New Richmond council adopts balanced 2026 operating budget and 2026–2030 capital plan

The New Richmond City Council voted to adopt the 2026 operating budget and the 2026–2030 capital improvement plan after a staff presentation and a public hearing.

A staff presenter told the council the proposed 2026 budget is balanced, with total planned revenues and expenditures of $10,179,825 — an increase of $574,932, or 6 percent, over the prior year. The presenter said the proposed levy is $8,214,586, up $717,854 (9.58 percent) from the previous year, and that the city’s portion of the mill rate would be about $5.10 per $1,000 of assessed value. "Underneath the 2026 budget, it reflects a balanced budget," the presenter said, and staff indicated they do not expect to use unrestricted fund balance to fill gaps.

The staff review highlighted budget drivers including a $630,000 lease payment due in 2026 to the New Richmond Community Development Authority for the new library building, a 4.1 percent cost‑of‑living adjustment based on the Bureau of Labor Statistics index, a 1 percent health insurance premium increase from Medica, and the addition of a 0.675 full‑time‑equivalent custodial position to support the new library.

On the capital side, staff described a proposed 2026 CIP totaling $12,200,000 and said the recommended financing is roughly 69 percent debt, 26 percent from impact fees or reserves, and 5 percent grants. The presentation identified approximately $8.5 million in combined borrowing for utility and city projects, including construction of Water Tower No. 3, replacement of a 2006 rescue fire truck and refinancing a $1.6 million interim state trust fund loan related to the library.

Speaker 6 moved to adopt the 2026 budget, the corresponding levy of $8,214,586 and the 2026 capital plan; the motion was seconded and the council approved the package by roll call. Aldermen Kittle, Breeze, Weinmeier, Gartner, Volkert and Montello voted yes. Staff emphasized that adopting the CIP authorizes the plan but that individual project financing and contracts will return to the council for final authorization.

The council noted the estimated homeowner impact: for a median $350,000 house, the city portion of the tax bill would rise by about $17 per year. Council members said they sought alternatives to reduce levy pressure, including grants, shared services and other revenue options.

The council moved on to other business after the vote; the adoption concluded the public hearing portion of the meeting.