This transcript features **Mayor Mary Supple** presiding over the meeting, with presentations from city staff and discussions among council members. **Note on Speaker Names:** The transcript mentions "Finance Director Verma" and "Council Member Troutman," who were not included in your initial reference list. I have used the names as identified within the dialogue to ensure accuracy to the recording. *** **[06:30 PM] Mary Supple (Mayor):** Good evening. I would like to call to order this Truth in Taxation hearing for the Richfield City Council. It is November 28th at 6:30 p.m. So first of all, I'm going to turn it over to City Manager Rodriguez, and we're going to have the staff report. **Katie Rodriguez (City Manager):** Thank you, Mayor Supple. Um, sorry, I didn't know I was reading it, but I can certainly read it. Uh, at the September 12, 2023, City Council meeting, the City Council adopted the 2024 preliminary property tax levy and announced November 28, 2023, at 6:30 p.m. as the date and time for the statutory Truth in Taxation public hearing. Hennepin County has mailed the proposed 2024 property tax statements to property owners in Richfield, which are based upon the proposed levy and announce the date of the public hearing. And uh, our Finance Director, Kuldip Verma, is here tonight and she can make a presentation and then we can take any public comment. **Kuldip Verma (Finance Director):** Thank you. A short presentation for tonight. Um, good evening everyone. This is the scheduled Truth in Taxation hearing, and the Council will approve the final budget and final levy at its December 12th meeting. The Council earlier approved the preliminary levy on September 12th that has been certified to the county. Looking at the key issues in the current year and next year: the labor market is still very, very competitive. COLA increase is budgeted at 3% and average step increase is at 5%. Salary and benefit accounts together account for 70% of general fund expenses. No new debt was added to the city's balance sheet in 2023, and there isn't any new debt planned for 2024 either. Inflationary pressures continue to push goods and services prices up; uh, that has an impact on our budget. More budget updates include that the city had to increase the technology and rolling stock levy by 39% to pay for the necessary technology infrastructure and upgrades. City will receive an additional 1.35 million in local government aid next year. Current year aid is 2.04 million and uh, it goes up to 3.39 million next year. Some of the revenue streams have started to slow down; next year, licenses and permits revenue is projected to be $175,000 lower than 2023. EDA levy is kept at 3.5% increase and the total proposed levy increase is 5.89%. This slide shows 10 years of history of state aid received... [Detailed presentation continues regarding state aid, capital reserves, and the Ice Arena/Pool negative fund balances] ...Average Richfield home increased in value from 308,000 to 318,000 in 2024. That is a 3.25% increase. The proposed levy increase would increase the annual taxes by $91 on average for a Richfield household... [Presentation continues through department breakdowns and staffing updates] ...That's all I had for tonight. Thanks for your time. I'm happy to follow up on any question the Council may have. **Mary Supple (Mayor):** Are there any questions? Um, Council Member Troutman. **Council Member Troutman:** Thank you, Mayor. And thank you for a great presentation. I just wondered if you could talk for a moment—the line item that said "intergovernmental." I assume those are intergovernmental loans? I just wondered if you could explain to community members what that is on the revenue side. **Kuldip Verma (Finance Director):** On the revenue side, those are the different grants that we get from federal, state, and different agencies. **Council Member Troutman:** Is LGA included in that or just other grants? **Kuldip Verma (Finance Director):** I want to say yes, but I'm not super sure. I would have to look at the breakdown. **Mary Supple (Mayor):** All right, any other questions? Um, I don't know if this is a question, but I wanted to point out the transfers out of the reserves to make sure that we bring the Ice Arena and the Pool into the black. That was purposeful because we wanted to be more clear. I don't know if one of you would like to say something about that? **Katie Rodriguez (City Manager):** Mayor, Council Members, yes, that is correct. We are overtime paying down that negative reserve in both the Ice Arena and the Pool. The Pool is going to be in the black very soon, maybe even at the end of this year, and the Ice Arena has a bigger gap to fill. Basically, it's just to be more transparent about what our actual reserves are. **Mary Supple (Mayor):** Thank you. Any other questions? Thank you, Finance Director Verma, for a very clear presentation. I appreciate all the work that you do. We're going to now open up the public hearing. So if anyone wishes to speak, you can come up to the podium and tell us what you'd like us to hear. **Kuldip Verma (Finance Director):** And can I just make one more comment? That intergovernmental line does include the fiscal disparities. **Mary Supple (Mayor):** Oh, thank you. Is there anyone here that wishes to speak in the public hearing? All right, and we don't have anyone online for this meeting. So if there's no one here to speak, then I'm going to make a motion to close the public hearing. Is there a second? **Council Member Christensen:** Second. **Mary Supple (Mayor):** It's been moved and seconded. Is there any discussion? All in favor of closing the public hearing please say aye. (Council: Aye). All opposed? Okay, the public hearing is closed. Council Member Christensen. **Sharon Christensen (Council Member):** Yes, I now make a motion to schedule the final action on the 2024 property tax levy and 2023 revised 2024 proposed budget and proposed 2024 utility rates for the regular city council meeting of December 12th, 2023. **Council Member Troutman:** Second. **Mary Supple (Mayor):** It's been moved and seconded. Is there any discussion? And for anybody that is listening or watching online, just keep in mind that this is coming up on December 12th. So if you have any input, there is time to give us input. All right, all in favor please say aye. (Council: Aye). All opposed? All right, we have now completed the business of the Truth in Taxation hearing. I would entertain a motion to adjourn. **Council Member Troutman:** So moved. **Council Member Christensen:** Second. **Mary Supple (Mayor):** It's been moved and seconded to adjourn the Truth in Taxation hearing for November 28th, 2023. All in favor please say aye. (Council: Aye). All opposed? We stand adjourned and we'll begin the Council meeting at 7 p.m. Thank you. *** **[07:00 PM] Mary Supple (Mayor):** Good evening, everyone. I'm calling to order this regular City Council meeting of the Richfield City Council. It's November 28th at 7 p.m. Thank you all for attending. If you are able, please join me for the Pledge of Allegiance. [Pledge of Allegiance] **Mary Supple (Mayor):** Next, we'll move on to the Open Forum. I'll go through the online information first... [Mayor provides phone-in details]. It looks like there's no one currently on the line, but we have a number of people in the chambers that would like to speak. Council Member Hayford O'Leary gave me a good reminder: we do have a public hearing later that has to do with the franchise ordinance for the public utilities. If you want to speak on any other issue, you need to speak during Open Forum. We'll start out with Rod Sather. **Rod Sather (Resident):** Thank you. I'm Rod Sather, I live on 63rd and Thomas, and I just briefly want to speak about short-term rentals in the city of Richfield—basically Airbnbs and VRBOs. Our neighbor to the west, Edina, does not allow them for periods less than 30 consecutive days. Bloomington currently prohibits them as well. I believe now is the time for Richfield to establish rules and regulations for short-term rentals. Thank you. **Mary Supple (Mayor):** Thank you. Next, we have Ashley Teto. **Ashley Teto (Resident):** Good evening. I'm Ashley, a resident, RPS parent, and a teacher. I would like to express my heartfelt gratitude for your consideration of Aster Commons. This demonstrates a commitment to inclusivity. This project has the potential to make a significant positive impact on the lives of many young adults. I look forward to your vote. **Mary Supple (Mayor):** Thank you. Next, we have Leavon Garcia. **Leavon Garcia (Resident):** Good evening. My name is Leavon Garcia. I have been a resident of Richfield for 12 years. I am also a member of Plymouth Congregational Church. I learned about Beacon's work with low-income supportive housing like Aster Commons. I feel comforted knowing that organizations like Beacon will be working hard to make a home possible for those in need. **Mary Supple (Mayor):** Thank you. Next, we have Hope Hutcherson. **Hope Hutcherson (Resident):** Good evening. I'm Reverend Hope Hutcherson and I serve at Richfield United Methodist Church. I'm here to speak on behalf of many congregants. We see how necessary this kind of housing is. Most of the children and youth I serve are neurodiverse. Through this building, you are showing them they are welcome here. Thank you for hearing this proposal. **Mary Supple (Mayor):** Thank you. Next, we have Larry Ernster. **Larry Ernster (Resident):** Hi, I'm Larry Ernster, 6727 Elliott Avenue South. I'd like to make a comment on the micro units. Once the city accepts the initial plan for micro units and determines it qualifies as a "sacred community," I feel you lose control. It sounds to me as though you are labeling homeless encampments as sacred communities. I request that you vote down the micro unit ordinance until there is more research. Thank you. **Mary Supple (Mayor):** Thank you. Next, we have Mary Best. **Mary Best (Resident):** Good evening. My name is Mary Best, and I also live at 6727 Elliott. I'm reading these comments from Alex Asmos, a Richfield resident. [Reads comments questioning Tiff (Tax Increment Financing) and concessions made to developers]. My own comment is about the Truth in Taxation session. All residents are concerned about tax increases. Our property tax is going up 6%, school board another 6%. How are we balancing our monetary responsibilities? **Mary Supple (Mayor):** Thank you. Is there anyone else who wishes to speak? [No response]. We'll close out the Open Forum. Next, we move on to the approval of the minutes of the City Council work session of November 14th... the City Council meeting of November 14th... and the special Council work session of November 11th. **Council Member Troutman:** I move approval. **Council Member Christensen:** Second. **Mary Supple (Mayor):** [Minutes approved]. Next, we move on to approval of the agenda. **Council Member Christensen:** I move the approval of the agenda. **Sean Hayford O'Leary (Council Member):** Second. **Mary Supple (Mayor):** [Agenda approved]. Next, we'll have two presentations. First, we'll have Chair Burke from the Human Rights Commission. **Walter Burk (Council Member / HRC Chair):** Evening, Mayor, City Council. I'm here to present the annual report for the Richfield Human Rights Commission. [Names commissioners]. One thing I want to start off with: many other Human Rights Commissions do not have liaisons from the City Council or school board. Other cities were surprised we have such direct access. We worked on proclamations, a student essay contest, and a subcommittee on housing. We’ve continued the free legal advice clinics. Take any questions if there are any. **Council Member Troutman:** I just have praise and gratefulness. I'm just really grateful for the growing capacity of that commission, particularly your leadership. Nothing has made me more hopeful than our high school liaison. **Mary Supple (Mayor):** I would like to echo that. Thank you to you and all the rest of the commissioners. You're about to get another youth commissioner that we approved at the last meeting. Next, we have Chair Keeper from the Sustainability Commission. **Amanda Keeper (Sustainability Commission Chair):** Good evening, Council and Mayor. I'm Amanda Keeper. [Names commissioners and staff]. Probable our biggest accomplishment this year was developing a digital sustainability guide for Richfield residents. We did an awareness campaign about Emerald Ash Borer. We led an Earth Day cleanup. We also supported the Climate Action Plan prioritization. **Council Member Troutman:** I just want to thank you. I remember we had coffee six years ago talking about what you imagined environmental leadership in Richfield could look like. I want to recognize that this existed in people's minds before it existed in the city. Good work. **Mary Supple (Mayor):** Next, we will move on to the Consent Calendar. I'll turn it over to City Manager Rodriguez. **Katie Rodriguez (City Manager):** [Reads Items A through E, including liquor licenses, pawn broker renewals, micro unit ordinance first reading, and Tiff modifications]. I submit these items for your consideration. **Mary Supple (Mayor):** I had a procedural question. There were questions raised during Open Forum about Item C (micro units). Since this is a first reading, does that mean they will be addressed at the next meeting before the second reading? **Katie Rodriguez (City Manager):** That is correct, Mayor. **Council Member Christensen:** I'd move that we approve the Consent Calendar. **Council Member Troutman:** Second. **Mary Supple (Mayor):** I did have one clarification on Item D (Tiff). Could staff clarify how that worked? **Melissa Poehlman (Community Development Director):** Regarding the question about whether tax increment would be refunded: in this case, the note was never issued. If the project does not go forward, no increment is generated or given to the applicant. There is nothing to be recouped here. **Sean Hayford O'Leary (Council Member):** To confirm, they did receive a first note and built a proportionate number of income-restricted units? **Melissa Poehlman (Community Development Director):** That is correct. The first half does meet affordability requirements; a note has been issued for that. **Mary Supple (Mayor):** [Consent Calendar approved]. Next, we're going to move on to the public hearing. I'm going to turn it over to Council Member Troutman. **Council Member Troutman:** Thank you, Mayor. This is a public hearing to consider the second reading of the proposed franchise ordinance and agreement with CenterPoint Energy... [Explains the 10-year term and right-of-way usage]. Before we vote, we'll open up the public hearing. Is there anybody here that would like to speak? [No response]. I would move we close the public hearing. **Council Member Christensen:** Second. **Council Member Troutman:** I move we approve the second reading of the proposed franchise ordinance and agreement... and the resolution authorizing summary publication. **Sean Hayford O'Leary (Council Member):** Second. **Mary Supple (Mayor):** [Motions approved]. Next, I'm going to turn it over to Council Member Hayford O'Leary for Item 7. **Sean Hayford O'Leary (Council Member):** Thank you, Mayor. This item is to consider a request for a Comprehensive Plan Amendment, a second reading of an ordinance rezoning property, and approving a preliminary plat for 38 units of affordable housing at 6613-6625 Portland Avenue (Aster Commons). The clientele is neurodiverse young adults. All 38 units would be studio apartments... [Details the Comprehensive Plan amendment from medium to high density, rezoning to Mixed Use Neighborhood, and parking variances]. Staff recommends approval. **Council Member Troutman:** [Reads comments from absent Council Member Whalen supporting the project]. **Mary Supple (Mayor):** City Attorney Tietjen, for the Comprehensive Plan vote, is it a simple majority or four-fifths? **Melissa Poehlman (Community Development Director):** Because this is a vote regarding affordable housing, it simply requires a simple majority—a three-fifths vote. **Sean Hayford O'Leary (Council Member):** I first make a motion to approve the resolution changing the Comprehensive Plan designation for the subject property from medium density residential to high density residential. **Council Member Troutman:** Second. [Shares personal story about the history of the vacant lot]. I think this is a great project and I'm honored to support it. **Mary Supple (Mayor):** [Comprehensive Plan motion approved]. **Sean Hayford O'Leary (Council Member):** I move to approve a second reading of the attached ordinance rezoning the subject property from MR2 to MU Mixed Use Neighborhood. **Council Member Christensen:** Second. **Mary Supple (Mayor):** [Rezoning motion approved]. **Sean Hayford O'Leary (Council Member):** I make a motion to approve the resolution granting a preliminary plat, site plan approval, and two variances. **Council Member Troutman:** Second. **Sean Hayford O'Leary (Council Member):** I do support this project, but I want to say I’ve got a little disappointment. I appreciate the flexibility we're offering with reduced parking, but I wish we'd take an approach of allowing that for future projects and not simply doing an exception for this one project. The parking variance allows them to save $800,000. That math applies to any apartment building. **Mary Supple (Mayor):** [Variance motion approved]. Next, Item Number 8. Council Member Hayford O'Leary. **Sean Hayford O'Leary (Council Member):** This is a second reading regarding the Point of Sale program. It clarifies that failure to make improvements can result in the forfeiture of cash escrow to the city. I move we approve. **Council Member Christensen:** Second. **Mary Supple (Mayor):** [Motion approved]. Next, Council Member Christensen for Item 9 (Advisory Board Appointments). **Sharon Christensen (Council Member):** We interviewed applicants on November 11th. We are also reducing the Board of Health to seven members to help make quorum. I propose a motion to appoint the members to fill the terms. **Sean Hayford O'Leary (Council Member):** Second. **Mary Supple (Mayor):** [Appointments approved]. Item 10. Council Member Christensen. **Sharon Christensen (Council Member):** This is to consider a resolution affirming that Aster Commons is authorized to apply for an environmental response fund grant from Hennepin County for remediation of arsenic and diesel range organics. I move we approve. **Council Member Troutman:** Second. **Mary Supple (Mayor):** [Motion approved]. City Manager's report? **Katie Rodriguez (City Manager):** [Recaps responses to previous open forum comments regarding short-term rentals, the White Caps ice agreement, and speed limits]. **Mary Supple (Mayor):** Claims and payroll? **Council Member Troutman:** I move claims and payroll. **Council Member Christensen:** Second. **Mary Supple (Mayor):** [Approved]. Hats off to Hometown Hits? **Council Member Troutman:** Geocaching at Wood Lake. **Council Member Hayford O'Leary:** Discussion panel on affordable housing this Thursday. **Council Member Christensen:** Indoor Winter Market at Veterans Park and the Richfield authors event. **Mary Supple (Mayor):** HRA/EDA position applications are open. I entertain a motion to adjourn. **Council Member Troutman:** So moved. **Council Member Christensen:** Second. **Mary Supple (Mayor):** We stand adjourned.