Meeting Date: April 15, 2026
To: Members of the Environmental Quality Commission
From: Risi Karim, Assistant City Administrator
Title
Annual Report of the Carbon Reduction Fund (2025).
Body
Action Requested:
Commission receives the Annual Report of the Carbon Reduction Fund (2025).
Summary Report:
The Carbon Reduction Fund (CRF) was established in 2021 to support implementation of initiatives identified in the City's Climate Action Plan, particularly those focused on reducing reliance on carbon-based fuel sources.
The CRF is funded through a designated portion of the City's Franchise Fee Program. Under this program, Xcel Energy collects monthly franchise fees from utility subscribers and remits those funds to the City, where they are primarily used to support Capital Improvement Projects. Prior to 2026, annual CRF funding was capped at $100,000.
Policy Change (Effective January 1, 2026):
On September 23, 2025, the Northfield City Council adopted Ordinance No. 1087, which amended the City's utility franchise fee structure. This change removed the $100,000 annual cap on contributions to the Carbon Reduction Fund. The update was made to support funding for a full-time Sustainability Coordinator position and to increase available resources for climate action projects.
The updated ordinance language now states:
"The City shall use all franchise fee revenue collected pursuant to this Ordinance only for public streets, trails, and climate action projects. No more than eight percent (8.0%) of the annual revenues collected, pursuant to Ordinances 1017 and 1018, may be used for climate action projects."
As a result, CRF funding is no longer limited by a fixed dollar cap and will instead scale with total franchise fee revenues, up to 8% annually.
Budget balance and expenditures for 2025 are listed below:
2025 Beginning Budget Balance - $243,627
2025 Expenditures
Professional Services
$ 757 LHB (Sustainable Building Policy)
$78,000 Wolf Riv...
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