Council adopts 2026 preliminary budget and levies, schedules Truth in Taxation hearing

The Richfield City Council on Sept. 23 adopted resolutions establishing the 2026 preliminary budget and a proposed gross tax levy of $31,749,380 and set the Truth in Taxation public hearing for Nov. 25, 2025, at 6:30 p.m. Council also authorized budget revisions, department budget adjustments for 2025 and approved city fees for 2026. Why it matters: the preliminary levy sets the maximum taxable levy the city may certify to the county and frames property-tax planning for residents ahead of the Truth in Taxation process. Staff presented the levy breakdown and said the recommended preliminary levy includes $25,475,883 for general fund operations; a debt-service levy of $3,946,030; an equipment and technology levy of $1,682,308; and an economic development agency levy of $645,160. The proposed increase in the city levy is 6.16% over the 2025 levy. The Richfield HRA’s approved levy was $742,230, a 3% increase; the combined City and HRA levy increase is 6.08%, staff said. The council also directed a $55,000 increase to the public works budget to fund asphalt trail maintenance, stop sign and warning sign replacement, and forestry and tree planting. Staff said the additional work will be funded by the property tax levy. Staff noted their comparative survey of peer cities showed an average preliminary levy increase of 8.4% among surveyed peers; Richfield's proposed combined increase of 6.08% is within that peer range, staff said. The city auditor’s annual comprehensive financial report (ACFR) is completed and will be presented to the council on Oct. 14; staff said the required filing to the state will be made by Sept. 30. Council adopted the resolutions as presented. The preliminary levy may be reduced later but cannot be increased beyond the adopted preliminary amount, staff reminded the council.