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Residents Press Council Over Rising Property Taxes as Richfield Proposes 6.16% Levy Increase
Summary
At a Nov. 25 truth‑in‑taxation hearing, staff outlined a 6.16% proposed levy increase (6.08% including HRA) and residents described steep personal tax jumps, urging the council to reconsider staffing costs, assessment processes and fees tied to short‑term rentals. Council scheduled a final vote for Dec. 9.
Mayor Supple opened Richfield’s statutorily required truth‑in‑taxation public hearing on Nov. 25 and turned the floor to Steve McDaniel, the city’s budget, cash and debt manager, who presented the city’s proposed 2026 levy, budget and utility rates.
McDaniel said the city’s proposed levy increase is 6.16% (6.08% when the Housing Rehabilitation Authority levy is included), producing a proposed total levy of $31,749,380. He said the general fund levy is proposed at about $25.5 million, personnel costs comprise about 71% of the general fund and the budget assumes a 3% cost‑of‑living adjustment and average step increases. McDaniel highlighted sales‑tax‑funded capital projects including $1 million for the Woodlake Nature Center and $5 million for the Veterans Park complex, and said utility fees would add about $40 per average household; the city estimates the average Richfield resident would see roughly an $82 city‑tax increase and $122 overall with utilities.
During the public‑comment period, a string of longtime residents urged the council to reduce pressure on homeowners. Kathleen Balaban told the council she traced large increases in compensation over several years and asked officials to audit staffing and pay, noting "71% of the general fund is compensation" and that that dynamic is reflected in homeowners’ bills. Janet Massa said her household is seeing a 12.9% increase and told council members that Richfield taxes have risen sharply over several years, adding, "If this trend continues, in six years our taxes will be over $10,000."
Short‑term rental operators also spoke. Nicholas Vorderbergen said a proposed $700 licensing fee would be punitive for small operators and urged the council to align short‑term rental licensing with the city’s long‑term rental permit fee (about $190) or consider an enforceable 1% lodging tax to capture revenue more fairly.
Council members responded by noting factors that can cause large individual increases — changes in assessed value, the phase‑out of homestead exclusions and household‑specific assessment results — and encouraged residents to pursue the county “open book” assessment process and to consider the state’s special homeowners homestead credit refund if they qualify. Council members also said the city will conduct an essential services study to identify possible reductions and asked residents to submit priorities.
After testimony the council voted unanimously to close the public hearing and to schedule final action on the 2026 levy, the 2025 revised and 2026 proposed budgets, and the proposed 2026 utility rates at the Dec. 9 regular council meeting.
The next formal step is the Dec. 9 council meeting, when the council is scheduled to certify the final levy and adopt the budget and capital improvement plan.
