Council Work Session

Council Work Session Agenda Monday, August 25, 2025 at 6:00 PM Council Chambers Page 1. CALL TO ORDER 2. ROLL CALL 3. PLEDGE OF ALLEGIANCE 4. ADOPTION OF AGENDA 5. CONSENT AGENDA 5.1. Approval of Minutes from August 11, 2025 and August 15, 2025 City 3 - 13 Council Meetings Regular Council - 11 Aug 2025 - Minutes Council Work Session - 15 Aug 2025 - Minutes 5.2. Licenses and Permits: Application for Mobile Food Establishment: Cousins Maine Lobster - Joshua Hall, August 27, 2025 5.3. Resolution 082502 - Municipal Exemption from County Library Tax 14 Resolution 082502 - Exemption From County Library Tax 6. NEW BUSINESS 6.1. Hangar Lease Fees 15 Memo - Hangar Lease Fees 6.2. 2026 Budget Work Session #1 16 - 41 Memo: 2026 Budget Work Session #1 6.3. 2026 Capital Improvement Planning 42 - 64 2026 Capital Improvement Planning 7. CLOSED SESSION Closed Session per Wis. Stat. 19.85(1)(e) Deliberating or negotiating the purchasing of public properties, the investing of public funds, or conducting other specified public business, whenever competitive or bargaining reasons require a closed session. 7.1. Parcel ID 261-1233-90-400 (South of St. Croix Press, Inc.) Page 1 of 64 8. COMMUNICATIONS AND MISCELLANEOUS 9. ADJOURNMENT Page 2 of 64  Regular Council Meeting Minutes 7:00 PM - Monday, August 11, 2025 Council Chambers The Regular Council of the City of New Richmond was called to order on Monday, August 11, 2025, at 7:00 PM, in the Council Chambers, with the following members present: PRESENT: Craig Kittel, Ron Volkert, Thomas Weinmeyer, Mike Montello, Jim Zajkowski, Greg Gartner, Pete Vrieze ABSENT: Noah Wiedenfeld, Rae Ann Ailts, Nick Vivian, Sergeant Cramlet, Michelle STAFF Scanlan PRESENT: CALL TO ORDER ROLL CALL PLEDGE OF ALLEGIANCE ADOPTION OF AGENDA Craig Kittel made a motion to adopt the Agenda. Thomas Weinmeyer seconded the motion. Carried unanimously. PUBLIC COMMENTS (none) CONSENT AGENDA 11 Aug 2025 Authorizing Resolution DNR • Payment of Vouchers • Minutes from Council Work Session July 14, 2025 and Council Regular Meeting July 14, 2025 • License and Permits • Declaration of Surplus • Authorizing Resolution - Urban Forestry Grant Application • Library Board Appointment Peter Vrieze made a motion to approve the Consent Agenda. Greg Gartner seconded the motion. Carried unanimously. Regular Council Meeting August 11, 2025 Page 1 of 8 Page 3 of 64 OLD BUSINESS FORM OF GOVERNMENT Noah Wiedenfeld explained that at the July 14 Regular Council Meeting, the City Council voted 4-3 to keep the existing Mayor-Council form of government. Alderpersons Kittel, Gartner, and Weinmeyer voted in favor of the motion, with Mayor Zajkowski casting the tie-breaking vote in favor of the motion. Following the July 14th meeting, it was requested that the topic be brought back to the City Council at the August 11 meeting for further discussion. Mike Montello made a motion to rescind the action taken at the July 14th meeting regarding the form of government. Thomas Weinmeyer seconded the motion. Carried 4-2 (opposed: Craig Kittel and Greg Gartner). Mike Montello made a motion to hold a Public Hearing on September 8 to explore and gain public feedback on the City's form of government. Pete Vrieze seconded the motion. Carried 5-1 (opposed: Craig Kittel). NEW BUSINESS REQUEST TO RELEASE DEED RESTRICTIONS - POFOLK RIDGE Noah Wiedenfeld shared that Robin and Colleen Haffner have requested that the two parcels in a CSM resulting from the redivision of multiple lots in Pofolk Ridge Plat (Town of Erin Prairie) be released from deed restrictions which were put in place in 2007 when the Haffner's originally platted and soon after developed the property. The deed restrictions were put in place as part of the City's extraterritorial plat review authority at that time. There was significant discussion on this topic. Even though this property is not located within the city’s boundaries today, or back when the deed restriction was put in place, the property may someday be within the city limits in the future, so questions were reviewed regarding what is in the best interests of the city and the public in the long- term Robin Haffner was present and spoke on behalf of lifting the restriction so his property could be sold at a more affordable price by splitting the lot, as did a local realtor, Carrie Paulson. Several Council members had questions regarding the Town of Erin Prairie and St. Croix County's position on the lifting of the deed restrictions and did not feel comfortable continuing the conversation until that information was available. It was noted by Mayor Zajkowski that the Haffners could return with a written approval at the Aug. 25 work session meeting. Pete Vrieze made a motion to deny the request to repeal the deed restriction. Ron Volkert seconded the motion. Carried 4-2 (opposed: Craig Kittel and Thomas Weinmeyer). REZONING APPLICATION – CITY OF NEW RICHMOND (PID 261-1070-44-060) Regular Council Meeting August 11, 2025 Page 2 of 8 Page 4 of 64 Noah Wiedenfeld explained that the City submitted a rezoning application for PID 261-1070-44-060. The parcel is approximately 23 acres, and located north of West Richmond Way, between Cernohous Avenue and St. Croix Avenue. They are proposing to rezone the parcel from Z3 Multi-Use/Corridor District to Z7 Special Use/Industrial District. The proposed rezoning responds to the growing demand for industrial land within the City and would allow for general industrial uses by right, such as manufacturing, warehousing, and distribution facilities, which are not allowed under the current Z3 zoning designation. The change will better align the site with the City’s economic development goals, attract industrial investment, and ensure that land use reflects both community priorities and long- term planning objectives. The Plan Commission recommended approval of the application at their August 5 meeting. Mike Montello made a motion to approve the Rezoning application for PID 261-1070-44-060. Craig Kittel seconded the motion. Carried 5-1 (opposed: Ron Volkert). ORDINANCE 627 - ZONING TEXT AMENDMENT TO REPEAL EVERGREEN VALLEY PUD Ordinance 627 - Repeal of Evergreen Valley PUD_signed Noah Wiednfeld presented an application from the City for a zoning text amendment to repeal the Evergreen Valley Planned Unit Development (PUD) District in its entirety. This request would formally remove the Evergreen Valley PUD overlay and all associated development standards from the City’s zoning regulations. It was further explained that Repealing the PUD will allow the property to revert to the underlying zoning designation of Z2 SubUrban District, which is consistent with the surrounding neighborhood character. The Plan Commission recommended approval of the application at their August 5 meeting. Mike Montello made a motion to approve Ordinance 627 to repeal the Evergreen Valley PUD. Craig Kittel seconded the motion. Carried unanimously. BID RESULTS: NEW RICHMOND COMMUNITY LIBRARY FURNITURE Noah Wiedenfeld reported that on June 23rd, the City Council authorized staff to solicit competitive bids for furniture for the new library. The bid deadline was July 29th and was shared with Council. The bids are all inclusive of the furniture, freight/delivery, and assembly/installation. The total low bids were favorable to budget. Consultant ISG and City Staff recommend awarding contracts for furniture in the New Richmond Community Library as follows according to the bid results: Acre (St. Louis Park, MN): $34,294.00 Continua Interiors (5 Locations): $75,818.72 Alternative Business Furniture (Eden Prairie, MN): $233,940.29 Henricksen PSG (13 Locations): $165,107.42. Mike Montello made a motion to approve the bids as outlined. Pete Vrieze seconded the motion. Carried unanimously. ASBESTOS ABATEMENT - 2032 CTH CC Noah Wiedenfeld shared that the 2025 Capital Improvement Plan identified the removal of a vacant farmhouse, barn, and outbuildings located on City-owned property at 2032 CTH CC, north of the property leased to the School District of New Richmond for the school farm. The full process will consist of three steps: 1) Testing; 2) Abatement; and 3) Demolition/Burn. Testing has been completed, the abatement work is now under consideration. Staff recommended Council awards the abatement work to contractor Hummingbird Environmental in the low bid amount of $13,500. It was explained that while the project cost will exceed the budget originally included in the Capital Regular Council Meeting August 11, 2025 Page 3 of 8 Page 5 of 64 Improvement Plan, staff believe the abatement proposals received are competitive and the condition of the buildings is only going to continue to worsen. Mike Montello made a motion to award the abatement work to contractor Hummingbird Environmental in the low bid amount of $13,500. Craig Kittel seconded the motion. Carried unanimously. RESIDENTIAL RECYCLING SERVICES CONTRACT AMENDMENT Noah Wiedenfeld explained that the City of New Richmond contracts with Waste Management to provide curbside residential recycling services. The existing five-year contract runs through December 31, 2028. Waste Management representatives recently met with City staff to discuss changes to their pickup schedule and routes. Frustration was shared over the communication from Waste Management in regards to the change and the importance of bringing this and other issues forward at the time of contract negotiation. Craig Kittel made a motion to approve the change of pick-up days for recycling in the contract with Waste Management. Greg Gartner seconded the motion. Carried unanimously. ADAPTIVE MANAGEMENT PLAN SERVICES FOR 2025 Noah Wiedenfeld provided an update on the Adaptive Management Plan, which aims to reduce phosphorus levels in the Willow River through the implementation of best management practices upstream of the wastewater treatment plant. Since 2023, the City has been working with SEH, Inc. to monitor the watershed, evaluate data, and refine the AMP to include more practical and effective strategies like enhanced street sweeping. The project remains ongoing to meet DNR permit requirements. There was significant discussion surrounding the DNR requirements and the financial hardship they place on City of New Richmond taxpayers. Ultimately, meeting the DNR permit requirements as necessary, and the City will continue taking steps to ensure compliance through the Adaptive Management Plan. Mike Montello made a motion to approve the Agreement with SEH in the amount of $49,800 for 2025 Adaptive Management Plan work, with the scope of work extending through March 31, 2026. Pete Vrieze seconded the motion. Carried unanimously. 2Q25 FINANCIAL REPORT Rae Ann Ailts provided an overview of the 2Q25 Financial Report. Income and expenditures were compared year over year as well as to budget, variances were explained. No action was needed. COMMUNICATIONS AND MISCELLANEOUS Alderman Montello thanked Public Works staff for their tireless efforts in getting through storm damage recovery - their efforts are appreciated and don't go unnoticed! Alderman Vrieze thanked the NRPD, NRFD and NR Ambulance for another great National Night Out. Michelle Scanlan reminded the importance of signing up for Alert NR to receive communication on street projects, road closures, weather emergencies, etc. Regular Council Meeting August 11, 2025 Page 4 of 8 Page 6 of 64 ADJOURNMENT Mike Montello made a motion to adjourn at 8:46pm. Craig Kittel seconded the motion. Carried unanimously. City Clerk Regular Council Meeting August 11, 2025 Page 5 of 8 Page 7 of 64  AUTHORIZING RESOLUTION WHEREAS, the applicant, City of New Richmond, is interested in obtaining a cost-share grant from Wisconsin Department of Natural Resources for the purpose of funding urban and community forestry projects or urban forestry catastrophic storm projects speci?ed in s. 23.097(lg) and (11'),Wis. Stats; WHEREAS, the applicant attests to the validity and veracity of the statements and representations contained in the grant application; and WHEREAS, the applicant requests a grant agreement to carry out the project; NOW, THEREFORE, BE IT RESOLVED, the applicant, City of New Richmond, will comply with all local, state, and federal rules, regulations and ordinances relating to this project and the cost—shareagreement; BE IT FURTHER RESOLVED, the applicant will budget a sum sufficient to fully and satisfactorily complete the project and hereby authorizes and empowers the Public Works Superintendent, its of?cial or employee, to act on its behalf to: 1. Sign and submit the grant application 2. Sign a grant agreement between applicant and the DNR 3. Submit interimand/or ?nal reports to the DNR to satisfy the grant agreement 4. Submit grant reimbursement request to the DNR 5. Sign and submit other required documentation Adopted this 11 day of August, 2025. I hereby celtify that the foregoing resolution was duly adopted by the City Council at a legal meeting on the 11 day of August, 2025. City of New Richmond Mayor 7" W d, ‘8(“(1-6 l'iZCdSignature Title Date Cem?ed / (7 Revised 8/13/2015 Page 6 of 8 Page 8 of 64  STATE OF WISCONSIN COUNTY OF ST. CROIX CITY OF NEW RICHMOND ORDINANCE NO. 627 AN ORDINANCE AMMENDING CHAPTER 121 OF THE MUNICIPAL CODE OF THE CITY OF NEW RICHMOND, WISCONSIN Upon review, recommendation, and consideration by the City of New Richmond Common Council, the Common Council does ordain that Chapter 121 New Richmond Zoning Ordinance is herby amended as follows: § 121—9Repeal of Existing Zoning Regulations and Preservation of PUD Districts (a) Repeal of Existing Zoning Regulations. The existing zoning regulations entitled, “Zoning Ordinance” and as subsequently amended, are repealed. The adoption of this Ordinance, however, shall not affect nor prevent any pending or future prosecution of, or action to abate, an existing Violation of prior regulations, as long as such violation occurred before J anuary l, 2015 of this Zoning Ordinance, as provided in NRMC 121-10. (b) Preservation of PUD Districts. Except as otherwise provided in this section, planned unit developments approved by the City as of January 1, 2015 are rescinded. The following properties are zoned planned unit development, in accordance with the identi?ed ordinance or as provided herein: (1) Richmond Crossings, Ordinance #464, adopted 2/10/14 (2) Armstrong—Skoglund, Ordinance #461, adopted 11/11/ 13 amended - Ordinance #579 01/ 10/22 — (3) Rich River Trails, Ordinance #301, adopted 10/13/03 amended 2/11/13; amended 3/10/25 to rezone Outlots 3, 4, 5, and 6 to Z4 General urban District. - (4) Deer?eld, Ordinance #431, adopted 4/1 1/1 1 repealed Ordinance #569 01/10/2022 (5) Horseshoe Heights, Approved as a PUD Plat March 2007 (6) Evergreen Valley Phase 3, Approved as a PUD Plat 6/13/05 III‘II a v- a ' ------- Mela—14372018 (7) (8) James Place, Ordinance #325, adopted 10/1 1/04, amended February 12, 2018 (12) (13) (10) 61—4) (11) (H) (1%) (1—19Golf Side Richmond Fairway Portion of Fox Approved Approved Prairie Pines, Run, Villas, Condo, as as a aas PUD PUD Ordinance Approved a PUD Plat #299, 8/13/01 8/13/01 PlatPlat 4/4/02 8/1 1/03 adopted Page 7 of 8 Page 9 of 64  (14) (16) Paperjack Place & Paperjack Creek Villas, Ordinance #264, adopted 4/9/01, amended August 13, 2018 (15) (16) Woodland Creek, Approved as a PUD Plat 5/8/00, amended 02/12/18 (16) (149 Northwind Addition, Approved as a PUD Plat 5/4/99 (17) (48) West Ridge Condominiums, Ordinance #210, adopted 4/ 13/98 (18) 61—9)Highview Estates, Approved as a PUD Plat 6/8/95 (19) (20) Willow River Bluffs, In accordance with the PUD approved October 9, 2017 The ordinance shall take effect immediately upon its passage and publication as provided by law. 1, Michelle Scanlan, Clerk of the City of New Richmond, Wisconsin, do hereby certify that the foregoing is a correct copy of an Ordinance introduced at a regular meeting of the Common Council of the City of New Richmond on August 11, 2025 adopted by more than two—thirdsvote, and recorded in the minutes of said meeting. Passed and approved: August 11, 2025 Published and effective: August 11, 2025 mes koZa1w§,y ATTES?WQjW City Clerk MichelleScanlan, Page 8 of 8 Page 10 of 64  Council Work Session Meeting Minutes 1:00 PM - Friday, August 15, 2025 Council Chambers The Council Work Session of the City of New Richmond was called to order on Friday, August 15, 2025, at 1:00 PM, in the Council Chambers, with the following members present: PRESENT: Craig Kittel, Ron Volkert, Thomas Weinmeyer, Pete Vrieze, Greg Gartner, Mike Montello, Jim Zajkowski ABSENT: CALL TO ORDER ROLL CALL Note: Craig Kittel participated via phone from 1:00-1:24 pm, after which time he was present in- person at City Hall for the rest of the meeting PLEDGE OF ALLEGIANCE ADOPTION OF AGENDA Mike Montello moved to adopt the agenda. The motion was seconded by Pete Vrieze and carried unanimously. OLD BUSINESS REQUEST TO RELEASE DEED RESTRICTIONS - POFOLK RIDGE Noah Wiedenfeld reviewed a summary of concerns expressed during and following the August 11, 2025 City Council meeting in response to the Developer's original request to release the deed restrictions:  Lack of authority for the City to unilaterally adopt zoning regulations  Request is solely for the financial benefit of the Developer  Lack of feedback from the residents of 156th Street and the Town Board  Rural residential "islands" and conflict with future City growth  Removal of the previous note about deed restrictions from the new certified survey map  Condition and maintenance of 156th Street if Developer sells  Precedent for additional requests to subdivide or release deed restrictions  Status of pending sale  Making decisions based on the individuals involved rather than what's in the best interests in the long-term for the community Council Work Session Meeting August 15, 2025 Page 1 of 3 Page 11 of 64 The City Administrator has since prepared a proposal which may address many of the previous concerns, while achieving some positive outcomes for everyone involved. Under the proposal:  Lot 1 may be sold to a third-party buyer who is not the owner of Lot 2  Lot 1 may not be further subdivided and the deed from the Developer to the third-party buyer shall indicate as such  Lot 2 may not be sold, conveyed, or built upon, otherwise improved until the following conditions are met: o 156th Street shall be paved at the expense of the Developer to meet current town road standards, subject to the review and approval of the St. Croix County Highway Commissioner o A maintenance agreement for 156th Street shall be approved by all owners of property within the Pofolk Ridge Plat and the Town of Erin Prairie o A general boundary agreement addressing the Pofolk Ridge subdivision shall be approved between the City of New Richmond and the Town of Erin Prairie o Future development of Lot 2 shall be consistent with and in accordance with the requirements contained within the general boundary agreement between the City of New Richmond and the Town of Erin Prairie The City Council reviewed excerpts from previous Town Board meeting minutes pertaining to 156th Street:  "The road will be built to county specifications and will be paved by Robin. Once the road is paved the township will take it over. Robin's plan is to pave the road in two years." - 12/12/2007  "Once it is certain the road meets the required specifications and the road is paved, the township will take over control and maintenance of it as had been agreed upon in 2007" - 7/18/2022 The City Administrator highlighted St. Croix County Ordinances pertaining to design standards for new subdivisions, as well as the City's ordinances pertaining to adequacy of streets within its extraterritorial jurisdiction. The Town of Erin Prairie's Comprehensive Plan also calls for intergovernmental cooperation, specifically to:  Work with St. Croix County and the City of New Richmond to allow growth and development that addresses their long-range goals and the Town’s, and  Explore a cooperative boundary agreement with the City of New Richmond that addresses future growth in the area. The City Administrator summarized that the proposed conditions pertaining to Lot 2 were consistent with what the Developer and Town originally agreed to in 2007, as well as the Town of Erin Prairie's Comprehensive Plan, and that a boundary agreement was mutually beneficial and would promote better planning and cooperation between the Town and the City. The City Administrator concluded his presentation by highlighting the positive outcomes for the Developer and prospective buyer of Lot 1, the existing residents in the Pofolk Ridge subdivision, the Town, and the City, under the proposal, whereas the original request from the Developer primarily benefited the Developer. Mike Montello moved to approve the proposal as presented by the City Administrator, subject to final legal and underwriting review. The motion was seconded by Ron Volkert. Council Work Session Meeting August 15, 2025 Page 2 of 3 Page 12 of 64 The Developer, Robin Haffner, came to the podium and expressed initial dissatisfaction with the proposal. He did not have an issue with the conditions pertaining to Lot 1, but he felt the conditions pertaining to Lot 2 were too extensive and would effect his ability to sell Lot 2 in the future. Erin Prairie Town Board Chairperson, John VanDyk, was also in attendance and expressed his opinion that the Town was not interested in maintaining 156th Street, despite the prior board meeting minutes and the fact that the road was dedicated as public right-of-way when the plat was approved in 2007. Noah Wiedenfeld explained that the proposed conditions seek for Mr. Haffner and the Town to honor their previous commitments, as it is a public safety concern if the road is not maintained. The City does not need to approve of the final maintenance agreement, but the City is trying to look out for the best interests of the residents of 156th Street as well as emergency services. Mr. Haffner asked if the City Council would be agreeable to allowing him to construct a small storage building on Lot 2 in the interim, if needed for snow removal equipment. Mike Montello moved to amend the main motion to reflect that Lot 2 may not be conveyed or sold to a third party, or developed, with the exception of an accessory storage building. Said building shall not exceed 1,500 square feet, may only be used for storage purposes for equipment needed to maintain 156th Street and Pofolk Ridge properties, is not permitted to be served by a private well or septic system, and any new driveway proposed to access the building shall be approved by the Town of Erin Prairie. The motion was seconded by Craig Kittel. The amendment was approved unanimously via roll call vote. Mr. Haffner expressed that he could go along and agree with the rest of the proposal as presented. The City Council then voted unanimously to approve the (amended) main motion. Mr. Haffner expressed appreciation to the City Council and the City Administrator for their willingness to work through this matter with him in a fair and professional manner. Mr. Haffner acknowledged that he has had his differences with the City in the past few years, and that after the City Council voted to deny his initial request on August 11th, he was discouraged and was not optimistic that a favorable outcome could be reached. He thanked everyone for the considerable time spent on this over the past week and for the willingness to have a special meeting that was ultimately productive. COMMUNICATIONS AND MISCELLANEOUS ADJOURNMENT Pete Vrieze moved at 1:55 pm to adjourn the meeting. The motion was seconded by Mike Montello and carried unanimously. Council Work Session Meeting August 15, 2025 Page 3 of 3 Page 13 of 64  RESOLUTION #082502 REQUESTING APPLICATION FOR EXEMPTION FROM COUNTY LIBRARY TAX WHEREAS, the County Board for St. Croix County, Wisconsin levies a county library tax; and WHEREAS, Section 43.64(2)(b) of the Wisconsin Statutes provides that any city, town or village which levies a tax for public library service and appropriates and expends for a library fund as defined by section 43.52(1) of the Wisconsin Statutes during the year for which the county tax levy is made a sum at least equal to the county tax rate in the prior year multiplied by the equalized valuation of the property in the city, town, or village for the current year is exempt from the county library tax; and WHEREAS, the City of New Richmond will, in 2026, appropriate and expend an amount in excess of that calculated above. NOW THEREFORE, BE IT RESOLVED that the City of New Richmond hereby requests of the St. Croix County Board of Supervisors that the City of New Richmond be exempted from the payment of any county tax for the support of public library service as provided in Section 43.63(2) of the Wisconsin Statutes. BE IT FURTHER RESOLVED that copies of this Resolution be forwarded by the City of New Richmond Clerk to the following parties: Carleton A. Friday Memorial Library St. Croix County – County Clerk 155 East First Street 1101 Carmichael Road New Richmond, WI 54017 Hudson, WI 54016 Dated this 25th day of August, 2025. James Zajkowski, Mayor Attest: Michelle Scanlan, City Clerk Page 14 of 64  NEW RICHMOND REGIONAL AIRPORT 156 East First Street · New Richmond, WI 54017 (715)246-7735 www.nrairport.com To: Noah Wiedenfeld From: Mike Demulling, Airport Manager 715-760-5055 c Date: August 20, 2025 RE: Hangar Lease Fees The following fees related to hangar leases should be implemented on the city fee schedule: - Hangar lease initiation fee on new hangars over 4,000 square feet: $1000 - Hangar lease initiation fee on new hangars up to 4,000 square feet $500 - Hangar lease fee applied to the buyer of an existing hangar $500 The airport has an issue with individuals and businesses leasing hangar lots but not initiating construction within the required time period as indicated on the hangar lot lease. The airport has very few hangar spaces available at the present time. We believe the non-refundable fees will serve as a filter to identify serious lessees who intend to actually build a hangar and prevent lease speculation from occurring. The airport has charged a $100 fee to the buyers of existing hangars since the early 2000’s. The $100 fee has not been updated and does not reflect the expenses incurred by the airport to process a hangar sale. We believe a fee of $500 accurately captures the costs involved. Typically, three to five of the 123 hangars at the airport are sold each year. Please contact me at 715-760-5055 or by email at mike@nrairport.com if you have any questions. Page 15 of 64  MEMO Prepared for: Mayor Zajkowski and City Council Staff Contact: Rae Ann Ailts Meeting: Council Work Session - 25 Aug 2025 Subject: 2026 Budget Work Session #1 BACKGROUND INFORMATION: On Monday evening, staff will lead a discussion on the proposed 2026 general fund budget. Over the last several months, administration and finance have been working with Council and staff to develop the first draft of the budget. Through these discussions, Council has established the following budget priorities:  Exploring Alternative Revenue Sources: Continue to seek alternative revenue sources and revenue-generating opportunities to help lower the cost to deliver services or reduce debt associated with capital projects.  Ensuring Financial Sustainability: Maintaining adherence to our financial policies to uphold the city's high credit rating and ensure long-term fiscal health.  Infrastructure Maintenance: Maintaining a strong commitment to the upkeep and enhancement of our existing infrastructure to support community needs.  Economic Development: Renewing our focus on economic growth by evaluating industrial development opportunities that align with our community goals.  Enhancing the Downtown Corridor: Concentrating efforts on improving our downtown to enhance its vibrancy while maintaining a strong sense of place that stimulates economic activity.  Proactive Planning: Continuously engaging in forward-thinking planning initiatives that preapare the city for both current demands and future growth and development opportunities. The last few budget cycles have been challenging navigating pandemics, economic pressures and growth. These challenges highlight the importance of building flexibility, adaptability and resiliency into our fiscal approach, allowing us to pivot in times of challenge as well as opportunity. The 2026 budget is no exception and continues to present several opportunities and challenges. To assist in the evenings' discussion, staff have developed the following agenda and estimated time of discussion: Page 16 of 64 Operating Budget  Overview of community demographics (5 mins)  Overview of budget process and timeline (5 mins)  Review of 2026 "Under Discussion" Budget (40 mins) Next Steps  Budget Work Session #2 - September 22, 2025 work session o Operating budget goals and objectives ATTACHMENTS: 2025.08.24-Work Session #1_2026 Budget Page 2 of 26 Page 17 of 64  2026 Budget Page 3 of 26 Page 18 of 64  Agenda Page 4 of 26 Community Demographics Budget Process and Timeline Objectives for Budget Work Sessions Budget Priorities 2026 Budget Drivers Next Steps Page 19 of 64  Population Page 5 of 26 12,000 5.00% 11,359 11,050 10,824 10,541 4.50% 10,075 10,000 9,741 9,322 4.00% 8,909 9,070 8,807 3.50% 8,000 3.00% 6,000 2.50% 2.00% 4,000 1.50% 1.00% 2,000 0.50% 0 0.00% 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Page 20 of 64 Population % Change Source – Wisconsin Department of Administration  Equalized Value trend 10 Year Equalized Value Trend 1,800,000,000 25.00% Page 6 of 26 1,634,593,900 1,600,000,000 1,530,852,600 1,409,442,700 20.00% 1,400,000,000 1,258,290,300 1,200,000,000 1,038,564,100 15.00% 978,286,000 1,000,000,000 879,399,500 800,000,000 768,451,500 717,356,800 661,173,500 10.00% 600,000,000 400,000,000 5.00% 200,000,000 0 0.00% 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Equalized Value Assessed Value % Change Page 21 of 64 Source – Wisconsin Department of Revenue  Net New Construction 7.00% 70,000,000 Page 7 of 26 6.00% 60,000,000 5.00% 50,000,000 4.00% 40,000,000 3.00% 30,000,000 2.00% 20,000,000 1.00% 10,000,000 0.00% - Page 22 of 64 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Source – Wisconsin Department of Revenue  Net New Construction Page 8 of 26 Why is net new construction important? • Component of how municipalities are funded • Levy limit • Expenditure Restraint Program $2 $2 • How costs are distributed over the tax base • Net New Construction 2025 for New Richmond • 2.08% or $31,585,200 $1 $1 $1 $1 • Net New Construction 2025 for State of WI • 1.64% Page 23 of 64  Budget timeline Page 9 of 26 Budget Work Session #1 Budget Work Session #2 Budget Work Session #3 August 25, 2025 September 22, 2025 October 27, 2025 Overview of budgetary requests and Overview of budgetary changes based Final Draft Budget presented based impacts upon Work Session #1 upon Work Session #2 Council to provide direction related to Council authorization to publish budget drivers preliminary budget Council to define any additional Council authorization to establish priorities to be incorporated into budget hearing for November 10, 2025 budget draft 2 Page 24 of 64  Council Priorities Page 10 of 26 Revenue Generation Financial Sustainability Infrastructure Economic Development Planning Continue seeking grants Keep taxes stable Continued focus on road Enhancing downtown Continued and to reduce overall Adhere to debt policies maintenance beautification enhanced focus on expenses Enhance pedestrian Industrial development proactive planning Maintain a high credit Sharing of equipment rating safety measures evaluation across the city or in partnership with other municipalities and/or the county Explore shared services opportunities to increase efficiency and reduce costs Page 25 of 64  Levy trend Levy 2022 2023 2024 2025 2026 Under Page 11 of 26 Discussion Operating $4,210,778 $4,880,269 $5,280,712 $5,792,641 $6,421,169 Debt $1,470,982 $1,596,948 $1,418,532 $1,408,841 $1,581,927 Capital Replace $115,000 $115,000 $150,000 $150,000 $150,000 Tax Increment $479,835 $415,000 $348,560 $145,250 $212,069 Total $6,276,595 $7,007,217 $7,197,804 $7,496,732 $8,365,165 % Change 3.8% 11.6% 2.72% 4.15% 11.58% Page 26 of 64  Levy comparison 2024 2025 2026 $ Change % Change Page 12 of 26 Levy Adopted Adopted Under Discussion 25 to 26 25 to 26 General Fund $5,280,712 $5,792,641 $6,421,169 $628,528 10.85% Debt Service $1,418,532 $1,408,841 $1,581,927 $173,086 12.29% Capital $150,000 $150,000 $150,000 $0 0.0% Replacement Tax Increment* $348,560 $145,250 $212,069 $66,819 46.00% Total $7,197,804 $7,496,732 $8,365,165 $868,433 11.58% % Change per Year 2.41% 4.15% 11.58% Page 27 of 64 *Tax Increment Levy is estimated and subject to change based upon final equalized value by DOR  What is the impact on my taxes (City Portion Only)? Equalized 2025 Taxes 2026 – Draft 1 2025 to 2026 Change due to Page 13 of 26 Property Tax Change New Library Value $150,000 $758 $793 $35 $67 $250,000 $1,263 $1,322 $58 $112 $300,000 $1,516 $1,583 $69 $134 $350,000 $1,769 $1,850 $81 $156 $400,000 $2,022 $2,115 $92 $179 $450,000 $2,275 $2,379 $104 $201 $500,000 $2,527 $2,643 $116 $223 Tax impact is based on equalized values, not assessed values Summary 2025 Proposed Levy = 11.58% Page 28 of 64 Less: Net New Construction = (2.08%) Net 2025 Proposed Levy = 9.50%  Budget Drivers Page 14 of 26 Page 29 of 64  2026 Notable Revenue Drivers $ Change 25 vs 26 Page 15 of 26 PILOT $34K Hangar Leases $34K Rent for Meeting Spaces $20K Leases Management Office & Coffee Shop $4.5K ROW Permits $62K Expenditure Restraint $54K Interest Earnings $28K Sub-Total of Notable Revenue Drivers $52K Property Taxes $628K Total of Notable Revenue Drivers $576K Page 30 of 64  2026 Notable Expenditures Drivers Page 16 of 26 Leases • Library Building Lease to New Richmond Community Development Authority • $630,000 in lease payment for new library space Page 31 of 64  Salaries & Wages BLS Wage change City Adjustment • 4.1% COLA based on BLS Index 2020 2.7% 1.7% following Compensation policy Page 17 of 26 2021 1.6% 1.3% • 2nd year adjustments for employees 2022* 3.1% 1.6% that fell below midpoint as part of 2023 4.7% 3.1% 2024 compensation update 2024 5.0% 4.7% 2025 4.1% 5.0% 2026 Proposed 4.1% • BLS Index is based on a 12 month period • For example, 2026 proposed is based on March 2025 Index for the period of March 2024 – March 2025 *2022 Compensation policy adopted Page 32 of 64  Health Insurance Traditional Plan H.S.A Plan • 1% renewal from Medica, Page 18 of 26 requesting flat renewal • No recommended plan design Single Family 82% ER/18% EE 80% ER/20% EE 84% ER/16% EE 84% ER/16% EE changes Deductible $7,350/person $8,300/person Health Insurance Trend $14,700/family $16,600/family 30.00% 25.00% HRA Eligibility Up to $5,500 Single Up to $3,300 Single Up to $11,000 Family Up to $6,600 Family 20.00% 15.00% H.S.A Not eligible $1,000 Single 10.00% Contribution $2,000 Family 5.00% 0.00% 2020 2021 2022 2023 2024 2025 2026 -5.00% National Trend Carrier Trend City % Change Page 33 of 64  Staffing Page 19 of 26 • .675 FTE - Custodial Position (27 Hour Position) • Custodial position to support Library Building. This position will be partially offset by meeting room fees. Page 34 of 64  Parks and Parkland Trust Page 20 of 26 • Currently operation and maintenance expenses are accounted for under multiple funds, 100 and 800 Fund • Future structure has operational activities of Parks combined into one new Park Operations Fund • Responsible for the day-to-day operations of the Parks • Campground revenues, farmland leases, etc • Parkland Trust renamed Park Capital Projects Fund • Responsible for capital planning, donations, payments in lieu of parkland, memorials • Enhances transparency of sources and uses of funds • Provides clarity for staff, creating easier budget and reporting structures Page 35 of 64  Urban Forestry Fund Page 21 of 26 • An estimated 339 Ash trees on City owned property or in Boulevard needing to be removed and replaced. • Ash tree health is deteriorating more rapidly than anticipated, in turn accelerating the timeline to address. • $150K in annual expense to remove and replace Ash trees is estimated for the next 5 years. • Establishment of an Urban Forestry Fee will ensure a healthy, vibrant and sustainable urban forest • Proposed fee of $2.75 ($33/year) is anticipated for the next 5 years with re-evaluation once ash trees have been removed and replaced. Page 36 of 64  Urban Forestry Page 22 of 26 Budget 2030 2029 2028 2027 2026 2025 2024 2023 2022 2021 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 Budget Page 37 of 64 Page 23 of 26 Page 38 of 64  Further Budget Updates • Street Maintenance – level funding level for 2026 Page 24 of 26 2020 2021 2022 2023 2024 2025 2026 - Proposed 95,000 71,250 75,000 175,000 250,000 325,000 325,000 • K9 Funding - $8K requested for 2026 • Airport expenses for office rent, internet, phone – currently under evaluation • Medical Reserve Account – on track to be fully funded by 2030, utility 2022 2023 is fully 2024 funded 2025 2026 45,000 55,000 65,000 70,000 50,000 Page 39 of 64  2026 Budget Summary Page 25 of 26 The proposed 2026 budget provides a balanced budget where revenues are sufficient to cover anticipated Expenses. The proposed budget is $10,182,755 for general fund operations which is an increase of $577,861 or 6.5% when Compared to 2025. 2024 2025 2026 $ Change % Change Adopted Adopted Under 25 vs 26 25 vs 26 Discussion Revenues $8,892,318 $9,604,893 $10,182,755 $577,861  6.5% Expenditures 8,892,318 9,604,893 10,182,755 $577,861  6.5% Page 40 of 64  Budget timeline Page 26 of 26 Budget Work Session #1 Budget Work Session #2 Budget Work Session #3 August 25, 2025 September 22, 2025 October 27, 2025 Overview of budgetary requests and Overview of budgetary changes based Final Draft Budget presented based impacts upon Work Session #1 upon Work Session #2 Council to provide direction related to Council authorization to publish budget drivers preliminary budget Council to define any additional Council authorization to establish priorities to be incorporated into budget hearing for November 10, 2025 budget draft 2 Page 41 of 64  MEMO Prepared for: Mayor Zajkowski and Council Staff Contact: Lexi Derrick, Rae Ann Ailts Meeting: Council Work Session - 25 Aug 2025 Subject: 2026 Capital Improvement Planning BACKGROUND INFORMATION: In April, the work session focused on machinery, equipment and AMI projects for the 2026 Capital Improvement Plan. On Monday, staff will continue CIP discussions with a focus on vehicle and airport projects. Below is the timeline for the 2026 Capital Improvement Plan for reference:  January - 2026 CIP Kick Off  February - Financial Feasibility  March - Street & SWU Infrastructure Projects  April - Machinery & Equipment  May - Trail & Facility Projects  June - Vehicles & Airport Projects  August - Utility Projects  September - Park & Library Projects  October - Finalize 2026 Projects & Financial Plan  November - Budget Hearing, Adoption of Projects and Financing Plan ATTACHMENTS: CIP_2025.8.25 Work Session Page 42 of 64  2026 CAPITAL IMPROVEMENT PLANNING Page 2 of 23 AUGUST 25, 2025– CAPITAL IMPROVEMENT PLANNING WORK SESSION Page 43 of 64  AGENDA Page 3 of 23  2026 capital improvement process and timeline  Capital improvement prioritization  Review of Utility Projects Page 44 of 64  Capital Improvement October ‘25 - 2026 • • Finalize 2026 Projects Finalize Finance Plan Planning Timeline • • Budget & Budget Hearing Adoption of plan and financing plan • Page 4 of 23 2026 Project bidding & approval • Project implementation August • Utility Projects May • Trail • Facilities March • Street & SWU September Infrastructure • Parks Projects • Library January June • Survey Results • Vehicles • Process & timeline • Airport • Prioritization April • Equipment Page 45 of 64 February • Financial Feasibility  2026 Prioritizations CURRENT PRIORITIZATION 1. Utility Infrastructure Page 5 of 23 2. Streets & Infrastructure 3. Machinery & Equipment 4. Parks & Trails 5. Storm Water 6. Buildings 7.Vehicles Page 46 of 64 8. Land Acquisition/ Improvement 5-YEAR FUNDING OVERVIEW Page 6 of 23 Page 47 of 64  2026 City Projects by Classification Storm Water $252,600 Page 7 of 23 Streets $287,700 Buildings $140,000 Page 48 of 64 Machinery & Parks & Library Vehicles Airport Equipment Trails $1,300,000 $1,156,000 $588,333 $250,000 $132,000  ELECTRIC PROJECTS Page 8 of 23 3 Phase Extension – 140th to Cty Rd K • Currently single-phase serves the Fox Run and Whispering Prairie • Increasing chance of equipment failure and outages • Best option is to install a three-phase circuit from the Highview Substation • Project will be completed in multiple phases dependent on pace of new development • Estimate 62% of project costs will be assigned to developers • Extension began in 2022 • 2026 Expense: $50,000 Page 49 of 64  ELECTRIC PROJECTS Page 9 of 23 3 Phase Extension – Fox Run to Francois • This project would address the added load growth, reliability and redundancy of Noble Road, North Shore Drive, Johnson Drive and Francois Fields development. • Future stages of this project would connect this loop to the County Road K 3-phase extension. • End project would be a new 3-phase feeder loop from Knowles Substation, through Francois Fields, to Fox Fun and back to Highview Substation. • Extension is estimated to take 8-10 years to complete. • 2026 Expense: $50,000 Page 50 of 64  ELECTRIC PROJECTS Page 10 of 23 Reject Pole Replacements • Pole testing took place in 2018 – 2021 where a list was provided of 250 poles were classified as either danger, rejects or probably rejects. As of May 1, 2025: • 0 danger poles remain • 41 reject poles remain • 86 probably rejects remain • In 2025 roughly 13 poles were replaced by Push, Inc and the goal is to have an additional 25-30 poles replaced by staff • 2026 Project Cost: $100,000 Page 51 of 64  ELECTRIC PROJECTS Page 11 of 23 Thump Tester • A tool that helps isolate and identify where a fault is at and the length of it. • High voltage is used to determine the exact location • Cost: $15,000 Page 52 of 64  WATER PROJECTS Page 12 of 23 Construct New Water Tower • Estimated construction to begin Spring of 2026 • 2026 Project Cost: $6,300,000 • Total Project Cost: $6,500,000 • 35% of total project is impact fee eligible Page 53 of 64  WATER PROJECTS Page 13 of 23 Lead Service Line Replacement • The DNR has ended their grant program for funding lead service replacements • Public side lead service replacements will require funding from the municipality or service directly • 2026 Project Costs: $100,000 Page 54 of 64  WATER & SEWER VEHICLE REPLACEMENT SCHEDULE Page 14 of 23 Page 55 of 64  WATER PROJECTS Page 15 of 23 Replace 2017 Chevy Express - Meter Maintenance Vehicle #50650-17 • This vehicle is used to collect meter radio readings for monthly billing, make customer visits and provide general equipment transportation. • Vehicle is in good working condition • Over 60,000 miles • 2026 Project Costs: $50,000 Page 56 of 64  WATER/SEWER PROJECTS Page 16 of 23 Replace 2012 F-150 Vehicle #71660-12 • This truck is used daily for water and wastewater operations • Truck is in fair condition with some rust • Over 65,000 miles • Cost: $55,000 Page 57 of 64  SEWER PROJECTS Page 17 of 23 SCADA Lift Station Programmable Logic Controllers Upgrade • Phase 1 of the upgrades began in 2024, focusing on replacing the SCADA radios and Phase 2 will focus on replacing PLCs due to their age and obsolescence. • 2026 will focus on replacing PLCs • 2026 Expense: $125,000 Page 58 of 64  SEWER PROJECTS Page 18 of 23 Gloverdale Development Lift Station • With continued development and growth an additional lift station is needed to take the flow from Richmond way and divert it away from the Woodland Creek lift station. • 2026 Expense: $200,000 • Partially Impact Fee Eligible Page 59 of 64  SEWER PROJECTS Page 19 of 23 Security Gate & Cameras • In efforts to enhance security, fob access is planned to be installed later this year. • In 2026 and continuing through subsequent years, the installation of a security gate and surveillance cameras throughout the facility are recommended. • 2026 Expense: $20,000 Page 60 of 64  SEWER & WATER PROJECT Page 20 of 23 Replace Zero Turn Lawn Mower • 2015 John Deere • Split between the WWTP and Water Department • 918 engine hours on the mower • 2026 Project Cost: $10,000 Page 61 of 64  UTILITY INFRASTRUCTURE Page 21 of 23 Design East 1st Street (Knowles to Greaton) • Pavement 30+ years old • Poor Ranking • Poor pavement shape • Clay tile sewer mains • Cast iron water mains • Reconstruction will include: pavement, curb & gutter, storm sewer and underground utilities • Rebuilding in conjunction with the County Road K trail project • Reconstruction pending for 2027 Department Utility Reserves Total Cost Financing Sewer $0 $22,000 $22,000 Water $50,000 $0 $50,000 Page 62 of 64 TOTAL $50,000 $22,000 $72,000  UTILITY INFRASTRUCTURE Page 22 of 23 Design Arch Ave (E 1st to E 2nd) & Water Tower Main Replacement • Pavement ~25 years old • Average rating • Vitrified clay tile sewer mains • Cast iron water mains • Reconstruction will include: pavement, curb & gutter, storm sewer and underground utilities • Reconstruction pending for 2027 Department Reserves Total Cost Sewer $10,000 $10,000 Water $15,000 $15,000 Page 63 of 64 TOTAL $25,000 $25,000  NEXT STEPS Page 23 of 23  Next Work Session • Introduction and discussion on 2026 Park and Library Projects Page 64 of 64