City Council Meeting Date: September 15, 2026
To: Mayor and City Council
From: City Administrator, Ben Martig
Finance Director, Brenda Angelstad
Title
Discussion of 2027 Budget and 5-Year Capital Plan and Capital Equipment Plan in Preparation of Budget Adoption on September 22.
Body
Action Requested:
Discussion only.
Summary Report:
Please see attached presentation and background materials. The Council was scheduled to discuss the 2027 proposed budget at a September 8, 2026 work session. However, due to time constraint that discussion was postponed and combined with this work session discussion.
Staff is seeking direction on the preliminary tax levy and corresponding budget option at the meeting with consensus direction by Council at the worksession.
Proposed (Preliminary) Tax Levy 2026 Payable 2027
Staff has included added detail on final adjustments recommended. Staff provided an alternate Option B that would provide a 9% preliminary maximum tax levy, which includes added positions, versus a 6.8% option from the initial roll up. Staff is seeking consensus direction on a preliminary tax levy and corresponding budget to prepare for the September 22nd agenda item.
Proposed (Preliminary) Budget 2027
Corresponding budget details from the original “roll up” will be made following the worksession next week after direction is made on the adjusting revenues and expenses on the corresponding tax levy options.
NEW: Rice County Library Reduction in Funding to City of Northfield (and Faribault and Lonsdale)
On Tuesday, September 8th the Rice County Board of Commissioners approved a substantial 10% reduction in funding support to all public libraries including Northfield. Commissioner Malecha and Underdahl opposed. Staff is working to understand the reductions, lobby for supporting the funding requested, and concurrently reducing budgeted library expenses (to stay within current budget & tax levy parameters) and related service levels in response. We will be providing more information at the meeting.
Items Previously Determined by Council scheduled for Action on September 22nd:
Capital Improvement Plan (CIP) and Capital Equipment Plan (CEP)
Attached are the current CIP and CEP numbers. Lincoln Parkway is currently included as a new addition with deferral of another project in the CIP (see powerpoint). This will be the action unless there is consensus direction to an addition or as a replacement/deferral of another project on the previous CIP. Staff will be including the CIP and CEP preliminary adoption on September 22nd unless there is consensus direction by Council to make any adjustments.
Utility Rates - 5-Year Plan
There are no changes to the utility funds. Council provided consensus feedback previous support on the options. There was consensus support for the proposed rates and no further alternatives will be included.
Northfield Area Fire & Rescue Services (NAFRS)
There are no changes to the proposed NAFRS budget previously presented. There was consensus support for the proposed rates and no further alternatives will be included.
Broadband Franchise Fees
Staff has included estimated revenue projections as requested by Council at a prior meeting. As illustrated, this is a revenue replacement in combination with existing cable franchise fees. There was consensus support for the proposed rates and no further alternatives will be included. There will be consent agenda item to direct staff to proceed with implementation at the September 22nd meeting.
Alternative Options:
Included in background materials.
Financial Impacts:
Included in background materials.
Tentative Timelines:
See attached Powerpoint