRevisedBudget ## Fund Balance - January 1 12,028,802$ 12,028,802$ 13,766,406$ 14,509,138$ ## Revenue and Transfers 33,609,625 35,134,115 34,911,587 35,893,555 ## Total Available 45,638,427 47,162,917 48,677,993 50,402,693 Expenditures and Transfers31,872,021 35,134,115 34,168,855 35,893,555 Fund Balance - December 3113,766,406$ 12,028,802$ 14,509,138$ 14,509,138$ ## Fund Balances: Nonspendable72,854$ -$ -$ -$ Unassigned13,693,552 12,028,802 14,509,138 14,509,138 Total Fund Balance13,766,406$ 12,028,802$ 14,509,138$ 14,509,138$ Revised Budget 2026Budget 2027 ## SOURCE ## TotalPercentTotalPercent Taxes25,223,647$ 72.25%26,364,102$ 73.45% Licenses and Permits1,123,340 3.22%1,157,740 3.22% ## Intergovernmental Revenues: Local Government Aid3,448,397 9.88%3,503,091 9.76% Other2,426,333 6.95%2,086,897 5.81% Subtotal5,874,730 92.30%5,589,988 92.25% Charges for Services1,909,370 5.47%1,891,465 5.27% ## Fines and Forfeitures 225,000 0.64%225,000 0.63% Miscellaneous Revenues167,900 0.48%329,400 0.92% Transfers387,600 1.11%335,860 0.94% Total Revenues34,911,587$ 100.00%35,893,555$ 100.00% 29 Page 49 of 361 ## COMPARATIVE ANALYSIS OF REVENUES - GENERAL FUND 2025202620262027 ## ActualBudgetRevisedBudget ## Taxes Current Ad Valorem19,465,675$ 20,389,502$ 20,389,502$ 21,468,766$ Fiscal Disparities3,840,369 4,834,145 4,834,145 4,895,336 ## Total Property Taxes 23,306,044$ 25,223,647$ 25,223,647$ 26,364,102$ ## License and Permits Business Licenses312,059$ 261,000$ 249,740$ 248,740$ Non Business Licenses and Permits977,607 869,850 873,600 909,000 Total License and Permits1,289,666$ 1,130,850$ 1,123,340$ 1,157,740$ ## Intergovernmental Revenue Federal - ## Grants 158,483$ 160,000$ 182,510$ 182,510$ State : ## Local Government Aid 3,410,633 3,448,397 3,448,397 3,503,091 Law Officer Training39,777 43,000 44,000 44,000 Police State Aid573,973 450,000 450,000 455,000 Fire State Aid307,418 250,000 345,830 392,490 ## State-aid Street Maintenance 315,000 315,000 315,000 315,000 Grants - Other237,424 470,000 480,000 100,000 Community Health Services177,835 177,835 177,897 177,897 Support Services454,250 431,096 431,096 420,000 ## County- ## Grants - Other - 21,040 Total Intergovernmental Revenue5,674,793$ 5,766,368$ 5,874,730$ 5,589,988$ ## Charges for Services ## General Government and ## Deputy Registrar 1,916,601 1,420,000 1,491,920 1,469,620 Public Safety42,340 54,000 50,000 50,000 Park and Recreation345,021 292,200 311,100 296,100 Nature Center53,464 64,100 56,350 75,745 Total Charges for Services2,357,426$ 1,830,300$ 1,909,370$ 1,891,465$ ## Fines and Forfeits Municipal Court Fines221,454$ 220,000$ 225,000$ 225,000$ Total Fines and Forfeits221,454$ 220,000$ 225,000$ 225,000$ ## Miscellaneous Revenues Investment Income222,216$ 100,000$ 154,500$ 244,000$ Rents3,893 - 8,000 80,000 Recovery - Damage to Property8,581 5,000 5,000 5,000 Special Assessments6,889 - Other10,173 24,255 400 400 Total Miscellaneous Revenues251,752$ 129,255$ 167,900$ 329,400$ ## Transfers 508,490$ 833,695$ 387,600$ 335,860$ ## TOTAL REVENUES33,609,625$ 35,134,115$ 34,911,587$ 35,893,555$ 30 Page 50 of 361 2025 202620262027 ## ActualBudgetRevisedBudget ## Legislative/Executive Mayor-Council304,125$ 323,712$ 350,935$ 325,961$ Other Agencies116,110 120,174 120,174 124,030 City Manager528,528 552,711 472,906 459,926 Legal314,809 364,180 364,180 374,760 Subtotal1,263,572$ 1,360,777$ 1,308,195$ 1,284,677$ ## Administrative Services Administration 161,895$ 171,262$ 175,893$ 178,580$ ## Deputy Registrar 734,879 848,060 812,875 913,660 City Clerk25,841 47,872 48,298 49,530 Subtotal922,615$ 1,067,194$ 1,037,066$ 1,141,770$ ## Human Resources Human Resources290,336$ 360,783$ 412,420$ 562,852$ Subtotal290,336$ 360,783$ 412,420$ 562,852$ ## Finance Finance550,482$ 701,628$ 812,080$ 705,066$ ## Subtotal 550,482$ 701,628$ 812,080$ 705,066$ ## Public Safety Support Services1,730,318$ 1,365,558$ 1,295,955$ 1,447,125$ Police10,916,816 12,228,570 11,988,800 12,815,470 Emergency Services32,899 48,660 47,560 50,010 Subtotal12,680,033$ 13,642,788$ 13,332,315$ 14,312,605$ ## Fire Fire6,239,563$ 6,641,729$ 6,426,700$ 6,846,680$ Subtotal6,239,563$ 6,641,729$ 6,426,700$ 6,846,680$ ## Community Development Administration68,167$ 69,860$ 69,860$ 39,301$ Planning & Zoning313,105 362,490 362,510 424,530 Inspections1,307,582 1,483,760 1,451,980 1,508,530 Subtotal1,688,854$ 1,916,110$ 1,884,350$ 1,972,361$ ## Public Works Administration223,605$ 227,560$ 277,570$ 232,840$ Engineering613,164 607,220 607,180 628,590 Streets2,757,684 3,315,230 3,337,580 3,091,070 Park Maintenance1,783,276 1,799,330 1,799,350 1,855,020 ## Subtotal 5,377,729$ 5,949,340$ 6,021,680$ 5,807,520$ ## Recreation Services Recreation Administration534,201$ 571,780$ 550,703$ 577,897$ ## Recreation 1,224,189 1,289,399 1,287,367 1,340,982 Nature Center748,197 700,021 723,729 952,441 Subtotal2,506,587$ 2,561,200$ 2,561,799$ 2,871,320$ ## Transfers Out Special Revenue Funds352,250$ 372,250$ 372,250$ 388,704$ 352,250$ 372,250$ 372,250$ 388,704$ ## Miscellaneous 0.44% related to PFML-$ 115,000$ -$ 40% Fund Balance Reserve- 445,316 742,732 -$ 560,316$ 742,732$ -$ ## TOTAL EXPENDITURES31,872,021$ 35,134,115$ 34,911,587$ 35,893,555$ ## COMPARATIVE ANALYSIS OF EXPENDITURES - GENERAL FUND 31 Page 51 of 361 ## THIS PAGE WAS LEFT BLANK INTENTIONALLY 32 Page 52 of 361 ## LEGISLATIVE / EXECUTIVE 33 Page 53 of 361 ## DEPARTMENT SUMMARY BY BUSINESS UNIT ## BUSINESS UNIT ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## GENERAL FUND ## FUND: ## Legislative/Executive ## DEPARTMENT: ## Increase/ (Decrease) 2026 Budget/ 2027 Budget 304,125323,712350,935325,961Mayor Council$$$$0.69%10100 116,110120,174120,174124,030Other Agencies 3.21%10105 528,528552,711472,906459,926City Manager (16.79%)10115 314,809364,180364,180374,760Legal 2.91%10120 1,360,7771,308,1951,284,6771,263,572Legislative/Executive ## TOTAL $$$$(5.59%) ## LEGISLATIVE/EXECUTIVE ## YEARAMOUNT 2025$1,263,572 ## 2026B$1,360,777 ## 2026R$1,308,195 ## 2027B$1,284,677 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 ## 20252026B2026R2027B ## E ## X ## P ## E ## N ## D ## I ## T ## U ## R ## E ## S ## YEAR ## LEGISLATIVE/EXECUTIVE EXPENDITURES 34 Page 54 of 361 ## CITY COUNCIL DIVISION ## MISSION STATEMENT To function as the legislative and policy-making body for the City of Richfield. ## DIVISION FOCUS The Richfield City Council is composed of an elected at-large Mayor and four Council Members, one of which is elected at-large. The Mayor and the Council Members are each elected to four-year terms. The City Council sets the long-range direction of the City and establishes policies that maintain a high quality of life for Richfield residents. ## 2026 HIGHLIGHTS • Participated in the annual City Council-Staff Retreat, emphasizing the Council’s ownership of the City’s strategic plan—its purpose, priorities, direction, and accountability. Staff, guided by the Council, is responsible for implementing the plan, determining methods, and measuring performance related to its goals and action steps. • Quarterly meetings to focus on long-term vision and planning, and to maintain a high functioning team. • Fostered community engagement by serving as liaisons to City boards and commissions. Improved commission recruiting procedures and provided onboarding for new commissioners with separate training for commission chairs. • Met with residents and supported a variety of community initiatives, including Juneteenth, the 4 th of July, Penn Fest, and the third State of the Community (Summer Kickoff) event. • Advocated for City priorities at the federal, State, and County levels to help shape key regional projects and statewide reforms. • Increased Richfield’s regional presence by partnering with regional organizations like the I- 494 Corridor Commission, I-35W Solutions Alliance, Greater MSP, and Regional Council of Mayors. • Continued to increase Richfield’s visibility with earned media, by speaking at key local and regional events and by engaging with our neighbors and regional organizations. • Contracted with Craig Rapp Consulting for an essential services study to better define essential services, prioritize services and programs, and explore more efficient and effective service delivery models. • Joined the Cities for Safe and Stable Communities coalition to strengthen advocacy efforts on issues impacting local government finances, public safety, housing, and quality of life. • Initiated the City Manager recruitment process by selecting and contracting with an executive search firm to guide the City Council through the recruitment and selection of the City's next City Manager. ## 2027 DIVISION GOALS 35 Page 55 of 361 •Embed Strategic Plan mission, vision, values and priorities/outcomes in Council policy and communications and report progress on the dashboard (City Council Priority/Outcome 1a). •Continue to improve partnerships with community organizations, including schools, civic groups, nonprofits, and local businesses. Support community events like 4 th of July, Penn Fest, and the State of the Community (Summer Kickoff) (City Council Priority/Outcome 1a). •Increase Richfield’s visibility with earned media and public by speaking at key local and regional events ( City Council Priority/Outcome 1a). •Continue to advocate for City priorities at the Federal, State, and County levels (City Council Priority/Outcome 3b). ## DIVISION EXPENDITURE COMMENT The 2026 revised budget is 8.41% higher than the 2026 adopted budget. The increase is primarily due to the addition of Minnesota Paid Family and Medical Leave costs, joining the Cities for Safe and Stable Communities coalition, and contracting with an executive search firm to assist with the recruitment of the next City Manager. The 2027 budget is 0.69% higher than the 2026 adopted budget. The increase is primarily due to the completion of the Essential Services Study and one-time Executive Search Firm costs included in the 2026 revised budget. The 2027 budget includes funding for the development of a new Strategic Plan. 36 Page 56 of 361 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## GENERAL FUND ## FUND: ## Legislative/Executive ## DEPARTMENT: Mayor Council - 10100 ## BUSINESS UNIT: ## Personal Services 600557,20158,87158,87158,871Full Time$$$$ ## 60312,5541,5791,5791,579Employer Social Security 6032735854854854Employer Medicare 60331,6231,6701,6701,670Employer Pera 603830303030Workers Compensation ## 60419- 223223Paid Family Medical Leave 63,00463,22763,22762,152Personal Services ## Total $$$$ ## Other Services & Charges 610376,06977,500104,50069,500Professional Services -General$$$$ ## 620214,19011,82011,82013,504Data Processing Rental 620718,70019,45019,45018,469Utility Services 63035,5336,0006,0006,500Professional Development 630579,57986,71886,71890,086Subscriptions & Memberships 6308610620620630Property Liability 6401252750750750Office Supplies 6402138500500500Copy Charges 640323505050Postage 6409192550550550Uniforms & Clothing 651346,68756,75056,75062,195Other Charges 260,708287,708262,734241,973Other Services & Charges ## Total $$$$ 323,712350,935325,961304,125Mayor Council ## TOTAL $$$$ 37 Page 57 of 361 ## GENERAL FUND ## FUND: ## Legislative/Executive ## DEPARTMENT: Mayor Council - 10100 ## BUSINESS UNIT: ## DIVISION PERSONNEL ## CLASSIFICATIONS ## SALARY ## GRADE ## NUMBER OF EMPLOYEES 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## CAPITAL OUTLAY ## ITEMS 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## Part-Time Employees 1.001.00ExemptMayor1.00 4.004.00ExemptCouncil Member4.00 5.005.00 ## Total 5.00 - - None $ $- $ -- ## Total $$-$ 38 Page 58 of 361 ## OTHER AGENCIES DIVISION ## MISSION STATEMENT To award contracts to agencies delivering services to residents in Richfield through a competitive annual process. ## DIVISION FOCUS The Other Agencies Division focus is providing annual contracts to human service agencies serving Richfield residents. ## 2026 HIGHLIGHTS •Awarded $97,584 in contracts to seven non-profit agencies to provide services to Richfield residents. ## 2027 DIVISION GOALS •Administer a competitive annual process to contract with social service agencies to provide needed services to Richfield residents. The 2027 budget includes $100,500 for social service agency contracts. (City Council Priority/Outcome 2c and 5a). ## DIVISION EXPENDITURE COMMENT The 2027 budget reflects a 3.21% increase over 2026, driven by modest increases in interdepartmental labor allocations and social service organization contract funding to maintain current service levels and support community partnerships. The allocation of the 2027 contracts will be determined by the City Council in early 2027. 39 Page 59 of 361 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## GENERAL FUND ## FUND: ## Legislative/Executive ## DEPARTMENT: Other Agencies - 10105 ## BUSINESS UNIT: ## Personal Services 605124,31022,59022,59023,530Interdepartmental Labor$$$$ 22,59022,59023,53024,310Personal Services ## Total $$$$ ## Other Services & Charges 651591,80097,58497,584100,500Human Services - Unallocated$$$$ 97,58497,584100,50091,800Other Services & Charges ## Total $$$$ 120,174120,174124,030116,110Other Agencies ## TOTAL $$$$ 40 Page 60 of 361 ## CITY MANAGER DEPARTMENT ## MISSION STATEMENT Plan and direct the administration of City projects and programs as established by the City Charter, City ordinances and the City Council to ensure efficient, cost-effective municipal services and development consistent with City Council vision, values, priorities and desired outcomes. ## DEPARTMENT FOCUS The City Manager is the chief administrative officer of the City and is responsible to the City Council for the supervision of all departments and divisions of City administration except where otherwise provided by law or City Charter. In addition to acting as the chief administrator for the City, the City Manager Department team oversees the City’s equity work. ## 2026 HIGHLIGHTS •Coordinated a wide range of training options for staff, including but not limited to leadership training and supervisor training. (Council Priority/High-Quality Workforce, a well-trained workforce) •Organized City Council-Staff retreats to help build constructive operating norms and expectations to enable a high-functioning team. Council and Directors worked to identify policy proposals for the coming year during quarterly effective governance meetings. (Council Priority/High-Quality Workforce, healthy Council- staff relationships) •Assisted in the development of the Essential Services Study, providing Council and staff with service categorizations and recommendations. (Council Priority/Operational Excellence, operational capability to deliver essential services) •Coordinated the City Manager executive search process, including development of the Request for Proposals (RFP), proposal evaluation, Council interviews, and firm selection. •Completed the final update and reporting for the current Strategic Plan in preparation for development of the City's next strategic plan. (Council ## Priority/Operational Excellence, focused City leadership) •Supported updates to the City Charter to bring petition requirements into compliance with state law. •Partnered with the Finance Department to evaluate the City's workers' compensation program and develop a recommendation on whether to remain self-insured or transition coverage to the League of Minnesota Cities Insurance ## Trust. (Council Priority/Operational Excellence, focused City leadership) •Transferred administration of the City's lodging tax to the Minnesota Department of Revenue. •Participated in mediation efforts for the Fire Union. 41 Page 61 of 361 •Participated in Bureau of Mediation Services (BMS) Path Forward and Labor Management Committee (LMC) training for the Fire Union. ## 2027 DEPARTMENT GOALS •Continue to lead the integration of the City’s mission, vision, values, and strategic plan priorities into communications, processes, and City culture. Maintain dashboards to track performance targets. (Council Priority/Operational Excellence, focused City leadership) •Assist the Finance Department to develop long-term financial plans to fund operations and capital needs (Council Priority/Operational Excellence, financial capacity to deliver essential services) •Assist HR in developing a training program for staff (Council Priority/High-Quality Workforce, a well-trained workforce) •Continue implementing process improvements across administrative functions. (Council Priority/Operational Excellence, operational capability to deliver essential services) •Coordinate the annual Council-Staff effective governance schedule and process. (Council Priority/High-Quality Workforce, healthy Council-staff relationships) •Develop the 2027 legislative platform and partner with local legislators, state agencies, and regional partners to advance key City priorities. (City Council ## Priority/Outcome) ## •Develop the City's next Strategic Plan. (Council Priority/Operational Excellence, focused City leadership) ## DEPART ## MENT EXPENDITURE COMMENT The 2026 revised budget is 14.44% lower than the 2026 adopted budget. The decrease is primarily due to the transfer of the Equity Coordinator position and related equity projects to the Human Resources budget, partially offset by increased costs for Paid Family and Medical Leave, a City Manager salary increase, and higher training costs. The 2027 budget is 16.79% lower than the 2026 adopted budget. The decrease is primarily due to the transfer of the remaining equity projects to the Human Resources budget and reductions in charges allocated to other City funds. 42 Page 62 of 361 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## GENERAL FUND ## FUND: ## Legislative/Executive ## DEPARTMENT: City Manager - 10115 ## BUSINESS UNIT: ## Personal Services 6005415,321438,161392,153383,905Full Time$$$$ ## 603124,74826,01323,63021,382Employer Social Security 60325,8536,2335,5265,106Employer Medicare 603331,26532,86229,41128,793Employer Pera 603557,26460,89742,12453,968Medical Insurance 60362,5502,5972,0861,862Dental Insurance 6037251140123100Term Life 6038890910910960Workers Compensation ## 6040426776694680Long Term Disability ## 604183- 1,4881,457Paid Family Medical Leave ## 6055(93,540)(90,310)(90,310)(93,590)Administrative Labor Credit 478,279407,835404,623445,111Personal Services ## Total $$$$ ## Other Services & Charges 61035,8233,690190200Professional Services -General$$$$ ## 620227,66322,88222,88221,189Data Processing Rental 62079,3409,7109,7109,724Utility Services 63021,9582,6402,2201,920Communications 630314,14812,60014,77513,600Professional Development 63053,2295,0003,7003,500Subscriptions & Memberships 63073,8084,1304,1302,570Insurance & Bonds 63081,1601,1801,1801,200Property Liability 64019651,0001,0001,000Office Supplies 6402417350350350Copy Charges 64034505050Postage ## 651314,90211,2004,884- Other Charges 74,43265,07155,30383,417Other Services & Charges ## Total $$$$ 552,711472,906459,926528,528City Manager ## TOTAL $$$$ 43 Page 63 of 361 ## GENERAL FUND ## FUND: ## Legislative/Executive ## DEPARTMENT: City Manager - 10115 ## BUSINESS UNIT: ## DIVISION PERSONNEL ## CLASSIFICATIONS ## SALARY ## GRADE ## NUMBER OF EMPLOYEES 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## CAPITAL OUTLAY ## ITEMS 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## Regular Full-Time Employees 1.001.0022City Manager1.00 1.001.0013Senior Analyst1.00 - -12Equity Coordinator1.00 .50.509Administrative Assistant.50 2.502.50 ## Total 3.50 -- None $ $- $ -- ## Total $$-$ 44 Page 64 of 361 ## LEGAL DIVISION ## MISSION STATEMENT To provide legal services as required by the City of Richfield. ## DIVISION FOCUS The Legal Division includes legal services and costs for general corporate representation and municipal prosecution. The firm of Kennedy and Graven provides general corporate representation for the City. Services provided include attendance at all City Council meetings; attendance as requested by the Council or City staff at meetings with staff, public groups and public hearings; review and preparation of contracts, performance bonds, insurance and other routine legal documents; revision and preparation of ordinance code amendments and resolutions; formal and informal legal advice to Council, staff, commissions and committees; training sessions with officials and staff to discuss topics including but not limited to important legislative or judicial developments; and formal and informal advice on human resource matters including interpretations of federal, state and local rules and regulations relating to human resources matters. H/J Law has been providing prosecution services to the city since July 1, 2022. Prosecution legal services provided include advising; ordinance enforcement; peace officer training; charging; calendar appearances; court trials; pretrial conferences and omnibus hearings; jury trials; sentencing; and appeals. The city plans to continue the contract with H/J Law for 2027. ## 2026 HIGHLIGHTS • Continued excellent legal representation by Kennedy and Graven and H/J Law (City Council Priority/Outcome 1c). ## 2027 DIVISION GOALS • To ensure that the City has the best legal representation possible for all facets of its operation (City Council Priority/Outcome 1c). ## DIVISION EXPENDITURE COMMENT The 2026 revised budget reflects a 0% increase over the 2026 adopted budget. The 2027 budget includes a 2.91% increase to account for anticipated contractual rate adjustments for legal services provided by Kennedy & Graven. The increase maintains current service levels while reflecting modest increases in hourly billing rates. 45 Page 65 of 361 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## GENERAL FUND ## FUND: ## Legislative/Executive ## DEPARTMENT: Legal - 10120 ## BUSINESS UNIT: ## Other Services & Charges 6103120,892165,000165,000173,250Professional Services -General$$$$ 6105192,467197,700197,700200,000Prosecution 63081,4501,4801,4801,510Property Liability 364,180364,180374,760314,809Other Services & Charges ## Total $$$$ 364,180364,180374,760314,809Legal ## TOTAL $$$$ 46 Page 66 of 361 ## ADMINISTRATIVE SERVICES 47 Page 67 of 361 ## DEPARTMENT SUMMARY BY BUSINESS UNIT ## BUSINESS UNIT ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## GENERAL FUND ## FUND: ## Administrative Services ## DEPARTMENT: ## Increase/ (Decrease) 2026 Budget/ 2027 Budget 161,895171,262175,893178,580Administration$$$$4.27%10200 734,879848,060812,875913,660Deputy Registrar 7.74%10215 25,84147,87248,29849,530City Clerk 3.46%10216 1,067,1941,037,0661,141,770922,615Administrative Services ## TOTAL $$$$6.99% ## REVENUES 717,143700,000726,700735,000Deputy Registrar$$$$5.00%10215 277- - - City Clerk - 10216 ## ADMINISTRATIVE SERVICES ## YEARAMOUNT 2025$922,615 ## 2026B$1,067,194 ## 2026R$1,036,526 ## 2027B$1,141,770 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 ## 20252026B2026R2027B ## E ## X ## P ## E ## N ## D ## I ## T ## U ## R ## E ## S ## YEAR ## ADMINISTRATIVE SERVICES EXPENDITURES 48 Page 68 of 361 ## ADMINISTRATION DIVISION ## MISSION STATEMENT The mission of the Administration Division is to provide managerial direction and oversight to the Administrative Services Department, including the general supervision of deputy registrar office, city clerk, communications and engagement, government buildings, information technology, and liquor store operations. ## DIVISION FOCUS The Administrative Services Director serves as the supervisor of Administrative Services Department, including this division. The Administrative Services Director is responsible for the overall direction and coordination of most of the City’s administrative support service activity that allows the other City departments to operate effectively and to create an optimal work environment for employees. ## 2026 HIGHLIGHTS •Smooth transition of HR responsibilities to the new HR Director. •Enhance budget process for Administrative Services Department (City Council Goal 4a). •Implement policy and procedure changes for Liquor Operations (City Council Goal 4a). •Facility Study – analysis completed it 2026, funding allocation in 2027 goals (City Council Goal 1b). ## 2027 GOALS •Review and develop templates for the Record Management System Project with IT and City Clerk. •Financial plan for facility study (City Council Goal 1b). •Develop organization-wide technology plan (City Council Goal 1c). ## DIVISION EXPENDITURE COMMENT The 2026 revised budget reflects a 2.7% increase from the 2026 adopted budget. In the 2027 proposed budget, there will be a 4.27% increase from the 2026 adopted budget. 49 Page 69 of 361 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## GENERAL FUND ## FUND: ## Administrative Services ## DEPARTMENT: Administration - 10200 ## BUSINESS UNIT: ## Personal Services 6005166,204183,430178,587187,060Full Time$$$$ ## 603110,67011,27011,07211,600Employer Social Security 60322,4952,6602,5902,710Employer Medicare 603312,98513,75713,39414,030Employer Pera 6036729750723750Dental Insurance 603772404340Term Life 6038110110110120Workers Compensation ## 6040148325316330Long Term Disability ## 604133- 678710Paid Family Medical Leave ## 6054(66,724)(76,430)(76,430)- Interdepartmental Labor Credit ## 6055(53,880)(55,580)(55,580)(57,340)Administrative Labor Credit 80,33275,503160,01072,842Personal Services ## Total $$$$ ## Other Services & Charges 6103- 606060Professional Services -General$$$$ ## 62027,5106,8106,8106,320Data Processing Rental 620776,40079,46079,4607,140Utility Services 6302481- 480500Communications 63032,3921,50010,5001,500Professional Development 6305- 250250250Subscriptions & Memberships 63071,1831,1501,1301,030Insurance & Bonds 6308700710710720Property Liability 6401248130130150Office Supplies 6402- 303050Copy Charges 64033303050Postage 6414136800800800Other Supplies 90,930100,39018,57089,053Other Services & Charges ## Total $$$$ 171,262175,893178,580161,895Administration ## TOTAL $$$$ 50 Page 70 of 361 ## GENERAL FUNDFUND: ## Administrative Services ## DEPARTMENT: Administration - 10200BUSINESS UNIT: ## DIVISION PERSONNEL ## CLASSIFICATIONS ## SALARY ## GRADE ## NUMBER OF EMPLOYEES 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## CAPITAL OUTLAY ## ITEMS 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## Regular Full-Time Employees ## 1.001.0020A.S. Director/Assistant City Manager1.00 1.001.00 ## Total 1.00 -- None $ $- $ -- ## Total $$ -$ 51 Page 71 of 361 ## DEPUTY REGISTRAR DIVISION ## MISSION STATEMENT To provide exceptional customer service quickly and with accuracy serving as Deputy Registrar for the State of Minnesota and managing the city information desk. ## DIVISION FOCUS The Deputy Registrar Division provides resident services to the community in its function as Deputy Registrar for the State of Minnesota. The division performs customer service functions for the City in the areas of motor vehicle titling and registrations, limited driver’s license services, passport applications and photos, fish and game licenses, and Department of Natural Resources (boat, snowmobile and ATV) transfers and registration. This department also includes the city information desk that processes City mail, answers resident questions, schedules for the use of the Municipal Center conference rooms and checks in passport and motor vehicle customers. The Deputy Registrar Division includes the Motor Vehicle Licensing Supervisor, a Lead Licensing Technician, 3 full-time Licensing Technicians and 3 part-time Licensing Technicians. Two intermittent employees serve as City Services Receptionist. The division provides high-volume, high-quality customer service, assisting an average of over 250 customers per day while maintaining a 99% accuracy rate in transactions. Despite the complexity and variety of services offered, the division continues to achieve an average transaction time of approximately 10 minutes, demonstrating strong operational efficiency, effective staff performance, and consistent commitment to delivering timely and accurate service to the public. ## 2026 DIVISION GOALS • Began researching and evaluating a new Point of Sale system to enhance operational efficiency, improve reporting capabilities, and support future departmental needs (City Council Goal 1b). • Create and implement communications to City residents regarding Deputy Register services and transaction requirements, improving customer awareness and preparedness (City Council Goal 4a). • Create and implement a new passport appointment sign-up system, improving scheduling efficiency and enhancing customer experience (City Council Goal 1b). ## 2027 DIVISION GOALS • Implement a new point of sale system to help with the record keeping and organization of the motor vehicle, passport and Department of Natural Resource office (City Council Goal 1b). • Continue to work with legislators regarding financial sustainability for deputy registrars (City Council Goal 1b). ## DIVISION EXPENDITURE COMMENT The 2026 revised budget reflects a -4.15% decrease from the 2026 adopted budget. In the 2027 proposed budget, there will be a 7.74 % increase from the 2026 adopted budget. 52 Page 72 of 361 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## GENERAL FUND ## FUND: ## Administrative Services ## DEPARTMENT: Deputy Registrar - 10215 ## BUSINESS UNIT: ## Personal Services 6005315,340383,855368,994390,490Full Time$$$$ 6006117,274138,241126,605135,720Part-time 600750,81351,00849,46852,350Seasonal 60098,748- 3,5003,600Overtime ## 603130,22538,49033,65735,710Employer Social Security 60327,0699,0007,8718,350Employer Medicare 603336,67146,80840,87643,390Employer Pera 603560,74573,65274,72085,010Medical Insurance 60362,5832,9792,8922,980Dental Insurance 6037325200213200Term Life 60381601,2401,3001,350Workers Compensation ## 6040365679653690Long Term Disability ## 604196- 2,0682,200Paid Family Medical Leave 746,152712,817762,040630,414Personal Services ## Total $$$$ ## Other Services & Charges 610357300300300Professional Services -General$$$$ ## 620268,68070,66870,66872,920Data Processing Rental 6205- 270270300Maintenance & Repairs 6207- 44,910Utility Services 6301- 100100100Advertising & Publication 6302- 2508401,200Communications 63031,6702,1501,5001,700Professional Development 63051,200660660700Subscriptions & Memberships 63076,4484,5904,5007,150Insurance & Bonds 63082,1802,2202,2202,260Property Liability 64016,6408,0006,3006,680Office Supplies 640210,9902,2002,2002,400Copy Charges 64036,6007,7007,7008,000Postage 6414- 200200200Other Supplies 6513- 2,6002,6002,800Other Charges 101,908100,058151,620104,465Other Services & Charges ## Total $$$$ 848,060812,875913,660734,879Deputy Registrar ## TOTAL $$$$ 53 Page 73 of 361 ## GENERAL FUND ## FUND: ## Administrative Services ## DEPARTMENT: Deputy Registrar - 10215 ## BUSINESS UNIT: ## DIVISION PERSONNEL ## CLASSIFICATIONS ## SALARY ## GRADE ## NUMBER OF EMPLOYEES 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## CAPITAL OUTLAY ## ITEMS 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## Regular Full-Time Employees ## 1.001.0012Motor Vehicle Supervisor1.00 ## 1.001.009Lead Licensing Technician1.00 3.003.008Licensing Technician3.00 5.005.00 ## Total 5.00 ## Intermittent Employees .95.956City Services Receptionist (2 people)1.00 .95.95 ## Total 1.00 ## Part-Time Employees 2.102.108Licensing Technician(3 people)2.50 2.102.10 ## Total 2.50 -- None $ $- $ -- ## Total $$-$ 54 Page 74 of 361 ## Administrative Services ## ActualActualBudget RevisedProposed 20242025202620262027 ## Inputs: ## Number of Full Time Employees55555 Division Expenditures780,437$ 734,879$ 848,060$ 812,875$ 913,660$ ## Outputs: ## Motor Vehicle Transactions55,12547,62955,50055,50058,000 ## Passport Transactions7,4003,5703,0003,2003,500 ## Effectiveness Measures: Motor Vehicle Revenues-Year610,165$ 553,126$ 500,000$ 570,000$ 575,000 Passport Revenues-Year180,438$ $153,455200,000$ 156,700$ 160,000 Motor Vehicle Processing Time9 minutes10 minutes10 minutes10 minutes10 minutes Passport Processing Time20 minutes20 Minutes20 minutes20 minutes20 minutes ## Efficiency Measures: ## Accuracy of Motor Vehicle Trans99%99%99%99%99% Division Revenue per capita16.49$ 14.95$ 13.52$ 15.41$ 14.94$ Division Expenditures per capita21.10$ 19.87$ 22.92$ 21.97$ 23.74$ 2025 Budget reflects removal of ## Administrative Labor Credits for further analysis Population 36993 38,482 (2027) ## Performance Measures ## Deputy Registrar 55 Page 75 of 361 ## CITY CLERK DIVISION ## MISSION STATEMENT To serve as the official clerk to the City Council, Housing and Redevelopment Authority (HRA), and Economic Development Authority (EDA); to maintain and safeguard all official city records; to manage public data requests with transparency and efficiency; to administer elections with integrity and accuracy; and to deliver equitable, responsive customer service to city staff, residents, and constituents. ## DIVISION FOCUS The City Clerk Division is responsible for preparing, maintaining, certifying, and distributing information regarding City Council, HRA, and EDA actions through minutes, resolutions, and ordinances. These documents are official records of actions and legislation that govern the City. The City Clerk manages data requests in compliance with the MN Data Practices Act and administers the city-wide records management program (GovQA). The City Clerk’s Division is responsible for the administration, retention of election records, and the overall conduct of elections within the City. In collaboration with Hennepin County and the Minnesota Secretary of State, the division ensures fair, accurate, and transparent election processes. Year-round services include voter registration and providing up-to-date voter information to residents. The division is also responsible for domestic partner registrations. In 2026, the division focused on streamlining internal processes related to CivicPlus agenda management software; incorporating Weblink within the new CivicPlus application to allow the general public easier access to Council and Commission archived related documents; administering two elections (Primary and General Elections); and establishing a process for municipal code codification to ensure code is updated three times per year. ## 2026 HIGHLIGHTS • Ensure all customer service functions of the City Clerk Division meet the goals of the City Council of being operationally excellent and customer-focused to maintain Richfield’s competitiveness with surrounding communities. (City Council Goal 1c). • Maintain an accurate record of all City Council, HRA, and EDA Minutes, Ordinances, Resolutions, and Legal Notices. (City Council Goals 1, 3, and 4). • Conduct two elections (Primary and General Elections). (City Council Priority/Outcome 1b and 1c). • Improved processes related to the CivicPlus agenda management software platform. Worked with the Executive Department to streamline the minutes template for City Council and Commissions. (City Council Goal 1c). 56 Page 76 of 361 • Collaborated with IT to launch Weblink (Laserfiche product) within the CivicPlus agenda management software platform. Improved transparency and public engagement by launching Weblink through the public portal feature for Council and Commission meetings, improving access to City Council and Commission meetings. This allows the public to easily access and download historical records, including Council and Commission agenda packets, minutes, resolutions, and ordinances. (City Council Goals 1c and 1, 3, and 4). • Continued to streamline efficient operations for data requests. (City Council Goal Step 1c). • Enhanced municipal code update processes to include direct links to the staff report item within the municipal code supplemental, and continued codification of approved ordinances three times per year. (City Council Goal 1c). ## 2027 DIVISION GOALS • Continue to develop and enhance the data management system city-wide (City Council Goals 1c and 1, 3, and 4). • Continue to produce and maintain accurate City records, resolutions, ordinances and legal notices. Maximize efficiency and data management procedures. (City Council Goals 1c and 1, 3, and 4). • Review retention schedule by department and develop a quarterly process for destruction of expired retained documents. (City Council Goals 1, 3, and 4). • Administer the final odd-year election process for the Richfield School District. (City Council Goal 1c). • Continued involvement with the Municipal Clerks and Finance Officers ## Association of Minnesota (MCFOA) and International Institute Municipal Clerks (IIMC) for professional development. • Continue to review and offer training and development opportunities for staff on CivicPlus, data requests, and records retention. (City Council Goal 1c). • Continue partnering with the CAREs Committee to broaden inclusion and equity initiatives. (City Council Goal 5.2). ## DIVISION EXPENDITURE COMMENT The 2027 Proposed Budget reflects a 3.46% increase over 2026 Adopted Budget. The 2027 Proposed Budget includes increases in personal services within the internal department service classifications; increases in seasonal and part-time staffing wages (election judges) to align Richfield’s election judge wages more competitively and equitably with Hennepin County and Richfield’s peer city group; increases to annual 57 Page 77 of 361 The 2026 Revised City Clerk Budget reflects a small .89% increase over 2026 Adopted Budget due to adjustments in personnel services expenses. 58 Page 78 of 361 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## GENERAL FUND ## FUND: ## Administrative Services ## DEPARTMENT: City Clerk - 10216 ## BUSINESS UNIT: ## Personal Services 6005139,993144,440145,481154,846Full Time$$$$ 600644820,00020,00012,400Part-time 600728,47365,00065,00038,950Seasonal 6009379500500500Overtime ## 60318,94917,09614,28412,779Employer Social Security 60322,0933,9983,3412,989Employer Medicare 603310,19610,83310,91111,613Employer Pera 603522,47022,89223,80526,836Medical Insurance 60361,0891,1171,0851,117Dental Insurance 6037107606460Term Life 6038270160160175Workers Compensation ## 6040166240258274Long Term Disability ## 604126- 875783Paid Family Medical Leave ## 6054(242,470)(285,831)(285,831)(263,380)Interdepartmental Labor Credit 505(67)(58)(27,811)Personal Services ## Total $$$$ ## Other Services & Charges 61037,579--- Professional Services -General$$$$ ## 620223,84122,51722,51721,835Data Processing Rental 6207-2,224Utility Services 6301981,5001,5002,000Advertising & Publication 63032,2505,0304,6302,975Professional Development 630514,38916,15017,00817,791Subscriptions & Memberships 63071,2221,1401,1401,175Insurance & Bonds 6308180180180185Property Liability 6401396400400400Office Supplies 64023,68730200200Copy Charges 640310202020Postage 6414- 400400400Other Supplies 6513370383Other Charges 47,36748,36549,58853,652Other Services & Charges ## Total $$$$ 47,87248,29849,53025,841City Clerk ## TOTAL $$$$ 59 Page 79 of 361 ## GENERAL FUNDFUND: ## Administrative Services ## DEPARTMENT: ## City Clerk - 10216BUSINESS UNIT: ## DIVISION PERSONNEL ## CLASSIFICATIONS ## SALARY ## GRADE ## NUMBER OF EMPLOYEES 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## CAPITAL OUTLAY ## ITEMS 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## Regular Full-Time Employees 1.001.0014City Clerk1.00 1.001.00 ## Total 1.00 ## Part-Time Employees .50.509Administrative Assistant.50 - - (FT - 50% Shared with Executive)- .50.50 ## Total .50 - - None $ $- $ -- ## Total $$ -$ 60 Page 80 of 361 ## Administrative Services ## ActualActualActualProposedRevisedProposed 202320242025202620262027 ## Inputs: ## Number of Full Time Employees1.01.251.501.501.501.50 Division Expenditures$22,03249,745 $ 25,841 $ $47,872 $48,298 49,530 $ ## Outputs: ## Legal Notices Published 404955195060 ## Domestic Partnerships Filed 457156 ## Meeting Notices 6996129125125125 ## Number of Elections Held 121221 ## Number of Registered Voters 25,49922,17226,46822,91222,91223,000 ## Number of Ballots Cast4,26519,6641,79319,70019,70019,800 ## Effectiveness Measures: Number of Data Requests Completed thru GovQA1,3471,490 3,054 2,5322,600 2,650 1347 - City 1490 - City 1040 - City 1016 - City ## TBD TBD 2002 - Police 1516 - Police TBD TBD ## Efficiency Measures: Expenditure per Capita0.60 $ 1.34 $ 0.70 $ 1. 29 $ 1.31 $ 1.29 $ Council/Commission Packets Posted in the last 365 days96 Videos Posted to YouTube in the last 365 days15 Italics indicates projected numbers. Population 36,994 38,482 (2027) ## Performance Measures ## City Clerk 61 Page 81 of 361 ## HUMAN RESOURCES 62 Page 82 of 361 ## DEPARTMENT SUMMARY BY BUSINESS UNIT ## BUSINESS UNIT ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## GENERAL FUND ## FUND: ## Human Resources ## DEPARTMENT: ## Increase/ (Decrease) 2026 Budget/ 2027 Budget 290,336360,783412,420562,852Human Resources$$$$56.01%10205 360,783412,420562,852290,336Human Resources ## TOTAL $$$$56.01% ## HUMAN RESOURCES ## YEARAMOUNT 2025$290,336 ## 2026B$360,783 ## 2026R$412,420 ## 2027B$562,852 $0 $200,000 $400,000 $600,000 ## 20252026B2026R2027B ## E ## X ## P ## E ## N ## D ## I ## T ## U ## R ## E ## S ## YEAR ## HUMAN RESOURCES EXPENDITURES 63 Page 83 of 361 ## Human Resources Department ## MISSION STATEMENT To attract, develop, and retain a diverse, high performing, respectful workforce through integrated and strategic systems, policies, and procedures. Play a vital role in providing strategic organizational service and support to all City departments. ## DEPARTMENT FOCUS This department is responsible for the administration of the Human Resources ordinances, personnel policies, local, state and federal laws, classification and pay plans, leave administration, recruitment, selection and onboarding of employees in conjunction with their department. Talent management, benefits administration, employee safety, employee and labor relations, employee training, alignment with diversity, equity and inclusion initiatives, the Americans with Disabilities Act plan and process for visitors and employees, and risk management including all workers compensation, property and liability claims for the City. The Department is led by the HR Director. ## 2026 HIGHLIGHTS •Increased recruiting, hiring and onboarding for city employees due to increased turnover in the past several years. (City Council Priority/Outcome 4). •Secured candidates for 110 positions and conducted leadership searches to fill management level positions of HR Director, Project Engineer and Utility Engineer. •Settled four contract negotiations at the end of 2025 and one in early 2026. •Implemented the Minnesota Paid Leave program, including policy development, employee communication, and payroll coordination. •Supported participation of a second cohort of employees in the multi-city North Star Leadership Program. •Partnered with a consultant to develop and launch a new supervisory training program for City supervisors. •Transitioned to a standalone department and hired a Human Resources Director •Integrated the Equity Coordinator position and related initiatives into the Human Resources Department to better align organizational equity efforts with employee programs, policies, and practices. •Hired an HR consultant to review citywide policies and suggested changes and additions for new policies. •Attended a Labor Management Committee training with the Fire Union facilitated by the Bureau of Mediation Services. 2027 ## GOALS •Conclude I- 9 Audit. •Review and improve recruitment processes. •Finalize and implement new policies and policy changes. •Revise exit interview strategy to include in person exit interviews. •Review the City’s safety program and hold City wide AWAIR or equivalent safety training. •Assist and complete Citywide Supervisor Training. •Complete city-wide respectful workplace training. 64 Page 84 of 361 • Conduct an employee engagement survey. • Track HR metrics to quantify volume of workload. • Assist in executive recruitment process for the City Manager search. • Continue working towards Equity Program goals and initiatives. ## DEPARTMENT EXPENDITURE COMMENT The 2026 revised budget reflects a 14.31% increase over the 2026 adopted budget. The increase is primarily due to the transfer of the Equity Coordinator position and related projects from the City Manager budget to the Human Resources budget, as well as employer contributions for Paid Family and Medical Leave. The 2027 budget reflects a 56.01% increase over the 2026 adopted budget. The increase is primarily due to increased personnel costs, the transfer of the remaining equity-related expenses from the City Manager budget, increased professional development costs, and higher subscription and membership costs, partially offset by decreased spending on professional services. 65 Page 85 of 361 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## GENERAL FUND ## FUND: ## Human Resources ## DEPARTMENT: Human Resources - 10205 ## BUSINESS UNIT: ## Personal Services 6005267,458308,693338,094450,560Full Time$$$$ 600716,3223,000- - Seasonal ## 603117,34417,83715,95122,375Employer Social Security 60324,0564,1723,7305,233Employer Medicare 603317,62722,89925,50333,792Employer Pera 603539,98650,45453,48777,554Medical Insurance 60361,7472,2062,3082,979Dental Insurance 6037172120136160Term Life 6038110110110120Workers Compensation ## 6040258540555776Long Term Disability ## 6041177-1,2831,710Paid Family Medical Leave ## 6054(156,704)(179,498)(179,498)(135,000)Interdepartmental Labor Credit ## 6055(48,450)(50,150)(50,150)(51,910)Administrative Labor Credit 180,383211,509408,349160,103Personal Services ## Total $$$$ ## Other Services & Charges 610356,805100,000103,50035,640Professional Services -General$$$$ ## 620224,67030,82030,82041,397Data Processing Rental 6207-6,544Utility Services 6301299500500500Advertising & Publication 63021,1601,3001,7202,880Communications 63035,5202,6004,4256,600Professional Development 63046,93712,00019,20012,000Employee Training 630523,11712,80014,10016,070Subscriptions & Memberships 63072,3662,3002,2503,082Insurance & Bonds 6308570580580590Property Liability 63124,80815,00015,00015,000REEP Program 64019611,3001,3001,800Office Supplies 64021,1881,0001,0001,000Copy Charges 64031,832200200200Postage 65136,31611,200Other Charges 180,400200,911154,503130,233Other Services & Charges ## Total $$$$ 360,783412,420562,852290,336Human Resources ## TOTAL $$$$ 66 Page 86 of 361 ## FUND: ## DEPARTMENT: ## BUSINESS UNIT: ## GENERAL FUND ## Human Resources Human Resources - 10205 ## DIVISION PERSONNEL ## NUMBER OF EMPLOYEES ## CLASSIFICATIONS ## SALARY ## GRADE 2026 ## ADOPTED 2026 ## REVISED 2027 ## BUDGET ## Regular Full-Time Employees HR Manager 17 1.00 - - HR Director 19 -1.00 1.00 HR Specialist 11 1.00 - - HR Generalist I 11 -1.00 1.00 HR Specialist 11 1.00 -- ## HR Generalist II 12 -1.001.00 Equity Coordinator 12 -1.00 1.00 ## Total 3.00 4.00 4.00 ## Intermittent Employees ## Recruiting and Onboard Support -.15.15 Total -.15.15 ## ITE ## MS ## CAPITAL OUTLAY 2026 ## ADOPTED 2026 ## REVISED 2027 ## BUDGE ## T ## None ## Tota l $ - $ $ -$ -$- - $ - 67 Page 87 of 361 ## FINANCE 68 Page 88 of 361 ## DEPARTMENT SUMMARY BY BUSINESS UNIT ## BUSINESS UNIT ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## GENERAL FUND ## FUND: ## Finance ## DEPARTMENT: ## Increase/ (Decrease) 2026 Budget/ 2027 Budget 550,482701,628812,080705,066Finance$$$$0.49%10210 701,628812,080705,066550,482Finance ## TOTAL $$$$0.49% ## FINANCE ## YEARAMOUNT 2025$550,482 ## 2026B$701,628 ## 2026R$812,080\ ## 2027B$705,066 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 ## 20252026B2026R2027B ## E ## X ## P ## E ## N ## D ## I ## T ## U ## R ## E ## S ## YEAR ## FINANCE EXPENDITURES 69 Page 89 of 361 ## FINANCE DIVISION ## MISSION STATEMENT To maintain all of the City’s financial records, to provide accounting, and financial support services to other City departments and the City’s Housing and Redevelopment Authority (HRA) and Economic Development Authority (EDA). ## DIVISION FOCUS The Finance Division provides financial management and accounting services for all city operations. Services include budget, cash and debt management, capital financing, investments, accounts payable, utility billing, receipts and receivables, fixed assets, payroll, financial reporting and audit coordination. In addition to the City’s Annual Budget, the division prepares the Annual Comprehensive Financial Report. Richfield has again attained AA+ rating - very high credit quality – assigned by S&P Global Ratings in November 2025. The rating agency evaluates several factors in their analysis including economic, financial and management factors, as well as the city’s ability to meet financial obligations. ## 2026 HIGHLIGHTS • Work with Ehlers to update Key Financial Strategies model with a comprehensive Financial Management Plan. • Continued review of daily operations and processes including Tungsten (Logis) implementation streamlining vendor invoice to payment processing. • Growth in staff confidence and understanding of finance responsibilities. • Planning for general obligation debt issue Nov/Dec 2026. ## 2027 FINANCE DIVISION GOALS • Staff investment: Stabilization and staff development. • Technology: Vendor payment process from check to ACH; continue Tungsten rollout. ## • Financial Management and Decision Making • Targeted focus review for best practice/internal control of critical financial functions. • Improve budgeting and reporting of capital projects. ## DIVISION EXPENDITURE COMMENT The revised 2026 budget reflects an increase from the 2026 Adopted Budget to account for a higher allocation, and more equitable share, of our annual financial audit cost between the general fund and enterprise funds . The 2027 Proposed Budget increases slightly from the 2026 Adopted Budget. The minor increase of 0.49% is related to the change in internal service chargebacks and the Finance Department share is more appropriately reflected in the 2027 Proposed budget. 70 Page 90 of 361 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## GENERAL FUND ## FUND: ## Finance ## DEPARTMENT: Finance - 10210 ## BUSINESS UNIT: ## Personal Services 6005549,989670,105670,105710,694Full Time$$$$ 6009274- - - Overtime ## 603132,83839,34439,34443,276Employer Social Security 60327,6809,2029,20210,121Employer Medicare 603338,96348,78348,78353,302Employer Pera 603569,08089,11389,11386,019Medical Insurance 60363,1153,7243,7243,724Dental Insurance 6037388260260280Term Life 60381,220280280290Workers Compensation ## 60406601,1511,1511,258Long Term Disability ## 6041121-2,5322,697Paid Family Medical Leave ## 6054(43,760)(43,760)(43,760)(43,760)Interdepartmental Labor Credit ## 6055(398,360)(411,700)(411,700)(425,490)Administrative Labor Credit 406,502409,034442,411262,208Personal Services ## Total $$$$ ## Other Services & Charges 6103150,080163,700271,620155,865Professional Services -General$$$$ ## 620255,72049,76649,76652,207Data Processing Rental 620749,64051,62051,62018,353Utility Services 6301- - 1,0001,000Advertising & Publication 63027643,3501,0001,000Communications 63035,9054,0005,3508,000Professional Development 63059801,0001,0001,000Subscriptions & Memberships 63076,6095,7405,7406,680Insurance & Bonds 63082,3502,4002,4002,450Property Liability 64015,1236,5008,5008,000Office Supplies 64021,9761,2501,2502,000Copy Charges 64035,5563,8003,8005,600Postage 6409496- - 500Uniforms & Clothing 6414- 2,000- - Other Supplies 6513456- - - Other Charges 295,126403,046262,655285,655Other Services & Charges ## Total $$$$ ## Capital Outlay ## 71302,619--- Taxes, Interest & Penalty$$$$ --- 2,619Capital Outlay ## Total $$$$ 701,628812,080705,066550,482Finance ## TOTAL $$$$ 71 Page 91 of 361 ## GENERAL FUND ## FUND: ## Finance ## DEPARTMENT: Finance - 10210 ## BUSINESS UNIT: ## DIVISION PERSONNEL ## CLASSIFICATIONS ## SALARY ## GRADE ## NUMBER OF EMPLOYEES 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## CAPITAL OUTLAY ## ITEMS 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## Regular Full-Time Employees ## 1.001.0015Budget, Cash and Debt Manager1.00 1.001.0013Senior Analyst1.00 ## 1.001.0015Assistant Finance Director1.00 1.001.0014Payroll Accountant1.00 .50.5011Accountant.50 1.001.008Accounting Technician (Accounts Payable)1.00 - - 8Accounting Technician (Accounts Receivable)1.00 1.001.0011Accountant- 6.506.50 ## Total 6.50 -- None $ $- $ -- ## Total $$-$ 72 Page 92 of 361 ## PUBLIC SAFETY 73 Page 93 of 361 ## DEPARTMENT SUMMARY BY BUSINESS UNIT ## BUSINESS UNIT ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## GENERAL FUND ## FUND: ## Public Safety ## DEPARTMENT: ## Increase/ (Decrease) 2026 Budget/ 2027 Budget 1,730,3181,365,5581,295,9551,447,125Support Services$$$$5.97%10300 10,916,81612,228,57011,988,80012,815,470Police Operations4.80%10305 32,89948,66047,56050,010Emergency Services2.77%10315 13,642,78813,332,31514,312,60512,680,033Public Safety ## TOTAL $$$$4.91% ## REVENUES 997,380950,086915,733900,137Support Services$$$$(5.26%)10300 1,064,665991,390994,910989,910Police Operations(0.15%)10305 ## PUBLIC SAFETY ## YEARAMOUNT 2025$12,680,033 ## 2026B$13,642,788 ## 2026R$13,332,315 ## 2027B$14,312,605 $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 ## 20252026B2026R2027B ## E ## X ## P ## E ## N ## D ## I ## T ## U ## R ## E ## S ## YEAR ## PUBLIC SAFETY EXPENDITURES 74 Page 94 of 361 ## SUPPORT SERVICES DIVISION ## MISSION STATEMENT To provide management and administration of public health services, business licensing, cadets, animal control, food/pool/lodging inspections, emergency preparedness response and environmental health services. ## DIVISION FOCUS ## The Support Services Division includes the full-time Support Services Division ## Manager/Community Health Services Administrator and Code Compliance Officer, two ## part-time Environmental Health Specialists, two part-time Business Licensing Specialists, three part-time Cadets, and a seasonal Environmental Health Tech when necessary. The Support Services Division performs six major functions for the City. They are: ## • Environmental Health Code Enforcement ## • Animal Control ## • Business Licensing ## • Public Health Services ## • Food/Pool/Lodging Inspection Services • Liaison to the Richfield Advisory Board of Health (Citizens Commission) As a revenue generating division of Richfield’s Public Safety Department, Support Services responds to roughly 1200 environmental health code violations of private and public property annually, managed by two part-time job share Environmental Health Specialists. In addition to receiving complaints, staff also proactively act on the top five most common code violations. The division responds to all animal control calls which are handled by a Code Compliance Officer and three part-time Cadets, who are also the field inspectors for complaints. Additional Cadet duties include handling parking issues, assisting Patrol when called, public safety related errands, monthly monitoring of vacant properties, and participating in community events as ambassadors of the Department. Additionally, Support Services provides business licensing and renewal functions for all food/pool/lodging establishments, cannabis and low-potency hemp edible (LPHE) retailers and many other types of businesses. Compliance checks for liquor, tobacco and cannabis are mandated by state statute. With the creation of the local public health act in 1976, Richfield contracted with the City of Bloomington for public health services. Richfield is one of 53 Community Health Boards (CHB) authorized under the local public health act and one of only four cities in Minnesota that is a CHB. To fulfill the duties required in statute, CHB’s may hire staff, contract with other CHB’s, form a Joint Powers Agreement with other CHB’s or relinquish their status. Edina, Richfield and Bloomington’s City Councils determined that it was in the best interests of their communities to not form a Joint Powers Agreement and contract with Bloomington for public health services in 1976. The state of Minnesota 75 Page 95 of 361 has invested in public health recently and that decision proved accurate. Bloomington, Edina and Richfield collectively are getting more new funding than Hennepin and ## Minneapolis combined for Foundational Public Health Responsibilities grant, more funding than Minneapolis and nearly the same amount as Hennepin for the Response Sustainability Grant and more funding than either Minneapolis or Hennepin received for the Cannabis and Substance Use Prevention grant. Richfield’s funding allows for WIC, WIC Peer Breastfeeding support, Statewide Health Improvement Partnership (SHIP), substance use prevention, emergency preparedness, family home visiting, and foundational public health responsibilities. In 2025, 704 individuals received WIC in Richfield and 130 received home visiting support. This funding also supports the public health emergency preparedness plans for Richfield, cannabis and other substance prevention work, responding to public health referrals, providing immunizations and disease investigations, chronic disease prevention work via SHIP, which has been funding safe routes to school infrastructure in Richfield, and foundational public health responsibilities which are the operational foundation for public health departments. The agreements with Bloomington allow Richfield to fulfil its requirements as a CHB with tax support of $460,319, which allows it to utilize over $1.5 million in grant funding. The agreement with Bloomington Environmental Health provides for the inspection, illness and injury investigation, and other state delegated duties in the food, pool and lodging programs and for investigation and remediation of lead poisoning cases. The agreement with Public Health provides for the other required public health activities that CHBs must do to maintain their CHB status. This collaborative arrangement allows for Richfield to utilize the expertise of Bloomington to fulfil its CHB requirements at a scale and capacity it would not be able to do on its own, without a substantial investment. ## 2026 HIGHLIGHTS •Support Services saw significant turnover in staff in early 2026. All positions have been filled or are in background. •Support Services has registered two cannabis dispensaries and ten low-potency hemp edible retailers, of which there is no cap. Effort is underway to bring STR owners into compliance with licensing their properties. ## 2027 STRATEGIC PRIORITIES/OUTCOMES ## •1C,4B: Cross-train staff in Environmental Health and Business Licensing •1C: Continue to update relevant City Code ## DIVISION EXPENDITURE COMMENT Most of the division’s expenditures are employee salaries. With the implementation of the compensation and class study, most staff are stepping again. 76 Page 96 of 361 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## GENERAL FUND ## FUND: ## Public Safety ## DEPARTMENT: Support Services - 10300 ## BUSINESS UNIT: ## Personal Services 6005218,194216,776183,590213,490Full Time$$$$ 6006278,010343,624304,408339,687Part-time 60077,7377,9026,090- Seasonal 600992500500500Overtime ## 603129,19134,54529,60533,355Employer Social Security 60326,8278,0786,9237,801Employer Medicare 603335,98142,02936,60041,487Employer Pera 603562,27667,47181,263113,613Medical Insurance 60361,4401,4901,2511,484Dental Insurance 6037142807480Term Life 6038470480480500Workers Compensation ## 6040254384325378Long Term Disability ## 604187- 1,8972,090Paid Family Medical Leave 723,359653,006754,465640,701Personal Services ## Total $$$$ ## Other Services & Charges 6103968,129547,926545,326581,675Professional Services -General$$$$ ## 620250,84245,09845,09847,574Data Processing Rental ## 620421,65022,73022,73023,870Motor Pool Operating Rental 620713,53014,07014,07017,962Utility Services 63011,098750750900Advertising & Publication 630255300300300Communications 6303- - 500500Professional Development 6305599635635670Subscriptions & Memberships 63074,6652,3002,2505,899Insurance & Bonds 6308820840840860Property Liability ## 6315(400)750750750Other Contractual Services 64013,2852,0002,0003,000Office Supplies 64022,051300500500Copy Charges 64031,2711,0001,2001,200Postage 64095,6572,5005,0006,000Uniforms & Clothing 651316,3651,0001,0001,000Other Charges 642,199642,949692,6601,089,617Other Services & Charges ## Total $$$$ 1,365,5581,295,9551,447,1251,730,318Support Services ## TOTAL $$$$ 77 Page 97 of 361 ## GENERAL FUND ## FUND: ## Public Safety ## DEPARTMENT: Support Services - 10300 ## BUSINESS UNIT: ## DIVISION PERSONNEL ## CLASSIFICATIONS ## SALARY ## GRADE ## NUMBER OF EMPLOYEES 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## CAPITAL OUTLAY ## ITEMS 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## Regular Full-Time Employees ## 1.001.0014Support Services Manager1.00 ## 1.001.0011Code Compliance Officer1.00 2.002.00 ## Total 2.00 ## Part-Time Employees 1.201.209Health Specialist1.20 ## 1.201.208Business Licensing Tech1.20 ## 2.402.408Community Service Officer2.40 4.804.80 ## Total 4.80 -- None $ $- $ -- ## Total $$-$ 78 Page 98 of 361 ## Public Safety ## ActualActualBudgetBudget 2024 202520262027 ## Inputs: FT employees2222 # PT employees6777 Division expenditures1,175,453$ 1,730,318$ 1,365,558$ 1,447,125$ ## Outputs: # proactive ins. conducted414560500900 # citizen generated complaints518275353350 ## Effectiveness Measures: % within 5 days65%65%65%65% % within 10 days25%25%25%25% More than 10 days10%10%10%10% ## Efficiency Measures: # proactive ins. cond./inspector699383225 # citizen compl. cond./inspector865558116 Division expenditure per capita31.77$ 46.77$ 36.91$ 37.61$ ## Performance Measures ## Support Services 79 Page 99 of 361 ## POLICE DIVISION ## MISSION STATEMENT It is the Mission of the Richfield Police Department to safeguard the lives and property of the people we serve, to reduce the incidence and fear of crime, and to enhance public safety while working with the community to improve their quality of life. The men and women of the Richfield Police Department are committed to accomplishing these goals with courage, honor, integrity, and hard work. ## DIVIS ## ION FOCUS Our mission statement provides the foundation upon which all operational decisions and organizational policies are based. Under the leadership of the Public Safety Director, the Police Division works tirelessly to accomplish the mission. To effectively achieve these stated goals, the Police Division is divided into three sections: •The Patrol Section consists of the uniformed officers patrolling the streets of Richfield in marked police squads. These officers provide timely 24/7 police coverage to the community of Richfield. There are three specialty units embedded in the patrol section or available to assist the patrol section. The specialty units are two canine units assigned to the patrol section, traffic unit, and SWAT team. The canine unit enhances the officer’s ability to locate offenders, persons, contraband and/or property. The traffic unit allows flexibility in enforcement efforts and affords the patrol section the ability to focus on problem traffic areas in the city. Finally, the SWAT team provides the patrol section with the ability to respond to high-r isk incidents that do not fall within the scope of routine policing. •The Investigations Section consists of officers assigned to investigation and the Special Investigative Unit (SIU). Investigations are responsible for conducting all criminal investigations in the City of Richfield. The Richfield Special Investigative Unit (SIU) proactively investigates narcotic, vice, and gang related crimes in Richfield. We also have a continued partnership with the Hennepin County Sheriff’s Office West Metro Drug Task Force. •The Administrative Section consists of support services, Joint Community Police ## Partnership unit (JCPP), Embedded Social Worker, Alternative Response Team (ART) and the Crime Prevention Unit (CPU). Personnel are responsible for administrative and clerical support, planning and research, processing criminal complaints and conducting statistical analyses for the police division. CPU provides citizens with the knowledge necessary to protect their person and property from becoming victimized by crime through community education and prevention programs. The Therapy Canine is assigned to this section as well. 2026 ## HIGHLIGHTS Community Relations in keeping with Council Priorities and Desired Outcomes 1a-c,4a- b, 5a-c. ## The Op ening of the second Cannabis dispensary on Lyndale Avenue to go along with the dispensary on Penn Avenue 80 Page 100 of 361 Our Therapy Dog Ritchie has been requested and used throughout the Metro due to various critical incidents that have occurred. This has brought accolades to our department and to the city due to our willingness to deploy to help those in need. We have participated in helping students who experienced trauma from the Annunciation School shooting with reintegration back into the school. They have come to the police department as part of their therapy to discuss the jobs we do to serve the community and roles that the police play in critical incidents as the “Helpers.” As part of our JCCP Program we responded and assisted the community by attending community forums and having meetings with members of the community on responses and roles as it related to Metro Surge. Transitioning to “Policy 360” which is a mobile application for our department policies. The officers will now have the ability to acknowledge the policies from their phones, take quizzes on the material, have procedures and statutes at their disposal in by simply speaking onto the phone. This program will expedite our Accreditation that we are working on with the process to be done by the end of 2026. Expanded on a program called “Active Outdoors” with Partnership Academy. We brought in various coaches to teach different sports to students, went fishing, and played soccer. Received an award from the City of Brooklyn Park for our assistance in the apprehension of suspect Vance Boelter after the horrific shootings of Representative Hortman and her husband and Senator Hoffman and his wife. This was the biggest Law Enforcement search and apprehension in the State of Minnesota’s history. ## Personnel: • In keeping with Council Priorities and Desired Outcomes 1c, 4a-b, 5a-c, we h ired 5 new police officers. Three of the hires came through our Cadet program in Support Services and worked for a couple years before becoming police officers. Promotions occurred with Lt. Joe Griffin being promoted to Deputy Chief and Sgt Cook being promoted to Lieutenant. Officers Leon, Wold, and Schultz were promoted to Sergeant. ## REVISED 2026 BUDGET CHANGES • The revised 2026 budget is slightly lower than the adopted 2026 budget. We have had attrition through retirements that have occurred this year. We hired for those vacancies. We also had some lower-than-expected revolving costs. ## 2026 POLICE DIVISION Priorities • Enhance police effectiveness with additional technology upgrades and apps. • Continue to seek out grant funding opportunities for new programs/equipment. • In keeping with Council Priorities and Desired Outcomes 5a-c, continue to enhance the partnership between members of the community and the police 81 Page 101 of 361 through proactive programs based on the Community Oriented Policing philosophy including community conversations. • In keeping with Council Priorities and Desired Outcomes 1, 3, and 5, reduce crime and increase the feeling of safety and security through a partnership between members of the community and the police department. • In keeping with Council Priorities and Desired Outcomes 1, 3, 4, and 5, continue with our past programs and plan new programs. Develop and initiate new programs for the community with our staff. ## DIVISION EXPENDITURE COMMENT The increases in the Proposed 2027 Budget are due mainly to: • The personal services increase for 2026 reflects collective bargaining agreements for the 3 unions along with 35 employees will receive step increases. • Increase in Utility Service fees • Increase in professional services due to transitioning to Tyler Technologies and software upgrades after the initial implementation year. • Increase in Health Insurance, Paid Medical Leave, Workers Compensation, a nd ## PERA. • Increase in Data Processing Rental (IT) for equipment relating to computers and service due to licensing limitations. • Must replace portable radios that are over 14 years old and are out of warranty. They are no longer being supported for repair. 82 Page 102 of 361 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## GENERAL FUND ## FUND: ## Public Safety ## DEPARTMENT: Police Operations - 10305 ## BUSINESS UNIT: ## Personal Services 60055,997,4356,761,4706,574,1607,040,140Full Time$$$$ 6006162,710184,100179,800190,280Part-time 6007-10,00010,00010,000Seasonal 6009273,842230,000230,000230,000Overtime 601160,95379,42064,45077,350Education Pay ## 603151,63154,17049,11050,980Employer Social Security 603291,00197,08093,950100,770Employer Medicare 60331,051,0671,168,3501,127,5501,211,390Employer Pera 6035930,7181,071,8001,002,4701,127,410Medical Insurance 603647,14041,44039,68041,220Dental Insurance 60373,6302,2302,3402,210Term Life 6038191,580195,410195,410205,180Workers Compensation ## 60406,69111,90011,41012,260Long Term Disability ## 60411,212-25,09027,000Paid Family Medical Leave 6051- 200200200Interdepartmental Labor ## 605365,18260,00065,00060,000Labor Services Billed ## 6054(165,000)(165,800)(165,800)(165,800)Interdepartmental Labor Credit ## 6055(24,240)(25,090)(25,090)(91,260)Administrative Labor Credit ## 6056(59,870)(70,000)(70,000)(70,000)Labor Services Billed Credit 9,706,6809,409,73010,059,3308,685,682Personal Services ## Total $$$$ ## Other Services & Charges 6103598,725733,760691,630711,440Professional Services -General$$$$ 620195,827196,240198,440236,830Rents & Leases ## 6202313,490328,850328,850419,070Data Processing Rental ## 6204380,380399,400399,400419,370Motor Pool Operating Rental 620519,86642,97043,47054,640Maintenance & Repairs 6207390,580406,200482,810482,810Utility Services 6301256140300300Advertising & Publication 63025,1426,5006,0006,000Communications 630397,32290,00095,000100,000Professional Development 63057,1806,0006,0007,000Subscriptions & Memberships 630754,36964,10062,84056,320Insurance & Bonds 630821,30021,73021,73022,160Property Liability ## 63151,9581,0002,0002,000Other Contractual Services 631976,95865,00076,00070,000Detention Costs 640111,61910,00011,00011,000Office Supplies 64022,0435001,5002,000Copy Charges 64032,0181,3001,5002,000Postage 640971,79976,00076,00076,000Uniforms & Clothing 641480,30272,20074,60077,200Other Supplies 2,521,8902,579,0702,756,1402,231,134Other Services & Charges ## Total $$$$ 83 Page 103 of 361 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## GENERAL FUND ## FUND: ## Public Safety ## DEPARTMENT: Police Operations - 10305 ## BUSINESS UNIT: 12,228,57011,988,80012,815,47010,916,816Police Operations ## TOTAL $$$$ 84 Page 104 of 361 ## GENERAL FUND ## FUND: ## Public Safety ## DEPARTMENT: Police Operations - 10305 ## BUSINESS UNIT: ## DIVISION PERSONNEL ## CLASSIFICATIONS ## SALARY ## GRADE ## NUMBER OF EMPLOYEES 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## CAPITAL OUTLAY ## ITEMS 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## Regular Full-Time Employees ## 1.001.0021Public Safety Director1.00 1.001.0019Deputy Director1.00 3.003.00PS-5Lieutenant3.00 8.008.00PS-4Sergeant8.00 36.0036.00PS-2Police Officer35.00 1.001.0012Records Supervisor1.00 - - 10Crime Prevention Specialist1.00 ## .80.8012IT Technician II.80 1.001.0012Analyst1.00 1.001.0010Records Technician1.00 ## 2.002.008Senior Office Asst2.00 ## 1.001.0010Police Data & Media Specialist1.00 55.8055.80 ## Total 55.80 ## Part-Time Employees ## 2.002.008Senior Office Asst2.00 2.002.00 ## Total 2.00 -- None $ $- $ -- ## Total $$-$ 85 Page 105 of 361 ## Department/Division ## ActualActualBudget Budget 2024202520262027 ## Inputs: Number of full time employees58.8059.8059.8059.80 Division Expenditures$10,707,72110,916,816$ 12,228,570$ $12,815,470 ## Outputs: ## Annual Calls for Service36,71036,71038,42038,600 ## Crime Prevention Activities ## Neighborhood Crime Watch Blocks230219219220 ## National Night Out - Block Parties170156160175 ## Traffic Enforcement - Citations2,0002,4003,5002,200 ## Effectiveness Measures: ## Crime Occurrences Part 1 Part 2 ## Group A2,0002,1401,9001,800 ## Group B700700820750 ## Motor Vehicle Crashes700700675790 ## Efficiency Measures: ## Police Call Response Time-Minutes4.003.453.453.45 Expenditure per Capita289.45$ 295.10$ 330.56$ 333.03$ Cost Per Response291.68$ 297.38$ 318.29$ 332.01$ ## Performance Measures ## Police Operations 86 Page 106 of 361 ## EMERGENCY SERVICES DIVISION ## MISSION STATEMENT The Richfield Emergency Services Unit’s mission is to cooperate with and assist the licensed, sworn officers of the Richfield Police Department, Richfield Fire Department, and Emergency Medical Services by maintaining a state of preparedness for disasters, community events and other emergencies. This is accomplished with professional training standards and the maintenance of emergency plans, and an Emergency Operations Center set up by the Richfield Police Department. ## DIVISION FOCUS ## The Richfield Police Reserve Unit In keeping with Council Priorities and Desired Outcomes 1c, 3a, 4b-c, 5a-c, the unit is comprised entirely of citizen volunteers and was established to aid the sworn officers and command staff of the Richfield Police Department. This requires monthly training in specific areas such as patrol tactics, traffic, crowd control, and emergency medical services. The execution of this division focus is accomplished by spending several documented hours in active support of police operations. These programs include but are not limited to: • July 4 th event • High School sporting events • Race events sponsored by various churches and Woodlake Nature Center ## • Environmental Home Checks • Vacation Home Checks – proactive measures to deal with burglaries when homeowners are away. • Assist officers with traffic and crowd control at events, emergency call outs for disasters, crime scene protection and Toward Zero Death “TZD” enforcement events. • Provide patrol support during busy evenings and weekend hours. • Weekly squad maintenance checks • Traffic security during VIP visits • Helping with community events like “Heroes and Helpers” “Unity and the Community” and others. ## Richfield CERT Program Priorities In keeping with Council Priorities and Desired Outcomes 1a-c, 4b, and 5a-c, the Richfield Community Emergency Response Team (CERT) has over 100 citizen volunteers trained in areas of traffic control, medical triage, fire safety, and emergency sheltering. 87 Page 107 of 361 The program holds two introductory training classes each year for new volunteers. Volunteers who pass the initial training program are formed into teams that train once a month. The program has expanded on a more regional basis to include the Cities of Bloomington, Burnsville, Eden Prairie, St. Louis Park, and Minneapolis. CERT volunteers have been used to assist the city during the following events. • Traffic/Crowd Control at various events. • Youth CERT presentations at Home Alone program ## • Promoting CERT and Emergency Preparedness at Nite to Unite ## • Traffic Control at Urban Half Marathon • Maintenance and command of the Mobile Operations Center (Communications Van) which is utilized as a coordination point and headquarters for major events such as weather disasters, major crime scenes, community events. • Working on diversifying CERT to match community demographics. • Work with our Ham Radio club and provide maintenance of our system. Over the past 10 years CERT has expanded into the business community as a CERT business model. Teen CERT has also been taught to children in collaboration with Our Home Alone program to better prepare children for natural or community disasters. ## Emergency Management Team Priorities In keeping with Council Priorities and Desired Outcomes 1a-c, 3a, 4b, and 5a-c the police department is now working with various schools from public to private and businesses on emergency drills and reviewing plans and providing consultation to them since the aftermath of “active shooter” incidents in the last several years. ## Division Expenditure The budget reflects personnel costs for the extra pay the Reserve Coordinator receives. Other costs are for uniforms, supplies, equipment, and maintenance necessary for the operation of the Division. There is a large expenditure that occurred in 2018 and 2019 when we replaced the last six of seven warning sirens in the city. The sirens were well over 50 years old and needed replacement. The work was completed in the spring of 2019 on the new sirens. The sirens will be included in the budget until 2028. We updated our Ham Radio equipment in 2024 that is on the building of Woodlake Point. We also will be purchasing Blue Scape software which will replace Mission Manager for the Emergency Operations Center. The “Hyper Reach” community notification system was paid for part out of the cable fund and the Emergency Services Budget. The program is more in sync with social media sites and can be used in conjunction with Hennepin County’s adoption of the IPAWS system. The community notification system will now be 88 Page 108 of 361 budgeted entirely out of the Emergency Services Budget for the 2026 revised budget and beyond. 89 Page 109 of 361 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## GENERAL FUND ## FUND: ## Public Safety ## DEPARTMENT: Emergency Services - 10315 ## BUSINESS UNIT: ## Personal Services 60097,0227,4507,4507,450Overtime$$$$ 6038100100100100Workers Compensation 7,5507,5507,5507,122Personal Services ## Total $$$$ ## Other Services & Charges 620114,88221,07020,97026,970Rents & Leases$$$$ ## 62042,6802,8102,8102,950Motor Pool Operating Rental 62057,2769,0009,0004,200Maintenance & Repairs 6207- 450450450Utility Services 6308320330330340Property Liability 6401- 505050Office Supplies 6409- 2,0002,0002,000Uniforms & Clothing 64146195,4004,4005,500Other Supplies 41,11040,01042,46025,777Other Services & Charges ## Total $$$$ 48,66047,56050,01032,899Emergency Services ## TOTAL $$$$ 90 Page 110 of 361 ## FIRE^Zs/^ 91 Page 111 of 361 ## DEPARTMENT SUMMARY BY BUSINESS UNIT ## BUSINESS UNIT ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## GENERAL FUND ## FUND: ## Fire ## DEPARTMENT: ## Increase/ (Decrease) 2026 Budget/ 2027 Budget 6,239,5636,641,7296,426,7006,846,680Fire$$$$3.09%10400 6,641,7296,426,7006,846,6806,239,563Fire ## TOTAL $$$$3.09% ## REVENUES 374,984278,000392,050439,410Fire$$$$58.06%10400 ## FIRE ## YEARAMOUNT 2024$6,239,563 ## 2025B$6,641,729 ## 2025R$6,426,700 ## 2026B$6,846,680 $0 $1,500,000 $3,000,000 $4,500,000 $6,000,000 $7,500,000 ## 20242025B2025R2026B ## E ## X ## P ## E ## N ## D ## I ## T ## U ## R ## E ## S ## YEAR ## FIRE EXPENDITURES 92 Page 112 of 361 ## FIRE DEPARTMENT ## MISSION STATEMENT The Richfield Fire Department (RFD) exists to deliver professional services that safeguard our community against loss of life and property. The RFD aligns its work with the strategic priorities and goals set by the City Council and city staff, including: •Deliver essential fire, rescue, and Emergency Medical Services (EMS) while fostering a qualified workforce through ongoing professional development. This includes collaboration on initiatives like the Alternative Response Team (ART), a joint effort with police and fire agencies to address Emergency Medical Services system gaps and better serve the community’s evolving needs. •Deliver fire prevention, safety education, and loss mitigation programs that support the well-being of all residents. •Partner closely with neighboring fire departments and emergency response agencies to maintain robust automatic and mutual aid agreements. •Empower department members to serve every resident and visitor with respect, professionalism, and integrity—the foundation of a high-quality workforce. ## DIVISION FOCUS Two fire stations are staffed 24/7 by 27 career personnel. Average daily staffing is 6 firefighters per shift, operating two fire engines and one rescue unit. An additional position is assigned to prevention to manage code enforcement, plan review, inspections and public education. The Fire Chief, Deputy Chief, and Assistant Chief oversee administration, operations, training and fire code enforcement. The department attempts to have at least one chief officer available 24/7 to respond to significant incidents, providing incident command and city representation. Mutual aid chiefs fill in as needed. An Administrative Assistant supports departmental operations, recordkeeping, and customer service functions. ## 2026 HIGHLIGHTS •Navigated a difficult transition in department leadership with the departure of the fire chief and hiring of their replacement. This was compounded by the fact that the deputy chief position has been vacant since June 2025 and the administrative assistant since December 2025. 93 Page 113 of 361 • Effectively recruited, hired, and onboarded a department administrative assistant. • Dedicated an existing FTE previously assigned to shift coverage to prevention to address opportunities identified in the Essential Services Study • Expanded technology used to enhance the Records Management System (RMS), improving data collection, pre-planning, recordkeeping, and operational tracking. • Maintained uninterrupted minimum shift coverage and provided an incredibly high level of customer service and satisfaction during staffing shortages caused by military deployments, parental leave, extended injuries, and large personnel leave banks. • Completed the Civil Service testing process to establish an updated firefighter eligibility list for immediate openings as well as future hiring. ## 2027 DIVISION GOALS • Implement comprehensive, structured lesson plans and expand leadership development to improve training consistency, officer competency, and shift accountability (City Council Goal 4a). • Increase the frequency and effectiveness of inspections, pre-incident planning, and community outreach to reduce fire risk and improve public safety (City Council Goal 1c, 2a). • Expand department technology use to improve data accuracy, streamline workflows, and support data-driven decision-making (City Council Goal 1c, 4a). • Present a council work session outlining a staffing request and applying for a federal SAFER grant to support the hiring of three battalion chief positions by the end of year (City Council Goal 1c) • Develop and implement employee engagement, wellness, and succession planning strategies to ensure operational continuity and build leadership capacity (City Council Goal 4a, 4b, 4c). • Strengthen public trust through increased community outreach, transparent reporting, and partnerships promoting fire prevention and emergency preparedness (City Council Goal 5a, 2a). ## DIVISION EXPENDITURE COMMENT The 2026 revised budget is down 3.24% from the 2026 adopted budget. The 2027 proposed budget shows an overall increase of 3.09% from the 2026 adopted budget. 94 Page 114 of 361 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## GENERAL FUND ## FUND: ## Fire ## DEPARTMENT: Fire - 10400 ## BUSINESS UNIT: ## Personal Services 60053,396,8763,629,1223,356,6103,791,440Full Time$$$$ 6009248,283292,000282,000293,000Overtime 601373,07379,42379,12091,760Longevity ## 60314,3834,9801,5803,780Employer Social Security 603250,43652,21546,83052,420Employer Medicare 6033647,651699,894591,740666,370Employer Pera 6035557,181573,332495,530646,790Medical Insurance 603626,17823,83221,22023,840Dental Insurance 60372,1781,2811,2601,290Term Life 603865,58066,89066,89070,230Workers Compensation ## 60403,9456,5645,9506,740Long Term Disability ## 6041686-12,76014,450Paid Family Medical Leave 6051148,645150,000150,000150,000Interdepartmental Labor 5,579,5335,111,4905,812,1105,225,095Personal Services ## Total $$$$ ## Other Services & Charges 610386,66588,558347,160124,340Professional Services -General$$$$ 6201147,92185,86876,21076,210Rents & Leases ## 620261,78770,04370,05067,410Data Processing Rental ## 6204142,250149,360149,360156,830Motor Pool Operating Rental 620528,04520,00020,30020,600Maintenance & Repairs 6207287,640299,150299,150261,130Utility Services ## 620852,32147,65772,31070,510800 MHz Charges 630228,09729,00025,02021,820Communications 630342,19845,00038,38043,380Professional Development 63056,3745,5005,0903,720Subscriptions & Memberships 630730,18331,47031,47030,850Insurance & Bonds 630810,38010,59010,59010,800Property Liability ## 63158543,0003,0005,330Other Contractual Services 64017303,0002,0002,000Office Supplies 64027591,5001,5001,500Copy Charges 6403288500500500Postage 640942,53375,00082,62057,140Uniforms & Clothing 64125,4617,0007,0007,000Maint. & Const. Materials 641414,51050,00050,00050,000Other Supplies ## 65233,87710,0004,5004,500Public Education Supplies 652421,59530,00019,00019,000EMS Supplies 1,062,1961,315,2101,034,5701,014,468Other Services & Charges ## Total $$$$ 6,641,7296,426,7006,846,6806,239,563Fire ## TOTAL $$$$ 95 Page 115 of 361 ## GENERAL FUND ## FUND: ## Fire ## DEPARTMENT: Fire - 10400 ## BUSINESS UNIT: ## DIVISION PERSONNEL ## CLASSIFICATIONS ## SALARY ## GRADE ## NUMBER OF EMPLOYEES 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## CAPITAL OUTLAY ## ITEMS 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## Regular Full-Time Employees 3.003.00FS-3Fire Captain3.00 3.003.00FS-2Fire Lieutenant3.00 22.0022.00FS-1Firefighter22.00 ## 1.001.0020Fire Services Director/Fire Chief1.00 1.001.0017Assistant Chief1.00 1.001.009Administrative Assistant1.00 1.001.0018Deputy Chief1.00 32.0032.00 ## Total 32.00 -- $ $- $ -- ## Total $$-$ 96 Page 116 of 361 ## COMMUNITY DEVELOPMENT 97 Page 117 of 361 ## DEPARTMENT SUMMARY BY BUSINESS UNIT ## BUSINESS UNIT ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## GENERAL FUND ## FUND: ## Community Development ## DEPARTMENT: ## Increase/ (Decrease) 2026 Budget/ 2027 Budget 68,16769,86069,86039,301Community Development$$$$(43.74%)10500 313,105362,490362,510424,530Planning & Zoning17.11%10502 1,307,5821,483,7601,451,9801,508,530Inspections1.67%10505 1,916,1101,884,3501,972,3611,688,854Community Development ## TOTAL $$$$2.94% ## REVENUES 17,150--- Community Development$$$$ - 10500 33,43115,00015,00015,000Planning & Zoning0.00%10502 1,710,0551,477,1001,477,1001,544,700Inspections4.58%10505 ## COMMUNITY DEVELOPMENT ## YEARAMOUNT 2025$1,688,854 ## 2026B$1,916,110 ## 2026R$1,884,350 ## 2027B$1,972,361 $0 $300,000 $600,000 $900,000 $1,200,000 $1,500,000 $1,800,000 $2,100,000 ## 20252026B2026R2027B ## E ## X ## P ## E ## N ## D ## I ## T ## U ## R ## E ## S ## YEAR ## COM M UNITY DEVELOPM ENT EXPENDITURES 98 Page 118 of 361 ## COMMUNITY DEVELOPMENT DEPARTMENT ## MISSION STATEMENT The Community Development Department works to maintain the immediate and long- term health and safety of the community through responsible, responsive, and professional zoning administration, inspections, comprehensive planning, redevelopment services, and housing and business program administration. ## DEPARTMENT FOCUS The 21 employees of the Community Development Department are committed to service, professional integrity, and ongoing professional development. There are five primary areas of focus within the Department: •Planning and zoning •Housing and redevelopment •Inspections •Economic development •Administrative support “Community Development” is itself one of the five Strategic Priorities identified by the City Council in the 2023-2027 Strategic Plan. The Strategic Plan calls for the creation of a vibrant downtown, the diversification of the city’s tax base, and preservation of Richfield’s affordability. This wide-ranging work means that Community Development staff work with many elected and appointed community leaders including the City ## Council, the Housing and Redevelopment Authority (HRA), the Economic Development Authority (EDA), and the Planning Commission. While funding for non-Inspections staff salaries and benefits is compiled in this budget, those costs are ultimately reallocated to individual City, HRA, and EDA program/project budgets. The Administration (10500) budget total reflects only planning and zoning building charges and liability insurance fees for non-inspections staff. All other costs are included separately in the individual program/project budgets. ## DEPARTMENT EXPENDITURE COMMENT •Funding for the work of the Community Development Department is provided by the City, HRA, and EDA tax levies, the Federal Government (Section 8), the State of MN (Bring it Home), and a Local Affordable Housing Allocation (LAHA) derived from sales tax revenues. •The City-funded portion (Administration, Planning & Zoning, and Inspections) of the 2026 Revised Budget represents a 1.7% decrease from the 2026 Approved Budget. A reduction of a full-time support position in the Inspections Division to a half-time position allows for the absorption of significantly increased credit card processing fees that would have otherwise caused significant challenges to meeting the 2026 99 Page 119 of 361 budget. • The 2027 Proposed Budget represents a 2.9% increase from the 2026 Approved Budget; however, this is possible only due to recalculation of building charges by Administrative Services which reallocates many charges to the HRA and its programs. • The HRA and EDA budgets are available as separate documents. 100 Page 120 of 361 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## GENERAL FUND ## FUND: ## Community Development ## DEPARTMENT: Community Development - 10500 ## BUSINESS UNIT: ## Personal Services 6005859,436884,110895,490943,020Full Time$$$$ 6006206,922225,920240,370256,700Part-time ## 603162,35768,57070,14074,180Employer Social Security 603214,58416,04016,41017,350Employer Medicare 603378,33283,25085,19089,980Employer Pera 6035125,833126,450132,690172,410Medical Insurance 60365,1035,2105,0605,210Dental Insurance 6037537300320300Term Life 6038630640640670Workers Compensation ## 60409481,5701,5901,670Long Term Disability ## 6041203-4,3104,550Paid Family Medical Leave 605166,15066,93066,93067,740Interdepartmental Labor ## 6054(1,420,168)(1,478,990)(1,519,140)(1,633,780)Interdepartmental Labor Credit --- 867Personal Services ## Total $$$$ ## Other Services & Charges 6103-490490510Professional Services -General$$$$ 620756,45058,71058,71026,061Utility Services 63079,4109,1909,19011,230Insurance & Bonds 63081,4401,4701,4701,500Property Liability 69,86069,86039,30167,300Other Services & Charges ## Total $$$$ 69,86069,86039,30168,167Community Development ## TOTAL $$$$ 101 Page 121 of 361 ## GENERAL FUND ## FUND: ## Community Development ## DEPARTMENT: Community Development - 10500 ## BUSINESS UNIT: ## DIVISION PERSONNEL ## CLASSIFICATIONS ## SALARY ## GRADE ## NUMBER OF EMPLOYEES 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## CAPITAL OUTLAY ## ITEMS 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## Regular Full-Time Employees ## 1.001.0020Community Development Director1.00 ## 1.001.0017Community Development Asst. Director1.00 1.001.0015ED Manager1.00 1.001.0015City Planner1.00 ## 1.001.0014MF Housing Administrator1.00 .50.5011Accountant.50 1.001.0010Planner I1.00 1.001.009Administrative Assistant1.00 7.507.50 ## Total 7.50 ## Part-Time Employees 1.201.4011Housing Specialist2.00 ## .90.908MF Housing Assistant1.00 ## .60.607Community Development Technician1.00 2.702.90 ## Total 4.00 -- None $ $- $ -- ## Total $$-$ 102 Page 122 of 361 ## PLANNING AND ZONING DIVISION ## MISSION STATEMENT The Planning and Zoning Division provides local land use administration, policy development, and guidance to residents, local businesses, and developers. Additionally, staff manages the processes that help shape the future of Richfield through development and implementation of long-range plans. ## DIVISION FOCUS • Long range comprehensive planning for the community. • Shorter range strategy and implementation planning for specific areas. • Administration and enforcement (on a complaint-basis) of the City’s Zoning Ordinance, including processing a variety of land use applications and reviewing building permit applications. ## 2026 HIGHLIGHTS • Worked with cannabis retailers to find allowable locations in Richfield. • Translated several planning handouts into Spanish. • Created and implemented metal detector rental program for residents. • Continued to improve plan review and permitting processes to improve efficiency and customer service (e.g. outdoor seating, reasonable accommodation). • Worked with Engineering Division on the Low Salt Design Pilot Project sponsored by the Nine Mile Creek Watershed District – resulted in better plan reviews and a best practices handout and checklist. • Worked through land use applications (e.g. MICC, former American Legion site). • Continued to work with developers/owners to explore potential development opportunities (e.g. 101 66 th , vacant lot at former Lyndale Gardens site). • Participated in Northstar Leadership Program. • Solicited for consultants to assist with the 2050 Comprehensive Plan update, conducted interviews, negotiated a scope of services, and entered into a contract. 103 Page 123 of 361 •Kick off Comprehensive Plan process and complete Phase One of public engagement plan. •Hire and onboard new planner. ## 2027 PROGRAM GOALS •Complete Phase Two and Three of the Comprehensive Plan update, with the draft plan completed by early 2028. •Continue onboarding of new staff. •Continue to provide excellent customer service to residents and businesses. (City Council Priority/Outcome 4b) ## •Continue to manage City’s Just Deeds Program with Community Development Administrative and Housing staff. Lack of available attorneys has hampered progress. (City Council Priority/Outcome 5c) •Continue work with Housing Division staff to evaluate potential disparate impacts of adopted land use regulations. (City Council Priority/Outcome 5a and c) •Continue to monitor emerging trends and best practices - recommending ordinance changes that will keep Richfield competitive. •Continue to process land use permits related to changes-in-use, renovations, and new development. (City Council Priority/Outcome 2a and b) •Consider pop-up meeting project with Communications Division and potential use during Comprehensive Plan update. ## DIVISION EXPENDITURE COMMENT •No change is proposed from the total approved 2026 Planning and Zoning Budget. •The 2027 Proposed Budget increases 17.1% over 2026 Adopted. This increase includes a 16% increase in staff costs due to staff moving through step and merit increase process and insurance premium increases, and a 73.7% increase in IT charges as that Division works to correctly proportion charges. The increase also includes an additional $10,750 in consultant costs related to the Comprehensive Plan. This charge will appear again in 2028. •Going forward, consideration should be given to increasing the annual set-aside for the Comprehensive Plan from the current $12,850. This change should be considered for 2029 and beyond. 104 Page 124 of 361 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## GENERAL FUND ## FUND: ## Community Development ## DEPARTMENT: Planning & Zoning - 10502 ## BUSINESS UNIT: ## Personal Services 6051231,831301,910304,490350,580Interdepartmental Labor$$$$ 301,910304,490350,580231,831Personal Services ## Total $$$$ ## Other Services & Charges 610357,60634,92031,86037,100Professional Services -General$$$$ ## 620214,65015,21015,21026,420Data Processing Rental ## 6204110120- - Motor Pool Operating Rental 63011,2201,9001,4001,400Advertising & Publication 63032,9313,9303,9303,930Professional Development 63052,2802,3502,7702,880Subscriptions & Memberships 640196200200200Office Supplies 6402436500500500Copy Charges 64031,123800800870Postage 6409- 150150150Uniforms & Clothing 64148225001,200500Other Supplies 60,58058,02073,95081,274Other Services & Charges ## Total $$$$ 362,490362,510424,530313,105Planning & Zoning ## TOTAL $$$$ 105 Page 125 of 361 ## INSPECTIONS DIVISION ## MISSION STATEMENT To provide inspection services to safeguard life, health, property and public welfare; enforcing the minimum requirements of the City Code and Minnesota State Building Code. ## DIVISION FOCUS • The Inspections Division (Inspections) consists of eight full-time employees and a part-time employee: a Building Official, Senior Building Inspector, t hree Building ## Inspectors, Plumbing/Mechanical Inspector, Housing Inspections Technician, Permit Technician, and Senior Office Assistant (part-time). • Administer and enforce city ordinances relating to building code requirements including building, plumbing, heating, ventilation, and air conditioning. • Perform Point of Sale and Rental I nspections. • Inspections staff spend significant time advising homeowners managing their own remodeling or home addition projects and work closely with homeowners and landlords during Point of Sale and Rental inspections. ## 2026 HIGHLIGHTS • Brought in a retired plan review professional to help get staff trained in doing commercial and residential plan reviews. • We have been getting the less-senior inspectors out to commercial building sites to do inspections with senior staff so that we can grow our future senior inspectors from within our current staff (City Council Priority/Outcome 4a). • Implement and utilize Bluebeam software to help with our inspection corrections on large building sites (City Council Priority/Outcome 1c). • Complete digitizing of building plans for long-term efficiency and sustainability purposes. • Support legislative actions to restore rental licensing option for State-licensed group homes. ## 2027 INSPECTION DIVISION GOALS • Continue to work with inspectors to help them grow in their careers and to build division resiliency through cross training (City Council Priority/Outcome 4a). • Continue to maintain the quality of homes and buildings by eliminating potential safety concerns via building, point-of-sale, and rental inspections. • The Division will continue a close working relationship with the Fire Department, Support Services, Public Safety, Public Works, and other departments to effectively 106 Page 126 of 361 implement programs that affect the residents of Richfield. • Consider improvements to escrow system for point-of-sale program. ## DIVISION EXPENDITURE COMMENT • The 2026 budget has been reduced by approximately 2%; reflecting the change of the Senior Office Assistant from full-time to half-time but masking a significant spike in credit card processing fees. • Credit card fees in 2025 exceeded $100,000. While a lower rate has been negotiated for now, 2026 fees are still anticipated to approach $80,000. The proposed 2027 budget assumes that measures will be in place to recoup the majority of these fees. • A difficult economic environment for larger projects means lower revenues projected for 2026 and 2027. • The 2027 budget reflects a 1.7% increase in expenses over 2026 adopted. 107 Page 127 of 361 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## GENERAL FUND ## FUND: ## Community Development ## DEPARTMENT: Inspections - 10505 ## BUSINESS UNIT: ## Personal Services 6005735,416887,670795,100859,730Full Time$$$$ 60069,241- 36,10038,210Part-time ## 603143,79454,28050,88054,680Employer Social Security 603210,24212,70011,90012,790Employer Medicare 603355,74966,58062,34067,350Employer Pera 6035128,719151,490138,810165,820Medical Insurance 60365,6366,7005,5605,960Dental Insurance 6037554360330320Term Life 603810,76010,98010,98011,530Workers Compensation ## 60408971,5701,4101,520Long Term Disability ## 6041143- 3,1603,410Paid Family Medical Leave 605132,70636,50037,13048,630Interdepartmental Labor 1,228,8301,153,7001,269,9501,033,857Personal Services ## Total $$$$ ## Other Services & Charges 610324,36370,00070,00060,000Professional Services -General$$$$ 6201475500550550Rents & Leases ## 620268,09058,78058,78054,670Data Processing Rental ## 620418,50819,41019,41020,380Motor Pool Operating Rental 620728,35029,48029,48029,060Utility Services 6301- 100100100Advertising & Publication 63027,9746,0006,00010,000Communications 63039,7938,0008,00010,000Professional Development 6305- 750750750Subscriptions & Memberships 63077,99710,33010,1307,940Insurance & Bonds 63082,5302,5802,5802,630Property Liability 64011,5514,0004,0004,000Office Supplies 6402210500500500Copy Charges 6403403500500500Postage 64091,4882,5004,0004,000Uniforms & Clothing 64141,7073,5003,5003,500Other Supplies 6513100,28638,00080,00030,000Other Charges 254,930298,280238,580273,725Other Services & Charges ## Total $$$$ 1,483,7601,451,9801,508,5301,307,582Inspections ## TOTAL $$$$ 108 Page 128 of 361 ## GENERAL FUND ## FUND: ## Community Development ## DEPARTMENT: Inspections - 10505 ## BUSINESS UNIT: ## DIVISION PERSONNEL ## CLASSIFICATIONS ## SALARY ## GRADE ## NUMBER OF EMPLOYEES 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## CAPITAL OUTLAY ## ITEMS 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## Regular Full-Time Employees ## 1.001.0016Chief Building Official1.00 ## 1.001.0013Senior Building Inspector1.00 4.004.0012Trade/Building Inspector4.00 1.001.009Permit Technician1.00 ## 1.001.008Housing Inspections Technician1.00 ## .50.508Senior Office Assistant1.00 8.508.50 ## Total 9.00 - - None $ $- $ -- ## Total $$-$ 109 Page 129 of 361 ## Community Development/Inspections ## ActualActualActualActualActualActualAdoptedBudgeted 20202021202220232024 20252026 2027 ## Inputs: Number of full time employees9.00 9.00 9.00 9.00 9.00 7.508.508.5 ## Division Expenditures1,281,725$ 1,365,631$ 1,279,528$ 1,386,753$ 1,387,987$ 1,307,583$ 1,483,760$ 1,508,530$ ## Division Revenues2,099,064$ 2,106,359$ 1,593,477$ 1,151,573$ 1,349,987$ 1,710,053$ 1,477,100$ 1,544,700$ ## Outputs: No. of Inspections Performed7,526 6,315 6,605 6,003 5,702 6,240 6,200 6300 No. of Permits Issued5,753 4,265 4,627 4,533 4,882 3,188 3,000 3100 Valuation of Building Permits101,830,626$ 123,669,092$ 87,243,342$ 38,883,638$ 46,435,811$ 85,273,39482,000,000$ 83,000,000$ Point of Sale Inspections Performed483 1,047 694 550 750 632650 650 Rental Unit Inspections Performed1,065 1,796 695 3,200 2,145 33583,400 3400 ## Effectiveness Measures: ## Request for Building Inspection ## Response Time % within 24 hours98.00%98.00%98.00%98.00%98.00%98.00%98.00%98.00% % within 72 hours100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00% ## Request for Point of Sale Inspection % within 48 hours60.00%60.00%60.00%60.00%60.00%60.00%60.00%60.00% % within 120 hours95.00%95.00%95.00%95.00%95.00%95.00%95.00%95.00% ## Efficiency Measures: ## No. of Building Inspections per Inspector3,010 2,526 2,642 2,001 1,901 2,496 2,067 2,100 No. of POS/rental unit inspections per Inspector774 1,422 695 1,875 1,448 1,995 2,025 2,025 Revenue per Capita58.24$ 58.54$ 44.29$ 32.01$ 37.52$ 47.53$ 41.05$ 42.93$ Expenditure per Capita35.56$ 37.96$ 35.56$ 38.54$ 38.58$ 36.34$ 41.24$ 41.93$ ## Performance Measures 110 Page 130 of 361 ## PUBLIC WORKS 111 Page 131 of 361 ## DEPARTMENT SUMMARY BY BUSINESS UNIT ## BUSINESS UNIT ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## GENERAL FUND ## FUND: ## Public Works ## DEPARTMENT: ## Increase/ (Decrease) 2026 Budget/ 2027 Budget 223,605227,560277,570232,840PW Administration$$$$2.32%10600 613,164607,220607,180628,590Engineering 3.52%10605 2,757,6843,315,2303,337,5803,091,070Street Maintenance (6.76%)10610 1,783,2761,799,3301,799,3501,855,020Park Maintenance 3.10%10615 5,949,3406,021,6805,807,5205,377,729Public Works ## TOTAL $$$$(2.38%) ## REVENUES 432,14270,500110,50050,500Engineering$$$$(28.37%)10605 403,933690,000690,000320,000Street Maintenance (53.62%)10610 ## PUBLIC WORKS ## YEARAMOUNT 2025$5,377,729 ## 2026B$5,949,340 ## 2026R$6,021,680 ## 2027B$5,807,520 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 ## 20252026B2026R2027B ## E ## X ## P ## E ## N ## D ## I ## T ## U ## R ## E ## S ## YEARS ## PUBLIC WORKS EXPENDITURES 112 Page 132 of 361 ## PUBLIC WORKS ADMINISTRATION DIVISION ## MISSION STATEMENT The Public Works Department works hard to sustain and improve the quality of life for our community by offering the highest standards in essential municipal services and providing them in a timely, responsible and professional manner. ## DIVISION FOCUS The Public Works Administration Division is responsible for overseeing delivery of public capital improvement projects, ongoing maintenance and operations of the Public Works divisions, and engaging in and contributing to the regional discussions surrounding emerging public works issues (e.g., regional transportation projects impacting Richfield; storm water quality management; water supply; environmental issues; and public education and engagement.) ## 2026 HIGHLIGHTS • Completed Park Asset Inventory and Condition Assessment data collection and turned it over to Recreation divisions as detailed in the Strategic Plan (City Council Priority/Outcome 3a & 3b). • Continued the conversation with elected officials around limits to the cost-share burden that State and County projects unilaterally place upon municipalities (City Council Priority/Outcome 2c, 3a-b & 5c). • Alongside Utility managers and consultant team, completed a utility rate study and development of a forward-looking rate structure that accounts for our capital and maintenance programs (City Council Priority/Outcome 1b-c & 3a-b). • Continued to cooperate with MnDOT and represent Richfield’s interests related to the “Phase 1” I-494 corridor improvements and future “Phase 2” construction project (City Council Priority/Outcome 3a-c, 5a & 5c). • In collaboration with PW Managers, completed assessment of existing services provided/delivered with consideration of priority level, quality of service, staffing, financial commitments, and regulatory requirements (City Council Priority/Outcome 1a, 1c & 3a). • Completed the 2026-2030 Engineering Consultant Pool solicitation, selection process, contract negotiations, and executed approved agreements with all nine (9) consultants selected for the pool (City Council Priority/Outcome 1c & 3a). • Implement Pace Scheduler timecard software and transition PWWs to electronic daily timecards (City Council Priority/Outcome 1c & 3a). ## 2027 DIVISION GOALS • Continue to utilize Public Work’s outreach mediums/social media outlets to promote ongoing and upcoming infrastructure projects and public works initiatives ( City Council Priority/Outcome 1b & 3a). • Continue to work with elected officials to further the conversation around limits to the cost-share burden that State and County projects unilaterally place upon municipalities (City Council Priority/Outcome 2c, 3a-b & 5c). 113 Page 133 of 361 • Pursue external funding solutions via grants to help supplement current funding for critical needs within the entire department for road reconstruction, utility replacement and reinvestments, SRTS infrastructure, and ADA compliance (City Council Priority/Outcome 2c, 3a-b & 5a). • Support Engineering staff and Hennepin County’s team with the completion of Nicollet Avenue reconstruction and public engagement/design for Penn Avenue Reconstruction in 2028-2029 (City Council Priority/Outcome 2a, 3a, 5a & 5c). • Continue to support Engineering staff as they represent Richfield’s interests related to the “Phase 1” I-494 corridor improvements and future “Phase 2” construction project (City Council Priority/Outcome 3a-c, 5a & 5c). ## DIVISION EXPENDITURE COMMENT The 2026 Revised Budget reflects a 21.98% increase from the 2026 Adopted Budget. This increase is due to the inclusion of $50k in the maintenance and repair line item (6205) for office space additions at the Public Works facility. The 2027 Proposed Budget reflects an increase of 2. 32% from the 2026 Adopted Budget. 114 Page 134 of 361 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## GENERAL FUND ## FUND: ## Public Works ## DEPARTMENT: PW Administration - 10600 ## BUSINESS UNIT: ## Personal Services 6005291,213298,470298,470309,580Full Time$$$$ ## 603117,34717,98018,51019,190Employer Social Security 60324,1124,3304,3304,490Employer Medicare 603321,36122,18022,18023,020Employer Pera 603529,95129,63031,74035,780Medical Insurance 60361,4581,4901,4501,490Dental Insurance 6037143809080Term Life 6038140140140150Workers Compensation ## 6040274520520540Long Term Disability ## 604160-1,1301,180Paid Family Medical Leave ## 6054(190,000)(195,500)(200,500)(209,500)Interdepartmental Labor Credit 179,320178,060186,000176,059Personal Services ## Total $$$$ ## Other Services & Charges 61033,0367,5307,6307,630Professional Services -General$$$$ ## 620217,91013,89013,89012,060Data Processing Rental 620550,000- Maintenance & Repairs 63021,1561,5001,5001,500Communications 630311,3408,4409,5908,440Professional Development 6305688890890770Subscriptions & Memberships 63071,9242,3002,2502,060Insurance & Bonds 6308820840840860Property Liability 64013,6155,0005,0005,000Office Supplies 64021,9042,5002,5002,700Copy Charges 64032,7992,5002,5002,900Postage 64142,3542,8502,9202,920Other Supplies 48,24099,51046,84047,546Other Services & Charges ## Total $$$$ 227,560277,570232,840223,605PW Administration ## TOTAL $$$$ 115 Page 135 of 361 ## GENERAL FUND ## FUND: ## Public Works ## DEPARTMENT: PW Administration - 10600 ## BUSINESS UNIT: ## DIVISION PERSONNEL ## CLASSIFICATIONS ## SALARY ## GRADE ## NUMBER OF EMPLOYEES 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## CAPITAL OUTLAY ## ITEMS 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## Regular Full-Time Employees 1.001.0020PW Director1.00 1.001.0013Senior Analyst1.00 2.002.00 ## Total 2.00 -- None $ $- $ -- ## Total $$-$ 116 Page 136 of 361 ## ENGINEERING DIVISION ## MISSION STATEMENT The Public Works Department works hard to sustain and improve the quality of life for our community by offering the highest standards in essential municipal services and providing them in a timely, responsible and professional manner. ## DIVISION FOCUS To provide planning, design, and construction management support for Public Works operations, construction, and maintenance projects. Conducting plan reviews for permits and developers with a focus on protecting the City’s interest in the public rights-of-way. Specifically, to: •Maintain record drawings of the City’s existing infrastructure and provide guidance to any proposed changes that would impact that infrastructure. •Manage permitted work within the public rights-of-way including utility work, small cell installations, private redevelopment impacts, and excavation/obstruction permits. •Provide an investment plan for sustainable and resilient delivery of critical services through a proactive asset management approach. •Identify and pursue outside funding sources for capital improvement projects. •Develop and administer the department’s Sweet Streets® capital improvement and maintenance projects and work cooperatively with Hennepin County on the reconstruction of their arterials through the City. •Represent Richfield’s interests in regional transportation planning and construction projects. •Manage storm water related issues within the City through tracking and coordination between departments regarding the Storm Water Pollution Prevention Program and review of redevelopment plans for storm water regulation compliance and permitting. •Provide staff support for the Transportation Commission. ## 2026 HIGHLIGHTS •Constructed the Safe Routes to School project on 64 th St and Russell Ave, and began construction of the sidewalk project on 73 rd St (City Council Priority/Outcome 3a-b, 5a & 5c). •Began reconstruction of Nicollet Avenue in collaboration with Hennepin County (City Council Priority/Outcome 1b, 3a-b, 5a & 5c). •Secured $2 million in state bond funding for the Nicollet Avenue reconstruction project (City Council Priority/Outcome 2c, 3a-b , 5a & 5c). •Continued administration of the pavement management plan to protect the major investment into the residential Mill & Overlay program ( City Council Priority/Outcome 3a-b). •Continued planning and design with Hennepin County for the full reconstruction of Penn Avenue (City Council Priority/Outcome 1b & 3a). 117 Page 137 of 361 • Began design and engagement for the 69 th St reconstruction project (City Council Priority/Outcome 3a-b, 5a & 5c). • Began design and engagement for the 76 th ## Street and Knox Avenue intersection improvement project (City Council Priority/Outcome 3a-b, 5a & 5c). • Submitted six projects for Regional Solicitation grant applications (City Council Priority/Outcome 1b, 2c, 3a-b, 5a & 5c). • Provided technical review and construction inspection services for private redevelopment projects throughout the City, specifically as they relate to rights-of-way, utility, and stormwater impacts (City Council Priority/Outcome 2b & 3c). • Represented Richfield’s interests and coordinated with the City Council related to the future I-494 corridor planning (City Council Priority/Outcome 3a-c, 5a & 5c). ## 2027 DIVISION GOALS • Construct the sidewalk project on 64 th St (City Council Priority/Outcome 3a-b, 5a & 5c). • Complete reconstruction of Nicollet Avenue in collaboration with Hennepin County (City Council Priority/Outcome 3a-b, 5a & 5c). • Complete a pavement maintenance project on 77 th Street to address failing concrete joints (City Council Priority/Outcome 3a-b). • Begin the replacement of several traffic signals along 76 th and 77 th Streets (City Council Priority/Outcome 3a-b). • Continue to identify and pursue grant funding sources for capital improvement projects (City Council Priority/Outcome 1b, 2c, 3a-b, 5a & 5c). • Investigate opportunities for dedicated funding for active transportation and transportation safety improvements (City Council Priority/Outcome 1b, 3a-b, 5a & 5c). • Complete planning and design with Hennepin County for the full reconstruction of Penn Avenue ( City Council Priority/Outcome 3a). • Complete planning and design for the 69 th St reconstruction project (City Council Priority/Outcome 3a-b, 5a & 5c). • Continue to coordinate with MnDOT and represent Richfield’s interests related to the I- 494 corridor improvements (City Council Priority/Outcome 3a-b , 5a & 5c). • Continue to address roadblocks for pedestrians and bicyclists by engaging with the public to understand where opportunities exist (City Council Priority/Outcome 3a, 3c, 5a & 5c). ## DIVISION EXPENDITURE COMMENT The 2026 Revised Budget reflects a 0.0 % increase from the 2026 Adopted Budget. $24,500 in MSA revenues are expected to be transferred into the division. The 2027 Proposed Budget reflects a 3.52% increase from the 2026 Adopted Budget, due primarily to a budgeted effort to update the City’s bicycle and pedestrian plans over the next 2 years (may be offset by grant funding). $144,000 in MSA revenues are expected to be transferred into the division. 118 Page 138 of 361 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## GENERAL FUND ## FUND: ## Public Works ## DEPARTMENT: Engineering - 10605 ## BUSINESS UNIT: ## Personal Services 6005547,346669,610667,730731,220Full Time$$$$ 60077,84718,79019,20019,200Seasonal 60096,1632,4002,4002,400Overtime ## 603133,15842,67042,01045,740Employer Social Security 60327,7559,9809,82010,700Employer Medicare 603340,36950,22050,08054,840Employer Pera 603575,52389,470100,270118,160Medical Insurance 60363,6484,5004,2404,500Dental Insurance 6037358240250240Term Life 60386,1206,2406,2406,550Workers Compensation ## 60406381,1901,1801,290Long Term Disability ## 6041104- 2,6102,850Paid Family Medical Leave ## 6054(270,000)(502,000)(489,500)(634,000)Interdepartmental Labor Credit 393,310416,530363,690459,029Personal Services ## Total $$$$ ## Other Services & Charges 610363,177114,25089,250165,260Professional Services -General$$$$ 62012,106- - - Rents & Leases ## 620239,36038,88038,88041,120Data Processing Rental ## 620411,34011,91011,91012,510Motor Pool Operating Rental 63024,2154,7004,7004,700Communications 630316,96017,17017,57016,570Professional Development 63056,13112,65012,90014,770Subscriptions & Memberships 63074,8105,7405,6305,140Insurance & Bonds 63081,0901,1101,1101,130Property Liability 640134- - - Office Supplies 64144,9127,5008,7003,700Other Supplies 213,910190,650264,900154,135Other Services & Charges ## Total $$$$ 607,220607,180628,590613,164Engineering ## TOTAL $$$$ 119 Page 139 of 361 ## GENERAL FUND ## FUND: ## Public Works ## DEPARTMENT: Engineering - 10605 ## BUSINESS UNIT: ## DIVISION PERSONNEL ## CLASSIFICATIONS ## SALARY ## GRADE ## NUMBER OF EMPLOYEES 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## CAPITAL OUTLAY ## ITEMS 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## Regular Full-Time Employees 1.001.0017City Engineer1.00 1.001.0015Transportation Engineer1.00 2.002.0014Project Engineer2.00 1.001.0013Civil Engineer1.00 1.001.0010Engineering Assistant1.00 ## .04.0410Asset Management/GIS Analyst.05 6.046.04 ## Total 6.05 -- None $ $- $ -- ## Total $$-$ 120 Page 140 of 361 ## Department/DivisionPublic Works/Engineering ## ActualActualBudgetBudget ## 202420252026R2027P ## Inputs: Number of full time employees5.06.056.056.05 Total General Fund expenditures632,524$ 613,164$ 607,180$ 628,590$ ## Outputs: Number of engineering contracts4393 Value of engineering contracts$317,000$370,000$880,500$400,000 Number of construction projects4456 Value of construction projects$606,000$2,355,000$5,495,000$8,385,000 ## Effectiveness Measures: Value of change orders$81,000$159,000$24,000$0 % of project costs (goal <5%)13.4%6.8%0.4%0.0% Number of right-of-way permits issued/inspected174228200200 ## Efficiency Measures: % of GF expenditures to construction projects 104.4%26.0%11.0%7.5% % of consultant contracts to construction projects 52.3%15.7%16.0%4.8% Division expenditure per Capita$16.44$15.93$15.78$16.33 ## Performance Measures 121 Page 141 of 361 ## STREET MAINTENANCE DIVISION ## MISSION STATEMENT The Public Works Department works hard to sustain and improve the quality of life for our community by offering the highest standards in essential municipal services and providing them in a timely, responsible and professional manner. ## DIVISION FOCUS To provide pavement management, street signage, signal lights, streetlights, asphalt patching, ice control, and snow removal. These programs are necessary to ensure the citizens of Richfield have a safe, efficient, and reliable transportation system. The Street Maintenance Division also protects Richfield’s urban forest and existing tree canopy through tree inspections, monitoring both public and private trees, tree removal, trimming, and replacing trees on the boulevard as they are removed. ## 2026 HIGHLIGHTS • Continued assistance with private property diseased/hazardous tree removals using the assessment option for paying removal costs ( City Council Priority/Outcome 3c & 5c). • Completion of the USDA Forest Service Urban and Community Forestry Inflation Reduction Act Grant to enhance urban tree canopy by focusing all planting efforts on the southeast corner of the city in the census tracts identified by CEJST as disadvantaged communities, contributing to the goals of Justice40 (City Council Priority/Outcome 3c, 5a & 5c). • Hire a GIS/Asset Management position to start the creation of an Asset ## Management System (City Council Priority/Outcome 3a-b & 4b). ## 2027 DIVISION GOALS • Create an inventory of pavement markings to establish a replacement program (City Council Priority/Outcome 3a-b). • Establish maintenance programs for City assets (City Council Priority/Outcome 2c & 3a-c). • Begin development of an Asset Management System ## (City Council Priority/Outcome 3a-b & 4b). ## DIVISION EXPENDITURE COMMENT The 2026 Revised Budget reflects an increase of 0.67% from the 2026 Adopted Budget. This is attributed to continually rising costs for materials and aging infrastructure specifically with the City’s street lighting and traffic signal systems. The 2027 Proposed Budget reflects a decrease of 6.76% from the 2026 Adopted Budget due to the completion of the USFS grant to remove and replace trees in 2026. 122 Page 142 of 361 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## GENERAL FUND ## FUND: ## Public Works ## DEPARTMENT: Street Maintenance - 10610 ## BUSINESS UNIT: ## Personal Services 60051,172,4351,189,4601,171,2401,245,640Full Time$$$$ 600720,15444,95044,93047,570Seasonal 600942,15220,00020,00020,000Overtime ## 603171,49374,97073,03077,620Employer Social Security 603216,72017,53017,08018,150Employer Medicare 603387,67787,90086,47092,050Employer Pera 6035210,779215,020225,250261,840Medical Insurance 60369,48510,0409,49010,610Dental Insurance 6037938540560540Term Life 603839,04039,82039,82041,810Workers Compensation ## 60401,3092,0802,0402,170Long Term Disability ## 6041230-4,5604,850Paid Family Medical Leave ## 6054(94,350)(124,110)(115,140)(115,660)Interdepartmental Labor Credit 1,578,2001,579,3301,707,1901,578,062Personal Services ## Total $$$$ ## Other Services & Charges 610316,08016,02016,02016,050Professional Services -General$$$$ ## 620238,68833,18033,18027,050Data Processing Rental ## 6204478,400502,320502,320527,440Motor Pool Operating Rental 620529,69225,30031,50031,500Maintenance & Repairs 620990,811114,500114,500104,500Utility Lighting 6301- 240240240Advertising & Publication 630215,90115,00015,00015,000Communications 630314,29312,44012,44012,440Professional Development 63051,0721802,0002,000Subscriptions & Memberships 630711,49515,29014,99013,720Insurance & Bonds 63083,7603,8403,8403,920Property Liability ## 6315384,023804,160811,160439,160Other Contractual Services 640913,28611,00014,00013,500Uniforms & Clothing 64106,7526,0007,0006,000Small Tools & Parts 641129,89290,00090,00090,000Salt 641232,51134,45036,95028,250Maint. & Const. Materials 64141,7901,3101,3101,310Other Supplies 641511,17651,80051,80051,800Sign Parts & Supplies 1,737,0301,758,2501,383,8801,179,622Other Services & Charges ## Total $$$$ 3,315,2303,337,5803,091,0702,757,684Street Maintenance ## TOTAL $$$$ 123 Page 143 of 361 ## GENERAL FUND ## FUND: ## Public Works ## DEPARTMENT: Street Maintenance - 10610 ## BUSINESS UNIT: ## DIVISION PERSONNEL ## CLASSIFICATIONS ## SALARY ## GRADE ## NUMBER OF EMPLOYEES 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## CAPITAL OUTLAY ## ITEMS 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## Regular Full-Time Employees ## 10.0010.00LT-1Public Works Worker10.00 ## .77.7718Deputy Public Works Director.75 1.001.0014Operations Supervisor1.00 1.001.0010Forester1.00 ## .35.358Senior Office Assistant.35 .20.2012GIS Coordinator.20 ## .17.1710Asset Management/GIS Analyst.17 13.4913.49 ## Total 13.47 ## Intermittent Employees ## 1.231.23103Seasonal Maintenance Laborer (4 Positions)- 1.231.23 ## Total - -- None $ $- $ -- ## Total $$-$ 124 Page 144 of 361 ## Department/Division ## ActualActualBudget Budget 2024 ## 20252026R2027P ## Inputs: ## Number of Full-Time Employees13.313.4713.4713.47 Division Expenditures2,569,956$ 2,757,684$ 3,337,580$ 3,091,070$ ## Outputs: ## Number of City-Owned Street Lights3,5103,5103,5103,510 ## Work Orders for Street Light Out341451500500 ## Annual Number of Trees Removed356301400400 ## Annual Number of Trees Planted250200745200 ## Tree Trimmings-Routine194176200200 ## Effectiveness Measures: ## Days to Repair Street Light After ## Request 7.46.014.56.0 ## Average Days to Complete After Tree14151515 ## Service Request Received ## Efficiency Measures: Cost to Operate Street Lights309,828$ 328,825$ 332,000$ 332,000$ Cost to Maintain Street Lights38,259$ 90,811$ 114,500$ 104,500$ Total Cost to Operate and Maintain348,087$ 419,636$ 446,500$ 436,500$ ## Street Lights ## Expenditure per Capita to Maintain ## Street Lights 9.05$ 10.90$ 11.60$ 11.34$ Cost per New Tree Planted392.74$ 383.51$ 610.74$ 425.00$ Annual Dollars Spent on New Trees98,185$ 76,701$ 455,000$ 85,000$ Division Expenditure per Capita66.78$ 71.66$ 86.73$ 80.33$ ## Performance Measures ## Street Maintenance 125 Page 145 of 361 ## PARK MAINTENANCE DIVISION ## MISSION STATEMENT The Public Works Department works hard to sustain and improve the quality of life for our community by offering the highest standards in essential municipal services and providing them in a timely, responsible and professional manner. ## DIVISION FOCUS To maintain and repair Richfield’s 21 park areas that provide space and facilities for leisure activities. These areas vary in size from one-quarter acre (Little Bob’s Park) to over 100 acres (Veterans Memorial Park). The Park Maintenance Division is responsible for maintaining and repairing: •Buildings •Play features •Tennis/Pickleball courts •Ballfields •Turf areas •Trash pick-up and disposal •Winter maintenance of sidewalks/trails The Park Maintenance Division also manages the maintenance of the 77 th ## Street Maintenance District. ## 2026 HIGHLIGHTS •Continued support of City-sponsored events such as Vehicle Day, 4 th of July Celebration and Penn Fest (City Council Priority/Outcome 1c, 2a & 4b). •Completed Park Asset Inventory to establish future Park Maintenance needs (City Council Priority/Outcome 1b, 3a-b, 4b, 5a & 5c). •Partnered with the Recreation Department to develop a Natural Resources Plan (City Council Priority/Outcome 1b, 3a-b, 4b, 5a & 5c). ## 2027 DIVISION GOALS •Maintain support for City-sponsored events such as 4 th ## of July Celebration and Penn Fest ( City Council Priority/Outcome 1c, 2a & 4b). •Utilize the Park Asset Inventory to establish future Park Maintenance/Asset Management plan(s) (City Council Priority/Outcome 1b, 3a-b, 4b, 5a & 5c). •Establish maintenance plans for Tennis, pickleball, and basketball paved court surfaces (City Council Priority/Outcome 1b, 3a-c, 4b, 5a & 5c). •Partner with the Recreation Department to implement the Natural Resources Plan (City Council Priority/Outcome 1b, 3a-b, 4b, 5a & 5c). •Assist the Recreation Department with the Parks Master Plan (City Council Priority/Outcome 1b-c, 3a-c, 4b, 5a & 5c). 126 Page 146 of 361 ## DIVISION EXPENDITURE COMMENT The 2026 Revised Budget reflects a 0% increase from the 2026 Adopted Budget. The 2027 Proposed Budget reflects an increase of 3.1% from the 2026 Adopted Budget. This is attributable to increases in personal services as employees move through the step system (merit increases) and costs associated with Paid Family Medical Leave. 127 Page 147 of 361 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## GENERAL FUND ## FUND: ## Public Works ## DEPARTMENT: Park Maintenance - 10615 ## BUSINESS UNIT: ## Personal Services 6005673,776719,940688,780724,300Full Time$$$$ 600727,33044,95044,93047,570Seasonal 600926,23223,00023,00023,000Overtime ## 603142,51146,15044,29046,660Employer Social Security 60329,94210,79010,36010,960Employer Medicare 603350,89453,20050,82053,810Employer Pera 6035139,673146,370145,250159,350Medical Insurance 60366,0956,4405,5905,590Dental Insurance 6037593350370340Term Life 603815,77016,09016,09016,890Workers Compensation ## 60407741,2601,2001,270Long Term Disability ## 6041115-2,7402,900Paid Family Medical Leave ## 6054(43,790)(32,000)(38,000)(38,520)Interdepartmental Labor Credit 1,036,540995,4201,054,120949,915Personal Services ## Total $$$$ ## Other Services & Charges 610315,13613,87015,67015,690Professional Services -General$$$$ ## 620210,63015,57015,57024,380Data Processing Rental ## 6204255,380268,150268,150281,560Motor Pool Operating Rental 6205116,876126,670124,430136,670Maintenance & Repairs 6207187,234134,460134,460134,460Utility Services 63028,93711,2409,2409,240Communications 63038,99910,31010,3108,840Professional Development 6305- 100100100Subscriptions & Memberships 630736,74854,21053,15037,020Insurance & Bonds 63084,1604,2404,2404,320Property Liability 6310- 200200200Taxes & Licenses ## 6315115,48761,400100,90080,900Other Contractual Services 64099,76910,60010,60010,600Uniforms & Clothing 64105,9332,0002,0002,000Small Tools & Parts 64124,0957,500750750Maint. & Const. Materials 641453,97742,27054,16054,170Other Supplies 762,790803,930800,900833,361Other Services & Charges ## Total $$$$ 1,799,3301,799,3501,855,0201,783,276Park Maintenance ## TOTAL $$$$ 128 Page 148 of 361 ## GENERAL FUND ## FUND: ## Public Works ## DEPARTMENT: Park Maintenance - 10615 ## BUSINESS UNIT: ## DIVISION PERSONNEL ## CLASSIFICATIONS ## SALARY ## GRADE ## NUMBER OF EMPLOYEES 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## CAPITAL OUTLAY ## ITEMS 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## Regular Full-Time Employees ## 8.008.00LT-1Public Works Worker8.00 .50.5014Operations Supervisor.50 ## .17.1710Asset Management/GIS Analyst.17 8.678.67 ## Total 8.67 ## Intermittent Employees ## 1.231.23103Seasonal Maintenance Laborer (4 Positions)- 1.231.23 ## Total - - - None $ $- $ -- ## Total $$-$ 129 Page 149 of 361 ## Department/Division ## ActualActualBudgetBudget 2024 ## 20252026R2027P ## Inputs: Number of full time employees8.58.678.678.67 Division Expenditures1,593,191$ 1,783,276$ 1,799,330$ 1,855,030$ ## Outputs: ## No. of Parks Maintained21222222 ## No. of Athletic Fields24242424 ## Effectiveness Measures: ## Games Not Played Due to ## Weather-Related Field Conditions11171010 ## Efficiency Measures: Average Cost to Maintain Each Park75,866.24$ 81,058.00$ 81,787.73$ 84,319.55$ Cost to Maintain Parks per Capita41.40$ 46.34$ 46.76$ 48.21$ ## Performance Measures ## Public Works/Park Maintenance 130 Page 150 of 361 ## RECREATION SERVICES 131 Page 151 of 361 ## DEPARTMENT SUMMARY BY BUSINESS UNIT ## BUSINESS UNIT ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## GENERAL FUND ## FUND: ## Recreation Services ## DEPARTMENT: ## Increase/ (Decrease) 2026 Budget/ 2027 Budget 534,201571,780550,703577,897Recreation Administration$$$$1.07%17000 1,224,1891,289,3991,287,3671,340,982Recreation4.00%17501 ## 748,197700,021723,729952,441Wood Lake Nature Center36.06%18000 2,561,2002,561,7992,871,3202,506,587Recreation Services ## TOTAL $$$$12.11% ## REVENUES 345,020292,200311,100296,100Recreation$$$$1.33%17501 ## 55,26464,10064,350155,745Wood Lake Nature Center142.97%18000 ## YEARAMOUNT 2025$2,506,587 ## 2026B$2,561,200 ## 2026R$2,561,799 ## 2027B$2,871,320 $0 $400,000 $800,000 $1,200,000 $1,600,000 $2,000,000 $2,400,000 $2,800,000 $3,200,000 ## 20252026B2026R2027B ## E ## X ## P ## E ## N ## D ## I ## T ## U ## R ## E ## S ## YEAR ## RECREATION SERVICES EXPENDITURES 132 Page 152 of 361 ## RECREATION SERVICES ADMINISTRATION ## MISSION STATEMENT Richfield Recreation Services encourages a happy, healthy, and connected community by providing inclusive recreational experiences that promote physical activity, mental wellness, and social belonging. ## DIVISION FOCUS ## The Recreation Services Administration Division provides support for the Recreation Services Department, which includes Wood Lake Nature Center, Recreation Programs and Athletics, Ice Arena, Outdoor Pool, Honoring All Veterans Memorial, Band Shell, Mini-Golf, and the Sustainability divisions (organics, recycling, and sustainability). The Administrative Division also contains items related to parks planning and development. ## 2026 HIGHLIGHTS •Completed Pool and Ice Arena Local Option Sales Tax renovation projects. (City ## Council Priority 3) •Completed Natural Resources Management Plan for Richfield Lake Park, Taft Park, Veterans Memorial Park and Wood Lake Nature Center. (City Council Priority 1, 3, and 5) •Began Parks Master Planning process (City Council Priority 3a, 3b) •Collaborated to conduct a recreation facility assessment (City Council Priority 3, 5c). •Complete fleet electric vehicle assessment. (City Council Priority 3) •Installed solar panels on Ice Arena and Public Works Building using State and Federal Funding (City Council Priority 1b and 3b) •Constructed playground at Donladson Park (City Council Priority 3a) ## •Updated Climate Action Plan (City Council Priority/Outcome 3c) ## 2027 DIVISION GOALS •Complete Veterans Memorial Park Local Option Sales Tax Projects (City Council Priority 3) •Complete Parks Master Plan and begin work on identified CIP projects (City Council Priority 3a, 3b) •Deliver several Recreation Department wide training opportunities (City Council Priority 4a). •Begin work on new organized hauling contract (City Council Priority 1) ## DIVISION EXPENDITURE COMMENTS The Recreation Services/Administration Division shows a decrease of 3.69% for 2026 revise d due to a reduction in employee benefit costs. 2027 will have a 1.07% increase due to a growth in staffing costs but a reduction in expected credit card processing fees. 133 Page 153 of 361 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## GENERAL FUND ## FUND: ## Recreation Services ## DEPARTMENT: Recreation Administration - 17000 ## BUSINESS UNIT: ## Personal Services 6005291,856300,600301,290319,140Full Time$$$$ ## 603115,49517,40017,24018,230Employer Social Security 60323,6244,0704,0304,260Employer Medicare 603320,99922,16022,29023,620Employer Pera 603554,82456,07046,58053,070Medical Insurance 60361,7492,1002,0002,000Dental Insurance 6037172170170170Term Life 60382,5002,5502,5502,680Workers Compensation ## 6040314610500500Long Term Disability ## 604157- 1,1361,200Paid Family Medical Leave 405,730397,786424,870391,590Personal Services ## Total $$$$ ## Other Services & Charges 61031802,000- - Professional Services -General$$$$ ## 620213,83713,01013,01012,394Data Processing Rental 620710,6278,50010,60011,000Utility Services 630140,02838,00040,00040,000Advertising & Publication 63022,2852,0002,3002,300Communications 63033,4083,2005,0003,700Professional Development 63078,0655,3405,2408,168Insurance & Bonds 63089,2209,4009,4009,590Property Liability 64027,7247,4007,7007,800Copy Charges 651347,23777,20059,66758,075Other Charges 166,050152,917153,027142,611Other Services & Charges ## Total $$$$ 571,780550,703577,897534,201Recreation Administration ## TOTAL $$$$ 134 Page 154 of 361 ## GENERAL FUND ## FUND: ## Recreation Services ## DEPARTMENT: Recreation Administration - 17000 ## BUSINESS UNIT: ## DIVISION PERSONNEL ## CLASSIFICATIONS ## SALARY ## GRADE ## NUMBER OF EMPLOYEES 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## CAPITAL OUTLAY ## ITEMS 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## Regular Full-Time Employees ## 1.001.0020Recreation Services Director1.00 .40.4012Sustainability Specialist.40 1.001.0012Analyst1.00 2.402.40 ## Total 2.40 -- None $ $- $ -- ## Total $$-$ 135 Page 155 of 361 ## Department/Division ## Actual ## ActualBudget Budget 2024202520262027 ## Inputs: Number of organics program participants3,371 3,490 3,500 3,500 Richfield Households15,332 15,332 15,332 15,332 ## Outputs: ## Rec. Adminstration Division Cost522,959$ 534,201$ 550,703$ 577,897$ ## Effectiveness Measures: % of Households in Organics Program22%23%23%23% ## Efficiency Measures: Adminstration cost per capita34.11$ 34.84$ 35.92$ 37.69$ ## Performance Measures ## Recreation Services/Administration 136 Page 156 of 361 ## RECREATION PROGRAMS ## MISSION STATEMENT Richfield Parks and Recreation encourages a happy, healthy, and connected community by providing inclusive recreational experiences that promote physical activity, mental wellness, and social belonging. ## DIVISION FOCUS The Recreation Programs Division provides high‑quality programs, activities, and events for the entire community, with a focus on accessibility and inclusion for people of all abilities, backgrounds, and economic circumstances. The Division coordinates scheduling of athletic fields and park facilities for local sports associations, schools, and community groups. ## 2026 HIGHLIGHTS • Developed a new partnership model with RecLeaguer to offer adult grass volleyball leagues (City Council Priority1.b,1.c) • Implemented new gardening and kitchen programs supported by th Urban AGRI grant. (City Council Priority 1.b, 5.a) • Partnered with VEAP to offer monthly mobile food pantry in response to the Fare for All program ending. (City Council Priority 5.a) • Staff supported community volunteer committees to offer the Richfield 4 th of July Celebration and Penn Fest. (City Council Priority 1. c, 5.a) • Secured grants and sponsorships for Entertainment in the Park which allowing for higher quality bands and Food Trucks at all evening performances. (City Council Priority 1.c, 5.a) ## 2027 DIVISION GOALS • Adjust program offerings based off Park System Master Plan Program Assessment report (City Council Priority 1.b, 1.c). • Continue to defer program expenses by expanding community partnerships and secure new sponsorships. (City Council Priority 1.b). • Increase volunteers for programs and special events. (City Council Priority4. b) ## DIVISION REVENUE COMMENT Revenue is forecasted to continue to increase. The 2026 revised revenue is projected to increase by 6.47% compared to the 2026 adopted budget. The 2027 proposed budget includes a 1.33% revenue increase compared to the 2026 adopted budget. ## DIVISION EXPENDITURE COMMENT The Recreation Programs 2026 revised budget is projected to have 0% change in expenditures compared to the 2026 adopted budget. The proposed budget expenditures in 2027 are increasing by 4% due to increase in contractual services (portable restrooms, referees, contract programs). 137 Page 157 of 361 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## GENERAL FUND ## FUND: ## Recreation Services ## DEPARTMENT: Recreation - 17501 ## BUSINESS UNIT: ## Personal Services 6005521,370550,320550,080575,020Full Time$$$$ 600682,206101,12050,55052,070Part-time 600762,54972,610116,896115,931Seasonal ## 603140,24743,92044,35045,910Employer Social Security 60329,41210,27010,37010,740Employer Medicare 603346,76348,86045,05047,030Employer Pera 6035101,012108,74090,780102,630Medical Insurance 60364,3754,4704,3784,470Dental Insurance 6037430400430430Term Life 60387,7207,8707,8708,260Workers Compensation ## 60406431,0001,0121,020Long Term Disability ## 6041115-3,8053,992Paid Family Medical Leave 949,580925,571967,503876,842Personal Services ## Total $$$$ ## Other Services & Charges 6103-130130130Professional Services -General$$$$ 62014,2644,4004,4004,500Rents & Leases ## 620262,33357,99357,99359,640Data Processing Rental ## 62041,2301,2901,2901,350Motor Pool Operating Rental 62053,0435,0005,0005,000Maintenance & Repairs 620720,05018,50018,50019,000Utility Services 63011,2542,0002,0002,000Advertising & Publication 63024,2325,1505,1505,150Communications 63036,6714,1204,1204,120Professional Development 63052,6053,6004,5003,100Subscriptions & Memberships 63076,2924,5904,5007,194Insurance & Bonds 6308120120120120Property Liability ## 6315158,911145,776163,943174,875Other Contractual Services 64014,0063,1503,1503,150Office Supplies 6402957- 500500Copy Charges 64034,4603,9004,5004,600Postage 64092,8022,0002,0002,000Uniforms & Clothing 641457,64972,10074,00070,800Other Supplies 65136,4686,0006,0006,250Other Charges 339,819361,796373,479347,347Other Services & Charges ## Total $$$$ 1,289,3991,287,3671,340,9821,224,189Recreation ## TOTAL $$$$ 138 Page 158 of 361 ## GENERAL FUND ## FUND: ## Recreation Services ## DEPARTMENT: Recreation - 17501 ## BUSINESS UNIT: ## DIVISION PERSONNEL ## CLASSIFICATIONS ## SALARY ## GRADE ## NUMBER OF EMPLOYEES 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## CAPITAL OUTLAY ## ITEMS 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## Regular Full-Time Employees 1.001.0014Recreation Manager1.00 3.003.0012Recreation Supervisor3.00 ## 1.001.0010Recreation Program Coordinator1.00 ## 1.001.008Senior Office Assistant1.00 6.006.00 ## Total 6.00 ## Part-Time Employees 1.001.006Custodian2.00 1.001.00 ## Total 2.00 - - None $ $- $ -- ## Total $$-$ 139 Page 159 of 361 ## Department/Division ## ActualActualBudget Budget 2024 202520262027 ## Inputs: Number of Full Time Employees6 6 6 6 Division Revenues324,228$ 345,020$ 311,100$ 296,100$ ## Division Expenditures 1,123,315$ $ 1,224,189 1,287,367$ 1,340,982$ ## Outputs: ## Older Adult Registrants 1,795 1,903 1,800 1,800 ## Youth/Family Registrations 2,430 2,576 2,400 2,400 ## Youth/Adult Athletics Registrations 910 965 800 800 ## Adaptive Registrations 1,358 1,440 1,400 1,400 ## Total Registrations 6,493 6,882 6,400 6,400 ## Effectiveness Measures: Average Revenue Per Registration50.35$ 47.11$ 48.61$ 46.27$ ## Efficiency Measures: Average Cost Per Registration174.75$ 177.87$ 201.15$ 209.53$ ## Revenues Per Capita 7.81$ 8.76$ 9.32$ 8.41$ Expenditures Per Capita27.10$ 33.09$ 34.79$ 36.24$ ## Performance Measures ## Rec Serv/Rec Programs & Athletics 140 Page 160 of 361 ## WOOD LAKE NATURE CENTER ## MISSION STATEMENT Wood Lake Nature Center, part of the Recreation Services Department, exists to enhance the quality of life in Richfield by providing the highest-quality, community- based nature experience while serving the widest possible audiences. ## DIVISION FOCUS Wood Lake provides high quality, accessible environmental education, recreation and community program opportunities unique to the Wood Lake Nature Center site. Provides natural resource information to the public including wildlife, forest, prairie, wetlands, and lakes programming. Manages and maintains a high-quality natural area. Supports and guides the Friends of Wood Lake in raising funds for projects and seasonal staffing. ## 2026 HIGHLIGHTS • Completed the construction of a new Wood Lake Nature Center building using Local Option Sales Tax, Meeting regularly with the building project team. (City Council Priority 3.a) • Managed the natural resources of the park to allow for access, safety, and biodiversity, securing grant and donation funding. (City Council Priority 1, 3.b) • Moved FOWL to a higher level and more diverse styles of fund raising. Held successful FOWL dinner in November. (City Council Goal 1b, 3b, 5a) • Provided new programming while maintaining traditional programs at two sites while the Nature Center is under construction. (City Council Goal 5.a) ## 2027 DIVISION GOALS • Develop and implement programming and rental plan for the new building. (City ## Council Priority 5) • Continue to work with new FOWL board members grow fundraising capacity. (City Council Priority 1b, 3b, 5a) • Maintain natural resources in the park working with volunteer groups, Great River ## Greening and Public Works. (City Council Priority 1) ## DIVISION REVENUE COMMENT 2026 Revised revenue is $250 higher than adopted and 2027 Proposed revenue is expected to be $91,935 higher due to additional rental and program revenue. ## DIVISION EXPENDITURE COMMENT Wood Lake’s expenditures for the revised 2026 budget are projected to be $23,008 higher due to increases in medical insurance, two months of the new Event Coordinator, and the addition of paid family and medical leave. The 2027 proposed expenditures are projected to be $252,420 higher primarily due to additional staffing and expenses related to the new building operations. 141 Page 161 of 361 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## GENERAL FUND ## FUND: ## Recreation Services ## DEPARTMENT: ## Wood Lake Nature Center - 18000 ## BUSINESS UNIT: ## Personal Services 6005460,297481,660493,827616,363Full Time$$$$ 600752,53269,92070,06587,190Seasonal 6009- - 500500Overtime ## 603131,00033,67634,14342,119Employer Social Security 60327,2507,8838,0158,917Employer Medicare 603338,49241,19342,27347,292Employer Pera 603530,01429,63042,95056,575Medical Insurance 60362,1862,2301,9332,719Dental Insurance 6037358200219220Term Life 60386,9807,1207,1207,480Workers Compensation ## 6040569870870961Long Term Disability ## 604199-1,8642,060Paid Family Medical Leave ## 6054(25,000)(108,864)(105,000)(95,000)Interdepartmental Labor Credit 565,518598,779777,396604,777Personal Services ## Total $$$$ ## Other Services & Charges 61032,6333,5003,5003,500Professional Services -General$$$$ ## 620254,45250,67050,67047,798Data Processing Rental ## 62049,55010,03010,03010,530Motor Pool Operating Rental 62055512,0002,0002,000Maintenance & Repairs 620732,75916,00016,00039,000Utility Services 63012,4013,0003,0003,300Advertising & Publication 63023,7984,5004,5004,500Communications 63031,0891,0001,0001,000Professional Development 630535- - - Subscriptions & Memberships 630710,77912,26012,02011,517Insurance & Bonds 63083,7503,8303,8303,910Property Liability ## 63158,9334,5004,50032,190Other Contractual Services 640131400400400Office Supplies 6402119100- - Copy Charges 6403661300400400Postage 64091,4181,4131,0001,000Uniforms & Clothing 64101,1801,0001001,000Small Tools & Parts 64149,27820,00012,00013,000Other Supplies 65133- - - Other Charges 134,503124,950175,045143,420Other Services & Charges ## Total $$$$ ## 700,021723,729952,441748,197Wood Lake Nature Center ## TOTAL $$$$ 142 Page 162 of 361 ## GENERAL FUND ## FUND: ## Recreation Services ## DEPARTMENT: ## Wood Lake Nature Center - 18000 ## BUSINESS UNIT: ## DIVISION PERSONNEL ## CLASSIFICATIONS ## SALARY ## GRADE ## NUMBER OF EMPLOYEES 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## CAPITAL OUTLAY ## ITEMS 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## Regular Full-Time Employees 1.001.0014Manager1.00 2.002.0012Naturalist2.00 ## 1.001.008Senior Office Assistant1.00 ## 1.001.00LT3Public Works Worker1.00 .65.658Rental Coordinator- - 1.0010Natural Resources Coordinator- 5.656.65 ## Total 5.00 -- None $ $- $ -- ## Total $$-$ 143 Page 163 of 361 ## Department/Division ## ActualActualBudget Budget 2024202520262027 ## Inputs: ## Number of Full Time Employees555.56.5 Division Revenues134,550$ 55,264$ 64,350$ 155,745$ Division Expenditures678,016$ 748,197$ 723,729$ 952,441$ ## Outputs: Volunteer Hours2,608 1,409 1,500 3,000 Number of contact hours for all programs delivered23,020 10,360 12,060 29,190 ## Effectiveness Measures: Number of programs delivered annually 607350500650 Number of people attending all programs annually 18,814 10,225 17,000 20, 000 ## Efficiency Measures: Dollars saved by volunteers65,200$ 35,225$ 37,500$ 75,000$ Average cost/person of programs delivered 28.89$ 67.77$ 38.79$ 39.83$ Average cost of programs per hour delivered23.61$ 66.89$ 54.67$ 27.29$ Revenues Per Capita3.70$ 1.52$ 1.77$ 4. 29$ Expenditures Per Capita18.66$ 20.59$ 19.92$ 26.21$ ## Performance Measures ## Rec Serv/WoodLake Nature Center 144 Page 164 of 361 ## SPECIAL REVENUE 145 Page 165 of 361 ## BUDGET SUMMARY ## LIQUOR CONTRIBUTION FUND 20252027 ## AVAILABLE FOR APPROPRIATIONActualBudgetRevisedBudget ## PRIOR YEAR FUND BALANCE154,828$ 155,828$ 160,445$ 161,445$ ## Sources Liquor Profits475,000 475,000 475,000 475,000 Interest 5,617 1,000 1,000 1,000 Subtotal480,617 476,000 476,000 476,000 ## Uses Transfers475,000 475,000 475,000 475,000 Subtotal475,000 475,000 475,000 475,000 ## FUND BALANCE160,445$ 156,828$ 161,445$ 162,445$ 2026 ## MISSIONSTATEMENT ## TheLiquor ContributionFundisfinancedby earningsof theMunicipal LiquorFund,whichare transferredto thisfundannually.Ascapital improvement projectsareundertaken, moneyis transferred out ofthisfundto thecapital improvement fundstofinancetheproject. ## DIVISION ## FOCUS The 2026 budgetrevisionprovides for expenditures of moniesfromtheLiquor Contribution Fundin accordancewiththerevised 2026 Capital Improvement Budget. The 2027 proposed budgetsimilarly allocates special revenue monies for expenditurein accordancewiththe2026 Capital Improvement Budget. In2027,funding receivedfromliquorprofitsis budgetedat$475,000whichis thesameasthe 2026 adopted budget. 146 Page 166 of 361 ## BUDGET SUMMARY ## TOURISM ADMINISTRATION 20252027 ## AVAILABLE FOR APPROPRIATIONActualBudgetRevisedBudget ## PRIOR YEAR FUND BALANCE58,430$ 60,140$ 62,815$ 64,525$ ## Sources Hotel/Motel Lodging Tax7,315 7,000 7,000 7,000 ## Interest 2,510 150 150 150 Subtotal9,825 7,150 7,150 7,150 ## Uses Personal Services5,440 5,440 5,440 5,440 ## Subtotal 5,440 5,440 5,440 5,440 ## FUND BALANCE62,815$ 61,850$ 64,525$ 66,235$ 2026 ## MISSIONSTATEMENT Tosetup fundingfor theRichfieldTourism PromotionBoardthrougha LodgingTaxonthe gross receipts on lodgingfromhotelsand motelswithinthecity. Thepurpose ofthisfundis topromoteand marketthecityasa tourist or convention center. ## DIVISIONFOCUS Tocreatea climatesupportiveofthehotel industryinthecityofRichfield. Thisincludes sponsoring events and other appropriateactivitieswhichprovidevisibilityforRichfieldasa tourist center. 2027 ## TOURISMADMINISTRATION GOALS 1.Topromotethecityof Richfieldasa tourist destination. 2.Topromotecivic activitieswhichenhancethecity'spositiveimage. 3.Tocarryoutsuchactivitiesas permitted under Minnesotastatutes. ## DIVISION ## EXPENDITURECOMMENT Thisfundis responsiblefor thecollectionoflodgingtaxrevenuesandthedistributionofthese fundsto theRichfieldTourism Promotion Board(RTPB),and fortheexaminationoftherecordsof anyoperator forverificationofaccuracy ontheLodgingTaxReturns aswellasanannualreporttotheStateof Minnesota.Revenue here represents5%ofthetotaltaxes generated andsubmittedto theRichfield Tourism Promotion Board. TheRichfieldTourism Promotion Board,whichmeets monthly,is comprisedofa representative ofthe RichfieldChamber ofCommerceanda representativefromeachof thethree hotel/motel propertiesin Richfield. TheCityManager serves astheCity's liaisontothe Board. The dutiesof theBoardincludethe annual expenditure anda allocation of lodgingtaxrevenues forpermissible activities. 147 Page 167 of 361 ## BUDGET SUMMARY ## COMMUNICATIONS FUND 20252027 ## AVAILABLE FOR APPROPRIATION ## ActualBudgetRevisedBudget ## PRIOR YEAR FUND BALANCE1,889,161$ 1,785,321$ 1,850,126$ 1,733,056$ ## Sources Franchise Fees287,129 246,500 251,000 230,000 Intergovernmental- - - - ## Interest 57,151 5,000 5,000 5,000 ## Transfers In: General Fund25,000 25,000 50,000 Subtotal344,280 276,500 281,000 285,000 ## Uses Personal Services249,750 240,330 253,780 261,370 Other Service & Charges133,565 172,090 144,290 168,460 ## Capital Outlay - - - - Subtotal383,315 412,420 398,070 429,830 ## FUND BALANCE1,850,126$ 1,649,401$ 1,733,056$ 1,588,226$ ## MISSION STATEMENT ## DIVISION FOCUS 2026 ## COMMUNICATIONS FUND To provide communication services to Richfield residents through the city’s cable TV channel, website, print publications, social media, media relations, events and other engagement initiatives. Administer the city’s cable television ordinance. The communication fund is financed through franchise fees derived from cable television subscribers. These funds are paid to the city under the obligations of the Cable Television Franchise Ordinance. The funds are used to finance public service-related cable television programming and public information activities. The overall administration of this fund guided through the city’s Administrative Services Department. Positions funded by this division include Communications and Engagement Manager, Communications Specialist, Video Production Assistant and Communications Interns. The Communications and Engagement Manager oversees the city’s website, social media channels, e- newsletters, cable TV programming, print publications, video production, media relations, branding and other external communications. The position also supports internal communications and the city’s intranet. The part-time Communications Specialist assists the Communications and Engagement Manager in accomplishing the city’s communication goals, with an emphasis on digital communications. The intermittent Video Production Assistant records city meetings, as well as assisting in the production of other videos. As needed, Communications Interns are employed to provide college students who are interested in communications and civil service a better understanding of the communications profession, as well as to fill necessary gaps in resident communication offerings. The city’s primary cable programming focuses on the live broadcast and re-broadcast of City Council, ## Housing and Redevelopment Authority, Economic Development Authority and Planning Commission meetings. All additional city programming is produced through this division. In an effort to adequately produce these programs, cameras, controls, editing equipment and various accessories are needed. Equipment is updated as needed. 148 Page 168 of 361 ## CABLE T.V. FUND ## FUND: ## Administrative Services ## DEPARTMENT: ## CABLE T.V. FUND - 20004 ## BUSINESS UNIT: ## DIVISION PERSONNEL ## CLASSIFICATIONS ## SALARY ## GRADE ## NUMBER OF EMPLOYEES 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## CAPITAL OUTLAY ## ITEMS 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## Regular Full-Time Employees 1.001.0015Communications Manager1.00 1.001.00 ## Total 1.00 ## Intermittent Employees ## .20.20103Video Production Assistant.20 .20.20 ## Total .20 ## Part-Time Employees .50.5010Communication Specialist.50 .45- 9Temporary Website Coordinator.45 .95.50 ## Total .95 -- $ $- $ -- ## Total $$-$ 149 Page 169 of 361 ## BUDGET SUMMARY - ELECTIONS FUND 20252027 ## AVAILABLE FOR APPROPRIATIONActualBudgetRevisedBudget ## PRIOR YEAR FUND BALANCE2,395,389$ 779,069$ 869,686$ 924,253$ ## Sources Intergovernmental - - - - Other Revenues73,218 - - 95,000 Lease Revenue393,919 329,600 332,898 332,900 Interest77,460 50,000 50,000 21,060 Subtotal544,597 379,600 382,898 448,960 ## Uses Personal Services237,989 285,831 285,831 263,380 Other Services and Charges32,311 42,500 42,500 35,580 ## Transfers Out: ## Long-term Capital Reserve Fund1,800,000 Subtotal2,070,300 328,331 328,331 298,960 ## FUND BALANCE869,686$ 830,338$ 924,253$ 1,074,253$ 2026 ## MISSIONSTATEMENT The Elections Fundwasestablishedto isolatethelargefluctuationin costsfromyearto year. ## DIVISIONFOCUS TheElectionDivisionprovides voter registrationservices,voter informationservices,andelection administrationservicesfortheCity. TheCity Clerk isresponsible forthemanagement ofthese services.City Clerk Divisionemployees alongwithseasonalstaffprovidestaffingandsupportto theElection Division. Responsibilitiesincludetheconductofprimary,general,andspecial elections,therecruitment and trainingofelectionjudges,maintenanceofvoterregistrationrecords,programming/testingofvoting equipment,pollingplace arrangements, legal notices, candidatefilings,ballot printing, administrationofabsenteeballotprocess,andacting as aninformationresourceforthepublic regarding election information. ## DIVISION ## EXPENDITURECOMMENT ## The2026RevisedBudgetreflectsthecostassociatedwiththeupcoming General Elections and voter registrationactivities. The2027budget reflectsthecostassociatedwiththeupcominglevelof servicesto be provided duringa non-General election year. 150 Page 170 of 361 ## BUDGET SUMMARY ## DRUG/FELONY FORFEITURE 20252027 ## AVAILABLE FOR APPROPRIATIONActualBudgetRevisedBudget ## PRIOR YEAR FUND BALANCE280,133$ 223,733$ 312,155$ 353,955$ ## Sources ## Intergovernmental Revenue Drug/felony forfeiture 81,194 35,000 81,000 20,000 ## Interest 10,346 1,500 10,400 1,500 Other revenues 889 2,000 2,000 2,000 Subtotal92,429 38,500 93,400 23,500 ## Uses Other service & charges60,407 34,100 51,600 57,000 Subtotal60,407 34,100 51,600 57,000 ## FUND BALANCE312,155$ 228,133$ 353,955$ 320,455$ 2026 ## MISSIONSTATEMENT TheDrug/Felony ForfeituresFundreceivesitsrevenues astheresult ofcashand property seized relatingtodrug and/or felonytypecriminalactivityandvehiclesseizeddueto aggravatedDUIviolations. Bylaw,thefundscanonly be used forlawenforcement purposes. ## DIVISION ## FOCUS The fundswillused for variouspoliceequipment and training needs. In 2026 Revised planned purchases are a purchases are 3 K-9's and SWAT Supplies ($10,000) SWAT Bags ($3,600) Sniper Rifle ($7,500) Patrol Rifle sights ($11.000) ($8,000) 6 New Glock handguns to account for additional officers and Spares. (2,500) Vehicle Fleet Accesories ($5,000) Drone software. BWC spares (4,000) In 2027 Proposed planned purchases are purchases for 3 K-9's ($7,000) SWAT Supplies ## $10,000) Sprinter Conversion Communications Van ($35,000) Drone software ($5,000) 151 Page 171 of 361 ## BUDGET SUMMARY ## PUBLIC SAFETY COMPLIANCE 202520262027 ## AVAILABLE FOR APPROPRIATIONActualBudgetRevisedBudget ## PRIOR YEAR FUND BALANCE300,106$ 373,056$ 413,194$ 443,694$ ## Sources ## Intergovernmental: Federal grants 6,025 6,000 10,000 6,000 State grants113,879 10,000 6,500 6,500 County grants10,000 22,000 10,910 Other grants2,000 ## LEADS Revenue 7,172 5,300 5,000 4,800 ## Interest11,584 Other25,714 15,000 12,000 15,000 Subtotal166,374 46,300 55,500 43,210 ## Uses Personnel Services- 5,000 5,000 5,000 Other service & charges53,286 20,000 20,000 20,000 53,286 25,000 25,000 25,000 ## FUND BALANCE413,194$ 394,356$ 443,694$ 461,904$ ## MISSIONSTATEMENT Revenueforthisfund comesfromfinesleviedagainst businesses thatfailalcoholandtobacco compliancechecks.These fundsarethen usedforcostsrelatedtoperformingthecompliance checks.Inadditionthe fundalso isusedtoaccount fortheLEADSonlinesystemforpawn shops and and those thatcarrya second hand dealerslicense. ## CitizenCorpGrants(CERT)endedin2014. Therecurrentlyisno fundingsourceforCERT ## GrantsthroughtheDepartmentofHomeland Security. AllJusticeAssistanceGrant(JAG) fundsareadministeredin theComplianceFund andwillbeutilizedfor additional purchasesof policeequipment andtraining. TheCitywasawardeda JAGgrantfor2023it doesnotexpire untiltheendof2026.Wehavea 2024JAGgrant that expireson2027andawaiting onthe notification forthe2025 grant. ## DIVISION ## FOCUS Funds receivedfromcompliancefailurefineswillbeusedtofundfutureongoingcompliance checksandtheLEEDSonlinesytems. Inaddition,JAGgrantswillbe administeredwithinthis fund. Wenolongerreceive grant money forJCCP. Wecurrentlysharethecostwiththecounty whichcomesout of 10305. Wereceived bulletproofgrants forStateandFederalin2025and 2026.WeanticipatewewillreceiveStateand Federal bullet proofvestgrantsin 2027. 152 Page 172 of 361 ## BUDGET SUMMARY ## RECREATION CONTRIBUTIONS 20252027 ## AVAILABLE FOR APPROPRIATIONActualBudgetRevisedBudget ## PRIOR YEAR FUND BALANCE104,772$ 123,772$ 100,133$ 107,133$ ## Sources ## Intergovernmental ## Federal 116,961 - 20,000 30,000 Local Grant- 55,000 - - ## Other 109,228 110,000 110,000 110,000 ## Interest 2,031 - - - Subtotal228,220 165,000 130,000 140,000 ## Uses Other Services & Charges232,859 148,000 123,000 123,000 Subtotal232,859 148,000 123,000 123,000 ## FUND BALANCE100,133$ 140,772$ 107,133$ 124,133$ ## MISSION STATEMENT ## DIVISION FOCUS 2026 The Recreation Contributions Fund serves as a way to account for donations that are intended to benefit activities of the Recreation Services Department. Sources of revenue include donations/contributions come from individuals, businesses or corporations, as well grants and interest earnings. Uses of the funds include staffing costs, supplies, equipment, construction, reimbursements for credit card payments to Farmers Market vendors, and other charges. Fund activity includes donations from individuals for donated park features, receipt of on-line engraving donations for the Honoring All Veterans Memorial, Farmers Market, and Community Center fundraising events like the Boutique and the Garage Sale. 153 Page 173 of 361 ## BUDGET SUMMARY ## NATURE CENTER CONTRIBUTIONS 20252027 ## AVAILABLE FOR APPROPRIATIONActualBudgetRevisedBudget ## PRIOR YEAR FUND BALANCE262,527$ 270,574$ 499,428$ 401,428$ ## Sources ## Intergovernmental ## State 15,578$ -$ -$ -$ Contributions239,409 58,000 165,000 50,000 Memberships13,660 20,000 20,000 30,000 Interest13,391 7,000 7,000 7,000 Subtotal282,038$ 85,000$ 192,000$ 87,000$ ## Uses Personal Services-$ 43,864$ 40,000$ 30,000$ Other Services & Charges45,137 35,000 250,000 50,000 ## Subtotal 45,137$ 78,864$ 290,000$ 80,000$ ## FUND BALANCE499,428$ 276,710$ 401,428$ 408,428$ ## MISSION STATEMENT ## DIVISION FOCUS 2026 The Nature Center Contribution Fund serves as a way to account for donations that are intended to benefit Wood Lake Nature Center. Sources of donations mostly come from the fundraising activities of the Friends of Wood Lake (FOWL). Other donations are received from individuals, businesses or corporations. Another source includes interest earned from the fund balance. Uses of the fund include a transfer into to the Woodlake Nature Center Operating Budget for staffing costs, supplies, equipment, construction and other charges. Sources of revenue include proceeds from the FOWL Dinner, additional fudraisers, FOWL membership fees, garden leaf sales, and miscellaneous donations received for park features. Uses of funds include the a portion of the school year seasonal salary, intern pay, volunteer shirts, sponsorship of the Halloween Program Candlelight and Ice and the UWHM. 154 Page 174 of 361 ## BUDGET SUMMARY ## PUBLIC HEALTH GRANTS 202520262027 ## AVAILABLE FOR APPROPRIATIONActualBudgetRevisedBudget ## PRIOR YEAR FUND BALANCE139,347$ 87,174$ 145,849$ 145,849$ ## Sources ## Intergovernmental Revenues: ## Public Health Grants 185,489 50,714 50,714 50,714 Interest5,002 500 500 500 Subtotal190,491 51,214 51,214 51,214 ## Uses Other Service & Charges183,989 51,214 51,214 51,214 183,989 51,214 51,214 51,214 ## FUND BALANCE145,849$ 87,174$ 145,849$ 145,849$ ## MISSIONSTATEMENT Toprepare for internally and provideservicestothecommunityintheareaofstrengthening theCity’s abilitytoassessand enhancethecapacityoflocalpublichealth departmentsto respondto bioterrorism, infectious diseases, and other threatstopublic health. ## DIVISIONFOCUS Thesedollarsaregrant funds thatareprovidedtoeachCommunity HealthServiceagency,of whichRichfield isone,fromor throughtheStateofMinnesotatoworkon providingservicesin theareaofpublichealth emergency preparednessservices.The grant dollars originatefrom theCentersforDiseaseControlandPreventionandareintendedtobeusedtoassessand enhancethecapacityof thestateandlocalpublichealth departmentstorespondto bioterrorism, infectious diseases, and other threatsto public health. 155 Page 175 of 361 ## BUDGET SUMMARY ## WOOD LAKE HALF MARATHON 20252027 ## AVAILABLE FOR APPROPRIATIONActualBudgetRevisedBudget ## PRIOR YEAR FUND BALANCE91,878$ 75,878$ 128,745$ 126,745$ ## Sources Intergovernmental- - - - Charges for Service53,590 60,000 60,000 60,000 Contributions7,470 10,000 10,000 10,000 Interest Earnings4,049 - Subtotal65,109 70,000 70,000 70,000 ## Uses Personal Services- 40,000 40,000 40,000 Other Service & Charges28,242 50,000 32,000 32,000 Subtotal28,242 90,000 72,000 72, 000 ## FUND BALANCE128,745$ 55,878$ 126,745$ 124,745$ 2026 ## MISSION STATEMENT The Urban Wildland Half Marathon & 5K has been held since 2003. The event was initiated in response to proposed cuts in Local Government Aid and was seen as a way to fund Wood Lake Nature Center's environmental education curriculum for Richfield Public School students in kindergarten through eighth grade. The costs of the environmental education program are offset by revenue from the Urban Wildland Half Marathon & 5K. ## DIVISION FOCUS Event sponsorships are detailed as "contributions" and revenues from race registration, detailed as "charges for service. The "uses" include expenditures related to the race, as well as the amount that will offset environmental education program costs. 156 Page 176 of 361 ## BUDGET SUMMARY ## FRANCHISE FEES 202520262027 ## AVAILABLE FOR APPROPRIATIONActualBudgetRevisedBudget ## PRIOR YEAR FUND BALANCE2,450,331$ 2,887,331$ 2,988,358$ 3,333,358$ ## Sources Franchise Fee2,494,954 2,450,000 2,450,000 2,450,000 Interest116,869 50,000 50,000 27,775 Subtotal2,611,823 2,500,000 2,500,000 2,477,775 ## Uses ## Other Services & Charges 120,003 275,000 407,300 346,826 Capital Outlay- - - - ## Transfers Out: ## General Fund 50,000 50,000 50,000 50,000 Debt Service Fund746,793 747,700 747,700 743,174 Capital Project Fund1,157,000 1,392,000 950,000 1,235,000 Subtotal2,073,796 2,464,700 2,155,000 2,375,000 ## FUND BALANCE2,988,358$ 2,922,631$ 3,333,358$ 3,436,133$ ## MISSIONSTATEMENT Theestablishmentof gasandelectricfranchisefeeswasinresponsetoreductionsinstateaids andthepotential forstateimposedlevylimits. The feesallowtheCitytohavea reliablerevenue stream. ## DIVISION ## FOCUS Theprimarypurposeoftheestablishmentof gas andelectricfranchise feeswastoreplace revenueslosttoreductionsinstateaidsandto offsetthepotentialforstateimposedlevylimits. The feesprovide funding forthemaintenanceofcitystreets,anddiseasedtreetreatments, removal, and replacement. Themostrecent increaseinFranchise fees tookaffectin2024.The purposeofthislastincreasewastofund theCity'songoing pavement managementincluding sidewalk,ADA,andbicycleimprovements. 157 Page 177 of 361 ## FRANCHISE FEES ## FUND: ## Finance ## DEPARTMENT: ## FRANCHISE FEES - 20034 ## BUSINESS UNIT: ## DIVISION PERSONNEL ## CLASSIFICATIONS ## SALARY ## GRADE ## NUMBER OF EMPLOYEES 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## CAPITAL OUTLAY ## ITEMS 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED -- $ $- $ 40,00040,000Pedestrian Improvements40,000 40,00040,000Bicycle Improvements40,000 200,000200,000ADA Improvements200,000 ## 345,000755,000Pavement Management Projects737,000 ## 325,000- Public Works Storage Facility325,000 ## - - Street Name Sign Replacement50,000 - 200,00078th Street Lighting- 950,0001,235,000 ## Total $$1,392,000$ 158 Page 178 of 361 ## BUDGET SUMMARY ## ICE ARENA 20252027 ## AVAILABLE FOR APPROPRIATION ## ActualBudgetRevisedBudget ## PRIOR YEAR FUND BALANCE (2,062,734)$ (986,714)$ (1,148,869)$ (747,970)$ ## Sources User Fees1,276,401 1,295,270 1,295,270 1,355,190 ## Concessions 59,060 63,800 63,800 66,100 Other Revenues58,017 41,200 51,200 83,520 ## Transfers In: ## General Fund 220,000 295,000 255,000 244,625 Capital Project Fund365,000 370,000 370,000 400,000 ## Long-Term Capital Reserves 472,170 ## Subtotal 2,450,648 2,065,270 2,035,270 2,149,435 ## Uses Personal Services760,852 763,788 797,570 875,339 Other Service & Charges769,131 629,290 628,860 651,439 Interest Charges6,800 6,800 - Capital Outlay- - 207,941 30,000 Subtotal1,536,783 1,399,878 1,634,371 1,556,778 ## FUND BALANCE(1,148,869)$ (321,322)$ (747,970)$ (155,313)$ 2026 ## MISSIONSTATEMENT TheIceArenaoperation servestoprovide recreationalskatingandoniceprograms fora variety of ages; toprovide equitableice availabilityformaleandfemales; toprovidea quality icesheet,anda clean andsafefacility. Theoperation providesskating lessons,openskating,andsponsorstheannualiceshow. Iceis rented tothelocalhigh schoolsforpracticeand games,youth associations forclinics,practices,games,and hockey tournaments. TheSt. PaulFigureSkatingCompetitionrentsicealongwithprivate hockey schools and various groups for hockey and broomball. ## DIVISION ## FOCUS The Ice Arena division consists of four full-time employees that include a facility manager, two Recreation Supervisors, and one Public Works Worker. There are 10-15 resurfacing operators working year-round and seven seasonal concession workers and cashiers. The Ice Arena Division provides skating lessons, open skating, and sponsors the annual ice show. Ice is rented to high school programs for practice and games, youth associations for clinics, practices, games and seven hockey tournaments. Ice is also rented for the annual St. Paul Figure Skating Competition; private hockey schools; and various groups for hockey and broomball. As always, it is our focus to maintain a quality ice sheet, and a clean and safe facility, provide quality service and maximize revenues 159 Page 179 of 361 ## ICE ARENA ## FUND: ## Recreation Services ## DEPARTMENT: Ice Arena - 20035 ## BUSINESS UNIT: ## DIVISION PERSONNEL ## CLASSIFICATIONS ## SALARY ## GRADE ## NUMBER OF EMPLOYEES 2025 ## REVISED 2026 ## BUDGET 2025 ## ADOPTED ## CAPITAL OUTLAY ## ITEMS 2025 ## REVISED 2026 ## BUDGET 2025 ## ADOPTED ## Regular Full-Time Employees 1.001.0015Facility Manager1.00 ## 1.001.00LT-1Public Works Worker1.00 1.001.0012Recreation Supervisor1.00 1.001.0013Recreation Supervisor-Facilities1.00 4.004.00 ## Total 4.00 -- $ $ $ -- ## Total $$$ 160 Page 180 of 361 2025 2027 ## AVAILABLE FOR APPROPRIATIONActualBudgetRevisedBudget ## PRIOR YEAR FUND BALANCE 209,956$ 237,156$ 208,840$ 234,810$ ## Sources ## User Fees 478,443 591,640 519,310 552,410 Commodities79,478 95,870 95,870 96,670 ## County Grant - 23,300 23,300 25,000 ## Investment Income 8,845 - - - Other Income(9,826) - - - ## Transfers In: ## General Fund 80,000 - 40,000 40,000 Subtotal636,940 710,810 678,480 714,080 ## Uses Personal Services354,421 322,360 342,360 371,580 Other Service & Charges283,635 340,960 292,150 308,468 Capital Outlay- - 18,000 100,000 Subtotal638,056 663,320 652,510 780,048 ## FUND BALANCE208,840$ 284,646$ 234,810$ 168,842$ ## BUDGET SUMMARY ## SWIMMING POOL 2026 ## MISSIONSTATEMENT TheSwimmingPoolstrivestoprovidethecommunitywithan outstanding outdoor recreational swimmingexperienceforvarious agesandgroups; toprovidequalitypool water; toprovidea clean andsafefacilityandto provide healthyconcessionchoices for customers. ## DIVISIONFOCUS The arena staff and a seasonal staff of over 60 employees operate the swimming pool division. Each year the Richfield Outdoor Pool retains about 25 staff from the previous year providing a depth of experience. The division provides adult lap swim, practice time for swim teams and public use of the pool, zero depth pool, and waterslides during daily open swim hours. 161 Page 181 of 361 20252027 ## AVAILABLE FOR APPROPRIATIONActualBudgetRevisedBudget ## PRIOR YEAR FUND BALANCE75,655$ 75,475$ 79,206$ 79,596$ ## Sources Other Revenues66,714 69,980 69,980 72,430 Interest3,441 - - - Subtotal70,155 69,980 69,980 72,430 ## Uses ## Personal Services 12,290 12,720 12,720 13,160 Other Service & Charges54,314 55,960 56,870 53,182 Subtotal66,604 68,680 69,590 66,342 ## FUND BALANCE79,206$ 76,775$ 79,596$ 85,684$ ## BUDGET SUMMARY ## SPECIAL FACILITIES 2026 ## MISSIONSTATEMENT Toprovideleisure activityforthepublicthrough miniaturegolfandpicnics; toprovideawell landscaped,attractiveand fun miniaturegolfcourse, andto providea clean andsafepicnicarea. ## DIVISION ## FOCUS The Arenastaffand WheelFunRentals,Inc. jointlyoperatetheminiaturegolfand picnic shelter division. Thedivisionprovides recreational miniaturegolfforallages,plans special events, promotes group events, arranges newspaperanddirectmailadvertisement,andprovidesa quality picnicshelter forFarmers Marketand park users. Theworking seasonbeginsin earlyAprilwithcleaningandpreparingtheminiaturegolfcourse,building andpicnicshelter for usage.Picnicshelter rentalsandminiaturegolfregular schedulebegininMay. Thecourseremains opendailyJune through August. BeginningafterLaborDaythecourseis openon weekends only. 162 Page 182 of 361 ## BUDGET SUMMARY ## SUSTAINABILITY FUND 20252027 ## AVAILABLE FOR APPROPRIATIONActualBudgetRevisedBudget ## PRIOR YEAR FUND BALANCE352,836$ 285,751$ 303,926$ 346,283$ ## Sources ## Intergovernmental ## County 159,488 115,000 109,433 100,000 Grants - Other (multi-family grant)129,310 - 40,932 109,082 ## Special Assessment 136,430 231,614 231,614 200,000 ## Miscellaneous Revenue - 77,925600 - Interest13,272 - - - Transfers in: ## General Fund 52,250 52,250 52,250 54,079 Special Revenue Fund (Franchise Fee)50,000 50,000 50,000 50,000 Subtotal540,750 526,789 484,829 513,161 ## Uses Personal Services161,655 168,249 169,481 181,060 Other Services & Charges428,005 275,024 272,991 256,570 ## Subtotal 589,660 443,273 442,472 437,630 ## FUND BALANCE303,926$ 369,267$ 346,283$ 421,814$ ## MISSION STATEMENT 2026 The Sustainability Fund initiates and supports Richfield sustainability initiatives and manages Richfield's organized collections program. The City receives financial assistance from Hennepin County to coordinate and manage the organized collection program. 163 Page 183 of 361 ## SUSTAINABILITY ## FUND: ## Recreation Services ## DEPARTMENT: Sustainability - 20040 ## BUSINESS UNIT: ## DIVISION PERSONNEL ## CLASSIFICATIONS ## SALARY ## GRADE ## NUMBER OF EMPLOYEES 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## CAPITAL OUTLAY ## ITEMS 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## Regular Full-Time Employees .60.6012Sustainability Specialist.60 ## 1.001.0010Solid Waste Specialist1.00 1.601.60 ## Total 1.60 - - $ $- $ -- ## Total $$-$ 164 Page 184 of 361 ## BUDGET SUMMARY ## OPIOID SETTLEMENT GRANT 2025 20262027 ## AVAILABLE FOR APPROPRIATIONActualBudgetRevisedBudget ## PRIOR YEAR FUND BALANCE300,825$ 345,938$ 336,294$ 381,407$ ## Sources ## Intergovernmental Revenues: ## Opioid Grant 56,152 56,613 56,613 56,613 Interest11,616 500 500 500 ## Subtotal 67,768 57,113 57,113 57,113 ## Uses Other Service & Charges32,299 12,000 12,000 12,000 32,299 12,000 12,000 12,000 ## FUND BALANCE336,294$ 391,051$ 381,407$ 426,520$ ## MISSIONSTATEMENT Toprepareforand provide resources andservicestothe communitytoaddress theongoingopioid epidemic. ## DIVISION ## FOCUS These dollars aresettlementfunds that areprovidedtoeach CommunityHealthServiceagency,of whichRichfield isone,fromor through anopioidsettlement administratortoworkon providing servicesinthearea ofopiod prevention, treatment and recovery.Thisfundingis inplace through 2037. 165 Page 185 of 361 ## BUDGET SUMMARY ## PUBLIC SAFETY AID 2025 20262027 ## AVAILABLE FOR APPROPRIATIONActualBudgetRevisedBudget ## PRIOR YEAR FUND BALANCE1,510,3091,426,3091,430,579 1,480,579 ## Sources ## Intergovernmental Revenues: ## State Grant - - - - Interest54,26950,00050,000 50,000 ## Subtotal 54,269 50,000 50,000 50,000 ## Uses Personal Services- - - Transfer to: ## General Fund 134,000 446,095 - - 134,000 446,095 - - ## FUND BALANCE1,430,579$ 1,030,214$ 1,480,579 1,530,579 ## MISSIONSTATEMENT TrackStategrant funds earmarkedto provide public safety. ## DIVISION ## FOCUS Thegrant fundsareearmarkedtoprovidepublicsafetyincluding various programsandactivities. Thisfundwillfocus on transparency, complianceandaccuratetrackingofrevenueand expenditure. 166 Page 186 of 361 ## BUDGET SUMMARY ## STREET LIGHT USER FEE FUND 202520262027 ## AVAILABLE FOR APPROPRIATIONActualBudgetRevisedBudget ## PRIOR YEAR FUND BALANCE184,447$ 232,447$ 236,446$ 291,446$ ## Sources ## Charges for Service: ## Street Light User Fee 371,917 380,000 380,000 380,000 Interest8,908 - 7,000 7,000 Subtotal380,825 380,000 387,000 387,000 ## Uses Utility Services328,826 332,000 332,000 340,000 328,826 332,000 332,000 340,000 ## FUND BALANCE236,446$ 280,447$ 291,446$ 338,446$ ## MISSIONSTATEMENT Trackoperations oftheCity'sstreetlightingsystem. ## DIVISION ## FOCUS TheCityincludesa feeforstreetlightserviceonthequarterlyutility bills. TheCityCouncil annuallyreviewsand establishestheratesforthestreetlightuserfee. The feescollectedfund paymentoftheelectricitycharges, alongwithmaintenanceandreplacementofstreetlights. TheCity alsointendstoreplaceitsstreetlightswithenergyefficient LEDsas funding permits. Thisswitchshouldsaveelectricityand maintenancecosts,andmakepubliclighting infrastructuremoreversatile,flexibleand efficient. 167 Page 187 of 361 ## ENTERPRISE FUNDS 168 Page 188 of 361 ## DEPARTMENT SUMMARY BY BUSINESS UNIT ## BUSINESS UNIT ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## LIQUOR OPERATIONS FUND ## FUND: ## Liquor Operations ## DEPARTMENT: ## Increase/ (Decrease) 2026 Budget/ 2027 Budget 3,773,3303,683,3004,131,298$ 3,458,679$$$9.49% 4,454,5934,497,4504,464,4354,675,4303.96% 3,389,7013,454,5803,430,1553,496,9271.23% 2,059,4402,069,4352,020,1552,073,3450.19% ## 50010 RICHFIELD LIQUOR DOWNTOWN ## 50020 RICHFIELD LIQUOR CEDAR POINT ## 50030 RICHFIELD LIQUOR PENN CENTRAL ## 50040 RICHFIELD LIQUOR SHOPS AT ## LYNDALE 13,794,79513,598,04514,377,000 ## Liquor Operations ## TOTAL $13,362,413 $$$4.22% 3,813,9273,867,8903,866,7253,924,480$$$$1.46% 4,699,9904,617,6504,638,9204,592,765(0.54%) 3,520,8993,483,7703,537,9953,625,8704.08% 1,793,2391,775,8901,733,1201,698,835(4.34%) ## REVENUES ## 50010 RICHFIELD LIQUOR DOWNTOWN ## 50020 RICHFIELD LIQUOR CEDAR POINT ## 50030 RICHFIELD LIQUOR PENN CENTRAL ## 50040 RICHFIELD LIQUOR SHOPS AT ## LYNDALE ## LIQUOR STORES 50010500205003050040 ## YEARDowntownCedar PointPenn CentralShops at Lyndale 20253,533,148 4,454,593 3,389,701 2,059,440 ## 2026B3,773,330 4,497,450 3,454,580 2,069,435 ## 2026R3,683,300 4,464,435 3,430,155 2,020,155 ## 2027B4,131,298 4,675,430 3,496,927 2,073,345 - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 ## 20252026B2026R2027B ## E ## X ## P ## E ## N ## S ## E ## S ## YEAR ## LIQUOR OPERATIONS Shops at ## Lyndale ## Penn Central ## Cedar Point ## Downtown 169 Page 189 of 361 ## BUDGET SUMMARY ## LIQUOR FUND PROJECTION 2025202620272028 ## AVAILABLE FOR APPROPRIATIONActualRevisedBudgetProjected ## PRIOR YEAR RETAINED EARNINGS6,049,732$ 6,515,374$ 6,701,589$ 6,826,634$ ## Revenues Sales13,693,470 13,689,810 13,754,900 14,167,550 Less Cost of Sales(9,647,745) (9,582,875) (9,628,440) (9,917,290) Net Sales4,045,725 4,106,935 4,126,460 4,250,260 ## Miscellaneous Revenues Interest109,980 69,000 69,000 69,000 Other Revenues (Net)24,605 17,950 18,050 18,590 Total Miscellaneous Revenues134,585 86,950 87,050 87,590 Total Revenues4,180,310 4,193,885 4,213,510 4,337,849 ## Expenses Personal Services1,851,864 2,077,240 2,255,810 2,323,480 Other Services and Charges812,893 786,390 771,795 806,530 Depreciation200,422 281,430 250,000 257,500 Total Operating Expenses2,865,179 3,145,060 3,277,605 3,387,510 Net Income (Loss)1,315,131 1,048,825 935,905 950,339 ## Operating Transfers From (To): General Fund(374,489) (387,610) (335,860) (345,940) Special Revenue Fund(475,000) (475,000) (475,000) (475,000) Net Transfers(849,489) (862,610) (810,860) (820,940) ## RETAINED EARNINGS 6,515,374$ 6,701,589$ 6,826,634$ 6,956,033$ ## CAPITAL OUTLAY -$ 7,500$ 660,095$ 21,720$ 170 Page 190 of 361 ## LIQUOR OPERATIONS ## MISSION STATEMENT The mission of the Municipal Liquor Operations is to responsibly distribute alcoholic and MN Legal low dose cannabis beverages at a retail level, consistently aid in the form of quality customer service, well maintained, attractive city-owned facilities while also providing adequate funds for recreational projects in Richfield. ## DIVISION FOCUS The Richfield Liquor Dispensary was established in 1943. The operations consist of four brick & mortar retail stores with annual sales of $13,693,469.15 and a net profit of $1,106,077.14 before transfers out in 2025. When fully staffed, Liquor Operations employs 5 full-time, eight permanent part- time and approximately 50 intermittent staff members for an estimated FTE count of 23.95 employees. ## 2026 HIGHLIGHTS •Year End 2025 was (2.25%) compared to Year End 2024. According to other industry trends we finished strong. 2026 YTD sales as of 06/30/2026 are +0.14% compared to the same time 2025. •The annual “Toast to Richfield” was postponed until Thursday October 8 th . Same location. •Implementation of Tungsten at the liquor stores to process invoicing/receiving more efficiently with City Finance. •Efficient staffing updates: Filled 2 vacant (PPT 30-39) Shift Lead positions with 2 (PPT 20-29). •The MN State Auditors report for 2024 was released and we ranked #2 in sales behind Lakeville. ## 2026/2027 GOALS •Fully integrate and utilize the Tungsten process at the stores. •Sunset the practice of sharing Shift Leads across store to make each location accountable for their own. ## DIVISION EXPENDITURE COMMENT •A new HVAC unit at the Downtown store was installed in May 2026. •Sales remain to be flat, yet personal services continue to grow. •Cedar & Penn are more labor intensive because they don’t have a back room, and everything gets sent downstairs, needing to be handled more reducing efficiency. oMalt beverage/Beer is the leading category (37%) of all sales. Most labor-intensive category and lowest profit margin 171 Page 191 of 361 ## DETAIL REVENUES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## FUND: LIQUOR OPERATIONS FUND ## DEPARTMENT: Liquor Operations ## BUSINESS UNIT: RICHFIELD LIQUOR DOWNTOWN - 50010 ## Liquor Sales 50051,397,7071,393,5501,433,7101,455,215Sales - Liquor$$$$ 5010704,848768,850698,405708,880Sales - Wine 50151,386,5231,412,7701,395,2701,416,200Sales - Beer 5020157,491134,550183,730186,485Sales - Cordials 503037,79338,44037,28537,845Sales - Food 503593,99496,10095,32596,755Sales- Other 3,844,2603,843,7253,901,3803,778,356Liquor Sales ## Total $$$$ ## Other Income 801127,49518,00018,00018,000Investment Earnings$$$$ 80323,1852,5002,5002,500Commissions 8033205(370)(1,000)(1,000)Cash/Over Short 80404,6863,5003,5003,600Sales - Lottery Commissions 23,63023,00023,10035,571Other Income ## Total $$$$ ## RICHFIELD LIQUOR ## DOWNTOWN TOTAL 3,867,8903,866,7253,924,4803,813,927$$$$ 172 Page 192 of 361 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## FUND: LIQUOR OPERATIONS FUND ## DEPARTMENT: Liquor Operations ## BUSINESS UNIT: RICHFIELD LIQUOR DOWNTOWN - 50010 ## Costs of Goods Sold 55102,610,0042,748,6402,690,6052,730,965Purchases for Resale$$$$ 2,748,6402,690,6052,730,9652,610,004Costs of Goods Sold ## Total $$$$ ## Personal Services 6005119,422122,010122,780129,730Full Time$$$$ 600697,165125,360104,325110,735Part-time 6007110,943133,160127,565131,760Seasonal 60097931,2501,2501,250Overtime ## 603119,86623,22021,74522,720Employer Social Security 60324,6475,4305,0905,315Employer Medicare 6033(82,076)28,41026,60027,920Employer Pera 603548,89451,15048,48555,070Medical Insurance 6036897910890915Dental Insurance 603788505550Term Life 60383,3003,3703,3703,540Workers Compensation ## 6040141210220230Long Term Disability ## 604161-1,3501,415Paid Family Medical Leave 605127,44028,26028,26029,110Interdepartmental Labor 60523,9502,9402,94018,060Administrative Charges 525,730494,925537,820355,531Personal Services ## Total $$$$ ## Other Services & Charges 61039,2319,6109,61010,000Professional Services -General$$$$ ## 620228,00026,27026,27025,363Data Processing Rental 62057,4665,8405,84010,000Maintenance & Repairs 620732,19529,76029,76030,000Utility Services 63013,0363,0003,0003,000Advertising & Publication 6302798730730600Communications 63036811,8001,8001,800Professional Development 63051,9482,2502,1002,100Subscriptions & Memberships 630712,66917,14016,8009,855Insurance & Bonds 63085,0005,1005,1005,200Property Liability 63105571,2001,1001,100Taxes & Licenses ## 631511,5359,00012,10012,250Other Contractual Services 64018421,5001,5001,500Office Supplies 640270405050Copy Charges 640328260260260Postage 64092631,6001,6001,600Uniforms & Clothing 64146,7889,5009,5009,500Other Supplies 651377,27482,70079,00079,000Other Charges 207,300206,120203,178198,381Other Services & Charges ## Total $$$$ ## Depreciation 661064,52590,06090,06070,000Depreciation$$$$ 173 Page 193 of 361 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## LIQUOR OPERATIONS FUND ## FUND: ## Liquor Operations ## DEPARTMENT: ## RICHFIELD LIQUOR DOWNTOWN - 50010 ## BUSINESS UNIT: 90,06090,06070,00064,525Depreciation ## Total $$$$ ## Capital Outlay 7230399,535Building Improvements$$$$ 735031,759Other Improvements 399,53531,759Capital Outlay ## Total $$$$ ## Other Financing Uses ## 8511198,479201,600201,590189,800Operating Transfers Out$$$$ ## 201,600201,590189,800198,479Other Financing Uses ## Total $$$$ 3,773,3303,683,3004,131,2983,458,679 ## RICHFIELD LIQUOR ## DOWNTOWN ## TOTAL $$$$ 174 Page 194 of 361 ## FUND: ## LIQUOR OPERATIONS FUND ## DEPARTMENT: Liquor Operations ## BUSINESS UNIT: ## RICHFIELD LIQUOR DOWNTOWN - 50010 ## DIVISION PERSONNEL ## CLASSIFICATIONS ## SALARY ## GRADE ## NUMBER OF EMPLOYEES 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## CAPITAL OUTLAY ## ITEMS 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## Regular Full-Time Employees ## .23.2316Liquor Operations Manager.23 1.001.0012Store Manager1.00 1.231.23 ## Total 1.23 ## Intermittent Employees 2.892.89103Sales Associate (15-Employees)15.00 2.892.89 ## Total 15.00 ## Part-Time Employees 1.621.7Shift Lead (2-employees)2.00 1.621. ## Total 2.00 -399,535$ $ Wold study - below grade waterproofing & sidewalks - $ -399,535 ## Total $$-$ 175 Page 195 of 361 ## Department/Division ## 50000: Liquor Operations ## Actual Actual ## BudgetBudget ## 202420252026R2027P ## Inputs: ## FTE:23.9523.9523.9523.95 Operational Expenditures3,629,850$ 3,789,137$ 3,954,040 4,087,865 Cost of Sales9,920,096$ 9,647,745$ 9,636,505$ 9,628,440$ Total Expenditures13,549,946$ 13,436,882$ 13,590,545$ 13,716,305$ ## Outputs: Annual Liquor Sales14,012,047$ 13,693,470$ 13,689,810$ 13,754,900$ ## Customer Count582,065580,741577,257583,029 Annual Advertising Expenditures5,199$ 12,233$ 12,000$ 12,000$ ## Effectiveness Measures: Profit from Liquor Sales4,091,951$ 4,045,725$ 4,053,305$ 4,126,460$ % of Sales29.20%29.54%29.61%30.00% Retained earnings (After Transfers Out)462,101$ 256,588$ 99,265$ 38,595$ ## Efficiency Measures: Advertising Cost Per Sales0.009$ 0.021$ 0.035$ 0.036$ Average Transaction 24.07$ 23.58$ 23.72$ 23.59$ ## Performance Measures ## Liquor Operations 176 Page 196 of 361 ## DETAIL REVENUES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## FUND: LIQUOR OPERATIONS FUND ## DEPARTMENT: Liquor Operations ## BUSINESS UNIT: RICHFIELD LIQUOR CEDAR POINT - 50020 ## Liquor Sales 50051,592,9881,561,9701,596,6851,580,715Sales - Liquor$$$$ 5010860,524872,860844,270835,830Sales - Wine 50151,845,5601,860,5801,786,4001,768,535Sales - Beer 5020227,132160,790243,725241,290Sales - Cordials 503045,13645,94039,23538,845Sales - Food 503595,00891,880105,705104,650Sales- Other 4,594,0204,616,0204,569,8654,666,348Liquor Sales ## Total $$$$ ## Other Income 801127,49518,00018,00018,000Investment Earnings$$$$ 80322,9042,5002,5002,500Commissions 8033(325)(370)(1,100)(1,100)Cash/Over Short 803550- - - Other Miscellaneous Revenues 80403,5183,5003,5003,500Sales - Lottery Commissions 23,63022,90022,90033,642Other Income ## Total $$$$ ## RICHFIELD LIQUOR CEDAR ## POINT TOTAL 4,617,6504,638,9204,592,7654,699,990$$$$ 177 Page 197 of 361 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## FUND: LIQUOR OPERATIONS FUND ## DEPARTMENT: Liquor Operations ## BUSINESS UNIT: RICHFIELD LIQUOR CEDAR POINT - 50020 ## Costs of Goods Sold 55103,315,3653,284,7203,231,2203,198,910Purchases for Resale$$$$ 3,284,7203,231,2203,198,9103,315,365Costs of Goods Sold ## Total $$$$ ## Personal Services 6005137,921141,400142,670147,750Full Time$$$$ 6006119,931135,340129,855137,130Part-time 6007163,348181,000178,455184,175Seasonal 60091,3071,2501,2501,250Overtime ## 603124,79928,24027,20528,100Employer Social Security 60325,7986,6006,3406,575Employer Medicare 603329,10934,99033,82535,180Employer Pera 603560,22961,52063,39572,185Medical Insurance 6036953970950975Dental Insurance 603793605555Term Life 60384,9805,0805,0805,330Workers Compensation ## 6040170250255260Long Term Disability ## 604182-1,7151,780Paid Family Medical Leave 605136,98038,09038,09039,230Interdepartmental Labor 60523,9503,9603,96024,320Administrative Charges 638,750633,100684,295589,650Personal Services ## Total $$$$ ## Other Services & Charges 610314,16512,95012,95013,000Professional Services -General$$$$ ## 620233,00035,40035,40024,885Data Processing Rental 62055,61514,30014,30015,000Maintenance & Repairs 620727,35822,91022,91023,200Utility Services 63013,1993,0003,0003,000Advertising & Publication 6302776730805600Communications 63036791,8001,8001,800Professional Development 63051,9482,3002,1502,150Subscriptions & Memberships 630715,30616,96016,63011,455Insurance & Bonds 63083,6203,6903,6903,760Property Liability 63105471,2001,0801,080Taxes & Licenses ## 631534,7759,25011,98012,000Other Contractual Services 64012,2551,5001,5001,500Office Supplies 640238505075Copy Charges 6409- 1,8001,8001,800Uniforms & Clothing 64147,7794,1009,5009,500Other Supplies 651397,70188,00099,00099,000Other Charges 219,940238,545223,805248,761Other Services & Charges ## Total $$$$ ## Depreciation 661040,78590,06090,06060,000Depreciation$$$$ 178 Page 198 of 361 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## FUND: LIQUOR OPERATIONS FUND ## DEPARTMENT: Liquor Operations ## BUSINESS UNIT: RICHFIELD LIQUOR CEDAR POINT - 50020 90,06090,06060,00040,785Depreciation ## Total $$$$ ## Capital Outlay 72307,500260,560Building Improvements$$$$ 7,500260,560Capital Outlay ## Total $$$$ ## Other Financing Uses ## 8511260,032263,980264,010247,860Operating Transfers Out$$$$ ## 263,980264,010247,860260,032Other Financing Uses ## Total $$$$ 4,497,4504,464,4354,675,4304,454,593 ## RICHFIELD LIQUOR CEDAR ## POINT TOTAL $$$$ 179 Page 199 of 361 ## FUND: ## LIQUOR OPERATIONS FUND ## DEPARTMENT: Liquor Operations ## BUSINESS UNIT: ## RICHFIELD LIQUOR CEDAR POINT - 50020 ## DIVISION PERSONNEL ## CLASSIFICATIONS ## SALARY ## GRADE ## NUMBER OF EMPLOYEES 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## CAPITAL OUTLAY ## ITEMS 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## Regular Full-Time Employees ## .31.3116Liquor Operations Manager.31 1.001.0012Store Manager1.00 1.311.31 ## Total 1.31 ## Intermittent Employees 4.354.35103Sales Associate (17-employees)15.00 4.354.35 ## Total 15.00 ## Part-Time Employees 1.841.847Shift Lead (2-employees)2.00 1.841.84 ## Total 2.00 7,500- Replace 1 of 2 cooler compressors $ $- $ - 260,560Wold study - below grade waterproofing & sidewalks- 7,500260,560 ## Total $$-$ 180 Page 200 of 361 ## DETAIL REVENUES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## FUND:LIQUOR OPERATIONS FUND ## DEPARTMENT:Liquor Operations ## BUSINESS UNIT: RICHFIELD LIQUOR PENN CENTRAL - 50030 ## Liquor Sales 50051,116,2811,107,3301,129,1301,157,355Sales - Liquor$$$$ 5010839,393830,490818,725839,190Sales - Wine 50151,268,5481,289,0001,302,7851,335,355Sales - Beer 5020179,998155,720186,310190,970Sales - Cordials 503026,45125,95023,90524,500Sales - Food 503557,02451,90054,49055,850Sales- Other 3,460,3903,515,3453,603,2203,487,695Liquor Sales ## Total $$$$ ## Other Income 801127,49518,00018,00018,000Investment Earnings$$$$ 80322,5662,5002,5002,500Commissions 8033(629)(370)(1,100)(1,100)Cash/Over Short 803550- - - Other Miscellaneous Revenues 80403,7223,2503,2503,250Sales - Lottery Commissions 23,38022,65022,65033,204Other Income ## Total $$$$ ## RICHFIELD LIQUOR PENN ## CENTRAL TOTAL 3,483,7703,537,9953,625,8703,520,899$$$$ 181 Page 201 of 361 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## FUND:LIQUOR OPERATIONS FUND ## DEPARTMENT:Liquor Operations ## BUSINESS UNIT: RICHFIELD LIQUOR PENN CENTRAL - 50030 ## Costs of Goods Sold 55102,475,6152,474,1802,460,7402,522,260Purchases for Resale$$$$ 2,474,1802,460,7402,522,2602,475,615Costs of Goods Sold ## Total $$$$ ## Personal Services 6005110,363120,630121,500128,385Full Time$$$$ 6006127,206135,740121,060111,010Part-time 6007115,236135,710125,610129,745Seasonal 60099071,2501,2501,250Overtime ## 603121,56123,83022,33022,230Employer Social Security 60325,0435,5705,2205,200Employer Medicare 603326,88329,28026,61527,685Employer Pera 603540,29041,44046,59060,230Medical Insurance 6036897820890915Dental Insurance 603789605550Term Life 60383,0803,1403,1403,300Workers Compensation ## 6040138210215230Long Term Disability ## 604167-1,4001,405Paid Family Medical Leave 605127,44028,26028,26029,110Interdepartmental Labor 60523,2102,9402,94018,060Administrative Charges 528,880507,075538,805482,410Personal Services ## Total $$$$ ## Other Services & Charges 610310,5719,6109,61010,000Professional Services -General$$$$ ## 620229,15026,27026,27024,537Data Processing Rental 62058,3166,5006,50010,000Maintenance & Repairs 620724,68218,75018,75020,000Utility Services 63013,1433,0003,0003,000Advertising & Publication 63021,5451,3801,600600Communications 63036791,8001,8001,800Professional Development 63051,9482,2502,1002,100Subscriptions & Memberships 630712,63214,10013,8209,825Insurance & Bonds 63084,0504,1304,1304,210Property Liability 63102921,2501,0801,080Taxes & Licenses ## 631511,2709,50011,80012,000Other Contractual Services 64011,4541,5001,5001,500Office Supplies 640280505050Copy Charges 6409- 1,8001,8001,800Uniforms & Clothing 64145,2385,6009,5009,500Other Supplies 651379,54175,00080,00080,000Other Charges 182,490193,310192,002194,591Other Services & Charges ## Total $$$$ ## Depreciation 661044,15673,17073,17060,000Depreciation$$$$ 182 Page 202 of 361 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## FUND: LIQUOR OPERATIONS FUND ## DEPARTMENT: Liquor Operations ## BUSINESS UNIT: RICHFIELD LIQUOR PENN CENTRAL - 50030 73,17073,17060,00044,156Depreciation ## Total $$$$ ## Other Financing Uses ## 8511192,929195,860195,860183,860Operating Transfers Out$$$$ ## 195,860195,860183,860192,929Other Financing Uses ## Total $$$$ 3,454,5803,430,1553,496,9273,389,701 ## RICHFIELD LIQUOR PENN ## CENTRAL ## TOTAL $$$$ 183 Page 203 of 361 ## FUND: ## LIQUOR OPERATIONS FUND ## DEPARTMENT: Liquor Operations ## BUSINESS UNIT: ## RICHFIELD LIQUOR PENN CENTRAL - 50030 ## DIVISION PERSONNEL ## CLASSIFICATIONS ## SALARY ## GRADE ## NUMBER OF EMPLOYEES 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## CAPITAL OUTLAY ## ITEMS 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## Regular Full-Time Employees ## .23.2316Liquor Operations Manager.23 1.001.0012Store Manager1.00 1.231.23 ## Total 1.23 ## Intermittent Employees 3.043.04103Sales Associates (12-employees)15.00 3.043.04 ## Total 15.00 ## Part-Time Employees 1.951.7Shift Lead (2-employees)2.00 1.951. ## Total 2.00 -- $ $- $ -- ## Total $$-$ 184 Page 204 of 361 ## LIQUOR OPERATIONS FUND ## FUND: ## DETAIL REVENUES BY BUSINESS UNIT ## CLASSIFICATIONS ## Liquor Operations ## DEPARTMENT: ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## BUSINESS UNIT: RICHFIELD LIQUOR SHOPS AT LYNDALE - 50040 ## Liquor Sales 5005639,617631,350630,160617,560Sales - Liquor$$$$ 5010305,029306,910277,955272,400Sales - Wine 5015634,773644,510633,760621,090Sales - Beer 5020123,195113,990119,000116,620Sales - Cordials 503018,94717,54017,83517,475Sales - Food 503539,51039,46036,01035,290Sales- Other 1,753,7601,714,7201,680,4351,761,071Liquor Sales ## Total $$$$ ## Other Income 801127,49518,00015,00015,000Investment Earnings$$$$ 80322,5962,5002,5002,500Commissions 8033314(370)(1,100)(1,100)Cash/Over Short 803548- - - Other Miscellaneous Revenues 80401,7152,0002,0002,000Sales - Lottery Commissions 22,13018,40018,40032,168Other Income ## Total $$$$ ## RICHFIELD LIQUOR SHOPS AT ## LYNDALE TOTAL 1,775,8901,733,1201,698,8351,793,239$$$$ 185 Page 205 of 361 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## LIQUOR OPERATIONS FUND ## FUND: ## Liquor Operations ## DEPARTMENT: ## BUSINESS UNIT: RICHFIELD LIQUOR SHOPS AT LYNDALE - 50040 ## Costs of Goods Sold 55101,246,7611,253,9401,200,3101,176,305Purchases for Resale$$$$ 1,253,9401,200,3101,176,3051,246,761Costs of Goods Sold ## Total $$$$ ## Personal Services 6005130,823131,630132,350137,240Full Time$$$$ 600690,863108,010107,560112,790Part-time 600775,61276,81080,20586,600Seasonal 60097281,2501,2501,250Overtime ## 603117,74618,41019,67020,515Employer Social Security 60324,1514,3104,6004,800Employer Medicare 603321,91323,63024,01025,250Employer Pera 603550,58752,77036,88054,665Medical Insurance 6036903920890915Dental Insurance 603789505550Term Life 60381,9802,0202,0202,120Workers Compensation ## 6040155230235245Long Term Disability ## 604153-1,2151,280Paid Family Medical Leave 605127,44028,26028,26029,110Interdepartmental Labor 60521,2302,9402,94018,060Administrative Charges 451,240442,140494,890424,273Personal Services ## Total $$$$ ## Other Services & Charges 61036,4849,6108,0008,000Professional Services -General$$$$ ## 620213,40026,27026,27025,235Data Processing Rental 62055,3953,0007,50010,000Maintenance & Repairs 620724,08419,26019,26020,000Utility Services 63012,8553,0003,0003,000Advertising & Publication 6302- 320320600Communications 63036771,8001,8001,800Professional Development 63054,5672,2502,1002,100Subscriptions & Memberships 630713,5138,0707,91010,600Insurance & Bonds 63083,6203,6903,6903,760Property Liability 63101,4671,2001,0801,080Taxes & Licenses ## 631512,36814,91014,91013,710Other Contractual Services 64019271,5001,5001,500Office Supplies 640218252525Copy Charges 6409- 9009001,100Uniforms & Clothing 64143,4393,1503,1503,300Other Supplies 651346,58736,00047,00047,000Other Charges 134,955148,415152,810139,401Other Services & Charges ## Total $$$$ ## Depreciation 661050,95628,14028,14060,000Depreciation$$$$ 186 Page 206 of 361 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## LIQUOR OPERATIONS FUND ## FUND: ## Liquor Operations ## DEPARTMENT: ## BUSINESS UNIT: RICHFIELD LIQUOR SHOPS AT LYNDALE - 50040 28,14028,14060,00050,956Depreciation ## Total $$$$ ## Other Financing Uses ## 8511198,049201,160201,150189,340Operating Transfers Out$$$$ ## 201,160201,150189,340198,049Other Financing Uses ## Total $$$$ 2,069,4352,020,1552,073,3452,059,440 ## RICHFIELD LIQUOR SHOPS AT ## LYNDALE TOTAL $$$$ 187 Page 207 of 361 ## LIQUOR OPERATIONS FUND ## FUND: ## Liquor Operations ## DEPARTMENT: ## BUSINESS UNIT: ## RICHFIELD LIQUOR SHOPS AT LYNDALE - 50040 ## DIVISION PERSONNEL ## CLASSIFICATIONS ## SALARY ## GRADE ## NUMBER OF EMPLOYEES 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## CAPITAL OUTLAY ## ITEMS 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## Regular Full-Time Employees ## .23.2316Liquor Operations Manager.23 1.001.0012Store Manager1.00 1.231.23 ## Total 1.23 ## Intermittent Employees 1.851.85103Sales Associate (7-employees)8.00 1.851.85 ## Total 8.00 ## Part-Time Employees 1.1.707Shift Lead (2-employees)2.00 1.1.70 ## Total 2.00 -- $ $- $ -- ## Total $$-$ 188 Page 208 of 361 ## DEPARTMENT SUMMARY BY BUSINESS UNIT ## BUSINESS UNIT ## FUND: ## Public Works ## DEPARTMENT: ## WATER AND WASTEWATER UTILITIES ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## Increase/ (Decrease) 2026 Budget/ 2027 Budget ## 510004,746,9628,994,2206,814,26014,151,640WATER UTILITY$$$$57.34% ## 520004,527,8926,056,3406,090,4806,731,210WASTEWATER UTILITY11.14% ## Public Works ## TOTAL 15,050,56012,904,74020,882,8509,274,854$$$38.75%$ ## REVENUES ## 510005,643,9675,366,0705,350,07013,615,570WATER UTILITY$$$$153.73% ## 520005,240,0085,558,9305,558,9306,055,570WASTEWATER UTILITY8.93% ## WATER AND WASTEWATER UTILITY $9,515,122 $11,713,650 `$11,370,004 $12,764,103 ## E ## X ## P ## E ## N ## S ## E ## S ## YEAR ## WATER AND WASTEWATER UTILITY ## Water Wastewat er 189 Page 209 of 361 ## WATER AND WASTEWATER FUND PROJECTION 2025202620272028 ## AVAILABLE FOR APPROPRIATIONActualRevisedBudgetProjected ## PRIOR YEAR RETAINED EARNINGS 20,134,790$ 21,743,911$ 22,224,371$ 24,462,461$ ## Revenues ## Charges for Service: Water & Wastewater Usage10,061,674 10,671,250 11,936,390 12,294,490 Grants- - 1,092,000 - ## Miscellaneous Revenues Interest112,648 42,000 42,000 42,000 Other Revenues709,653 195,750 192,750 195,750 Total Miscellaneous Revenues822,301 237,750 234,750 237,750 Total Revenues10,883,975 10,909,000 13,263,140 12,532,240 ## Expenses Personal Services2,326,634 2,836,720 3,056,110 3,163,070 Other Services and Charges5,217,997 5,768,630 6,178,400 6,394,650 Depreciation1,596,828 1,664,950 1,650,000 1,699,500 Interest 133,395 158,240 140,540 124,584 Total Operating Expenses9,274,854 10,428,540 11,025,050 11,381,804 Net Income (Loss)1,609,121 480,460 2,238,090 1,150,436 ## RETAINED EARNINGS 21,743,911 22,224,371 24,462,461 25,612,897 ## BOND PRINCIPAL * -$ 661,200$ 682,800$ 296,000$ ## CAPITAL OUTLAY ** -$ 1,815,000$ 9,175,000$ -$ ## BOND PROCEEDS *** -$ -$ 6,408,000$ -$ * Bonds and internal loans are not recorded as current expenses, but rather as adjustments to cash position. ** Capital outlay expense is recorded as depreciation over the useful life of the fixed asset. *** Bond proceeds are not recorded as current revenues. 190 Page 210 of 361 ## BUDGET SUMMARY ## WATER FUND PROJECTION 2025202620272028 ## AVAILABLE FOR APPROPRIATIONActualRevisedBudgetProjected ## PRIOR YEAR RETAINED EARNINGS 10,549,141$ 11,446,146$ 11,300,556$ 12,921,136$ ## Revenues Water Usage4,916,023$ 5,140,070$ 5,908,570$ 6,085,830$ Grants- - 1,092,000 - ## Miscellaneous Revenues Interest18,291 30,000 30,000 30,000 Other Revenues709,653 180,000 177,000 180,000 Total Miscellaneous Revenues727,944 210,000 207,000 210,000 Total Revenues5,643,967 5,350,070 7,207,570 6,295,830 ## Expenses Personal Services1,229,105 1,552,670 1,670,950 1,729,430 Other Services and Charges2,185,065 2,463,390 2,542,710 2,631,710 Depreciation1,241,398 1,366,180 1,275,000 1,313,250 Interest 91,394 113,420 98,330 85,327 Total Operating Expenses4,746,962 5,495,660 5,586,990 5,759,717 Net Income 897,005 (145,590) 1,620,580 536,113 ## RETAINED EARNINGS 11,446,146 11,300,556 12,921,136 13,457,249 ## BOND PRINCIPAL * -$ 598,600$ 614,650$ 226,750$ ## CAPITAL OUTLAY ** -$ 720,000$ 7,950,000$ -$ ## BOND PROCEEDS **** -$ -$ 6,408,000$ -$ ## ***Water Revenue Bond Debt Coverage1.32(0.20)2.271.72 * Bonds and internal loans are not recorded as current expenses, but rather as adjustments to cash position. ** Capital outlay expense is recorded as depreciation over the useful life of the fixed asset. ***Calculation excludes depreciation. **** Bond proceeds are not recorded as current revenues. 191 Page 211 of 361 ## WATER UTILITY DIVISION ## MISSION STATEMENT The Public Works Department works hard to sustain and improve the quality of life for our community by offering the highest standards in essential municipal services and providing them in a timely, responsible and professional manner. ## DIVISION FOCUS To provide dependable, quality, high-grade softened water to the City of Richfield. Water is supplied by operating a 14 million-gallon per day lime softening plant 24 hours a day, 365 days per year. The water is delivered to 10,820 services by a 117-mile piping system that ranges in size from 4 inches to 24 inches in diameter. The piping system services two towers that store 2.5 million gallons of water, 1,062 hydrants, and approximately 2,460 valves. A clearwell reservoir of 2.5 million gallons of water is operated in conjunction with the treatment and distribution system for both maintaining water system demand and having a reserve for fire suppression. The division also produces the annual Consumer Confidence Report and distributes the report to all residents and businesses. ## 2026 HIGHLIGHTS • Cybersecurity upgrades began to improve and protect our network SCADA system (City Council Priority/Outcome 1c & 3a). • Completed Risk and Resiliency Assessment and Emergency Response Plan. These are legislative requirements to satisfy the Federal Safe Drinking Water Act as a water utility permittee (City Council Priority/Outcome 1c & 3a-b). • Secured $1.092M in Community Project Federal funding for the Emergency ## Water Systems Interconnect Project (City Council Priority/Outcome 1b, 3b) • Undertook development of construction documents and a bid letting for the Emergency Water Systems Interconnect project (City Council Priority/Outcome 2c & 3a). • Initiated Water Supply Plan update, the update is due to Minnesota Department of Natural Resources in March 2027 (City Council Priority/Outcome 1c & 3a-c). • Completed a current and forward-looking (50 year) water rate study for the water utility operation (City Council Priority/Outcome 1b- c, 3a-b ). • Hosted 150 chemistry students from Richfield High S chool for water treatment plant tours. The event brought greater awareness to the water utility business as well as promoted the City’s RichWater identity (City Council Priority/Outcome 3a). 192 Page 212 of 361 • Began design of water treatment plant generator replacement project (City Council Priority/Outcome 1c & 3a). ## 2027 GOALS • Utilize the utilities risk and resiliency plan and program projects, as needed, to increase resiliency of our water infrastructure (City Council Priority/Outcome 1c & 3a-c). • Construct the Emergency Water Systems Interconnect project (City Council Priority/Outcome 3a,b). • Continue the “Trust the Tap” campaign and high school water treatment plant tours for promoting the Richwater identity and consumption of drinking water produced by Richfield (City Council Priority/Outcome 3c & 5a). • Complete the water treatment plant generator project to increase resiliency of water system (City Council Priority/Outcome 1c & 3a). • Complete an update of the Water Supply Plan (City Council Priority/Outcome 1c & 3a-c). • Complete Water Treatment Plant feasibility study, evaluating lifecycle costs and intangibles associated with sustainable water supply options into the future (City Council Priority/Outcome 1c & 3a-c). ## DIVISION EXPENDITURE COMMENT The 2026 Revised Budget reflects a 0.0% increase from the 2026 Adopted Budget related to operating expenses. The 2027 Proposed Budget reflects an increase of 4.87% from the 2026 Adopted Budget related to operating expenses. This is primarily due to increasing costs related to personnel wages and benefits, water treatment chemicals (6413), and maintenance and repair (6205) needs at the water treatment plant. 193 Page 213 of 361 ## WATER UTILITY ## FUND: ## DETAIL REVENUES BY BUSINESS UNIT ## CLASSIFICATIONS ## Public Works ## DEPARTMENT: ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## WATER UTILITY - 51000 ## BUSINESS UNIT: License & permits 4164- 2,5002,5002,500Water Permit$$$$ 2,5002,5002,500- License & permits ## Total $$$$ ## Intergovernmental Revenues 42121,092,000Federal Grants$$$$ 424410,00010,00010,00010,000Grants Other 10,00010,0001,102,00010,000Intergovernmental Revenues ## Total $$$$ ## Miscellaneous Revenues 463220,311- - - Recovery/Damage to City Prop.$$$$ - - - 20,311Miscellaneous Revenues ## Total $$$$ ## Special Assessments 47403,9954,5004,5004,500Special Assessments-Penalty &$$$$ 4,5004,5004,5003,995Special Assessments ## Total $$$$ ## Utility Revenues ## 48123,885,1974,160,5904,160,5904,847,090Metered Water - Tax Exempt$$$$ 4814554,603500,000500,000582,000Metered Water ## 4816446,607433,600433,600433,600Water Service Charges ## 481825,62126,38026,38026,380Other Water Charges/Services 4848- 12,50012,50012,500Certification Fee 5,133,0705,133,0705,901,5704,912,028Utility Revenues ## Total $$$$ ## Other Income 801118,29146,00030,00030,000Investment Earnings$$$$ 8034600,492- - - Other Refund/Reimbursements ## 803563,350170,000170,000167,000Other Miscellaneous Revenues 803815,500- - - Gain on disposal of Assets 216,000200,000197,000697,633Other Income ## Total $$$$ ## Other Financing Sources 80526,408,000Bond Proceeds$$$$ ## 6,408,000Other Financing Sources ## Total $$$$ ## WATER UTILITY ## TOTAL 5,366,0705,350,07013,615,5705,643,967$$$$ 194 Page 214 of 361 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## WATER UTILITY ## FUND: ## Public Works ## DEPARTMENT: ## WATER UTILITY - 51000 ## BUSINESS UNIT: ## Personal Services 6005911,774950,670923,490997,970Full Time$$$$ 60078,53622,36022,46023,780Seasonal 600959,62235,00050,00050,000Overtime ## 603160,36059,29057,60062,300Employer Social Security 603214,11613,87013,47014,570Employer Medicare 6033(226,308)69,83067,98073,190Employer Pera 6035133,827135,860139,350162,110Medical Insurance 60366,6747,1506,7407,150Dental Insurance 6037728420480460Term Life 603838,15038,91038,91040,860Workers Compensation ## 60401,0381,6501,6001,740Long Term Disability ## 6041178-3,5203,800Paid Family Medical Leave 605154,10060,00055,00055,000Interdepartmental Labor 6052166,310172,070172,070178,020Administrative Charges 1,567,0801,552,6701,670,9501,229,105Personal Services ## Total $$$$ ## Other Services & Charges 6103274,669415,170471,710368,220Professional Services -General$$$$ 6201- 1,7501,7501,750Rents & Leases ## 620229,42133,19033,19029,180Data Processing Rental ## 620457,15060,01060,01063,010Motor Pool Operating Rental 6205629,359504,300479,300559,300Maintenance & Repairs 6207282,393365,000365,000379,600Utility Services 630111,33616,0008,5009,000Advertising & Publication 630212,40016,20016,20016,200Communications 630329,30619,50023,50024,500Professional Development 63057,69920,1007,1007,200Subscriptions & Memberships 630767,29637,87037,13068,710Insurance & Bonds 630838,73039,50039,50040,290Property Liability 631016,40019,75019,75022,750Taxes & Licenses ## 631515,39012,2009,9506,800Other Contractual Services 64012,6712,0002,0002,000Office Supplies 640216500500500Copy Charges 640326,54916,00016,00016,000Postage 64096,6689,0009,00010,000Uniforms & Clothing 641060,32867,00062,00072,000Small Tools & Parts 641247,00535,00035,00035,000Maint. & Const. Materials 6413480,680541,300541,300579,700Chemicals 641444,80641,50043,50049,500Other Supplies 651362,740178,000181,500181,500Other Charges 2,450,8402,463,3902,542,7102,203,012Other Services & Charges ## Total $$$$ 195 Page 215 of 361 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## WATER UTILITY ## FUND: ## Public Works ## DEPARTMENT: ## WATER UTILITY - 51000 ## BUSINESS UNIT: ## Depreciation 66101,241,3981,366,1801,366,1801,275,000Depreciation$$$$ 1,366,1801,366,1801,275,0001,241,398Depreciation ## Total $$$$ ## Capital Outlay 7350(21,365)2,925,000720,0007,950,000Other Improvements$$$$ 74003,418- - - Machinery & Equipment 2,925,000720,0007,950,000(17,947)Capital Outlay ## Total $$$$ ## Other Financing Uses 8521- 598,600598,600614,650Principal Payments$$$$ 852291,15685,020111,92096,830Interest Payments ## 85232381,5001,5001,500Paying Agent Fees ## 685,120712,020712,98091,394Other Financing Uses ## Total $$$$ ## 8,994,2206,814,26014,151,6404,746,962WATER UTILITY ## TOTAL $$$$ 196 Page 216 of 361 ## WATER UTILITY ## FUND: ## Public Works ## DEPARTMENT: ## WATER UTILITY - 51000 ## BUSINESS UNIT: ## DIVISION PERSONNEL ## CLASSIFICATIONS ## SALARY ## GRADE ## NUMBER OF EMPLOYEES 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## CAPITAL OUTLAY ## ITEMS 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## Regular Full-Time Employees ## 4.004.00LT-2Water Plant Operator4.00 ## 2.002.00LT-2Water Plant Mechanic2.00 ## 2.002.00LT-1Public Works Worker2.00 .50.5016Utility Superintendent.50 .50.5014Utility Supervisor.50 ## .80.808Utility Billing Clerk.80 ## .15.158Senior Office Assistant.15 .15.1512GIS Coordinator.15 ## .35.3515Assistant Utility Superintendent.35 ## .17.1710Asset Management/GIS Analyst.17 10.6210.62 ## Total 10.62 ## 150,00050,000Water Plant Elevator Replacement $ $175,000 $ ## 50,000- Sludge Pump Replacement50,000 ## 100,0004,900,000Emergency Water System Interconnect100,000 ## 100,0002,500,000Water Plant Generator2,500,000 ## - - Water Plant Program Space Renovation100,000 ## 125,000100,000Water Plant Chlorine Storage Area- ## 25,00025,000SCADA Cybersecurity Upgrade- ## - 200,000WTP Second Floor Restrooms Renovation- ## - 125,000WTP Personnel Safety Systems Improvements- - 50,000Well #3 Water Service- ## 170,000- Public Works Storage Facility- 720,0007,950,000 ## Total $$2,925,000$ 197 Page 217 of 361 ## Department/Division ## Actual ## ActualBudgetBudget ## 202420252026R2027P ## Inputs: ## Number of Full-Time & Part-Time Employees10.4510.4510.6210.62 Division Operating Revenues4,574,577$ 4,912,028$ 5,133,070$ 5,901,570$ Division Operating Expenses2,265,607$ 2,136,786$ 2,463,390$ 2,542,710$ Principal Payments and Interest107,684$ 91,394$ 712,020$ 712,980$ Capital Outlay (excluding Depreciation)164,983$ 13,812$ 720,000$ 7,950,000$ ## Outputs: ## Total Miles of Water Mains117117117117 Water Pumped in Gallons876,522,000 840,316,000 900,000,000 900,000,000 ## Total WM Replace/Rehab (feet)1,4561,55851502740 ## Annual Number of Water Main Breaks17181818 ## Efficiency Measures: Operating Cost Per 1 Million Gallons Pumped2,585$ 2,543$ 2,737$ 2,825$ Cost per Capita (excluding Capital Outlay)64.15$ 60.23$ #85.84$ 88.01$ ## Performance Measures ## Water Utility 198 Page 218 of 361 ## GENERAL OBLIGATION REFUNDING BONDS, SERIES 2015B ## SCHEDULE OF DEBT SERVICE REQUIREMENTS December 31, 2026 ## PAYMENTUNPAID ## YEARPRINCIPALINTERESTTOTALPRINCIPAL 2026400,000$ 2027400,000 4,000 404,000 - 400,000$ 4,000$ 404,000$ 199 Page 219 of 361 ## WATER GENERAL OBLIGATION BONDS, SERIES 2019A ## SCHEDULE OF DEBT SERVICE REQUIREMENTS December 31, 2026 ## PAYMENTUNPAID ## YEARPRINCIPALINTERESTTOTALPRINCIPAL 2026905,000$ 202750,000 27,200 77,200 855,000 202855,000 25,100 80,100 800,000 202955,000 23,175 78,175 745,000 203060,000 21,450 81,450 685,000 203160,000 19,650 79,650 625,000 203260,000 17,850 77,850 565,000 203365,000 15,975 80,975 500,000 203465,000 14,025 79,025 435,000 203565,000 12,075 77,075 370,000 203670,000 10,050 80,050 300,000 203770,000 7,950 77,950 230,000 203875,000 5,775 80,775 155,000 203975,000 3,525 78,525 80,000 204080,000 1,200 81,200 - 905,000$ 205,000$ 1,110,000$ 200 Page 220 of 361 ## WATER GENERAL OBLIGATION BONDS, SERIES 2020A ## SCHEDULE OF DEBT SERVICE REQUIREMENTS December 31, 2026 ## PAYMENTUNPAID ## YEARPRINCIPALINTERESTTOTALPRINCIPAL 20261,445,000$ 2027130,000 32,975 162,975 1,315,000 2028135,000 29,000 164,000 1,180,000 2029140,000 24,875 164,875 1,040,000 2030145,000 20,600 165,600 895,000 2031145,000 16,975 161,975 750,000 2032150,000 14,025 164,025 600,000 203360,000 11,925 71,925 540,000 203465,000 10,675 75,675 475,000 203565,000 9,375 74,375 410,000 203665,000 8,075 73,075 345,000 203765,000 6,775 71,775 280,000 203870,000 5,390 75,390 210,000 203970,000 3,903 73,903 140,000 204070,000 2,363 72,363 70,000 204170,000 788 70,788 - 1,445,000$ 197,718$ 1,642,718$ 201 Page 221 of 361 ## WATER GENERAL OBLIGATION BONDS, SERIES 2022A ## SCHEDULE OF DEBT SERVICE REQUIREMENTS December 31, 2026 ## PAYMENTUNPAID ## YEARPRINCIPALINTERESTTOTALPRINCIPAL 2026833,700$ 202734,650 6,830 41,480 799,050 202836,750 6,531 43,281 762,300 202937,800 6,219 44,019 724,500 203039,900 5,894 45,794 684,600 203140,950 5,556 46,506 643,650 203243,050 5,204 48,254 600,600 203344,100 4,840 48,940 556,500 203446,200 4,462 50,662 510,300 203548,300 4,067 52,367 462,000 203650,400 3,654 54,054 411,600 203752,500 3,224 55,724 359,100 203853,550 2,780 56,330 305,550 203956,700 2,319 59,019 248,850 204058,800 1,836 60,636 190,050 204160,900 1,335 62,235 129,150 204263,000 817 63,817 66,150 204366,150 277 66,427 - 833,700$ 65,845$ 899,545$ 202 Page 222 of 361 ## BUDGET SUMMARY ## WASTEWATER UTILITY FUND PROJECTION 2025202620272028 ## AVAILABLE FOR APPROPRIATION ## ActualRevisedBudgetProjected ## PRIOR YEAR RETAINED EARNINGS 9,585,649$ 10,297,765$ 10,923,815$ 11,541,325$ ## Revenues Sewer Usage5,145,651 5,531,180 6,027,820 6,208,660 ## Miscellaneous Revenues Interest94,357 12,000 12,000 12,000 Other Revenues- 15,750 15,750 15,750 Total Miscellaneous Revenues94,357 27,750 27,750 27,750 Total Revenues5,240,008 5,558,930 6,055,570 6,236,410 ## Expenses Personal Services1,097,529 1,284,050 1,385,160 1,433,640 Other Services and Charges3,032,932 3,305,240 3,635,690 3,762,940 Depreciation355,430 298,770 375,000 386,250 Interest42,001 44,820 42,210 39,257 Operating Expenses4,527,892 4,932,880 5,438,060 5,622,087 Net Income 712,116 626,050 617,510 614,323 ## Operating Transfers From (To) Projects Funds- - - - - - - - ## RETAINED EARNINGS 10,297,765 10,923,815 11,541,325 12,155,648 ## BOND PRINCIPAL * -$ 62,600$ 68,150$ 69,250$ ## CAPITAL OUTLAY **-$ 1,095,000$ 1,225,000$ -$ ## ***Wastewater Revenue Bond Coverage6.845.835.605.66 * Bonds are not recorded as current expenses, but rather as adjustments to cash position. ** Capital outlay expense is recorded as depreciation over the useful life of the fixed asset. ***Calculation excludes depreciation. 203 Page 223 of 361 ## WASTEWATER UTILITY DIVISION ## MISSION STATEMENT The Public Works Department works hard to sustain and improve the quality of life for our community by offering the highest standards in essential municipal services and providing them in a timely, responsible and professional manner. ## DIVISION FOCUS To provide responsible collection and disposal of wastewater for the community with minimal inconvenience to residents and businesses. The division focus is operation, maintenance, and rehabilitation of a 100-mile collection system consisting of pipes ranging from 9 to 36 inches in diameter. This collection system serves approximately 10,820 services. This division also operates 9 sanitary sewer lift stations that lift wastewater from low areas to a higher elevation where it flows by gravity to the Metropolitan Council Environmental Services (MCES) wastewater system. ## 2026 HIGHLIGHTS •Continued proactive maintenance of the wastewater collection system by jetting/proofing the entire city on an annual basis, including televising and root sawing ( City Council Priority/Outcome 1c & 3a). •Rehabilitated approximately 5 miles of sanitary sewer main (City Council Priority/Outcome 3a). •Began design of a sanitary sewer project to provide capacity for a new residential development along Portland Avenue South (City Council Priority/Outcome 1c & 3a). •Began design of Sanitary Lift Station 6 Rehabilitation Project (City Council Priority/Outcome 1c & 3a). •Began update of Sewer Comprehensive Plan as required by Metropolitan Council in conjunction with Citywide Comprehensive Plan update (City Council Priority/Outcome 1c & 3a). •Completed a current and forward-looking (50 year) sewer rate study for the sanitary sewer utility operation (City Council Priority/Outcome 1b & 3a, b). •Began sanitary sewer structure adjustments required for the Nicollet Avenue Reconstruction Project (City Council Priority/Outcome 3a, b). ## 2027 GOALS •Continue the sanitary sewer rehabilitation program (City Council Priority/Outcome 3a). •Continue proactive maintenance of the wastewater collection system by 204 Page 224 of 361 jetting/proofing the entire City on an annual basis, including televising and root sawing (City Council Priority/Outcome 1c & 3a). •Complete bid letting and construction of Sanitary Lift Station 6 Rehabilitation Project (City Council Priority/Outcome 1c & 3a). •Complete Sanitary Sewer Comprehensive Plan update (City Council Priority/Outcome 1c & 3a). •Complete sanitary sewer structure adjustments required for the Nicollet Avenue Reconstruction Project (City Council Priority/Outcome 3a, b). ## DIVISION EXPENDITURE COMMENT The 2026 Revised Budget reflects a 0.0% increase from the 2026 Adopted Budget related to operating expenses. The 2027 Proposed Budget reflects an increase of 9.4% from the 2026 Adopted Budget related to operating expenses. This is primarily due to a 15.95% increase to the 2027 Metropolitan Council Environmental Services (MCES) charges for providing wastewater treatment services for the City of Richfield. Approximately 60% of the Wastewater Division expenditures are pass through to the MCES for these services. 205 Page 225 of 361 ## WASTEWATER UTILITY ## FUND: ## DETAIL REVENUES BY BUSINESS UNIT ## CLASSIFICATIONS ## Public Works ## DEPARTMENT: ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## WASTEWATER UTILITY - 52000 ## BUSINESS UNIT: License & permits 4162-15,00015,00015,000Sewer Permit$$$$ 15,00015,00015,000-License & permits ## Total $$$$ ## Utility Revenues 48325,114,4145,518,1805,518,1806,014,820Sewer Charges$$$$ ## 4836150500500500Other Sewer Charges/Services 483831,087- - - Sewer Availability Charge 4848-12,50012,50012,500Certification Fee 5,531,1805,531,1806,027,8205,145,651Utility Revenues ## Total $$$$ ## Other Income 801194,35712,00012,00012,000Investment Earnings$$$$ 8035- 750750750Other Miscellaneous Revenues 12,75012,75012,75094,357Other Income ## Total $$$$ ## WASTEWATER UTILITY ## TOTAL 5,558,9305,558,9306,055,5705,240,008$$$$ 206 Page 226 of 361 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## WASTEWATER UTILITY ## FUND: ## Public Works ## DEPARTMENT: ## WASTEWATER UTILITY - 52000 ## BUSINESS UNIT: ## Personal Services 6005624,344749,170721,490785,250Full Time$$$$ 600731,32722,47022,46022,780Seasonal 600930,84820,00020,00020,000Overtime ## 603141,91746,61044,66048,620Employer Social Security 60329,80310,90010,44011,370Employer Medicare 6033(25,482)54,95052,98057,760Employer Pera 6035107,218126,020129,380150,700Medical Insurance 60365,1246,4006,0106,380Dental Insurance 6037503340400380Term Life 603821,78022,22022,22023,330Workers Compensation ## 60407141,3001,2501,360Long Term Disability ## 6041123- 2,7603,010Paid Family Medical Leave 605183,00083,00080,00080,000Interdepartmental Labor 6052166,310172,070172,070178,020Administrative Charges 6054- (2,070)(2,070)(3,800)Interdepartmental Labor Credit 1,313,3801,284,0501,385,1601,097,529Personal Services ## Total $$$$ ## Other Services & Charges 6103154,819202,130265,170187,250Professional Services -General$$$$ ## 620229,25033,19033,19029,180Data Processing Rental ## 6203190- - - Motor Pool Fixed Rental ## 620478,66082,59082,59086,720Motor Pool Operating Rental 620549,500125,000107,000107,000Maintenance & Repairs 620718,91026,25026,25026,250Utility Services 6301- 5,0005,0005,000Advertising & Publication 63028,04414,30014,30014,300Communications 630316,55315,30017,30017,300Professional Development 63052502501,5001,600Subscriptions & Memberships 63078,65310,73010,5208,930Insurance & Bonds 63087,7207,8707,8708,030Property Liability 6310- 200200200Taxes & Licenses ## 63154,94421,0007,8004,500Other Contractual Services 6401- 100100100Office Supplies 6403- 100100100Postage 64098,8488,0009,0009,000Uniforms & Clothing 641034,01929,00029,00022,500Small Tools & Parts 641218,58742,25032,25032,250Maint. & Const. Materials 64141,8749,8509,8509,850Other Supplies 6513- 13,00016,50016,500Other Charges 646,110675,490586,560440,821Other Services & Charges ## Total $$$$ ## MCES Charges 66012,580,8682,629,7502,629,7503,049,130MCES Charges$$$$ 207 Page 227 of 361 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## WASTEWATER UTILITY ## FUND: ## Public Works ## DEPARTMENT: ## WASTEWATER UTILITY - 52000 ## BUSINESS UNIT: 2,629,7502,629,7503,049,1302,580,868MCES Charges ## Total $$$$ ## Depreciation 6610355,430298,770298,770375,000Depreciation$$$$ 298,770298,770375,000355,430Depreciation ## Total $$$$ ## Capital Outlay 73509,5291,075,0001,095,0001,225,000Other Improvements$$$$ 74001,714- - - Machinery & Equipment 1,075,0001,095,0001,225,00011,243Capital Outlay ## Total $$$$ ## Other Financing Uses 8521-62,60062,60068,150Principal Payments$$$$ 852242,00130,53044,62042,010Interest Payments 8523- 200200200Paying Agent Fees ## 93,330107,420110,36042,001Other Financing Uses ## Total $$$$ ## 6,056,3406,090,4806,731,2104,527,892WASTEWATER UTILITY ## TOTAL $$$$ 208 Page 228 of 361 ## WASTEWATER UTILITY ## FUND: ## Public Works ## DEPARTMENT: ## WASTEWATER UTILITY - 52000 ## BUSINESS UNIT: ## DIVISION PERSONNEL ## CLASSIFICATIONS ## SALARY ## GRADE ## NUMBER OF EMPLOYEES 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## CAPITAL OUTLAY ## ITEMS 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## Regular Full-Time Employees ## 6.006.00LT-1Public Works Worker6.00 .50.5016Utility Superintendent.50 .50.5014Utility Supervisor.50 ## .80.808Utility Billing Clerk.80 ## .15.158Senior Office Assistant.15 ## .35.3515Assistant Utility Superintendent.35 .15.1512GIS Coordinator.15 ## .17.1710Asset Management/GIS Analyst.17 8.628.62 ## Total 8.62 ## 900,000900,000Sewer Main Lining $ $900,000 $ ## 170,000- Public Works Storage Facility175,000 25,00025,000Cybersecurity upgrade/SCADA- - 300,000Lift Station 6 Improvements- 1,095,0001,225,000 ## Total $$1,075,000$ 209 Page 229 of 361 ## Department/Division ## ActualActualBudgetBudget ## 202420252026R2027P ## Inputs: ## Number of Full-Time & Part-Time Employees8.458.628.628.62 Division Operating Revenues4,950,448$ 5,240,008$ 5,558,930$ 6,055,570$ Division Operating Expenses & MCES4,121,980$ 4,192,946$ 4,589,290$ 5,020,850$ ## Outputs: ## Total Miles of Sanitary Sewer Mains113113113113 ## Total Sanitary Flow in Gallons738,940,000738,860,000758,020,000 833,300,000 ## Effectiveness Measures: ## Accumulative Sanitary Main Lined/ Replaced (feet)111,300144,300171,300198,300 % of System Replaced/Lined18.65%24.19%28.71%33.24% ## Sanitary Sewer Back Ups ## Caused by City Main0100 ## Efficiency Measures: ## Annual Expense Per Capita for Sanitary System and Disposal107.11$ 108.96$ 119.26$ 130.47$ ## Performance Measures ## Wastewater Utility 210 Page 230 of 361 ## SEWER GENERAL OBLIGATION BONDS, SERIES 2019A ## SCHEDULE OF DEBT SERVICE REQUIREMENTS ## DECEMBER 31, 2026 ## PAYMENTUNPAID ## YEARPRINCIPALINTERESTTOTALPRINCIPAL 2026830,000$ 202750,000 24,900 74,900 780,000 202850,000 22,900 72,900 730,000 202950,000 21,150 71,150 680,000 203055,000 19,575 74,575 625,000 203155,000 17,925 72,925 570,000 203255,000 16,275 71,275 515,000 203360,000 14,550 74,550 455,000 203460,000 12,750 72,750 395,000 203560,000 10,950 70,950 335,000 203665,000 9,075 74,075 270,000 203765,000 7,125 72,125 205,000 203865,000 5,175 70,175 140,000 203970,000 3,150 73,150 70,000 204070,000 1,050 71,050 - 830,000$ 186,550$ 1,016,550$ 211 Page 231 of 361 ## WATER GENERAL OBLIGATION BONDS, SERIES 2022A ## SCHEDULE OF DEBT SERVICE REQUIREMENTS December 31, 2026 ## PAYMENTUNPAID ## YEARPRINCIPALINTERESTTOTALPRINCIPAL 2026436,700$ 202718,150 3,577 21,727 418,550 202819,250 3,421 22,671 399,300 202919,800 3,258 23,058 379,500 203020,900 3,087 23,987 358,600 203121,450 2,910 24,360 337,150 203222,550 2,726 25,276 314,600 203323,100 2,535 25,635 291,500 203424,200 2,337 26,537 267,300 203525,300 2,130 27,430 242,000 203626,400 1,914 28,314 215,600 203727,500 1,689 29,189 188,100 203828,050 1,456 29,506 160,050 203929,700 1,215 30,915 130,350 204030,800 962 31,762 99,550 204131,900 699 32,599 67,650 204233,000 428 33,428 34,650 204334,650 145 34,795 - 436,700$ 34,489$ 471,189$ 212 Page 232 of 361 ## DEPARTMENT SUMMARY BY BUSINESS UNIT ## BUSINESS UNIT ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## STORMWATER UTILITY ## FUND: ## Public Works ## DEPARTMENT: ## Increase/ (Decrease) 2026 Budget/ 2027 Budget ## 3,471,2603,421,2903,985,740STORMWATER UTILITY$ 3,240,913$$$14.82%53000 3,471,2603,421,2903,985,740Public Works TOTAL $ 3,240,913$$$14.82% ## REVENUES ## 2,617,7702,792,1002,842,1003,231,220STORMWATER UTILITY$$$$15.73%53000 ## STORM SEWER UTILITY ## YEARAMOUNT 2025$3,255,242 ## 2026B$3,471,260 ## 2026R$3,421,290 ## 2027B$3,985,740 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 ## 20252026B2026R2027B ## E ## X ## P ## E ## N ## S ## E ## S ## YEAR ## STORM SEWER UTILITY 213 Page 233 of 361 ## BUDGET SUMMARY ## STORMWATER UTILITY FUND PROJECTION 2025202620272028 ## AVAILABLE FOR APPROPRIATION ## ActualRevisedBudgetProjected ## PRIOR YEAR RETAINED EARNINGS 10,962,234$ 10,339,091$ 10,718,701$ 10,871,381$ ## Revenues Storm Sewer Usage2,251,735 2,556,370 2,990,530 3,080,250 Grants126,322 46,980 - - Miscellaneous Revenues239,713 238,750 240,690 247,910 Total Revenues2,617,770 2,842,100 3,231,220 3,328,161 ## Expenses Personal Services494,927 559,650 603,300 624,420 Other Services and Charges1,674,174 877,210 1,361,950 1,409,620 Depreciation893,134 827,470 930,000 957,900 Interest and amortization178,678 198,160 183,290 166,661 Total Operating Expenses3,240,913 2,462,490 3,078,540 3,158,601 Net Income (Loss)(623,143) 379,610 152,680 169,559 Special Item- - - - ## RETAINED EARNINGS 10,339,091 10,718,701 10,871,381 11,040,940 ## BOND PRINCIPAL * -$ 588,800$ 607,200$ 454,000$ ## CAPITAL OUTLAY ** -$ 370,000$ 300,000$ 300,000$ ***Stormwater Revenue Bond Coverage(0.83) 0.48 0.19 0.27 * Bonds are not recorded as current expenses, but rather as adjustments to the cash position. ** Capital outlay expense is recorded as depreciation over the useful life of the fixed asset. ***Calculation excludes depreciation. 214 Page 234 of 361 ## STORM WATER UTILITY DIVISION ## MISSION STATEMENT The Public Works Department works hard to sustain and improve the quality of life for our community by offering the highest standards in critical municipal services and providing them in a timely, responsible and professional manner. ## DIVISION FOCUS To provide flood protection and environmentally responsible management of storm water for the City of Richfield, as well as community outreach to residents and businesses on the impact they have on the quality of ponds, lakes, and streams. The division’s mission is achieved by City of Richfield staff and contractors, who perform the following functions: •Maintaining compliance with the Municipal Separate Storm Sewer Systems (MS4) permit issued by the Minnesota Pollution Control Agency (MPCA) for the operations of the City’s storm sewer system; •Providing education and outreach activities; •Maintaining and operating eleven storm water lift stations; •Contracting with the Street Division for the sweeping of streets to remove silt, organic matter, and phosphorus; •Water quality monitoring in local surface waters; •Operating and maintaining a flocculation treatment system for the removal of phosphorus to fulfill watershed reduction requirements; and •Improving the flood protection of property by upgrading the storm water system as opportunities arise. ## 2026 HIGHLIGHTS •Transitioned to in-house water quality monitoring for lakes and ponds—this was historically consultant led (City Council Priority/Outcome 1c, 3a & 3c). •Began updates to the City’s Surface Water Management Plan and the Richfield Bloomington Watershed Management Organization’s Comprehensive Plan, which are both updated on a 10-year cycle (City Council Priority/Outcome 1a & 3a-c). •Completed site investigation and began in-house design of the Norby’s Pond Reconstruction Project (City Council Priority/Outcome 1c & 3a-c). •Completed a current and forward-looking (50 year) rate study for the storm water utility operation (City Council Priority/Outcome 1b & 3a,b). 215 Page 235 of 361 ## 2027 GOALS • Conduct condition assessment of st orm sewer system (City Council Priority/Outcome 1c & 3a-c). • Complete design, bidding, and begin construction of Norby’s Pond Reconstruction Project (City Council Priority/Outcome 1c, 3a & 3c). • Transition back to in-house erosion control inspection of construction projects—this was temporarily consultant led due to staffing constraints (City Council Priority/Outcome 1c & 3a). • Begin design of Wilson Pond Flood Mitigation Project, addressing an area identified by the prioritization framework (City Council Priority/Outcome 1c, 3a & 3c). ## DIVISION EXPENDITURE COMMENT The 2026 Revised Budget reflects a 1. 26% increase from the 2026 Adopted Budget related to operating expenses. The 2027 Proposed Budget reflects an increase of 38.50% from the 2026 Adopted Budget related to operating expenses. This is a result of programming Norby’s Pond Reconstruction Project for 2027 construction. Pond dredging has historically resulted in similar fluctuations, and omitting these construction costs, the 2027 Proposed Budget reflects a 3.26% increase from the 2026 Adopted Budget. 216 Page 236 of 361 ## STORMWATER UTILITY ## FUND: ## DETAIL REVENUES BY BUSINESS UNIT ## CLASSIFICATIONS ## Public Works ## DEPARTMENT: ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## STORMWATER UTILITY - 53000 ## BUSINESS UNIT: ## Intergovernmental Revenues ## 4244126,32234,18034,180- Grants Other$$$$ ## 4290-12,80012,800- Other Local Grants 46,98046,980- 126,322Intergovernmental Revenues ## Total $$$$ ## Utility Revenues 4848-2,5002,5002,500Certification Fee$$$$ ## 48522,251,7352,553,8702,553,8702,988,030Storm Drainage Fee 2,556,3702,556,3702,990,5302,251,735Utility Revenues ## Total $$$$ ## Other Income 801177,54920,00070,00070,000Investment Earnings$$$$ ## 8035162,164168,750168,750170,690Other Miscellaneous Revenues 188,750238,750240,690239,713Other Income ## Total $$$$ ## STORMWATER UTILITY ## TOTAL 2,792,1002,842,1003,231,2202,617,770$$$$ 217 Page 237 of 361 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## STORMWATER UTILITY ## FUND: ## Public Works ## DEPARTMENT: ## STORMWATER UTILITY - 53000 ## BUSINESS UNIT: ## Personal Services 6005145,893204,500182,680211,500Full Time$$$$ 600918- - - Overtime ## 60318,98712,68011,33013,110Employer Social Security 60322,1022,9702,6503,070Employer Medicare 6033(3,569)15,30013,70015,860Employer Pera 603526,41032,19031,43038,390Medical Insurance 60361,2791,5901,4301,590Dental Insurance 6037126908090Term Life 60382,4702,5202,5202,650Workers Compensation ## 6040198360320370Long Term Disability ## 604123- 690800Paid Family Medical Leave 6051226,100224,720225,000225,000Interdepartmental Labor 605284,89087,82087,82090,870Administrative Charges 584,740559,650603,300494,927Personal Services ## Total $$$$ ## Other Services & Charges 6103369,310186,700343,920215,000Professional Services -General$$$$ 6201- 5,5002,5002,500Rents & Leases ## 620214,62016,59016,59014,590Data Processing Rental ## 6203265- - - Motor Pool Fixed Rental ## 6204154,020161,720161,720169,810Motor Pool Operating Rental 62051,018,700299,750209,750789,750Maintenance & Repairs 620725,33631,25030,00030,000Utility Services 63011,4913,4003,4003,400Advertising & Publication 63022,3234,4404,4404,440Communications 63031,9333,8803,8803,880Professional Development 63059,5428,72011,52011,620Subscriptions & Memberships 63075,8802,6702,6404,650Insurance & Bonds 63081,3701,4001,4001,430Property Liability 63104,5621,2501,2501,250Taxes & Licenses ## 631547,76064,35043,05068,480Other Contractual Services 6401- 150- - Office Supplies 6402- 150- - Copy Charges 6403- 50- - Postage 6409309- 400400Uniforms & Clothing 64102,6903,0003,0003,000Small Tools & Parts 64124,59620,00015,00015,000Maint. & Const. Materials 64137,6535,0005,0005,000Chemicals 64141,8141,2501,2501,250Other Supplies 6513- 13,00016,50016,500Other Charges 834,220877,2101,361,9501,674,174Other Services & Charges ## Total $$$$ 218 Page 238 of 361 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## STORMWATER UTILITY ## FUND: ## Public Works ## DEPARTMENT: ## STORMWATER UTILITY - 53000 ## BUSINESS UNIT: ## Depreciation 6610893,134827,470827,470930,000Depreciation$$$$ 827,470827,470930,000893,134Depreciation ## Total $$$$ ## Capital Outlay 7350-525,000370,000300,000Other Improvements$$$$ 525,000370,000300,000-Capital Outlay ## Total $$$$ ## Other Financing Uses 8521-588,800588,800607,200Principal Payments$$$$ 8522177,728108,030195,160180,290Interest Payments ## 85239503,0003,0003,000Paying Agent Fees ## 699,830786,960790,490178,678Other Financing Uses ## Total $$$$ ## 3,471,2603,421,2903,985,7403,240,913STORMWATER UTILITY ## TOTAL $$$$ 219 Page 239 of 361 ## STORMWATER UTILITY ## FUND: ## Public Works ## DEPARTMENT: ## STORMWATER UTILITY - 53000 ## BUSINESS UNIT: ## DIVISION PERSONNEL ## CLASSIFICATIONS ## SALARY ## GRADE ## NUMBER OF EMPLOYEES 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## CAPITAL OUTLAY ## ITEMS 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## Regular Full-Time Employees ## .46.468Utility Billing Clerk.40 ## .30.3015Assistant Utility Superintendent.30 .20.2012GIS Coordinator.20 ## .17.1710Asset Management/GIS Analyst.17 ## 1.001.0013Water Resources Engineer1.00 2.12.1 ## Total 2.07 -- $ $- $ ## 200,000200,000Storm Sewer Collection System Rehab200,000 ## 170,000- Public Works Storage Facility325,000 ## - 100,000Wilson Pond Flood Mitigation- 370,000300,000 ## Total $$525,000$ 220 Page 240 of 361 ## Department/Division ## ActualActualBudgetBudget ## 202420252026R2027P ## Inputs: ## Number of Full-Time Employees1.902.072.072.07 Division Operating Revenues2,610,364$ 2,617,770$ 2,842,098$ 3,231,214$ Division Operating Expenses2,241,344$ 3,255,242$ 3,051,279$ 3,685,728$ ## Outputs: ## Total Tons of Street Sweepings483348.6325325 ## Effectiveness Measures: ## Annual Pounds of TP* Removed from Sweeping Activities (Estimated)244.2175.9164.3164.3 ## Annual Pounds of TP* Removed from Infiltration and Floc Systems (Estimated)76.011.250.076.0 ## Efficiency Measures: Total Cost for Street Sweeping146,328$ 117,812$ 120,000$ 120,000$ Total cost for Infiltration/Floc163,765$ 197,665$ 160,000$ 160,000$ Cost per Pound of TP* Removed968$ 1,686$ 1,307$ 1,165$ Operating Expenses per Capita60.59$ 87.99$ 82.48$ 99.63$ *TP = Total Phosphorus ## Performance Measures ## Stormwater Utility 221 Page 241 of 361 ## GENERAL OBLIGATION REFUNDING BONDS, SERIES 2015B ## SCHEDULE OF DEBT SERVICE REQUIREMENTS ## DECEMBER 31, 2026 ## PAYMENTUNPAID ## YEARPRINCIPALINTERESTTOTALPRINCIPAL 2026165,000$ 2027165,000 1,650 166,650 - 165,000$ 1,650$ 166,650$ 222 Page 242 of 361 ## STORM SEWER REVENUE BONDS, SERIES 2016A ## SCHEDULE OF DEBT SERVICE REQUIREMENTS ## DECEMBER 31, 2026 ## PAYMENT ## UNPAID ## YEARPRINCIPALINTERESTTOTALPRINCIPAL 20261,810,000$ 2027150,000 39,615 189,615 1,660,000 2028150,000 36,615 186,615 1,510,000 2029155,000 33,565 188,565 1,355,000 2030155,000 30,465 185,465 1,200,000 2031160,000 27,235 187,235 1,040,000 2032165,000 23,740 188,740 875,000 2033165,000 20,028 185,028 710,000 2034170,000 16,090 186,090 540,000 2035175,000 11,863 186,863 365,000 2036180,000 7,335 187,335 185,000 2037185,000 2,497 187,497 - 1,810,000$ 249,048$ 2,059,048$ 223 Page 243 of 361 ## STORM SEWER GENERAL OBLIGATION BONDS, SERIES 2019A ## SCHEDULE OF DEBT SERVICE REQUIREMENTS ## DECEMBER 31, 2026 ## PAYMENTUNPAID ## YEARPRINCIPALINTERESTTOTALPRINCIPAL 2026600,000$ 202735,000 18,000 53,000 565,000 202835,000 16,600 51,600 530,000 202940,000 15,300 55,300 490,000 203040,000 14,100 54,100 450,000 203140,000 12,900 52,900 410,000 203240,000 11,700 51,700 370,000 203340,000 10,500 50,500 330,000 203445,000 9,225 54,225 285,000 203545,000 7,875 52,875 240,000 203645,000 6,525 51,525 195,000 203745,000 5,175 50,175 150,000 203850,000 3,750 53,750 100,000 203950,000 2,250 52,250 50,000 204050,000 750 50,750 - 600,000$ 134,650$ 734,650$ 224 Page 244 of 361 ## STORM SEWER REVENUE BONDS, SERIES 2020B ## SCHEDULE OF DEBT SERVICE REQUIREMENTS ## DECEMBER 31, 2026 ## PAYMENTUNPAID ## YEARPRINCIPALINTERESTTOTALPRINCIPAL 20261,070,000$ 2027145,000 15,280 160,280 925,000 2028150,000 12,330 162,330 775,000 2029150,000 9,330 159,330 625,000 2030150,000 7,005 157,005 475,000 2031155,000 5,250 160,250 320,000 2032160,000 3,280 163,280 160,000 2033160,000 1,120 161,120 - 1,070,000$ 53,595$ 1,123,595$ 225 Page 245 of 361 ## GENERAL OBLIGATION BONDS, SERIES 2022A ## SCHEDULE OF DEBT SERVICE REQUIREMENTS ## DECEMBER 31, 2026 ## PAYMENTUNPAID ## YEARPRINCIPALINTERESTTOTALPRINCIPAL 20262,699,600$ 2027112,200 22,115 134,315 2,587,400 2028119,000 21,148 140,148 2,468,400 2029122,400 20,138 142,538 2,346,000 2030129,200 19,085 148,285 2,216,800 2031132,600 17,990 150,590 2,084,200 2032139,400 16,853 156,253 1,944,800 2033142,800 15,672 158,472 1,802,000 2034149,600 14,449 164,049 1,652,400 2035156,400 13,169 169,569 1,496,000 2036163,200 11,832 175,032 1,332,800 2037170,000 10,439 180,439 1,162,800 2038173,400 9,002 182,402 989,400 2039183,600 7,509 191,109 805,800 2040190,400 5,945 196,345 615,400 2041197,200 4,323 201,523 418,200 2042204,000 2,645 206,645 214,200 2043214,200 896 215,096 - 2,699,600 213,210 2,912,810 226 Page 246 of 361 ## THIS PAGE WAS LEFT BLANK INTENTIONALLY 227 Page 247 of 361 ## INTERNAL SERVICE 228 Page 248 of 361 ## DEPARTMENT SUMMARY BY BUSINESS UNIT ## BUSINESS UNIT ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## CENTRAL GARAGE ## FUND: ## Public Works ## DEPARTMENT: ## Increase/ (Decrease) 2026 Budget/ 2027 Budget ## 4,283,3104,008,6204,707,070CENTRAL GARAGE$ 2,844,767$$$9.89%61000 4,283,3104,008,6204,707,070Public Works TOTAL $ 2,844,767$$$9.89% ## REVENUES ## 3,125,6573,097,5303,097,5303,567,854CENTRAL GARAGE$$$$15.18%61000 ## CENTRAL GARAGE ## YEARAMOUNT 2025$2,888,790 ## 2026B$4,283,310 ## 2026R$4,008,620 ## 2027B$4,707,070 $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 ## 20252026B2026R2027B ## E ## X ## P ## E ## N ## S ## E ## S ## YEAR ## CENTRAL GARAGE FUND 229 Page 249 of 361 ## BUDGET SUMMARY ## CENTRAL GARAGE FUND PROJECTION 2025202620272028 ## AVAILABLE FOR APPROPRIATIONActualRevisedBudgetProjected ## PRIOR YEAR RETAINED EARNINGS 5,811,030$ 6,091,919$ 6,570,679$ 7,216,463$ ## Revenues Intergovernmental- - - - ## Charges for Service: Equipment Rental 1,629,080 1,710,530 1,796,080 1,849,960 ## Miscellaneous Revenues Interest37,484 5,000 5,000 5,000 Other Revenues124,093 47,000 47,000 48,410 Total Misc. Revenues161,577 52,000 52,000 53,410 Total Revenues1,790,657 1,762,530 1,848,080 1,903,370 ## Expenses Personal Services484,492 556,580 592,060 612,780 Other Services and Charges1,218,484 1,107,210 1,130,010 1,169,560 Depreciation1,141,792 954,980 1,200,000 1,236,000 Operating Expenses2,844,768 2,618,770 2,922,070 3,018,340 Net Income (Loss)(1,054,111) (856,240) (1,073,990) (1,114,970) ## Operating Transfers From (To) General and Capital Projects Funds1,335,000 1,335,000 1,719,774 1,779,970 1,335,000 1,335,000 1,719,774 1,779,970 ## RETAINED EARNINGS 6,091,919 6,570,679 7,216,463 7,881,463 ## CAPITAL OUTLAY -$ 1,389,850$ 1,785,000$ 1,874,250$ * Capital outlay expense is recorded as depreciation over the useful life of the fixed asset. 230 Page 250 of 361 ## CENTRAL GARAGE DIVISION ## MISSION STATEMENT The Public Works Department works hard to sustain and improve the quality of life for our community by offering the highest standards in essential municipal services and providing them in a timely, responsible and professional manner. ## DIVISION FOCUS To procure, maintain, repair and replace all motor vehicles, heavy equipment and attachments used by the City. To also provide quality, durable equipment for all divisions and maintain that equipment so that it performs 24 hours a day, seven days a week, and is always able to respond to emergencies as needed. Staff maintains 141 motorized pieces of equipment and another 52 non-motorized pieces of equipment. ## 2026 HIGHLIGHTS •Evaluation of opportunities to introduce more Hybrid/Electric vehicles into the fleet (City Council Priority/Outcome 1c & 3c). ## 2027 DIVISION GOALS •Continue to evaluate repurposing Police patrol vehicles for use by other divisions (City Council Priority/Outcome 1c, 3a & 3c). •Evaluation of opportunities to introduce alternative financing options for procuring City vehicles (City Council Priority/Outcome 1c & 3b- c). ## DIVISION EXPENDITURE COMMENT The 2026 Revised Budget reflects a decrease of 6.4% from the 2026 Adopted Budget. This is due largely to difficulty in obtaining vehicles planned for purchase within the budget year. The 2027 Proposed Budget reflects an increase of 9.89% from the 2026 Adopted Budget. The increase in the 2027 Proposed budget is due to increases in operating expenses, planned vehicle purchases and depreciation. Staff expect vehicle price volatility and general availability to continue to drive fluctuations in the central garage budget over the coming years. 231 Page 251 of 361 ## CENTRAL GARAGE ## FUND: ## DETAIL REVENUES BY BUSINESS UNIT ## CLASSIFICATIONS ## Public Works ## DEPARTMENT: ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## CENTRAL GARAGE - 61000 ## BUSINESS UNIT: ## Charges for Service 43181,629,0801,710,5301,710,5301,796,080Equipment Rental - Operating$$$$ 1,710,5301,710,5301,796,0801,629,080Charges for Service ## Total $$$$ ## Other Income 801137,4845,0005,0005,000Investment Earnings$$$$ ## 80351,5652,0002,0002,000Other Miscellaneous Revenues ## 803764020,00020,00020,000Recovery From Damage City Prop 8038121,88825,00025,00025,000Gain on disposal of Assets 52,00052,00052,000161,577Other Income ## Total $$$$ ## Other Financing Sources ## 80511,335,0001,335,0001,335,0001,719,774Operating Transfers In$$$$ ## 1,335,0001,335,0001,719,7741,335,000Other Financing Sources ## Total $$$$ ## CENTRAL GARAGE ## TOTAL 3,097,5303,097,5303,567,8543,125,657$$$$ 232 Page 252 of 361 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## CENTRAL GARAGE ## FUND: ## Public Works ## DEPARTMENT: ## CENTRAL GARAGE - 61000 ## BUSINESS UNIT: ## Personal Services 6005382,419413,140403,640424,630Full Time$$$$ 60094,6978,0008,0008,000Overtime ## 603123,47924,22023,66024,910Employer Social Security 60325,4915,6705,5305,830Employer Medicare 6033(14,634)29,90029,29030,880Employer Pera 603571,39673,78073,10083,810Medical Insurance 60362,9703,1102,9803,110Dental Insurance 6037291170180170Term Life 60387,8608,0208,0208,420Workers Compensation ## 6040446710690730Long Term Disability ## 604177-1,4901,570Paid Family Medical Leave 566,720556,580592,060484,492Personal Services ## Total $$$$ ## Other Services & Charges 61034,6304,2604,8604,870Professional Services -General$$$$ ## 620242,89052,13052,13027,070Data Processing Rental 6205257,446158,330167,330208,220Maintenance & Repairs 620681,00735,00035,00042,000Accident Repairs 620773,83887,58087,58087,580Utility Services 63029,7744,2004,2004,200Communications 63037,9383,2205,2203,220Professional Development 630560- - - Subscriptions & Memberships 630756,45664,80063,53054,330Insurance & Bonds 630830,33030,94030,94031,560Property Liability 63108085,0005,0005,000Taxes & Licenses ## 631575,00345,06045,06050,060Other Contractual Services 6401243660660660Office Supplies 6402- 120120120Copy Charges 64034100100100Postage 6405255,255325,000325,000325,000Fuels 640610,42110,50010,50012,500Lubricants ## 640710,13015,46015,46016,000Auto Operating Supplies 640826,48630,51030,51033,510Tires 64095,6416,5006,5006,500Uniforms & Clothing 6410186,995145,080145,080145,080Small Tools & Parts 641447,96772,43072,43072,430Other Supplies 1,096,8801,107,2101,130,0101,183,322Other Services & Charges ## Total $$$$ ## Depreciation 66101,141,792954,980954,9801,200,000Depreciation$$$$ 954,980954,9801,200,0001,141,792Depreciation ## Total $$$$ ## Capital Outlay 750035,1611,664,7301,389,8501,785,000Motor Vehicles$$$$ 233 Page 253 of 361 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## CENTRAL GARAGE ## FUND: ## Public Works ## DEPARTMENT: ## CENTRAL GARAGE - 61000 ## BUSINESS UNIT: 1,664,7301,389,8501,785,00035,161Capital Outlay ## Total $$$$ ## 4,283,3104,008,6204,707,0702,844,767CENTRAL GARAGE ## TOTAL $$$$ 234 Page 254 of 361 ## CENTRAL GARAGE ## FUND: ## Public Works ## DEPARTMENT: ## CENTRAL GARAGE - 61000 ## BUSINESS UNIT: ## DIVISION PERSONNEL ## CLASSIFICATIONS ## SALARY ## GRADE ## NUMBER OF EMPLOYEES 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## CAPITAL OUTLAY ## ITEMS 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## Regular Full-Time Employees 3.003.00LT-3Automotive Mechanic3.00 ## .23.2318Deputy Public Works Director.25 .50.5014Operations Supervisor.50 ## .35.358Senior Office Assistant.35 ## .10.1010Asset Management/GIS Analyst.10 4.184.18 ## Total 4.20 94,630- Ice Resurfacer (2) $ $89,630 $ 302,100302,100Fire Truck302,100 -350,000Flush Truck/Roll-Off203,000 101,050- 1 Ton Pick-Up50,000 ## 71,990- Crew Cab Pick-Up50,000 227,560- Chipper250,000 111,230- Squads - Police LT (3)180,000 150,150- Squads - Police Investigators (3)180,000 184,900- Marked Squads - Police (3)210,000 71,26070,000Tahoe - Fire (2)75,000 ## 75,000- Tahoe - Police Chief75,000 - 320,000Dump Truck- - 100,000Utilities Ford F450 4x4 Truck- - 120,000Parks - Ford F250 (2)- ## - 80,000Utilities Ford F250 4x4 Supercab Truck- - 120,000Squads - K9 Patrol (2)- - 160,000Squads - Police Detective (3)- - 50,000Police Admin Vehicle- - 47,900Z-Mower Electric- ## - 65,000Wood Lake Nature Center Toolcat- 1,389,8701,785,000 ## Total $$1,664,730$ 235 Page 255 of 361 ## Department/Division ## ActualActualBudget Budget 2024 ## 20252026R2027P ## Inputs: Number of full-time employees4.1 4.2 4.24.2 ## Division Expenditures1,607,501$ $ 1,667,8141,663,784$ 1,722,058$ (personnel and services) ## Outputs: ## Number of Vehicles Maintained141 141 141141 ## Number of Pieces of Equipment53 53 5353 ## Effectiveness Measures: ## Scheduled Service Work Orders234 254 250250 ## Unscheduled Service Work Orders754 771 600600 ## Efficiency Measures: ## Total Cost of Repairs1,147,921$ 1,183,322$ 1,107,205$ 1,130,007$ Average Cost/Vehicle Owned8,141.28$ 8,392.35$ 7,852.52$ 8,014.23$ ## Division Expenditure per Capita41.77$ $ 43.34 43.24$ 44.75$ (per sonnel and services) ## Performance Measures ## Central Garage 236 Page 256 of 361 ## DEPARTMENT SUMMARY BY BUSINESS UNIT ## BUSINESS UNIT ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## INFORMATION TECHNOLOGIES ## FUND: ## Administrative Services ## DEPARTMENT: ## Increase/ (Decrease) 2026 Budget/ 2027 Budget ## 1,962,6111,962,6202,198,490$$$12.02%62000 INFORMATION TECHNOLOGIES $ 1,690,116 1,962,6111,962,6202,198,490Administrative Services TOTAL $ 1,690,116$$$12.02% ## REVENUES ## 1,885,7301,902,1411,917,1411,984,475INFORMATION TECHNOLOGIES$$$$4.33%62000 ## CENTRAL SERVICES ## YEARAMOUNT 2025$1,733,783 ## 2026B$1,962,611 ## 2026R$1,962,620 ## 2027B$2,198,490 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 ## 20252026B2026R2027B ## E ## X ## P ## E ## N ## S ## E ## S ## YEAR ## INFORM ATION TECHNOLOGIES 237 Page 257 of 361 ## BUDGET SUMMARY ## INFORMATION TECHNOLOGIES FUND PROJECTION 2025202620272028 ## AVAILABLE FOR APPROPRIATIONActualRevisedBudgetProjected ## PRIOR YEAR RETAINED EARNINGS462,224$ 657,838$ 702,269$ 635,584$ ## Revenues Intergovernmental-$ -$ -$ -$ Charges for Service1,473,854 1,494,561 1,547,630 1,594,061 Subtotal1,473,854 1,494,561 1,547,630 1,594,061 ## Miscellaneous Revenues Interest18,076 15,000 15,000 15,000 Other- - - - Total Miscellaneous Revenues18,076 15,000 15,000 15,000 Total Revenues1,491,930 1,509,561 1,562,630 1,609,061 ## Expenses Personal Service567,438 723,620 852,060 881,880 Other Services and Charges1,076,163 1,034,470 1,081,040 1,135,090 Depreciation46,515 114,620 118,060 121,600 Total Operating Expenses1,690,116 1,872,710 2,051,160 2,138,570 Net Income (Loss)(198,186) (363,149) (488,530) (529,509) ## Operating Transfers: From (To) Equipment Levy393,800 407,580 421,845 436,610 Net Transfers393,800 407,580 421,845 436,610 ## RETAINED EARNINGS657,838 702,269 635,584 542,685 ## CAPITAL OUTLAY *-$ 89,910$ 147,330$ 122,636$ * Capital outlay expense is recorded as depreciation over the useful life of the fixed asset. 238 Page 258 of 361 ## INFORMATION TECHNOLOGIES DIVISION ## MISSION STATEMENT The mission of the Information Technology (IT) Division is to provide secure, reliable, and responsive technology services that support City operations, enhance service delivery, and protect the City’s information systems and data. IT manages and supports the City’s network infrastructure, communication services, end user technology, business applications, and related security systems to ensure staff have the tools and access needed to serve the community effectively. IT works in partnership with departments, regional partners, and vendors to maintain critical technology infrastructure, provide timely end user support, improve business processes, and guide the effective use of City technology resources. The division’s work supports the City’s strategic goals through cybersecurity, system modernization, digital workflow improvements, policy development, and practical technology planning that improves operations and reduces risk. ## DIVISION FOCUS The Information Technology Division provides centralized technology services and support to all City departments. The division maintains the City’s network infrastructure, communication systems, end user devices, business applications, cybersecurity tools, and secure system access needed for daily operations. IT provides helpdesk support, computer and mobile device management, phone system support, printer and copier coordination, software licensing, technology training, and internal office supply management. The division also works with departments and external vendors to support technology planning, system improvements, equipment replacement, and digital workflow improvements. IT supports the City’s information and physical security needs, including network security, door access, camera systems, cybersecurity policies, PCI compliance, and secure access to City systems and data. The division serves as a technology partner to departments by helping evaluate needs, estimate costs, and align technology investments with City priorities. ## 2026 HIGHLIGHTS • Completed the Citizenserve sync workflow into the Laserfiche repository to support data retention requirements (City Council Goal 1c). • Upgrade and migrate the City’s GIS environment to AWS GovCloud to improve system reliability, security, and long-term support. • Upgraded multiple existing and new Laserfiche workflows, including PAFs, invoices, leave slip submissions, and search functions (City Council Goal 1c). • Implemented new public Laserfiche WebLink access for record searches related to Council, Commission, and Board records. • Expanded door access and camera systems to additional City facilities (City Council Goal 1c and 3a). • Assisted with the migration of the City’s intranet to SharePoint to improve internal access to staff resources and information. 239 Page 259 of 361 •Expanded the use of cybersecurity training to improve staff awareness of common threats and strengthen the City’s overall security posture (City Council Goals 1c and 4a). •Completed the migration to a modern IP telephony phone system to improve communication services and support future system enhancements (City Council Goal 1c). 2027 ## DIVISION GOALS •Improve IT asset tracking for computers, printers, mobile devices, and other technology equipment (City Council Goal 1c). •Strengthen network reliability and security through planned infrastructure replacements and configuration reviews. •Modernize internal systems by expanding the effective use of Microsoft 365, SharePoint, and Laserfiche for collaboration, document management, and process efficiency. •Improve documentation of IT systems, workflows, procedures, and support responsibilities. •Strengthen cybersecurity through staff training, policy updates, and ongoing security improvements (City Council Goals 1c and 4a). ## DIVISION EXPENDITURE COMMENT The 2026 revised budget reflects a 0% increase compared to the 2026 adopted budget. The 2027 proposed budget reflects a 12% increase compared to the 2026 adopted budget. The increase is primarily due to personnel cost-of-living adjustments, the reclassification of the open Help Desk position from salary grade 11 to a salary grade 12 Application Support Specialist, the addition of cybersecurity insurance costs to the IT budget, and annual Tungsten software costs beginning in 2027. The increase also reflects an average 4% increase in LOGIS services and slight increases in software subscription costs. 240 Page 260 of 361 ## INFORMATION TECHNOLOGIES ## FUND: ## DETAIL REVENUES BY BUSINESS UNIT ## CLASSIFICATIONS ## Administrative Services ## DEPARTMENT: ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## INFORMATION TECHNOLOGIES - 62000 ## BUSINESS UNIT: ## Charges for Service ## 43201,389,5741,427,6111,427,6111,471,480IT Equipment Rental$$$$ 432229,97127,45027,45030,750Sale of Supplies 432426,60412,38012,38017,140Copying Services 432627,70527,12027,12028,260Postage Services 1,494,5611,494,5611,547,6301,473,854Charges for Service ## Total $$$$ ## Other Income 801118,076- 15,00015,000Investment Earnings$$$$ - 15,00015,00018,076Other Income ## Total $$$$ ## Other Financing Sources ## 8051393,800407,580407,580421,845Operating Transfers In$$$$ ## 407,580407,580421,845393,800Other Financing Sources ## Total $$$$ ## INFORMATION TECHNOLOGIES ## TOTAL 1,902,1411,917,1411,984,4751,885,730$$$$ 241 Page 261 of 361 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## INFORMATION TECHNOLOGIES ## FUND: ## Administrative Services ## DEPARTMENT: ## INFORMATION TECHNOLOGIES - 62000 ## BUSINESS UNIT: ## Costs of Goods Sold 551048,80338,63038,63052,960Purchases for Resale$$$$ 38,63038,63052,96048,803Costs of Goods Sold ## Total $$$$ ## Personal Services 6005469,224540,419540,420609,840Full Time$$$$ 60131,123- - - Longevity ## 603127,88532,16132,16035,450Employer Social Security 60326,5217,4827,4808,290Employer Medicare 6033(9,222)40,53140,53045,740Employer Pera 603567,50597,82097,820145,940Medical Insurance 60363,1583,7243,7305,240Dental Insurance 6037310200200200Term Life 6038310320320280Workers Compensation ## 60405339579601,080Long Term Disability ## 604191- - - Paid Family Medical Leave 723,614723,620852,060567,438Personal Services ## Total $$$$ ## Other Services & Charges 6103375,785364,411364,410352,840Professional Services -General$$$$ 6205139,770188,348188,350252,540Maintenance & Repairs 620782,43085,73085,73089,160Utility Services 630225,751150,842150,840158,720Communications 630311,0114,3804,3806,950Professional Development 63054,7552,5002,5005,800Subscriptions & Memberships 63074,3296,3106,3106,500Insurance & Bonds 63082,6802,7302,7302,810Property Liability 64012,1591,0301,0301,500Office Supplies 6402219210210220Copy Charges 640342100100110Postage 6414361,633189,248189,250150,930Other Supplies 995,839995,8401,028,0801,010,564Other Services & Charges ## Total $$$$ ## Depreciation 661046,515114,620114,620118,060Depreciation$$$$ 114,620114,620118,06046,515Depreciation ## Total $$$$ ## Capital Outlay 740016,79689,90889,910147,330Machinery & Equipment$$$$ 89,90889,910147,33016,796Capital Outlay ## Total $$$$ ## 1,962,6111,962,6202,198,4901,690,116INFORMATION TECHNOLOGIES ## TOTAL $$$$ 242 Page 262 of 361 ## INFORMATION TECHNOLOGIES ## FUND: ## Administrative Services ## DEPARTMENT: ## INFORMATION TECHNOLOGIES - 62000 ## BUSINESS UNIT: ## DIVISION PERSONNEL ## CLASSIFICATIONS ## SALARY ## GRADE ## NUMBER OF EMPLOYEES 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## CAPITAL OUTLAY ## ITEMS 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## Regular Full-Time Employees 1.001.0017IT Manager1.00 ## 1.001.0014Asst IT Mgr/BusAnalyst1.00 1.001.0012-11IT Specialist1.00 ## 1.001.0012-1Application Support Specialist- ## 1.001.0011-6Help Desk Technician1.00 - - 11-1Help Desk Technician1.00 .20.2012-11Police IT Specialist (FT-w/Police).20 .30.3012-8GIS Analyst (FT-w/PW).30 5.505.50 ## Total 5.50 - 70,000Computer Workstation Replacements $ $- $ ## 45,000- Fiber Infrastruction Projects 45,000 ## 10,65077,326Network Infrastructure Replacement 10,650 ## 34,260- Laptop Purchases 34,260 89,910147,326 ## Total $$89,910$ 243 Page 263 of 361 ## Administrative Services ## ActualActualBudgetRevisedProposd 20242025202620262027 ## Inputs: Number of full-time employees4.55.55.55.55.5 Division operating expenses$1,317,367$1,716,987$1,872,703$1,872,7102,051,160$ Division operating revenue$1,645,614$1,867,6531,902,141$ 1,902,141$ 1,969,464$ ## Outputs: Number of devices supported670670670690700 (PCs, laptops, mobile devices, cameras, credit card readers, servers, & printers) Number of telephony devices supported380380390390390 Number of sites supported1515151515 Number of users supported365365365365365 ## Number of Email Accts430430430430430 ## Number of Various Office 365 Full Licenses170170180180180 Number of P1 License (email only)143143130130130 ## Shared Office Licenses7070707030 ## Efficiency Measures: Division operating expenses per user3,609$ 4,704$ 5,131$ 5,131$ 5,620$ Division operating revenue per user4,509$ 5,117$ 5,211$ 5,211$ 5,396$ Division operating expenses per capita35.89$ 46.77$ 51.01$ 51.01$ 53.30$ ## Performance Measures ## Information Technologies 244 Page 264 of 361 ## DEPARTMENT SUMMARY BY BUSINESS UNIT ## BUSINESS UNIT ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## FUND: ## INSURANCE/RISK MANAGEMENT ## Administrative Services ## DEPARTMENT: ## Increase/ (Decrease) 2026 Budget/ 2027 Budget (331,448)1,618,6021,707,8021,346,460$$$$(16.81%) ## 64000 INSURANCE/RISK MANAGEMENT 1,618,6021,707,8021,346,460(331,448)Administrative Services ## TOTAL $$$$(16.81%) 1,214,0771,212,7201,216,6901,196,570$$$$(1.33%) ## REVENUES ## 64000 INSURANCE/RISK MANAGEMENT ## SELF INSURANCE ## YEARAMOUNT 2025$0 ## 2026B$1,618,602 ## 2026R$1,707,802 ## 2027B$1,346,460 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 ## 20252026B2026R2027B ## E ## X ## P ## E ## N ## S ## E ## S ## YEAR ## INSURANCE/RISK M ANAGEM ENT 245 Page 265 of 361 ## BUDGET SUMMARY ## INSURANCE/RISK MANAGEMENT FUND PROJECTION 2025202620272028 ## AVAILABLE FOR APPROPRIATION ## ActualRevisedBudgetProjected ## PRIOR YEAR RETAINED EARNINGS 3,011,513$ 4,557,038$ 4,065,926$ 3,916,036$ ## Revenues ## Charges for Service: Employers' and Employees' contribution954,103 1,005,690 985,570 1,015,140 Operating Revenues954,103 1,005,690 985,570 1,015,140 ## Miscellaneous Revenues Interest198,974 150,000 150,000 150,000 Total Miscellaneous Revenues198,974 150,000 150,000 150,000 Total Revenues1,153,077 1,155,690 1,135,570 1,165,140 ## Expenses Personal Services368,581 516,677 330,760 340,680 Other Services and Charges(761,029) 1,130,125 954,700 983,340 Total Expenses(392,448) 1,646,802 1,285,460 1,324,020 Net Income (Loss)1,545,525 (491,112) (149,890) (158,879) ## Operating Transfers From (To) Self Insurance - Workers Comp.61,000 61,000 61,000 61,000 Self Insurance - Property Liab.(61,000) (61,000) (61,000) (61,000) - - - - ## RETAINED EARNINGS 4,557,038$ 4,065,926$ 3,916,036$ 3,757,157$ 246 Page 266 of 361 ## INSURANCE/RISK MANAGEMENT FUND ## MISSION ## STATEMENT To support all of the City’s costs for claims related to workers’ compensation, unemployment insurance benefits and all other City self-insurance costs. To account for employee contributions and claims in the Flexible Spending Account (FSA) benefits plan and Dental insurance plan. ## DIVISION FOCUS This fund functions to service the City’s workers’ compensation program including safety programs, incentives and claims. It also provides funds for dental insurance coverage and serves as the account for the City’s Flexible Spending Account benefits plan. In addition, all claims paid below the City’s significant deductible limit for virtually all liability and property exposures are paid from this fund as well as awards of compensation, legal costs and administrative costs. Finally, the account also serves as a self insurance fund to cover risk exposures which are not insurable or which would require extraordinary premiums. While the majority of the City’s workers’ compensation program is self insured, excess coverage for individual workers’ compensation claims which exceed $500,000 is purchased from the Workers’ Compensation Reinsurance Association (WCRA) as mandated by State Statute. All costs below that amount on each claim are paid from this fund. Funding from the Self-Insurance Fund pay for disability benefits, medical costs, legal fees, administrative charges and safety and risk management/reduction programs. The fund also provides for the periodic maintenance and upgrade of the City’s fitness equipment. ## The Administrative Services Director/Assistant City Manager and the Human Resources Manager and Human Resources Specialists regulate the Self-Insurance Fund and perform other associated duties. Accordingly, a portion of those individuals’ time is charged to this fund. The administration of the City’s risk management program is a very comprehensive and time-intensive function. ## 2026 HIGHLIGHTS •The rates charged to City departments for property/casualty liability coverage reflect a 2.0% increase for 2027. ## 2027 SELF INSURANCE DIVISION GOALS •Continue to monitor rates charged to user departments and divisions for workers’ compensation and property casualty and adjust accordingly. •Partner with City departments to learn more about high-risk workers compensation claims and put together successful strategies to prevent them in the future. •Promote employee health and safety. •Administer a successful risk management program, identifying risk exposures and dealing with them appropriately. •Continue to manage the City’s Wellness Program. ## DIVISI ## ON EXPENDITURE COMMENT The budgeted expenditures for the Self-Insurance Fund for the 2026 Revised/2027 Proposed Budget reflect the costs to administer the risk management program and 247 Page 267 of 361 anticipated costs for high-cost workers’ compensation claims due to presumptions in the law related to first responders. 248 Page 268 of 361 ## DETAIL REVENUES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## FUND: INSURANCE/RISK MANAGEMENT ## DEPARTMENT: Administrative Services ## BUSINESS UNIT: INSURANCE/RISK MANAGEMENT - 64000 ## Charges for Service ## 4328611,549597,550597,550624,830Self Insurance City Contributi$$$$ ## 433058,20562,00062,00064,480Self Insurance Employee Contri 4332203,090203,170207,140211,260Property Contribution 433465,23564,00064,00065,000Flex Daycare 433615,92220,00020,00020,000Flex Health ## 434010255,00055,000Insurance Premium Refunds 1,001,7201,005,690985,570954,103Charges for Service ## Total $$$$ ## Other Income 8011198,974150,000150,000150,000Investment Earnings$$$$ 150,000150,000150,000198,974Other Income ## Total $$$$ ## Other Financing Sources ## 805161,00061,00061,00061,000Operating Transfers In$$$$ ## 61,00061,00061,00061,000Other Financing Sources ## Total $$$$ ## INSURANCE/RISK MANAGEMENT TOTAL 1,212,7201,216,6901,196,5701,214,077$$$$ 249 Page 269 of 361 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## FUND: INSURANCE/RISK MANAGEMENT ## DEPARTMENT: Administrative Services ## BUSINESS UNIT: INSURANCE/RISK MANAGEMENT - 64000 ## Personal Services 600576,85720,00080,00080,000Full Time$$$$ 6031(421)- - - Employer Social Security 6032(535)- - - Employer Medicare 6033(7,516)- - - Employer Pera 603819,758120,000120,00054,000Workers Compensation 603929,23132,00032,00032,000MN Unemployment ## 6041(1)- - - Paid Family Medical Leave 6051223,428255,927255,927135,000Interdepartmental Labor 605227,78028,75028,75029,760Administrative Charges 456,677516,677330,760368,581Personal Services ## Total $$$$ ## Other Services & Charges 6103107,64050,00024,20024,200Professional Services -General$$$$ ## 62028,6808,7008,700- Data Processing Rental 6306147,59895,000150,000150,000Care of Persons 63079,14584,72584,725- Insurance & Bonds ## 631357,69264,00064,00065,000Day Care Reimbursement ## 631419,07520,00020,00020,000Health Care Reimbursement ## 6315(1,309,078)450,000450,000375,000Other Contractual Services 631677,97780,00080,000100,000Dental Single 631724,91928,00028,00030,000Dental Spouse 631837,53445,00045,00040,000Dental Dependent 640218- - - Copy Charges 641481500500500Other Supplies 651357,690175,000175,000150,000Other Charges 1,100,9251,130,125954,700(761,029)Other Services & Charges ## Total $$$$ ## Other Financing Uses ## 851161,00061,00061,00061,000Operating Transfers Out$$$$ ## 61,00061,00061,00061,000Other Financing Uses ## Total $$$$ 1,618,6021,707,8021,346,460(331,448) ## INSURANCE/RISK MANAGEMENT ## TOTAL $$$$ 250 Page 270 of 361 ## DEPARTMENT SUMMARY BY BUSINESS UNIT ## BUSINESS UNIT ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## BUILDING SERVICES FUND ## FUND: ## Administrative Services ## DEPARTMENT: ## Increase/ (Decrease) 2026 Budget/ 2027 Budget ## 916,6521,257,3191,212,3501,140,967BUILDING SERVICES FUND$$$$(9.25%)67000 1,257,3191,212,3501,140,967916,652Administrative Services ## TOTAL $$$$(9.25%) ## REVENUES ## 1,102,1591,126,6101,324,6101,371,075BUILDING SERVICES FUND$$$$21.70%67000 ## BUILDING SERVICES ## YEARAMOUNT 2025$963,334 ## 2026B$1,257,319 ## 2026R$1,212,350 ## 2027B$1,140,967 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 ## 20252026B2026R2027B ## E ## X ## P ## E ## N ## S ## E ## S ## YEAR ## BUILDING SERVICES 251 Page 271 of 361 ## BUDGET SUMMARY ## BUILDING SERVICES FUND PROJECTION 2025202620272028 ## AVAILABLE FOR APPROPRIATIONActualRevisedBudgetProjected ## PRIOR YEAR RETAINED EARNINGS 1,013,247$ 1,198,754$ 1,431,014$ 1,661,122$ ## Revenues ## Charges for Service: Building Rental 1,057,298 1,124,610 1,167,575 1,202,604 ## Miscellaneous Revenues Interest44,861 100,000 100,000 100,000 Other Revenue- - - - Total Misc. Revenues44,861 100,000 100,000 100,000 Total Revenues1,102,159 1,224,610 1,267,575 1,302,604 ## Expenses Personal Services378,039 445,000 495,747 513,100 Other Services and Charges517,188 613,370 610,220 631,580 Depreciation21,425 33,980 35,000 36,051 Operating Expenses916,652 1,092,350 1,140,967 1,180,731 Net Income (Loss)185,507 132,260 126,608 121,873 ## Operating Transfers: From (To) Equipment Levy- 100,000 103,500 107,123 Net Transfers- 100,000 103,500 107,123 ## RETAINED EARNINGS 1,198,754 1,431,014 1,661,122 1,890,118 ## CAPITAL OUTLAY -$ 120,000$ -$ -$ * Capital outlay expense is recorded as depreciation over the useful life of the fixed asset. 252 Page 272 of 361 ## BUILDING SERVICES DIVISION ## MISSION STATEMENT To provide mechanical and janitorial services to the Richfield Municipal Center complex and Fire Station 2 and to plan, administer and finance major maintenance for these buildings. ## DIVISION FOCUS The Building Services Division is made up of the Building Superintendent, two Building Maintenance Mechanics and three Building Services Custodians. The division is responsible for the maintenance and upkeep of the Richfield Municipal Center, Fire Station 2, the Richfield Community Center, four municipal liquor stores and Public Works Building. The division charges City departments a rental charge based on their square footage use of the Richfield Municipal Center and Fire Station 2 for the costs of services, supplies and maintenance. The City’s Liquor operation is charged directly for time and materials incurred. In both 2026 and 2027 the focus of the division will be to provide high quality service to its customers and to maintain a clean and safe environment for City employees to work in. Finally, the Division assists with maintenance tasks at the City’s Swimming Pool, Ice Arena, park buildings, and Woodlake Nature Center. ## 2026 HIGHLIGHTS • Completed the upgrade for all indoor and outdoor lighting at the Municipal Center to LED lighting • Replaced carpeting at Fire Station #1 and the Police Department. • Replaced HVAC unit at Shops at Lyndale. ## 2027 BUILDING SERVICES DIVISION GOALS • Continue to refine the operating budget between increased user charges and operating costs to ensure a balanced operation (City Council Priority/Outcome 1b). • Work with the Finance Manager to establish a replacement plan for capital items at the Richfield Municipal Center to ensure its long-term viability ( City Council Priority/Outcome 1b). • Replace carpeting in the Police Department ## DIVISION EXPENDITURE COMMENT The 2026 Revised Budget reflects a 3.58% decrease over the 2026 Adopted Budget. The 2026 Proposed Budget reflects a 0.32% increase in operating expenses. In 2027, Building Services will explore and analyze centralizing services to increase efficiencies resulting in cost savings throughout the City. 253 Page 273 of 361 ## BUILDING SERVICES FUND ## FUND: ## DETAIL REVENUES BY BUSINESS UNIT ## CLASSIFICATIONS ## Administrative Services ## DEPARTMENT: ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## BUILDING SERVICES FUND - 67000 ## BUSINESS UNIT: ## Charges for Service 43461,057,2981,098,7701,098,7701,141,735Building Rental$$$$ 4348- 25,84025,84025,840Labor Services 1,124,6101,124,6101,167,5751,057,298Charges for Service ## Total $$$$ ## Other Income 801144,8612,000100,000100,000Investment Earnings$$$$ 2,000100,000100,00044,861Other Income ## Total $$$$ ## Other Financing Sources ## 8051100,000103,500Operating Transfers In$$$$ ## 100,000103,500Other Financing Sources ## Total $$$$ ## BUILDING SERVICES FUND ## TOTAL 1,126,6101,324,6101,371,0751,102,159$$$$ 254 Page 274 of 361 ## DETAIL EXPENDITURES BY BUSINESS UNIT ## CLASSIFICATIONS ## BUDGET 2027 ## REVISED 2026 ## BUDGET 2026 ## ACTUAL 2025 ## BUILDING SERVICES FUND ## FUND: ## Administrative Services ## DEPARTMENT: ## BUILDING SERVICES FUND - 67000 ## BUSINESS UNIT: ## Personal Services 6005273,986335,928307,112336,986Full Time$$$$ 600644,13133,66829,67034,550Part-time 6009723- - - Overtime ## 603118,67722,17718,65820,456Employer Social Security 60324,3685,1874,3644,784Employer Medicare 6033(22,889)27,61023,03325,274Employer Pera 603546,78252,38348,15258,867Medical Insurance 60361,8652,2342,0022,234Dental Insurance 6037184120118120Term Life 60389,87010,07010,07010,470Workers Compensation ## 6040289592544596Long Term Disability ## 604152- 1,2771,410Paid Family Medical Leave 489,969445,000495,747378,038Personal Services ## Total $$$$ ## Other Services & Charges 6103- 200200200Professional Services -General$$$$ ## 620223,11024,52024,52021,590Data Processing Rental ## 620410,07010,57010,57011,100Motor Pool Operating Rental 620523,69445,25045,25047,030Maintenance & Repairs 6207240,787258,340258,340260,000Utility Services 63021,5637,5407,5401,610Communications 6303104810810810Professional Development 630733,68726,25026,25027,040Insurance & Bonds 630824,13024,61024,61025,350Property Liability 63101,4141,1801,1801,200Taxes & Licenses ## 6315122,588159,090159,090159,090Other Contractual Services 640167320320320Office Supplies 640291303030Copy Charges 64091,5552,3002,3002,300Uniforms & Clothing 64101,2931,1101,1101,300Small Tools & Parts 641219,12821,86021,86021,860Maint. & Const. Materials 641413,90729,39029,39029,390Other Supplies 613,370613,370610,220517,188Other Services & Charges ## Total $$$$ ## Depreciation 661021,42533,98033,98035,000Depreciation$$$$ 33,98033,98035,00021,425Depreciation ## Total $$$$ ## Capital Outlay 7230- 120,000120,000- Building Improvements$$$$ 120,000120,000- - Capital Outlay ## Total $$$$ ## 1,257,3191,212,3501,140,967916,651BUILDING SERVICES FUND ## TOTAL $$$$ 255 Page 275 of 361 ## BUILDING SERVICES FUND ## FUND: ## Administrative Services ## DEPARTMENT: ## BUILDING SERVICES FUND - 67000 ## BUSINESS UNIT: ## DIVISION PERSONNEL ## CLASSIFICATIONS ## SALARY ## GRADE ## NUMBER OF EMPLOYEES 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## CAPITAL OUTLAY ## ITEMS 2026 ## REVISED 2027 ## BUDGET 2026 ## ADOPTED ## Regular Full-Time Employees 1.001.0016Building Superintendent1.00 ## 2.002.00LT-2Building Maintenance Mechanic2.00 3.003.00 ## Total 3.00 ## Part-Time Employees .50.506Custodian.50 .50.50 ## Total .50 ## 120,000- Public Safety Recarpeting $ $120,000 $ 120,000- ## Total $$120,000$ 256 Page 276 of 361 ## Department/Division ## ActualActualActualBudget RevisedBudget 202320242025202620262027 ## Inputs: Number of full time employees333333 ## Division Operating Expenditures1,058,344$ 1,037,393$ $1,077,470$1,137,319$1,091,074$1,139,557 ## Division Operating Revenues1,046,327$ 1,094,072$ $1,102,159$1,126,610$1,126,610$1,169,575 ## Outputs: ## Annual Contract Cleaning Cost City Hall94,520$ 98,985$ 92,400$ $95,172$96,172$99,750 ## Effectiveness Measures: ## Cost per Square Foot to Clean City Hall1.35$ 1.41$ 1.32$ 1.36$ 1.37$ 1.43$ ## Efficiency Measures: ## Estimated Cost per Square Foot to Maintain City Hall12.10$ 11.86$ 12.31$ 13.00$ 12.47$ 13.02$ Rent Revenue per Square Foot10.06$ 10.52$ 10.60$ 10.83$ 10.83$ 11.25$ Expense per Capita28.61$ 28.04$ 29.13$ 30. 74$ 29.49$ 29.61$ ## Performance Measures ## Administrative Services/Building Services 257 Page 277 of 361 ## DEBT SERVICE 258 Page 278 of 361 ## DEBT SERVICE FUNDS ## MISSION STATEMENT To account for the accumulation for resources used to service the City’s general obligation long-term debt. ## DIVISION FOCUS The activity in these funds is a function of the debt service schedule of the outstanding bond issues, as well as any covenants regarding fund and account structure that may be contained in the original selling agreement for the different bond issues. The debt service budget is made up of two primary funds; General Obligation Improvement bonds and General Obligation Redevelopment bonds. The General Obligation (G.O.) Improvement Bond fund provides for the collection of tax debt service levies and special assessments for the payment of principal and interest on the bonds issued for the purpose of public improvements. Beginning in 2007, in response to infrastructure improvements within the City, the City has predominantly issued bonds that require the levying of taxes to service the debt. Accordingly, the result is an annual debt service tax levy. For 2027, the total tax levy required will be $3,916,828. The bonds that will be serviced by this levy and future levies, were issued to fund several City projects, from the construction of the City municipal center to the reconstruction of roadways within the City. The outstanding principal for G.O. Improvement bonds at the end of 2026 is $35,305,000. The City continues to evaluate outstanding bond issues to determine if cost savings can be achieved by refinancing bonds or calling the bonds early. General Obligation bond debt service will be paid in full in the year 2043. ## BOND RATINGS The bond rating process is a comprehensive analysis of the City’s financial practices and performances (past and current). Forecasts of future performance and projected long-term planning practices are also reviewed. ## The City of Richfield has maintained an excellent bond rating for many years. The City currently has received a AA+ rating from Standard and Poor’s and an AA2 rating from Moody’s Investors Service prior to that. 259 Page 279 of 361 ## BUDGET SUMMARY ## GENERAL OBLIGATION IMPROVEMENT BONDS 2025 202620262027 ## ActualBudgetRevisedBudget Fund Balance - January 16,613,967$ 9,695,325$ 9,250,848$ 10,221,305$ ## Source of Funds Taxes (Property)4,012,312$ 3,946,030$ 3,946,030$ 3,916,828$ Taxes (Local Sales Tax)2,674,438$ 3,672,000$ 3,672,000 3,745,440 Special Assessment Collections37,171 40,000 40,000 40,000 Interest143,274 10,000 10,000 10,000 Bond Proceeds- - - Transfer in: Special Revenue Fund746,793 747,700 747,700 743,174 - - - - Total Sources7,613,988$ 8,415,730$ 8,415,730$ 8,455,442$ ## Use of Funds Bond Principal (Property)3,450,000$ 3,155,000$ 3,540,000$ 3,645,000$ Bond Interest (Property)1,188,044 1,043,974 1,090,054 992,729 Bond Principal (Local Sales Tax)2,225,000 2,225,000 3,030,000 Bond Interest (Local Sales Tax)293,056 556,236 580,219 538,175 Fiscal Agent Charges5,463 5,000 5,000 5,000 Other Services & Charges40,544 5,000 5,000 5,000 Transfers to: General Fund- - - - Capital Project Fund- - - - Total Uses4,977,107$ 6,990,210$ 7,445,273$ 8,215,904$ Fund Balance - December 319,250,848$ 11,120,845$ 10,221,305$ 10,460,843$ 260 Page 280 of 361 ## TAX LEVYUNPAID ## REQUIREMENTYEARPRINCIPALINTERESTTOTALPRINCIPAL 202635,305,000$ 4,121,139 20273,645,000 992,729 4,637,729 31,660,000 3,605,541 20283,750,000 891,961 4,641,961 27,910,000 2,473,449 20293,325,000 793,693 4,118,693 24,585,000 2,490,093 20302,340,000 713,414 3,053,414 22,245,000 2,487,906 20312,425,000 645,843 3,070,843 19,820,000 2,475,481 20322,485,000 576,133 3,061,133 17,335,000 2,352,926 20332,545,000 503,545 3,048,545 14,790,000 2,201,808 20342,505,000 428,895 2,933,895 12,285,000 1,904,309 20352,435,000 354,120 2,789,120 9,850,000 1,917,253 20362,160,000 284,114 2,444,114 7,690,000 1,912,620 20371,970,000 221,739 2,191,739 5,720,000 1,283,830 20382,025,000 160,116 2,185,116 3,695,000 1,006,228 20391,490,000 103,206 1,593,206 2,205,000 629,751 2040880,000 6 4,038 944,038 1,325,000 431,550 2041550,000 40,381 590,381 775,000 431,340 2042380,000 23,400 403,400 395,000 2043395,000 7,900 402,900 - 31,725,224 35,305,000$ 6,805,227$ 41,707,327$ ## Debt as a Percentage of Taxable Market Value0.73% ## Debt Per Capita917.44$ ## General Obligation Improvement Bonds ## Scheduled Debt Service Requirements - Annual Payments December 31, 2026 261 Page 281 of 361 ## CAPITAL IMPROVEMENT 262 Page 282 of 361 ## CAPITAL IMPROVEMENT BUDGET AND PLAN ## MISSION STATEMENT The Richfield Capital Improvement Budget and Plan is a comprehensive list of major improvements necessary to meet the needs of the community over a five-year period. This list is prepared through compiling the project needs requested by the various city departments. The Capital Plan sets forth the proposed scheduling and details of specific projects by year, estimated cost, and a justification or description to those responsible for making policy decisions regarding expenditures for new facilities. In addition, the Plan provides information so that individual project requests can be better evaluated against community needs and the community’s ability to pay for and maintain these facilities in the succeeding years. ## CAPITAL IMPROVEMENT PLAN GOALS The specific goals of the Capital Improvement Plan are: • To develop a realistic list of capital improvement needs which relates proposed projects to the City’s capacity to finance such projects. • To minimize the impact of projects on the residents’ ability to pay. • To schedule various projects and improvements in a way which allows adequate time to detailed design and engineering of the projects, preparing environmental statements or grant applications or exploring alternative methods of financing. • To provide coordination between City departments, various units of special and general local government, and public utilities. • To implement the community’s Comprehensive Plan in an orderly fashion. • To keep the public involved and informed about needed public improvements and to better enable the public to schedule private improvements. ## OVERVIEW Richfield’s Capital Improvement Plan is a process for identifying annual project needs and priorities for project coordination as well as for financial planning. In addition, the Capital Improvement process provides for public discussion of short range City improvements. The Capital Improvement Budget (CIB)/Capital Improvement Plan (CIP) projects are identified through discussions of the various City commissions and the City departments. From these discussions City staff compiles estimated costs, scope and potential funding sources for the projects. A preliminary report is then generated by the Finance Director based on these discussions and presented to a meeting of the Planning Commission. The Planning Commission then reviews the projects and scheduling based on the following consideration: • The proposed project’s conformance to the Comprehensive Plan. The CIB/CIP, as recommended by the Planning Commission, is then returned to the Finance Director, and submitted to the City Council as part of the annual budget process. The Council may delete projects from the Plan or may change the scheduling and priority of the allocation of funds. In accordance with state statutes, the City Council should refer any new project they may add to the Capital Improvement Plan to the Planning Commission for review. Accordingly, the 2026 Revised/2027 Proposed Capital Improvement Budget (CIB) reflects funding for several improvement projects throughout the City. Included are costs for the Nicollet Avenue Reconstruction, multi-year Pavement Management, multi-year ADA 263 Page 283 of 361 Improvements, multi-year Bicycle Improvements and multi-year Pedestrian Improvement projects. The capital spending plan also includes funds for park and recreation and water and wastewater projects. The funding for the right of way projects is expected to come from sources such as Federal and State grants, Municipal State Aid (MSA), street reconstruction bonds, and utility franchise fees. Funding for other projects included in the CIB will come from intergovernmental revenues, special revenues, and user fees. The City’s main operating budgets should not be materially affected by the planned projects as all funding is outside those budgets. The only possible effect would be on the maintenance of the newly constructed projects. In some cases the maintenance costs may increase, but in others, it is expected to decrease. The Capital Improvement Plan, which represents the next four-year period, also contains a number of significant proposed projects including, several park projects, major street improvement and reconstruction projects throughout the city, replacement of rolling stock and technology equipment, and several projects to improve public facilities throughout the City. ## 2027 Capital Improvement Budget Projects ## Recreation Open Space ## Community Center Building Repair - $20,000 Various repair and major maintenance projects to the Community Center building and surrounding infrastructure that will be identified and prioritized each year by Recreation Services staff. Items may include HVAC repairs, roof repairs, window and flooring repairs, and other repairs and replacement of existing capital items. This annual budget will be discontinued after 2027 in preparation for a new community center building, funded by local sales tax. ## Comm unity Center - $150,000 The Community Center needs a complete rebuild the current building is more than 50 years old and is falling into disrepair. The new building will be sustainably designed and will be able to meet the current demands and needs from across the community, including gym space, a walking track and community spaces. The total project costs are $55 million and the funding sources are the following: $45 million would come from a local sales tax and $10 million would come from bonds. The initial 2027 estimated costs of $150,000 is related to the building design. ## Ice A rena Improvements - $30,000 Ice Arena improvements are funded by the annual General Fund transfer. Improvements to the arena include HVAC, lobby area, doors, the addition of an elevator, new flooring, and improvements to locker rooms 5 and 6. A new roof is planned for 2029 and the funding for this will be G.O. property tax bonds. ## Multi-Year Parks Major Maintenance - $55,000 Various projects relating to the upkeep of existing park infrastructure are identified and prioritized each year by Recreation Services and Public Works Maintenance staff. Projects include tennis/basketball court replacement, trail resurfacing, roof replacement, parking lot reconstruction, field renovation and other repair or partial replacement of existing park capital items. Specific improvement projects and their priorities will be identified through the Parks Master Plan process. 264 Page 284 of 361 ## Outdoor Pool Improvements - $100,000 Improvements to the Outdoor Pool are funded by the annual General Fund transfer. 2026 projects include replacing umbrella canopies along with refurbishing pumps and boilers. 2027 projects include replacing pool filter sand, and adding shade structures. ## Park s Master Plan - $90,000 Every eight to ten years, the Recreation Services Department updates the Parks Master Plan, a document within the City’s overall Comprehensive Plan which outlines the overall philosophy around park management and development, as well as specific park development plans, and serves as a guiding document for future capital improvement planning and other operations. The plan was last updated in 2018. Staff will hire a consultant to help coordinate the update, which will involve an extensive public engagement process. ## Veterans Park Complex - $2,420,768 Improvements to the park infrastructure, including the Band Shell, the picnic shelter, the mini-golf facility, trails, green space, marsh, etc.). The improvements being made in 2025- 2028 are funded by local sales tax ($1.9m), special revenue ($500k), and a possible MN DNR grant ($500k). Projected improvements outlined in the facility assessment are planned for years beyond 2031 would be funded by general obligation bonds serviced by property tax. ## Adams Hill Park Play Equipment Replacement - $150,000 Replace the play equipment structure at Adams Hill Park in accordance with the Play Equipment Replacement Schedule. ## Park s Building Improvements - $220,000 Pending the acceptance of a grant from Hennepin County, the lighting controls and breakers will be upgraded in 2027 at Christian, Donaldson, Augsburg, and Taft Parks. Then, looking beyond 2031, general obligation bonds serviced by property taxes would fund the Renovation of the Christian Park building ($1,500,000) and Donaldson Park Building ($1,500,00). ## Right of Way Improvements 77 th ## Street Pavement Maintenance - $1,100,000 The concrete pavement panels and pavement joints on 77th Street are beginning to fail in certain areas and will need major maintenance in the near future to avoid full reconstruction. This work will address the worst areas of pavement failure, primarily east of Portland Ave. 78 th Street Lighting - $200,000 MnDOT will be adding pedestrian level lighting (paid for by the city) to several trail segments constructed in Phase 1 of the I-494 project. Due to issues with the way the design-build contract was written, there are several gaps in the trail network that will not have lighting constructed, and the City will need to backfill with pedestrian and street lighting. These areas are 78th Street west of Penn, 78th Street from Pleasant Ave to Nicollet Ave, and 78th Street from Nicollet Ave to Portland Ave. 265 Page 285 of 361 ## Multi-Year ADA Improvements - $200,000 Staff completed a City-wide inventory of pedestrian ramps and sidewalks in 2023. This inventory will be used to identify missing or non-compliant ADA infrastructure within the right- of-way and program ADA infrastructure improvements throughout the City. This may include sidewalks, trails, curbs, corner pedestrian ramps, crosswalks, and other infrastructure. ## Multi-Year Bicycle Improvements - $40,000 As part of the implementation of the Bicycle Master Plan and Safe Routes to School Plan, improvements to bike facilities are made on a regular basis. $40,000 of funds are identified each year, however actual spending varies from year to year. Any funds not spent remain available for future use. ## Multi-Year Pedestrian Improvements - $40,000 Spot pedestrian improvements, such as refuge islands, RRFBs, and pavement markings will be constructed where beneficial, as identified in the Pedestrian Master Plan and Safe Routes to School Plan to achieve the greatest improvement in public safety. $40,000 of funds are identified each year, however actual spending varies from year to year. Any funds not spent remain available for future use. ## Multi-Year Nicollet Avenue Reconstruction - $5,740,000 Nicollet Ave Reconstruction from 66th St to 77th St led by Hennepin County. Underground utilities will be replaced or lined as necessary. The County’s consultant led a robust public engagement process following Richfield’s public engagement process to guide the roadway design in 2023 and 2024. Staff are pursuing state bond funding to offset the local costs currently identified for bonding. This is identified as a 2-year construction project (2026-27). Early project expenses are paid from existing City resources and will be reimbursed following the sale of G.O. bonds closer to project construction. ## Multi-Year Pavement Management Program - $755,000 In order to protect the investments made in the City’s roadway infrastructure, an ongoing pavement management program is needed. The program will address areas of greatest need throughout the City each year and may include mill and overlay, concrete replacement, pavement rejuvenation treatments, crack sealing, and other various roadway improvements. ## Multi-Year Traffic Signal Replacement - $900,000 The existing City-owned traffic signals along the 76th St/77th St corridor will be reaching the ends of their expected life cycles between 2025 and 2035. The signals will need to be replaced with new signal systems or alternative traffic control measures. The estimated total cost of signal replacements is $2.67M, with the first signal components being replaced no earlier than 2027 due to the ongoing 494 project. 69 th Street Reconstruction - $413,000 The project includes reconstruction of 69th Street between Penn Avenue and Xerxes Avenue, including narrowing of the roadway to add sidewalk to one side, reconstruction of retaining walls, lining or replacement of sanitary sewer, and replacement of storm sewer. The final roadway section will be determined following the City’s public engagement process. 266 Page 286 of 361 ## Penn Avenue Reconstruction – $300,000 This project consists of the reconstruction of Penn Avenue from Hwy 62 to 75th Street led by Hennepin County. The project includes the replacement of City utilities, ADA upgrades, and pedestrian and bicyclist upgrades. The City and County will lead a robust public engagement process to guide the roadway design. The current estimate is based on the County’s cost share policy and assumes full utility replacement/rehabilitation. 76 th and Knox Improvements - $350,000 This project consists of the conversion of the existing signalized intersection at W 76th St (MSAS 361) and Knox Ave S in the City of Richfield to a roundabout, including improvements to active transportation facilities that use the intersection. Ultimate design of the intersection will be determined through the City’s public engagement process. Permanent right-of-way acquisition and temporary construction easements will be required. Project was selected for Regional Solicitation in the 2024 cycle, with a FY 2029 construction date. The Regional Solicitation grant covers 80% of the estimated construction costs and City is responsible for funding the remaining construction costs and all design and right-of- way costs. ## Pub lic Facilities ## SCADA Cybersecurity Upgrade - $50,000 The Supervisory Control and Data Acquisition (SCADA) system cybersecurity upgrade will modernize all hardware within the SCADA network that controls the water treatment plant and other utility systems in Richfield. Much of the existing equipment is outdated (some components are nearly 20 years old), which increases the risk of failure and makes the system more vulnerable to cybersecurity threats. Upgrading to new hardware will significantly improve system reliability and performance, enabling faster response times to operational changes. In addition, the new equipment will incorporate enhanced security features designed to better protect critical infrastructure from unauthorized access and cyberattacks. ## Water Plant Elevator Replacement - $50,000 The elevator at the water treatment plant has reached the end of its useful life cycle. Public Works staff have been advised by the elevator service company that parts are no longer available for this elevator and control system, and it has become difficult to service or repair when the need arises. The elevator is used daily to transport equipment, chemicals, visitors, and staff from lower to upper levels of the plant. It also satisfies ADA requirements for the building. This project includes a full replacement of the elevator and controls with modern technology. ## Water Plant Generator - $2,400,000 The generator at the water treatment plant has reached the point where maintenance and problem solving are too frequent. In addition, the integrated fuel tank and housing are badly corroded. Repairing the current unit is not advantageous due to the age, the cost to implement the needed repairs, and the minimal return on such an investment. There has also been a shift in the industry and technology for more efficient ways of providing a generator backup system for a building of this type and power demand. This project will fund the design, supply of the generator, placement and commissioning, and oversight of these activities. A study was commissioned in 2024 to ascertain the design needs and future costs. 267 Page 287 of 361 ## Sanitary Lift Station 6 Rehabilitation - $300,000 Rehabilitation of lift station 6, to include updated safety equipment, updated electrical and control equipment, and updated mechanical equipment to include pumps and valves. Project also will improve concrete slab around wet well to solve drainage issues. ## Multi-Year Rehabilitation of Storm Sewer Collection System - $200,000 The storm sewer collection system was installed in the mid 1950’s and is comprised of mostly reinforced concrete pipes. A cleaning and inspection program is conducted annually to determine the condition of the sewer mains and structures. Sewer mains and structures that are identified as being in poor condition will be replaced or rehabilitated with the means and methods that are in line with industry standards. The rehabilitation will extend the life of the mains by up to 75 years. ## Multi-Year Sanitary Sewer Main Lining - $900,000 The wastewater collection system was installed in the late 1950’s and mainly consists of Vitrified Clay Pipe (VCP). As these VCP pipes age, tree root intrusion and cracking become more common. In order to preserve an appropriate level of service to our users and protect the mill and overlay investment, portions of the wastewater collection system undergo cured-in-place pipe (CIPP) lining. Lining consists of placement of a liner in the existing clay pipe, which is adhered to the pipe wall and cured through the use of steam, hot water, or ultraviolet light. Once it cools, the liner hardens to a consistency of schedule 40 PVC, effectively restoring structural integrity. This rehabilitation technique is widely used in the industry and is done at a fraction of the cost of open cutting a street to replace the line. It is anticipated that this program will be ongoing until the entire wastewater collection system is rehabilitated, based upon funding availability. ## Restroom Renovations – WTP Second Floor - $200,000 The restrooms at the water plant date back to the 1960s and remain largely unchanged. The second-level restrooms, in particular, are in urgent need of renovation to address outdated conditions and to meet current ADA accessibility standards. This project will renovate existing water plant restrooms for ADA compliance and modernization. ## Water Plant Chlorine Storage Area Improvements - $100,000 The floor of the chlorine storage area in the water treatment plant has experienced severe spalling and exposure of rebar due to a previous chlorine leak. Impairment has very likely spread further beyond the spalling that is observable. In order to implement the proper repairs and restore the structural integrity of the floor, the chlorine storage tanks and day tank system will need to be relocated and the full extent of the chlorine room floor inspected and repaired. This project will include the relocation effort along with the requisite concrete and reinforcing bar repair to the floor. ## Water Plan Personnel Safety Systems Improvements - $125,000 The results of the Water Treatment Plant Condition Assessment conducted in 2022 revealed certain health and safety issues. One of the issues identified was a deficiency with the design and setup of the eye wash and shower stations. Although the water plant has the proper stations for our building type, it was discovered that the set up itself is not OSHA compliant. Public works staff retained a consultant to formulate a design that mitigates these issues of non-compliance. This project will include the construction of a recirculation system that satisfies both State and OSHA standards. 268 Page 288 of 361 ## Water System Interconnect - $4,900,000 The water treatment plant was built in 1963 and to date has been a standalone system. If it were to have a catastrophic failure and unable to produce water, the city is not equipped with a long-term emergency backup water source. Connecting to another city’s water system would create the needed level of service redundancy. As part of the DNR’s water supply plan, they encourage all cities to have an emergency backup water source. Well #3 Water Service - $50,000 A ¾ inch water service extends out to the Well #3 building at the water plant. The water service was constructed in a manner that exposes a length of copper to the outside elements as it traverses from within the plant to the well house. This length of pipe has burst on several occasions due to the cold weather rendering the well useless. This project will include the design, construction, and oversight of construction of a water service extension that is frost protected. ## Wil son Pond Flood Mitigation - $100,000 The Wilson Pond subwatershed is located in the southeast quadrant of the City. This subwatershed is subject to flooding during heavy rain events. The low-lying nature of the subwatershed makes it challenging to manage stormwater within the regional pond (Wilson Pond) system. Public Works staff have updated the stormwater model to reflect current flood risk conditions based on available data. The results of the model will be used to explore engineering alternatives to reduce the flood risk to the immediate neighborhoods. A design will be selected from the alternatives analysis that yields the most benefit. ## Buildings, Fleet and Technology ## Richfield Liquor Cedar Point - $260,560 Excavate & replace perimeter waterproofing below garage to eliminate water intrusion (199,699.50), Replace damaged concreate sidewalks and calling (56,785.30), add blower fans to prevent moisture accumulation on cooler doors (4,075.50). ## Mult i-Year Fleet Purchases - $1,785,000 The Public Works Garage Division purchases all vehicles used by City Departments to provide City Services. This project is ongoing in which the Division makes vehicle purchases every year. ## Publi ## c Works Facility Building Improvements - $460,000 A number of building maintenance items that need to be addressed were found in a recent Facility Study. The building items vary from HVAC component replacement to repairing water intrusion into the building. This is an ongoing project and maintenance items have been prioritized by City Staff. ## Public Works Facility Office Area Upgrades - $290,000 The Public Works Department is running out of office space and room for additional staff. Currently there is not an identified work area for a GIS Analyst that has not been hired and an identified hire date of June 1, 2026. This project includes adding 2 offices and some HVAC components. This project will fulfil an immediate space need but does not eliminate the need for other area upgrades that are needed in the future including new carpet, new office cube equipment, and HVAC repairs. 269 Page 289 of 361 ## Computer Workstation Replacement - $70,000 Annual replacement of City desktop and laptop computer workstations based on the established four-year lifecycle replacement schedule to maintain reliable, secure, and supported technology for City operations. This project also includes funding for additional computer workstations needed to support departmental growth, operational needs, and changing staffing requirements across the organization. Fire Station 1 Vehicle Exhaust Removal System - $85,000 Fire Station 1 was built with a commercial exhaust detection system that uses the apparatus bays normal HVAC system to evacuate. The industry standard for fire station apparatus bays is to have a dedicated ventilation system that activates when trucks are started to capture all exhaust fumes and diesel particulate. Fire Station 2 was upgraded with a dedicated exhaust system in 2026 with funding from a federal FEMA Assistance to Firefighter Grant (AFG). An AFG will be applied for in 2027 to fund the placement of the same dedicated exhaust system in Fire Station 1. This type of grant requires a 10% match that the city is expected to fund and will be accounted for in the 2027 proposed budget. Fire Station 2 Repairs - $306,406 Fire Station 2 was originally built in 1964 and remodeled in 2013. The city just completed a facilities study that looked at multiple city buildings, one being Fire Station 2. This study identified many structural, safety, cosmetic and programmatic changes required to protect the structural asset as well as the employees working and living within it. The study assigned priorities and costs to each identified need, and this list was reviewed and refined by Interim Fire Chief Coppa. The estimated repair and replacement costs needed to satisfy the items identified in the facilities study total $2.454M (2027 costs) over six years. While this addresses the currently identified needs, it fails to address the lack of essential modern safety features and needed programmatic spaces that will need to be addressed in the near future. The current station would need to be replaced with a building costing approximately $7,150,000 in 2027 dollars with a projected cost increase of 5-6% per year after. A policy discussion needs to determine where the financial priorities lie and whether it makes more sense to pay for repairs and maintenance to the existing building or consider a new building. ## Richfield Liquor Downtown - $399,535 Excavate & replace perimeter waterproofing below grade to eliminate water infiltration (321,964.50), Replace damaged sidewalk (31,788.90), replace damaged caulk joint around entire building perimeter (6,384.95), replace water heater, near end of life (5,434.00), replace corroded stainless-steel flue for boilers (33,962.50). ## Network Infrastructure Replacement - $77,326 This project provides for the phased replacement of network switches that have reached or are approaching Cisco end of support status over a three-year cycle. Much of the City’s network infrastructure replacement schedule had previously been deferred, resulting in aging equipment with increased risk of failure and cybersecurity concerns. Cisco end of support means the manufacturer no longer provides security updates, software patches, or technical support for the equipment. Switches will be replaced in priority order based on their end of support dates to maintain reliable and secure network infrastructure for City operations and services. 270 Page 290 of 361 ## RECREATION & OPEN SPACE ## -$ B3,273$ B ## - BST14,727 BST ## 20,000 SR20,000 SR ## - O207,941O ## 275,000 SR275,000 SR ## - O18,000 O ## 180,000 SR90,000 SR ## 5,000,000 BST5, ## 339,645 BST ## - SR90,000 SR ## - S250,000 S ## 1,000,000 BST2, ## 175,481 BST ## Community Center Building ## Community Center Building ## Community Center Building Repair ## Ice Arena Improvements ## Multi-Year Parks Major Maintenance ## Outdoor Pool Improvements ## Parks Master Plan ## Veterans Park Improvements ## Veterans Park Improvements ## Veterans Park Improvements ## Wood Lake Nature Center Building ## Wood Lake Nature Center Building ## - S12,000,000 S Wood Lake Trail Updates50,000 O- O Wood Lake Trail Updates200,000 S- S ## TOTAL REC. & OPEN SPACE6,725,000$ 20,484,067$ ## RIGHT OF WAY IMPROVEMENT 64th Street Sidewalk165,000$ M376,000$ M ## 64th Street Sidewalk- S854,000 S ## 69th Street Reconstruction- BU277,000 BU 73rd Street Sidewalk Gap (Diagonal)200,000 M435,000 M ## 73rd Street Sidewalk Gap (Diagonal)- S901,200 S ## 76th & Knox Improvements- F50,000 F ## 77th Street Pavement Maintenance- M100,000 M Multi-Year ADA Improvements200,000 FF200,000 FF ## Multi-Year Bicycle Improvements40,000 FF40,000 FF Multi-Year Pavement Management Plan737,000 FF345,000 FF ## Multi-Year Pedestrian Improvements40,000 FF40,000 FF Multi-Year Street Name Sign Replacement50,000 FF- FF ## Multi-Year Traffic Signal Replacements- M120,000 M Nicollet Ave Reconstruction (project to be built in 2026-27)4,000,000 B1,325,000 B Nicollet Ave Reconstruction (project to be built in 2026-27)3,500,000 BU795,000 BU Penn Avenue Reconstruction 300,000 M300,000 M Sheridan Hills SRTS Sidewalk150,000 M147,000 M Sheridan Hills SRTS Sidewalk544,500 S401,000 S ## TOTAL RIGHT-OF-WAY IMPROVEMENT9,926,500$ 6,706,200$ ## UTILITIES Multi-Year Rehabilitation of Stormwater Collection System Mains200,000$ U200,000$ U Multi-Year Sanitary Sewer Main Lining900,000 U900,000 U ## SCADA Cybersecurity Upgrade ## - U50,000 U Water Plant Chlorine Storage Area Improvements100,000 U125,000 U Water Plant Elevator Replacement175,000 U150,000 U ## Water Plant Generator ## - BU100,000 BU Water Plant Program Space Renovation100,000 U- U ## Water Plant Sludge Pump Replacement50,000 U50,000 U ## Water System Interconnect- U100,000 BU ## TOTAL UTILITIES1,525,000$ 1,675,000$ ## BUILDINGS, FLEET AND TECHNOLOGY ## Carpet Replacement - Fire-$ BSR50,000$ BSR Carpet Replacement - Police120,000 BSR70,000 BSR Fiber Infrastructure Projects - Information Technologies45,000 O45,000 O Fire SCBA Purchase450,000 O- O Laptop Purchases - Information Technologies34,260 ISR34,260 ISR ## Liquor Operations (Cedar Point) - Wold Assessment- O7,500 O Multi-Year Fleet Purchases1,664,726 FSR1,664,726 FSR Network Infrastructure Replacement - Information Technologies10,650 ISR10,650 ISR ## Public Works Facility Building Improvements- FSR37,700 FSR ## Public Works Facility Office Area UpgradesO50,000 O Public Works Storage Facility325,000 FF325,000 FF Public Works Storage Facility650,000 O650,000 O Public Works Storage Facility500,000 U500,000 U ## TOTAL BUILDINGS, FLEET & TECHNOLOGY3,799,636$ 3,444,836$ ## TOTAL USES OF FUNDS21,976,136$ 32,310,103$ ## ESTIMATED REVENUE BY SOURCE (B) G.O. Bonds- Property Tax4,000,000$ 1,328,273$ (BSR) Buildings Special Revenue120,000 120,000 (BST) Bonds- Sales Tax6,000,000 7,529,853 (BU) G.O. Bonds-Utility 3,500,000 1,272,000 (C) Hennepin County- - (F) Federal Grant- 50,000 (FF) Franchise Fees1,392,000 950,000 (FSR) Fleet Special Revenue1,664,726 1,702,426 ## (ISR) Internal Special Revenue44,910 44,910 ## (LTCR) Long Term Capital Reserve- - (M) Municipal State Aid815,000 1,478,000 (O) Other Funding1,195,000 978,441 ## (OR) Other Recreation Funding- - (S) State744,500 14,406,200 (SR) Special Revenue475,000 475,000 (TL) Tax Levy- - (U) User Fees2,025,000 1,975,000 (X) Xcel Energy - - ## TOTAL FUNDING BY SOURCE21,976,136$ 32,310,103$ ## 2026 Capital Improvement Budget ## 2026 Budget2026 Revised 271 Page 291 of 361 ## RECREATION & OPEN SPACE ## 150,000$ SR ## 27,273 B ## 122,727 BST ## 20,000 SR ## 30,000 O ## 55,000 SR ## 100,000 O ## 220,000 C ## 90,000 SR ## 2,010,768BST ## 160,000 SR ## Adams Hill Park Play Equipment Replacement ## Community Center Building ## Community Center Building ## Community Center Building Repair ## Ice Arena Improvements ## Multi-Year Parks Major Maintenance ## Outdoor Pool Improvements ## Parks Building Improvements ## Parks Master Plan ## Veterans Park Improvements ## Veterans Park Improvements ## Veterans Park Improvements ## 250,000 S ## TOTAL REC. & OPEN SPACE3,235,768$ ## RIGHT OF WAY IMPROVEMENT 69th Street Reconstruction413,000$ BU 76th & Knox Improvements350,000 F 77th Street Pavement Maintenance1,100,000 M 78th Street Lighting200,000 FF Multi-Year ADA Improvements200,000 FF ## Multi-Year Bicycle Improvements40,000 FF Multi-Year Pavement Management Plan755,000 FF ## Multi-Year Pedestrian Improvements40,000 FF Multi-Year Traffic Signal Replacements900,000 M Nicollet Ave Reconstruction (project to be built in 2026-27)3,535,000 B Nicollet Ave Reconstruction (project to be built in 2026-27)205,000 BU Nicollet Ave Reconstruction (project to be built in 2026-27)2,000,000 S Penn Avenue Reconstruction 300,000 M ## TOTAL RIGHT-OF-WAY IMPROVEMENT10,038,000$ ## UTILITIES Lift Station 6 Rehabilitation300,000$ U Multi-Year Rehabilitation of Stormwater Collection System Mains200,000 U Multi-Year Sanitary Sewer Main Lining900,000 U Restroom Renovations-WTP Second Floor200,000 U SCADA Cybersecurity Upgrade50,000 U Water Plant Chlorine Storage Area Improvements100,000 U Water Plant Elevator Replacement50,000 U Water Plant Generator2,400,000 BU Water Plant Personnel Safety Systems Improvements125,000 U Water System Interconnect3,809,000 BU Water System Interconnect1,091,000 F Well #3 Water Service50,000 U Wilson Pond Flood Mitigation100,000 U ## TOTAL UTILITIES9,375,000$ ## BUILDINGS, FLEET AND TECHNOLOGY Computer Workstation Replacement70,000$ ISR Fire Station 1 Vehicle Exhaust Removal System76,500 F ## Fire Station 1 Vehicle Exhaust Removal System8,500 O Fire Station 2 Repairs306,406 B Liquor Operations (Cedar Point) - Wold Assessment260,560 O Liquor Operations (Downtown) - Wold Assessment399,535 O Multi-Year Fleet Purchases1,785,000 FSR Network Infrastructure Replacement - Information Technologies77,326 ISR Public Works Facility Building Improvements460,000 B Public Works Facility Office Area Upgrades290,000 BSR ## TOTAL BUILDINGS, FLEET & TECHNOLOGY3,733,827$ ## TOTAL USES OF FUNDS26,382,595$ ## ESTIMATED REVENUE BY SOURCE ## (B) G.O. Bonds- Property Tax4,328,679$ ## (BSR) Buildings Special Revenue290,000 ## (BST) Bonds- Sales Tax2,133,495 (BU) G.O. Bonds-Utility 6,827,000 ## (C) Hennepin County220,000 ## (F) Federal Grant1,517,500 ## (FF) Franchise Fees1,235,000 ## (FSR) Fleet Special Revenue1,785,000 ## (ISR) Internal Special Revenue147,326 ## (M) Municipal State Aid2,300,000 ## (O) Other Funding798,595 ## (OR) Other Recreation Funding- (S) State 2,250,000 ## (SR) Special Revenue475,000 ## (TL) Tax Levy- ## (U) User Fees2,075,000 (X) Xcel Energy - ## TOTAL FUNDING BY SOURCE26,382,595$ ## 2027 Capital Improvement Budget ## PROJECT EXPENDITURE 272 Page 292 of 361 ## Spent to DateCIB AdoptedCIB RevisedCIBCIPCIPCIPCIPTOTAL*CIPTotal** ## Through 20252026202620272028202920302031CIP CostBeyond 2031Project Costs ## RECREATION ## OPEN SPACE DEVELOPMENT ## 26-Community Center Building Repair20,000 SR20,000 SR20,000 SR- 40,000 26-Community Center Building - Replacement3,273 B27,273 B754,545 B1,090,909 B8,124,000 B9,969,455 10,000,000 26-Community Center Building - Replacement14,727 BST122,727 BST3,395,455 BST4,909,091 BST36,558,000 BST44,862,545 45,000,000 26-Ice Arena Improvements1,200,000 B1,200,000 1,200,000 26-Ice Arena Improvements207,941 O30,000 O30,000 ## O ## 272,000 O30,000 O30,000 O362,000 1,000,000 O1,599,941 26-Multi-Year Parks Major Maintenance275,000 SR275,000 SR55,000 SR105,000 SR355,000 SR355,000 SR355,000 SR1,170,000 355,000 SR1,855,000 ## 26-Outdoor Pool Improvements ## 18,000 O100,000 ## O ## 21,270 O21,270 158,420 O297,690 26-Parks Master Plan180,000 SR90,000 SR90,000 SR- 180,000 26-Veterans Park Improvements1,649,587BST5,000,000 BST5,339,645 BST2,010,768 BST- 9,000,000 26-Veterans Park Improvements90,000 SR160,000 SR250,000 SR250,000 500,000 26-Veterans Park Improvements250,000 S250,000 S- 500,000 26-Wood Lake Nature Center Building8,824,519 BST1,000,000 BST2,175,481 BST- 11,000,000 26-Wood Lake Nature Center Building225,000 SR- 225,000 26-Wood Lake Nature Center Building- S12,000,000 S- 12,000,000 26-Wood Lake Nature Center Building3,000,000 F- 3,000,000 ## 26-Wood Lake Trail Updates50,000 O- - 26-Wood Lake Trail Updates200,000 S- - 27-Adams Hill Park Play Equipment Replacement150,000 SR- 150,000 27-Parks Building Improvements220,000 C- 220,000 28-Playground Replacement120,000 SR120,000 SR120,000 SR120,000 SR480,000 120,000 SR600,000 TOTAL RECREATION & OPEN SPACE13,699,106 6,725,000 20,484,067 3,235,768 4,655,000 7,947,000 45,187,000 526,270 58,315,270 1,633,420 97,367,631 (B) G.O. Bonds- Property Tax- - 3,273 27,273 754,545 2,290,909 8,124,000 - 11,169,455 - 11,200,000 (BST) Bonds- Sales Tax10,474,106 6,000,000 7,529,853 2,133,495 3,395,455 4,909,091 36,558,000 - 44,862,545 - 65,000,000 (C) Hennepin County- - - 220,000 - - - - - - 220,000 (F) Federal Grant3,000,000 - - - - - - - - - 3,000,000 (O) Other Funding- 50,000 225,941 130,000 30,000 272,000 30,000 51,270 383,270 1,158,420 1,897,631 (S) State- 200,000 12,250,000 250,000 - - - - - - 12,500,000 (SR) Special Revenue225,000 475,000 475,000 475,000 475, 000 475,000 475,000 475,000 1,900,000 475,000 3,550,000 TOTAL FUNDING BY SOURCE13,699,106 6,725,000 20,484,067 3,235,768 4,655,000 7,947,000 45,187,000 526,270 58,315,270 1,633,420 97,367,631 ## PROJECTS ## Spent to DateCIB AdoptedCIB RevisedTOTAL*TOTAL** RIGHT OF WAY IMPROVEMENTSThrough 20252026202620272028202920302031CIP costBeyond 2031Project costs 26-64th Street Sidewalk80,000 M165,000 M376,000 M- 456,000 ## 26-64th Street Sidewalk ## - S854,000 ## S- 854,000 26-73rd Street Sidewalk Gap (Diagonal)65,000 M200,000 M435,000 M- 500,000 26-73rd Street Sidewalk Gap (Diagonal)901,200 S- 901,200 ## 26-Multi-Year Street Name Sign Replacement50,000 FF- FF- - 26-Sheridan Hills SRTS Sidewalk32,000 M150,000 M147,000 M- 179,000 26-Sheridan Hills SRTS Sidewalk544,500 S401,000 S- 401,000 27-77th Street Pavement Maintenance100,000 M1,100,000 M- 1,200,000 27-78th Street Lighting200,000 FF100,000 FF200,000 FF300,000 500,000 27-Multi-Year ADA Improvements100,000 FF200,000 FF200,000 FF200,000 FF200,000 FF200,000 FF200,000 FF600,000 1,100,000 27-Mult i-Year Bicycle Improvements- FF40,000 FF40,000 FF40,000 FF40,000 FF40,000 FF40,000 FF40,000 FF160,000 40,000 FF280,000 27-Multi-Year Pedestrian Improvements- FF40,000 FF40,000 FF40,000 FF40,000 FF40,000 FF40,000 FF40,000 FF160,000 40,000 FF280,000 27-Nicollet Ave Reconstruction140,000 B4,000,000 B1,325,000 B3,535,000 B- 5,000,000 27-Nicollet Ave Reconstruction3,500,000 BU795,000 BU205,000 BU- 1,000,000 27-Nicollet Ave Reconstruction2,000,000 S- 2,000,000 27-Pavement Management Program- FF737,000 FF345,000 FF755,000 FF795,000 FF720,000 FF845,000 FF770,000 FF3,130,000 800,000 FF5,030,000 27-Traffic Signal Replacements120,000 M900,000 M805,000 M840,000 M1,645,000 2,665,000 28-69th Str eet Reconstruction3,240,000 B3,240,000 3,240,000 28-69th Street Reconstruction277,000 BU413,000 BU3,760,000 BU3,760,000 4,450,000 ## 28-76th Street & I35W Intersections150,000 ## M 150,000 150,000 ## 28-76th Street & I35W Intersections600,000 ## S 600,000 600,000 28- Penn Avenue Reconstruction3,500,000 B3,500,000 ## B 7,000,000 7,000,000 28- Penn Avenue Reconstruction2,500,000 BU2,500,000 BU5,000,000 5,000,000 28- Penn Avenue Reconstruction200,000 M300,000 M300,000 M300,000 M- 800,000 29-76th & Knox Improvements1,662,960 B1,662,960 1,662,960 ## 29-76th & Knox Improvements50,000 F350,000 ## F 150,000 ## F ## 2,137,040 F2,287,040 2,687,040 30-68th Street Sidewalk (Lyndale to Portland) ## 175,000 S1,625,000 S1, 800,000 1,800,000 30-73rd Street Pedestrian Bridge2,500,000 B2,500,000 2,500,000 30-73rd Street Pedestrian Bridge5,000,000 S5,000,000 5,000,000 30-73rd Street Trail (35W to Lyndale)113,500 S1,000,000 S1,113,500 1,113,500 30-76th Street West Reconstruction4,100,000 B4,100,000 4,100,000 ## 30-76th Street West Reconstruction600,000 ## BU600,000 600,000 30-76t h Street West Reconstruction700,000 X300,000 X1,000,000 1,000,000 31-63rd Street Greenway- 2,600,000 F2,600,000 31-63rd Street Greenway- 1,100,000 M1,100,000 31-70th Street Reconstruction- 3,150,000 BU3,150,000 31-70th Street Reconstruction- 1,300,000 M1,300,000 31-76th/77th Street Intersection Control- 3,600,000 B3,600,000 31-77th Street Reconstruction Lyndale to Portland- 25,000,000 B25,000,000 31-77th Street Reconstruction Penn to Lyndale- 25,000,000 B25,000,000 31-77th St Reconstruction Portland to Richfield Pkwy- 9,500,000 B9,500,000 31-77th St Reconstruction Portland to Richfield Pkwy- 1,000,000 BU1,000,000 31-Bloomington Ave and Diagonal Blvd- 1,800,000 M1,800,000 31-Bloomington Ave and Richfield Parkway- 1,800,000 M1,800,000 31-Humboldt Ave/Lake Shore Dr Reconstruction- 7,000,000 B7,000,000 31-Humboldt Ave/Lake Shore Dr Reconstruction- 4,000,000 BU4,000,000 31-North Lyndale Reconstruction- 4,900,000 M4,900,000 31-TH62 Noise Barrier East- 550,000 M550,000 31-TH62 Noise Barrier East- 550,000 O550,000 31-TH62 Noise Barrier East- 9,900,000 S9,900,000 TOTAL RIGHT OF WAY IMPROVEMENTS617,000 9,926,500 6,706,200 10,038,000 15,880,000 12,828,500 16,250,000 850,000 45,808,500 103,630,000 166,799,700 (B) G.O. Bonds- Property Tax140,000 4,000,000 1,325,000 3,535,000 6,740,000 5,162,960 6,600,000 - 18,502,960 70,100,000 93,602,960 (BU) Govt Bond Utility- 3,500,000 1,072,000 618,000 6,260,000 2,500,000 600,000 - 9,360,000 8,150,000 19,200,000 (F) Federal Grant- - 50,000 350,000 150,000 2,137,040 - - 2,287,040 2,600,000 5,287,040 (FF) Franchise Fee100,000 1,067,000 625,000 1,235,000 1,175,000 1,200,000 1,125,000 850,000 4,350,000 880,000 7,190,000 (S) State- 544,500 2,156,200 2,000,000 600,000 288,500 7,625,000 - 8,513,500 9,900,000 22,569,700 (M) Municipal State Aid377,000 815,000 1,478,000 2,300,000 955,000 840,000 - - 1,795,000 11,450,000 17,400,000 (X) Xcel Energy- - - - - 700, 000 300,000 - 1,000,000 - 1,000,000 TOTAL FUNDING BY SOURCE617,000 9,926,500 6,706,200 10,038,000 15,880,000 12,828,500 16,250,000 850,000 45,808,500 103,630,000 166,799,700 2026 ADOPTED CAPITAL IMPROVEMENT BUDGET, 2026 REVISED CAPITAL IMPROVEMENT BUDGET, 2027 CAPITAL IMPROVEMENT BUDGET & 2028 - 2031 CAPITAL IMPROVEMENT PLAN - CITY OF RICHFIELD, MINNESOTA 273 Page 293 of 361 2026 ADOPTED CAPITAL IMPROVEMENT BUDGET, 2026 REVISED CAPITAL IMPROVEMENT BUDGET, 2027 CAPITAL IMPROVEMENT BUDGET & 2028 - 2031 CAPITAL IMPROVEMENT PLAN - CITY OF RICHFIELD, MINNESOTA ## PROJECTSSpent to DateCIB AdoptedCIB RevisedTOTAL*TOTAL** UTILITIESThrough 20252026202620272028202920302031CIP costBeyond 2031Project costs 26-SCADA Cybersecurity Upgrade- 50,000 U50,000 U50,000 U50,000 U100,000 200,000 26-Water Plant Elevator Replacement175,000 U150,000 U50,000 ## U - 200,000 26-Water Plant Generator- BU100,000 BU2,400,000 BU- 2,500,000 26-Water Plant Program Space Renovation100,000 U- U- - 26-Water Plant Sludge Pump Replacement50,000 U50,000 U- 50,000 27-Lift Station 6 Rehabilitation300,000 U- 300,000 27-Multi-Year Rehab of Stormwater Collect. Mains200,000 U200,000 U200,000 U200,000 U200,000 U200,000 U200,000 U800,000 200,000 U1,400,000 27-Multi-Year Sanitary Sewer Main Lining900,000 U900,000 U900,000 U900,000 U900,000 U900,000 U2,700,000 900,000 U5,400,000 27-Restroom Renovations - WTP Second Floor200,000 U- 200,000 27-Water Plant Chlorine Storage Area Improvements100,000 U125,000 U100,000 U- 225,000 27-Water Plant Personnel Safety Systems Impr125,000 U- 125,000 27-Water System Interconnect100,000 BU3,809,000 BU- 3,909,000 27-Water System Interconnect1,091,000 F- 1,091,000 27-Well #3 Water Service50,000 U- 50,000 27-Wilson Pond Flood Mitigation100,000 U400,000 U400,000 500,000 28-HUB Redevelopment Participation160,000 FF160,000 160,000 28-HUB Redevelopment Participation700,000 O700,000 700,000 28-HUB Redevelopment Participation700,000 U700,000 700,000 28-Water Plant Filter Bay Media Replace & Rehab500,000 U500,000 500,000 29-Sanitary Lift Station 4350,000 U350,000 350,000 30-Multi-Year Watermain Rehab3,000,000 U3,000,000 U6,000,000 3,000,000 U9,000,000 31-Sanitary Lift Station 1350,000 U350,000 350,000 >31-Logan Tower Coating- 2,000,000 BU2,000,000 >31-Penn Tower Coating- 2,000,000 BU2,000,000 >31-Restroom Renovations- 185,000 U185,000 >31-Sa nitary Lift Station 2- 350,000 U350,000 >31-Sanitary Lift Station 3- 350,000 U350,000 >31-Water Plant Handrail and Guardrail Replacement- 100,000 U100,000 >31-Water Plant Painting- 40,000 U40,000 >31-Water Plant Pipe Gallery Coatings- 500,000 U500,000 >31-Well 2 Generator- 1,000,000 U1,000,000 31-Well 5 Generator- 1,000,000 U1,000,000 TOTAL UTILITIES- 1,525,000 1,675,000 9,375,000 3,610,000 600,000 4,100,000 4,450,000 12,760,000 11,625,000 35,435,000 (BU) Govt Bond Utility- - 200,000 6,209,000 - - - - - 4,000,000 10,409,000 (F) Federal Grant- - - 1,091,000 - - - - - - 1,091,000 (FF) Franchise Fee- - - - 160,000 - - - 160,000 - 160,000 (O) Other Funding- - - - 700,000 - - - 700,000 - 700,000 (U) User Fee- 1,525,000 1,475,000 2,075,000 2,750,000 600,000 4,100,000 4,450,000 11,900,000 7,625,000 23,075,000 TOTAL FUNDING BY SOURCE- 1,525,000 1,675,000 9,375,000 3,610,000 600,000 4,100,000 4,450,000 12,760,000 11,625,000 35,435,000 ## PROJECTS ## Spent to DateCIB AdoptedCIB RevisedTOTAL*TOTAL** BUILDINGS, FLEET AND TECHNOLOGYThrough 20252026202620272028202920302031CIP costBeyond 2031Project costs 26-Carpet Replacement - Fire50,000 BSR- 50,000 26-Carpet Replacement - Police120,000 BSR70,000 BSR- 70,000 26-Fiber Infrastructure Projects - IT45,000 O45,000 O- 45,000 26-Fire SCBA Purchase308,005 O450,000 O- O- 308,005 26-Laptop Purchases - Information Technologies34,260 ISR34,260 ISR- 34,260 26-Liquor Operations (Cedar Point) Wold Assessment7,500 O260,560 O11,126 O17,053 O38,557 O66,736 439,706 O774,502 26-Liquor Operations (Shops at Lyndale) Wold Assessment- - 26-Multi-Year Fleet Purchases1,664,726 FSR1,664,726 FSR1,785,000 FSR1,874,250 FSR1,967,960 FSR2,125,400 FSR2,295,400 FSR8,263,010 2,410,170 FSR14,122,906 26-Network Infrastructure Replacement - IT10,650 ISR10,650 ISR- 10,650 26-Public Works Facility Building Improvements460,000 B235,000 B235,000 B350,000 B415,000 B1, ## 235,000 695,000 B2,390,000 26-Public Works Facility Building Improvements37,700 FSR- 37,700 26-Public Works Facility Office Area Upgrades290,000 BSR- 290,000 26-Public Works Facility Office Area Upgrades50,000 O- 50,000 26-Public Works Storage Facility325,000 FF325,000 FF- 325,000 ## 26-Public Works Storage Facility ## 650,000 O650,000 O- 650,000 26-Public Works Storage Facility500,000 U500,000 U- 500,000 27-Computer Workstation Replacement70,000 ISR72,450 ISR74,986 ISR77,610 ISR80,327 ISR305,373 83,138 ISR458,511 27-Fire Station 1 Vehicle Exhaust Removal System76,500 F- 76,500 27-Fire Station 1 Vehicle Exhaust Removal System8,500 O- 8,500 27-Fire Station 2 Repairs306,406 B599,601 B352,173 B324,007 B379,403 B1,655,184 386,696 B2,348,286 27-Liquor Operations (Downtown) Wold Assessment399,535 O21,720 O1,661,509 O1,683,230 37,349 O2,120,114 ## 27-Network Infrastructure Replacement - IT77,326 ## ISR50,186 ISR172,488 ISR100,000 ISR100,000 ISR422,674 100,000 ISR600,000 28-Carpet Replacement - City Hall190,000 BSR190,000 190,000 29-City Hall Wold Assessment1,700,000 B1,700,000 1,850,000 B3,550,000 29-City Hall Wold Assessment1,630,000 BSR1,000,000 BSR2,630,000 2,630,000 29-Liquor Operations (Penn Central) Wold Assessment219,857 O33,859 O253,716 631,996 O885,711 29-PW Facility Roof Replacement2,000,000 B2,000,000 2,000,000 TOTAL BUILDINGS, FLEET AND TECH308,005 3,799,636 3,444,836 3,733,827 3,043,207 6,663,590 2,994,070 7,704,055 20,404,923 6,634,054 34,525,645 (B) G.O. Bonds- Property Tax- - 766,406 834,601 2,587,173 674,007 2,494,403 6,590,184 2,931,696 10,288,286 (BSR) Buildings Special Revenue- 120,000 120,000 290,000 190,000 1,630,000 - 1,000,000 2,820,000 - 3,230,000 (F) Federal Grant- - - 76,500 - - - - - - 76,500 ( FF) Franchise Fee- 325,000 325,000 - - - - - - - 325,000 (FSR) Fleet Special Revenue- 1,664,726 1,702,426 1,785,000 1,874,250 1,967,960 2,125,400 2,295,400 8,263,010 2,410,170 14,160,606 (ISR) Internal Special Revenue- 44,910 44,910 147,326 122,636 247,474 177,610 180,327 728,047 183,138 1,103,421 (O) Other Funding308,005 1,145,000 752,500 668,595 21,720 230,983 17,053 1,733,925 2,003,682 1,109,050 4,841,832 (U) User Fee- 500,000 500,000 - - - - - - - 500,000 TOTAL FUNDING BY SOURCE308,005 3,799,636 3,444,836 3,733,827 3,043,207 6,663,590 2,994,070 7,704,055 20,404,923 6,634,054 34,525,645 ## SUMMARY PROJECTS Recreation/Open Space Development13,699,106 6,725,000 20,484,067 3,235,768 4,655,000 7,947,000 45,187,000 526,270 58,315,270 1,633,420 97,367,631 Right of Way Improvements617,000 9,926,500 6,706,200 10,038,000 15,880,000 12,828,500 16,250,000 850,000 45,808,500 103,630,000 166,799,700 Utilities- 1,525,000 1,675,000 9,375,000 3,610,000 600,000 4,100,000 4,450,000 12,760,000 11,625,000 35,435,000 Buildings, Fleet and Technology308,005 3,799,636 3,444,836 3,733,827 3,043,207 6,663,590 2,994,070 7,704,055 20,404,923 6,634,054 34,525,645 TOTAL CAPITAL PROJECTS14,624,111 21,976,136 32,310,103 26,382,595 27,188,207 28,039,090 68,531,070 13,530,325 137,288,693 123,522,474 334,127,976 (B) G.O. Bonds- Property Tax140,000 4,000,000 1,328,273 4,328,679 8,329,146 10,041,042 15,398,007 2,494,403 36,262,599 73,031,696 115,091,246 (BSR) Buildings Special Revenue- 120,000 120,000 290,000 190,000 1,630,000 - 1,000,000 2,820,000 - 3,230,000 ## (BST) G.O. Bonds-Sales Tax10,474,106 6,000,000 7,529,853 2,133,495 3,395,455 4,909,091 36,558,000 - 44,862,545 - 65,000,000 (BU) G.O. Bonds-Utility - 3,500,000 1,272,000 6,827,000 6,260,000 2,500,000 600,000 - 9,360,000 12,150,000 29,609,000 (C) Hennepin County- - - 220,000 - - - - - - 220,000 (F) Federal Grant3,000,000 - 50,000 1,517,500 150,000 2,137,040 - - 2,287,040 2,600,000 9,454,540 ## (FF) Franchise Fees100,000 1,392,000 950,000 1,235,000 1,335,000 1,200,000 1,125,000 850,000 4,510,000 880,000 7,675,000 (FSR) Fleet Special Revenue- 1,664,726 1,702,426 1,785,000 1,874,250 1,967,960 2,125,400 2,295,400 8,263,010 2,410,170 14,160,606 (ISR) Internal Special Revenue- 44,910 44,910 147,326 122,636 247,474 177,610 180,327 728,047 183,138 1,103,421 ( M) Municipal State Aid377,000 815,000 1,478,000 2,300,000 955,000 840,000 - - 1,795,000 11,450,000 17,400,000 (O) Other Funding308,005 1,195,000 978,441 798,595 751,720 502,983 47,053 1,785,195 3,086,952 2,817,470 7,989,463 (OR) Other Recreation Funding- - - - - - - - - - - (S) State - 744,500 14,406,200 2,250,000 600,000 288,500 7,625,000 - 8,513,500 9,900,000 35,069,700 (SR) Special Revenue225,000 475,000 475,000 475,000 475,000 475,000 475,000 475,000 1,900,000 475,000 3,550,000 (U) User Fees- 2,025,000 1,975,000 2,075,000 2,750,000 600,000 4,100,000 4,450,000 11,900,000 7,625,000 23,575,000 (X) Xcel Energy - - - - - 700,000 300,000 - 1,000,000 - 1,000,000 TOTAL FUNDING SOURCES14,624,111 21,976,136 32,310,103 26,382,595 27,188,207 28,039,090 68,531,070 13,530,325 137,288,693 123,522,474 334,127,976 * Total CIP costs only include project costs between 2028 and 2031. ** Total Project costs include all spent to date through 2025, CIB Revised 2026, CIB 2027, CIP 2028 - 2031, and CIP Beyond 2031 costs. 274 Page 294 of 361 The City of Richfield’s funding for capital projects comes from a variety of sources, but generally falls into one of several categories: federal grants, state money, county funds, local revenues, franchise fees, user fees, and bond proceeds. Total planned funding for 2027 is $26,382,595. Capital project expenditures are classified into four specific programs: Recreation and Open Space, Right of Way Improvements, Public Facilities and Buildings, Fleet & Technology. Total planned expenditures for 2027 are $ 26,382,595. ## (B) G.O. Bonds- ## Property Tax 16% ## (BST) Bonds- Sales Tax 8% ## (BU) G.O. Bonds-Utility 26% ## (BSR) Buildings Special Revenue 1% ## (C) Hennepin County 1% ## (F) Federal Grant 6% ## (ISR) Internal Special ## Revenue 0% ## (FF) Franchise Fees 5% ## (FSR) Fleet Special ## Revenue 7% ## (M) Municipal State ## Aid 9% ## (O) Other Funding 3% (S) State 8% ## (SR) Special Revenue 2% ## (U) User Fee 8% ## TOTAL 2027 FUNDING BY SOURCE ## Public Facilities 36% ## Buildings, Fleets & ## Technology 14% ## Recreation/Open ## Space 12% ## Right of Way 38% ## TOTAL 2027 SPENDING BY USE ## 2027 Capital Improvement Budget - Sources and Uses 275 Page 295 of 361 2026-2027 20262027 ## General FundRevisedProposed ## Legislative/Executive City Council- - ## City Manager2.502.50 2.502.50 ## Administrative Services ## Administration1.001.00 ## Human Resources 4.154.15 ## Fin ance6.506.50 ## Deputy Registrar8.058.05 ## City Clerk1.501.50 21.2021.20 ## Pub lic Safety ## Support Services6.806.80 ## Police Operations57.8057.80 64.6064.60 ## Fire32.0032.00 32.0032.00 ## Community Development ## Administration10.2010.40 ## Inspections8.508.50 18.7018.90 ## Public Works ## PW Administration2.002.00 ## Engineering6.046.04 ## Street Maintenance14.7214.72 ## Park Maintenance9.909.90 32.6632.66 ## Recreation Services ## Recreation Services Administration2.402.40 ## Recreation Program & Athletics8.708.70 ## Wood Lake Nature Center6.408.38 17.5019.48 ## Subtotal 189.16191.34 ## Spe ## cial Revenue Fund ## Cable TV Fund2.151.70 ## Ice Arena17.9018.25 ## Sustainability1.601.60 ## Subtotal21.6521.55 ## Enterprise Fund Liquor 24.2424.07 ## Water & Wastewater Utility18.1218.12 ## Storm Sewer Utility2.132.13 ## Subtotal44.4944.32 ## Internal Service Funds ## Central Garage4.174.17 ## Information Technologies5.505.50 ## Government Buildings3.503.50 ## Subtotal13.1713.17 ## Total268.47270.38 ## TOTAL NUMBER OF FULL-TIME EQUIVALENT BUDGETED PERSONNEL 276 Page 296 of 361 ## 2026 Revised/2027 Proposed Budget Page 297 of 361 ## Timetableand KeyEvents Aug. 12 Work session: 2027 budget preview, FMP, utility rates & city fees, 2027 CIB/2028-2031 CIP ## Tonight 2026 Revised and 2027 ## Proposed Budget presentation with ## Directors Sept. 22 Adopt preliminary tax levy Dec. 1 Truth in Taxation meeting Dec. 8 Certify final levy, adopt ## Budget & CIB/CIP Page 298 of 361 ## Budget Update •Labor force participation continues toremain belowpre-pandemic levels. •Cost of living increase at3% and averagestep increaseat 2.75% for non- union represented positions. •Cost of living/market increase at 3%-4% and averagenegotiated contract stepincreases3%-5.5% •Personnel continues tobeapproximately 71% oftheGeneral Fundbudget. •Debt issues planned for late 2026funded with localsales tax. Debt issuesplanned for 2027 funded withutilitiesand property taxes. •Continued inflationarypressureexpected to persistinto 2027. Page 299 of 361 Budget Update, Cont. ## •2027 Local Government Aid (LGA)increase about1.59% or a total of $54,694 over 2026. •2026 Fiscal Disparity Aid increase about 1.27%or atotal of $61,191 over 2026. •Licenses and permits revenuefor 2027 is projectedto besimilar to2026revised and less than 2025actuals. •Rolling stock/building/tech levy at$2,245,122.Thisincludes a3.5% increase over2026 for IT andBuilding Services. The Fleet equipment levy is now at$1,719,774. •EDA levy at $667,741which is a3.5% increase. •Proposed levy increase is 4.55%. Page 300 of 361 ## General Fund Revenues ## 2026A2026R2027P Ta x e s25,223,64725,223,64726,364,102 ## Licenses and Permits1,130,8501,123,3401,157,740 ## Intergovernmental5,766,3685,899,2305,589,988 Charges for services1,830,3001,939,3701,891,465 Fines and forfeitures220,000225,000225,000 ## Miscellaneous129,255113,400329,400 ## Transfers833,695387,600335,860 ## Total Revenues35,134,11534,911,58735,893,555 Page 301 of 361 ## 2027 Proposed Budget – General Fund ## Revenues Page 302 of 361 ## 2027 Proposed Preliminary Levy •2027 Proposed Levy is $33,193,792 which is anincrease of 4.55% over the 2026 Levy ## General Fund Levy ## Equipment Levy ## EDA Levy ## - Base Levy Total ## Debt Service Levy - Total 2027 Levy $26,364,101 $ 2,245,122 $ 667,741 $29,276,964 $ 3,916,828 $33,193,792 Page 303 of 361 ## 2027 Proposed Levy ## Impact on Average ## Home •2026 •$326,900 average home>City Tax $1,728 (prior to homestead credit) •2027 •$338,300 average home>City Ta x$1,858 (prior to homesteadcredit) •$130 annual increase or $10.83 per month Page 304 of 361 ## Levy ## History ## 2027P: 4.55% Page 305 of 361 ## History of State Aid Ye a r ## CertifiedChange 2013 $1,218,346 $0 2014 $1,937,907 $719,561 2015 $2,053,363 $115,456 2016 $2,084,057 $30,694 2017 $2,094,443 $10,386 2018 $2,229,280 $137,837 2019 $2,235,643 $6,363 2020 $2,366,046$130,403 2021 $2,001,680($364,366) 2022 $2,010,927$9,247 2023 $2,038,711$27,784 2024 $3,392,552$1,353,811 2025 $3,410,633$18,081 2026 $3,448,397$37,764 2027 $3,503,091$54,694 Local Government Aid (LGA) is a general-purpose aid that can be used for any lawful expenditure. It is also intended to be used for property tax relief. The Department of Revenue certifies LGA for cities based on current LGA statutes, including any changes enacted during the most recent legislative session. Page 306 of 361 ## General Fund Expenditures ## 2026A2026R2027P ## Legislative/Executive1,360,7771,308,1951,284,677 ## Administrative1,067,1941,037,0661,141,770 ## Human Resources360,783412,420562,852 ## Finance701,628812,080705,066 ## Public Safety13,642,78813,332,31514,312,605 ## Fire6,641,7296,426,7006,846,680 ## Community Development1,916,1101,884,3501,972,361 ## Public Works5,949,3406,021,6805,807,520 ## Recreation Services2,561,2002,561,7992,871,320 ## Transfer Out372,250372,250388,704 ## 0.44% Paid Family Medical Leave115,00000 ## 40% Fund Balance Reserve445,316742,7320 35,134,11534,911,58735,893,555 Page 307 of 361 ## 2027 Proposed General Fund Expenditures Page 308 of 361 2027 Proposed ## General Fund ## Budget ## The 2027 proposed General Fund Budget of$35,893,555 is a: •2.16% increase from the 2026 adopted budget •2.81% increase from the 2026 revised budget Page 309 of 361 ## Staffing Update ## Proposed Position Additions ## •Recreation Services - Event Coordinator, October 2026 ## •Recreation Services - Natural Resources Coordinator,January 2027 Page 310 of 361 ## General Fund Expenditure History ## Ye a rAmountYOY Increase% Change 202126,530,517-- 202227,443,767913,2503.44% 202328,978,1911,534,4245.59% 202431,077,8942,099,7037.25% 202531,872,015794,1212.56% ## 2026R34,911,5873,039,5729.54% ## 2027P35,893,555981,9682.81% ## Expenditurereportedisbasedofactualsfor2021to2025,revisedbudgetfor2026andproposed budgetfor2027. Page 311 of 361 ## Administrative Services Page 312 of 361 ## Department Overview ## Administrative Services ## Department Team ## 21 Full Time ## 60+ Part Time and Intermittent ## Divisions or Funds •General Fund •Administration •City Clerk •Deputy Registrar ## •Special Revenue Funds •Cable TV •Elections ## •Internal Service Funds •Insurance/Risk Management •Building Services •Information Technology (IT) •Enterprise Fund •Liquor Operations Page 313 of 361 2026R/2027P Budget ## Administrative Services Page 314 of 361 ## Investments and Impacts: 2027 Proposed Budget ## Administrative Services ## Administration Human Resources switched from a division to department which decrease interdepartmental labor credit to Administrative Services-Administration. Building chargebacks were allocated to the proper divisions within Administrative Services and the Human Resources Department. 2027P is 4.27% higher than2026A Page 315 of 361 ## Investments and Impacts: 2027 Proposed Budget ## Administrative Services – Deputy Registrar 2027P is 7.74% higher than 2026A Offer a customer service feedback survey •Continue enhancing the customer experience for residents of Richfield and surrounding communities through efficient, accurate and accessible service. ## Research and Implement a New Point of Sale System •This will improve efficiency and reduce manual processes •Increases accuracy when processing customer transactions •Strengthens financial controls and transaction tracking Implement a "No Show" fee for passport appointments •This is to ensure the customer will report to their scheduled appointment. Page 316 of 361 ## Investments and Impacts: 2027 Proposed Budget ## Administrative Services – City Clerk 2027P is 3.5% higher than 2026A ## DataManagement and Records Retention •Training city-wide on retention requirements, citywide compliance, and reducing administrative risk. ## Data Requests •Exploring options to handle data requests more efficiently, with year-over-year increases of data requests received. •Focus on creating a data request policy. ## Elections •Improved voter experience and expanded healthcare facility voting programs due to change to 18 days of Early to 18 days of Early Voting. •Final year of city-administered Richfield School Board Elections. ## Agenda Management •Continued training opportunities on city software platforms for new and existing staff. Page 317 of 361 2026R/2027P Budget 2025 ## Actual 2026 ## Budget 2026 ## Revised 2027 ## Budget ## Increase/2026 ## Budget/2027 ## Budget ## Expenditures 62000Information Technology1,690,1161,962,6111,962,6202,198,49012.02% 64000Insurance Fund-331,448*1,618,6021,707,8021,346,460-16.81% 67000Building Services916,6521,257,3191,212,3501,140,967-9.25% ## Revenues 62000Information Technology1,885,7301,902,1411,917,1411,984,4754.33% 64000Insurance Fund1,214,0771,212,7201,216,6901,196,570-1.33% 67000Building Services1,102,1591,126,6101,324,6101,371,07521.70% ## Administrative Services – Internal Services Funds *An incurred but not reported expense of $1,550,769 was shown in 2024. This expense was reversed in 2025 and this is the reason for the negative expense in Fund 64000. Page 318 of 361 ## Investments and Impacts: 2027 Proposed Budget ## Administrative Services – IT 2027P is 7.88% higher than 2026A ## Personnel •Reclassification of Helpdesk Position to Application Support Specialist. ## Network Infrastructure •Begin a multi-year replacement of network switches reaching end of support to improve reliability, security, and long-term network stability. ## Cybersecurity •Upgrading workstation endpoint protection across the City. •Adding additional network logging and visibility to improve threat detection and incident response. ## Technology Refresh •Continue the scheduled replacement of City desktop and laptop computers as part of the four-year workstation lifecycle program. Page 319 of 361 ## Investments and Impacts: 2027 Proposed Budget ## Administrative Services – Building Services 2027P is .32% higher than 2026A ## Facility Investments and Financial Sustainability •Implementing the results of Wold's Facility Assessment Needs Study. •Transfers of invest earnings of $100,000 from Long- Term Capital Reserves. •Equipment Levy of $103,500 •Continue to refine building chargebacks and explore centralizing building services. Page 320 of 361 2026R/2027P Budget 2025 ## Actual 2026 ## Budget 2026 ## Revised 2027 ## Budget ## Increase/2026 ## Budget/2027 ## Budget ## Expenditures 20004Cable TV383,315412,420398,070429,8304.22% 20005Elections2,070,298*328,331328,331298,960-8.95% ## Revenues 20004Cable TV344,280271,500281,000285,000-4.24% 20005Elections544,596379,600382,898448,96018.27% ## Administrative Services – Special Revenue Funds * Elections Fund transferred $1,800,000 to the Long-Term Capital Reserves in 2025 that will be used for future building maintenance. Page 321 of 361 ## Investments and Impacts: 2027 Proposed Budget ## Administrative Services – Communications 2027P is 4.22% higher than 2026A. ## Accessibility: Preparing for Web Content Accessibility Guidelines (WCAG) deadline •Compliance required by April 26, 2028 •Touches all elements of digital communication (website, social media, PDFs) Updated platforms = increased costs •Updates to Website, chatbot, e-newsletter platform, cloud-based photo storage Connect with those we are missing •Continued inclusion of bilingual city news in tri-annual Hometown ## Guide •Addition of city-wide mailings for long-range plans (Comprehensive, ## Parks Master Plan, Strategic, etc.) Sustainable funding sources for Communications •Revenues from cable franchise fees are drying up; yet reserves are very healthy •$50k annual transfer from General Fund to begin slowly moving costs Page 322 of 361 2026R/2027P Budget ## Administrative Services – Enterprise Fund - Liquor Operations Page 323 of 361 ## Richfield Liquor - ## Downtown ## 2025 Actual2026 Budget2026 Revised2027 Budget (+/-) ## Expenditures 50010 $ 3,458,679$ 3,773,330$ 3,683,300$ 3,731,765* -1.10% ## Revenues 50010 $ 3,813,927$ 3,867,890$ 3,866,725$ 3,924,480 1.46% ## Profit/Loss $ 355,248$ 94,560$ 183,425$ 192,715 ## Richfield Liquor – Cedar ## Point ## 2025 Actual2026 Budget2026 Revised2027 Budget (+/-) ## Expenditures 50020 $ 4,454,593$ 4,497,450$ 4,456,915*$ 4,414,845* -1.84% ## Revenues 50020 $ 4,699,990$ 4,617,650$ 4,638,920$ 4,592,765 -0.54% ## Profit/Loss $ 245,397$ 120,200$ 182,005$ 177,920 *Expenditures includes operating only and not capital expenditures. Page 324 of 361 ## Richfield Liquor – Penn ## Central ## 2025 Actual2026 Budget2026 Revised2027 Budget (+/-) ## Expenditures 50030 $ 3,389,701$ 3,454,290$ 3,430,145$ 3,496,9281.23% ## Revenues 50030 $ 3,520,899$ 3,483,770$ 3,537,995$ 3,625,8704.08% ## Profit/Loss $ 131,198$ 29,480$ 107,850$ 128,942 ## Richfield Liquor – Shops at Lyndale ## 2025 Actual2026 Budget2026 Revised2027 Budget (+/-) ## Expenditures 50040 $ 2,059,440$ 2,069,275$ 2,020,155$ 2,073,345 0.19% ## Revenues 50040 $ 1,793,239$ 1,775,890$ 1,733,120$ 1,698,835 -4.34% ## Profit/Loss $ (266,201)$ (293,385)$ (287,035)$ (374,510) Page 325 of 361 ## Investments and Impacts: 2027 Proposed Budget ## Administrative Services - Liquor Operations •Despite increased personnel costs and level sales, we anticipate being able to transfer $475,000 to the Parks and Recreation Department. •Potential lower-potency hemp edible (LPHE) ban could lead to total sales revenue decrease, approximately 5.25% of Richfield Liquor sales are ## LPHE •Estimated $660,095 in building repairs for 2027 •Slightly increased 2027 sales estimate at the Penn Central Store in anticipation of occupancy at the Penn Station Complex. Page 326 of 361 ## Community Development Page 327 of 361 ## Department Overview ## Community Development ## Divisions or Funds •CD Administration •Planning & Zoning •Inspections ## Department Team •21 employees (15 FT/6 PT) •10 positions largely funded by ## HRA/EDA ## Of Note •Fully staffed for one week so far this year •Inspections support position reduced to part-time •Capacity- and resiliency-building in Inspections ongoing •Looking for efficiencies across all teams (incl. HRA & EDA) •Increased hours for one of two Housing Specialists Page 328 of 361 2026R/2027P Budget ## Community Development Page 329 of 361 ## Investments and Impacts: 2027 Proposed Budget ## Community Development ## Comprehensive Plan •Additional $10,750 in 2027-2028 •Consider increase in set-aside Staffing costs •Steps, merit, shift away from HRA •Employee growth & development •IT Costs reallocated •Revenues flat ## Credit Card fees •2025 over $100,000; 2026 expected $80,000 •2027 budget assumes city will implement mechanism to recoup Page 330 of 361 ## Finance Page 331 of 361 ## Department Overview ## Finance Department ## Divisions or Funds: •Finance ## Department Team: •Finance Director (contracted) ## •Assistant Finance Director ## •Budget, Cash, and Debt Manager ## •Senior Financial Analyst •Payroll Accountant •Accountant (2) •Accounting Technician •Utility Billing Technician (2 – Public Works budget) Page 332 of 361 2026R/2027P Budget ## Finance Department Page 333 of 361 ## Investments and Impacts: 2027 Proposed Budget ## Finance Department Staff investment •Stabilization and staff development ## Technology •Vendor payment process from check to ACH •Continue Tungsten (Logis) rollout ## Financial Management and Decision Making: •Work with Ehlers on Financial Management Plan model •Targeted focus review for best practice/internal control of critical financial functions •Improve budgeting and reporting of capital projects Page 334 of 361 ## Fire Department Page 335 of 361 ## Fire Department ## Department Overview ## Fire Department ## Department Overview ## CAPTAIN ## LIEUTENANT ## CAPTAIN ## LIEUTENANT ## (7)FIREFIGHTERS ## CAPTAIN ## LIEUTENANT ## (7)FIREFIGHTERS ## 27 CAREERPERSONNELPROVIDE24/7COVERAGEACROSS ## TWOFIRESTATIONS ## Department Team ## •1 Fire Chief, 1 Deputy, Chief 1 Assistant Chief, 3 Captains, 3 Lieutenants, 21 Firefighters, 1 ## Firefighter Inspector, and 1 Administrative ## Assistant ## Divisions or Funds •Fire ## Of Note •Fire Chief leadership transition •Contract plan review and inspections •Long-term military deployment ## (7)FIREFIGHTERS Page 336 of 361 2026R/2027P Budget ## Fire Department Page 337 of 361 I nv estments and I mpacts: 2027 Proposed Budget ## Investments and Impacts: 2027 Proposed Budget ## Fire Department ## Equipment and Technology: •Three-year post order build on new engine •Reenvisioning of fleet needs and replacement schedule •Data dashboard for tracking and creating efficiencies •Updating obsolete radio equipment •Adding diesel exhaust system to Station 1 21 7 ## Operations: •Reemphasize professional training and modern tactics •Reevaluation of response types and determine priority for available resources •Contract for fire code enforcement ## Personnel Services: 85% of the total department budget •Skilled and engaged shift personnel •Dependency on overtime to maintain minimum staffing •Military Leaves •IOD/Medical Leaves ## •Sick Time Use Page 338 of 361 ## Human Resources Page 339 of 361 ## Department Overview ## Human Resources ## Divisions or Funds: •Human Resources •Insurance Fund ## Department Team: •5 total employees(4 full-time and1 Intermittent) •HR Director ## •HR Generalist II •HR Generalist •Equity Coordinator •Recruiting and Onboarding Support ## Of Note: •HR Director position created and filled. •Equity Coordinator joined the HR Department. Page 340 of 361 2026R/2027P Budget ## Human Resources Page 341 of 361 ## Investments and Impacts: 2027 Proposed Budget ## Human Resources Funding HR as a new operating department: •No longer a division of Administrative Services •HR Budget supports professional development for staff •Compensation review •Leave Administration •Employee Benefits ## •Property and Liability and Work Comp Administration ## Workplace Training •Respectful Workplace, AWAIR or equivalent safety training and Supervisor training •Funding of REEP program and language incentive ## NeoGovSoftware •Insight, Onboard, looking into Learn module Page 342 of 361 ## Legislative/Executive Page 343 of 361 ## Department Overview ## Legislative/Executive ## Department Team •City Manager •Senior Analyst •AdministrativeAssistant ## Divisions or Funds •Mayor/City Council •Other Agencies •City Manager •Legal Page 344 of 361 2026R/2027P Budget ## Legislative/Executive Page 345 of 361 ## Investments and Impacts: 2027 Proposed Budget ## Legislative/Executive ## City Council •2027P is 0.69% higher than 2026A •Addition of Minnesota Paid Family and ## Medical Leave •Joined the Cities for Safe and Stable Communities coalition ## •Completed the Essential Services Study •One-time executive search firm costs in ## 2026R •Funding for new Strategic Plan ## Other Agencies •2027P is 3.21% higher than2026A •Increase in funding for service contracts ## City Manager •2027P is 16.79% lower than2026A •Transfer of Equity Coordinator position and related equity projects to the ## Human Resources budget •Addition of Minnesota Paid Family and ## Medical Leave •Increased personnel costs ## Legal •2027P is 2.91% higher than2026A •Anticipated contractual rate adjustments for legal services provided by Kennedy & Graven Page 346 of 361 ## Public Safety Page 347 of 361 ## Department Overview ## Public Safety ## Department Team ## Police Department •49 Sworn •6 Professional Staff (FT) •8 Professional Staff (PT) •IT Tech (FT) ## Emergency Services •1 Coordinator (PT) ## Support Services ## •1 Support Services Manager/ CHS Admin.(FT) ## •1 Code Compliance Officer (FT) ## •2 Environmental Health Specialists (PT) ## •2 Business Licensing Specialists (PT) •3 Cadets (PT) ## •1 Seasonal EH Tech (Temp May – Aug) ## Divisions or Funds •Emergency Management •Compliance and Drug Forfeiture (Special Revenue) ## •Opioid Settlement Fund(Special Revenue) Page 348 of 361 2026R/2027P Budget ## Public Safety Page 349 of 361 ## Investments and Impacts: 2027 Proposed Budget ## Public Safety ## Technology Upgrades •Replacing portable radios that are over 14 years old and can't be repaired. •Utilizing a new application for policy and procedure access for Officers in the field via closed-end AI. ## Software Additions •Addition of Rental Scape software in Business Licensing to address short-term rental issues. ## Long-term Planning •Developing succession planning to ensure long-term stability which isbeing achieved via numerous promotions, advanced training and education opportunities. Page 350 of 361 ## Public Works Page 351 of 361 ## Department Overview ## Public Works ## Divisions or Funds •Administration •Engineering •Street Maintenance/Forestry •Park Maintenance •Water Utility (Enterprise) •Waste Water Utility (Enterprise) •Stormwater Utility (Enterprise) •Central Garage (Internal) ## Department Team •54 Full time ## •12 Seasonal Staff ## •1 Engineering Intern Page 352 of 361 2026R/2027P Budget ## Public Works – General Fund Budget •2026 Revised $50K increase in PW Admin for office space additions. •Streets Division shows reduction due to completion of the US Forestry Service grant completed in 2026. This also impacts the 2027 revenue figures. Page 353 of 361 2026R/2027P Budget •Water and Wastewater Utilities •Stormwater Utility ## Public Works – Enterprise Fund * Water Utility 2027 proposed expenditures includes capital outlay of $7.95 million ** Water Utility 2027 proposed revenues includes bond proceeds of $6.41 million and a $1.09 million federal grant Page 354 of 361 2026R/2027P Budget ## Public Works – Internal Fund Budget Page 355 of 361 ## Investments and Impacts: 2027 Proposed Budget ## Public Works •Focus on building Asset Management ## System •Deliver CIP projects and develop future reinvestments ## •Support Comprehensive Planning Efforts •Update of Water supply Plan andWater ## Treatment Plan Feasibility Study ## •Norby's Pond Reconstruction ## •Wilson Pond Area Flood Mitigation Page 356 of 361 ## Recreation Services Page 357 of 361 ## Department Overview ## Recreation Services ## Department Team •21 Full Time (two new positions in 2027) ## •125+ Seasonal and Part Time ## 3 General Fund Divisions •Administrative Services •Recreation Programming ## •Wood Lake Nature Center ## 4 Special Revenue Funds •Pool •Ice Arena •Veterans Park •Sustainability Page 358 of 361 2026R/2027P Budget ## Recreation Services – General Fund Budget ## •Wood Lake Nature Center: New Building Impacts & Natural Resources ## Coordinator ## •Recreation Programming: Vets Park-Some impact to Farmers Market Page 359 of 361 2026R/2027P Budget ## Recreation Services – Special Revenue Funds Budget •Increases expected in arena and pool revenue with improvements •Focus on reducing negative fund balance Page 360 of 361 ## Investments and Impacts: 2027 Proposed Budget ## Recreation Services •New FTEs ## •Natural Resources Coordinator ## •Event Coordinator – Wood Lake, Ice Arena •Capital Projects ## •Veterans Park Improvements ## •New Community Center ## •Park Building and Field Lights Electrical upgrades ## •Locker Room Shower Rink 2 •Playground Replacement •Planning and Policy ## •Parks Master Plan & 10 Year CIP ## •Natural Area Management Plan •Increased Programming & Rentals •New Wood Lake: expanded rentals and programming •Expanded youth and contract programming •New garden-to-kitchen programs (Grant) Page 361 of 361