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Riverview budget review flags CIP shortfalls, $32M contested valuation and possible millage needs
Summary
City staff presented a balanced 2026–27 operating budget that relies on contingent revenue while warning the city has no built-in capital-improvement funding and may need future millages after a $3.5M annual landfill royalty ended and a $32M taxable valuation is contested.
Riverview held a budget review session focused on the proposed 2026–27 annual budget, and staff warned that while the operating budget is balanced under current tax rates, the city has deferred most capital improvements because of revenue uncertainty.
Ann, the finance director, told council the city’s taxable value for 2026 shows a large increase driven by “about a $32 million” valuation tied to an energy system that is now being contested in the tax tribunal. “We don’t want to pretend that money’s there,” Ann said, explaining the budget treats the amount as a contingent resource rather than a revenue source to rely on.
The presentation laid out a shortfall in capital-improvement (CIP) funding: general‑government capital projects have largely been delayed from 2025–26 into 2027–28. Staff said earlier landfill royalties that totaled roughly $3.5 million annually (about seven mills) have ceased as the landfill closes, creating a structural gap the general fund must replace or address through policy choices.
City leaders identified two potential voter measures that could be needed to restore long‑term capital funding: (1) a public‑safety millage beyond the current two‑mill limit and (2) a road bond historically referenced at roughly 2.7 mills. Jeff (presenting) said the administration will prepare options and communications for council decisions, but emphasized that any ballot strategy would need public outreach and would not be part of the immediate budget.
The budget presentation also called attention to other structural pressures: rising health‑care costs (Ann showed roughly $1.3 million for active‑employee health care and $1.3 million for retiree health care) and an increase in costs tied to retirement funding and staff wages. Ann noted the retirement system is about 91.24% funded with a budgeted contribution of $800,000 against a required amount of $706,000.
Next steps: staff said they will bring explicit millage options, draft ballot language and outreach plans to future council meetings and that council would be asked to prioritize capital projects once revenue assumptions (notably tax‑tribunal outcomes) are clearer.
