Richfield City Council Approves Local Sales Tax to Fund Community Projects
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Meeting Type:
City Council
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Meeting Date:
12/10/2024
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Recording Published:
12/10/2024
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Duration:
60 Minutes
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State:
Minnesota
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County:
Hennepin County
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Towns:
Richfield
- Meeting Overview:
The Richfield City Council, in its December 10, 2024 meeting, focused on issues including the approval of a local sales tax, the 2024 revised and 2025 proposed budgets, and recognition of the contributions of outgoing council members. The council also awarded the Edua Garcia Community Builder Award and discussed public safety investments, culminating in reflections on council changes and achievements.
The most development came with the council’s approval of the second reading of an ordinance establishing a local sales and use tax in Richfield. This decision followed voter approval in the November election, authorizing a half-percent local sales tax to support major community projects. The council identified three projects to benefit from this funding: the Woodlake Nature Center building, Veterans Park improvements, and the Richfield Community Center project. The timeline for these projects includes the Woodlake Nature Center’s completion between 2026 and 2027, Veterans Park enhancements beginning in late 2026, and the community center’s anticipated opening in 2030, though efforts are underway to expedite this to 2029.
During the discussion, a council member emphasized the need for this tax, pointing to Richfield’s limited tax base and the necessity of investing in community amenities. The sales tax aims to generate sufficient revenue over 20 years or until the projects are fully funded. Voter support was acknowledged as critical, and gratitude was extended to city staff and past council members for their role in advancing these initiatives. The council member also clarified the project timelines to ensure community understanding, leading to a unanimous approval of the ordinance.
In financial matters, the council approved the 2024 revised and 2025 proposed budgets and tax levy, which include a 5.39% increase over the previous year. The approved tax levy totals nearly $30 million, supporting various city operations and improvements. Notably, the 2024 Capital Improvement budget saw a significant increase from initial projections, rising from $3.9 million to over $32 million. This adjustment reflects changes in project priorities and additional funding for recreation, security, and technology projects, as well as the introduction of a new community center project in the 2026-2029 Capital Improvement plan.
The budget discussions also highlighted a focus on public safety, with approximately half of the $1.6 million budget increase earmarked for police salaries and the addition of two officer positions. The council underscored the importance of integrating alternative public safety models, such as social workers and response teams, funded through American Rescue Plan dollars. These models have yet to be fully incorporated into the regular budget.
The council also awarded the sale of $10 million in general obligation sales tax revenue bonds to finance improvements at the Wood Lake Nature Center. The low bid came from Hilltop Securities, offering a true interest rate of 2.713%, with a premium bid providing additional funds for the project. The council approved proceeding with the bond sale, maintaining the bonds as bank-qualified.
In recognition of community contributions, the council awarded the Edua Garcia Community Builder Award to John Bostad for his six decades of service to Richfield. Bostad, who has been involved with the Richfield Optimist Club and Richfield Historical Society, expressed gratitude for the recognition, noting that his efforts were simply tasks that needed to be undertaken. The council also acknowledged donations made to the police department with appreciation.
The meeting concluded with reflections on the contributions of outgoing council members. Their efforts in shaping policy, particularly around climate change and housing affordability, were celebrated. The adoption of an organized hauling system and progress on tenant protection ordinances were highlighted as significant achievements. Outgoing members shared personal reflections on their tenure, emphasizing gratitude for community support and the importance of continued engagement.
Mary Supple
City Council Officials:
, Sharon Christensen, At-large, Simon Trautmann, Ward 1, Sean Hayford Oleary, Ward 2, Ben Whalen, Ward 3
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Meeting Type:
City Council
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Committee:
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Meeting Date:
12/10/2024
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Recording Published:
12/10/2024
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Duration:
60 Minutes
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Notability Score:
Routine
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State:
Minnesota
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County:
Hennepin County
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Towns:
Richfield
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