City of Northfield MN
File #: 25-511    Version: 1 Name:
Type: Information/Discussion Item Status: Agenda Ready
File created: 10/1/2024 In control: City Council
On agenda: 9/16/2025 Final action:
Title: 2026-2027 Budget Worksession.
Indexes: 2026 Budget
Attachments: 1. 1 - 2026 Budget Presentation Sep 16 2025, 2. 2 - 250912 Draft CIP, 3. 3 - 250912 Draft CEP, 4. 4 - Fifty North New Lease Proposal Received, 5. 5 - SUPPLEMENTAL 1 - City Council Supplemental Agenda Background Memo No. 1 for September 16, 2025, 6. 6 - SUPPLEMENTAL 1 - 2026 Budget Presentation Sep 16 2025 v.3, 7. 7 - SUPPLEMENTAL 2 - City Council Supplemental Agenda Background Memo No. 2 for September 16, 2025, 8. 8 - SUPPLEMENTAL 2 - 250916 Draft CIP, 9. 9 - SUPPLEMENTAL 2 - 2026 Budget Presentation Sep 16 2025 final
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City Council Meeting Date:                      September 16, 2025

 

To:                                          Mayor and City Council

 

From:                                          Finance Director, Brenda Angelstad

                                          City Administrator, Ben Martig

 

Title

2026-2027 Budget Worksession.

 

Body

Action Requested:                     

Discussion only.

 

Summary Report:

Please see attached presentation and background materials.  Staff is preparing additional supplemental memo related to highlighting some other strategic plan and details on some expense reductions.  No other options are being prepared just some added detail information on those options.

 

Utility Rates - 5-Year Plan

The information for this is included in the prior agenda item.  This is scheduled for final adoption of the 2026 rates at the September 23rd Council meeting.

 

Northfield Area Fire & Rescue Services (NAFRS)

There are no changes to the proposed NAFRS budget previously presented.  This is scheduled for final adoption at the September 23rd Council meeting.

 

Proposed (Preliminary) Tax Levy 2025 Payable 2026

Staff has included added detail on final adjustments recommended.  Staff provided an alternate Option B that would provide a 12% preliminary maximum tax levy versus a 14.5% option from the initial roll up.

 

Proposed (Preliminary) Budget 2026

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. 

 

Capital Improvement Plan (CIP) and Capital Equipment Plan (CEP)

Attached are the current CIP and CEP numbers.  Of the options on the tax levy, the parks fund would still need amendments to the 5-year parks fund due to reductions proposed initially.  Staff is looking at those impacts but would need to shift back some projects.  Additionally, any of the options under 14.5% tax levy will require pushing back projects and equipment in both the CEP and CIP related to facilities and equipment.

 

Board and Commission and Council Committee Changes

 

Included in the background materials are additional proposed changes to Boards and Commission and Council Committees related to capacity challenges and strategic prioritization.  The changes in governance does not reflect that work isn’t continuing in that area but rather the board roles would be re-focused in different ways depending on the subject area.  Those include: placing Council as members of the HRA phased in for 2026, eliminate Arts and Culture Commission, eliminate Parks Board, changing the Youth Substance Prevention Alliance from a Commission to a Task Force, Eliminate Council Finance Policy Committee, Modify Meeting Schedule of the Personnel Committee. The actions to implement these changes are planned for initiation at the September 23rd Council meeting. 

 

Alternative Options:

Included in background materials.

 

Financial Impacts:                     

Included in background materials.

 

Tentative Timelines:                     

See attached Powerpoint