Speaker numbers apply only to this recording.
The Red Wing City Council held a workshop on June 1, 2026, at 5:33 PM, adjourning at 7:42 PM, to review the preliminary long-range financial plan (LRFP) and the preliminary 2027-2031 Capital Improvement Plan (CIP). Council President Janie Farrar presided; Council Members Beth Snyder, Kim Beise, and Becky Norton were present, with four members absent. The workshop was informational, with no formal votes taken.
2.A. Preliminary Long-Range Financial Plan
Administrative Business Director Marshall Hallock introduced the plan, prepared by Northland Securities (Managing Directors Tammy Omdal and Jessica Green), funded by a Community Energy Transition Grant. Omdal presented key takeaways: the plan is preliminary, focused on revenue sufficiency, and assumes 2% underlying valuation growth plus new construction (including a projected $35 million apartment building in 2030). The city's net tax capacity is projected to increase; the city tax levy is projected to rise. Utility rate assumptions: water 2% increase, sewer 6-8% (rising to 10-15% in 2030-32), stormwater 2%. Existing debt ends around 2027-28, but new issuance (2026 bonds) is included. Council members asked about inflation assumptions (none used), public safety building assumptions ($10M in 2028 as LEC option, $16.5M for new facility), and requested historical general fund data for context. Farrar inquired how the plan would be used annually; Omdal said it can inform budget discussions. Hallock noted staff uses long-range planning daily. The final plan will be presented in the fall, incorporating updated development assumptions.
2.B. 2027-2031 CIP – Preliminary
Finance Manager Tony Schultz introduced the CIP, which includes $29.5 million in proposed capital costs with $27.25 million in funding sources (of which $4.4 million is from the General Fund in 2027, rising to $7 million by 2031). General Fund support increases from ~$3 million in 2026 to ~$7 million in 2031 (over 100% increase). Major projects: public safety facility ($10.5M in 2028 for LEC option, $16.5M for new city-owned facility, plus $5.5M garage in 2031), wastewater treatment plant ($157.2M, assuming 40% state/federal funds), roads ($44.5M over 5 years including Highway 58 and roundabout at CSAH 66/1), and parks ($11.1M over 5 years, including athletic field improvements tied to the 2028 state amateur baseball tournament). Council members debated the levy impact: Farrar expressed concern about rising taxes versus incomes; Snyder agreed, noting county tax increases; Beise argued deferred maintenance necessitates investment; Norton highlighted the need to define service levels. Staff requested direction on a General Fund CIP target, but no consensus was reached. The next budget workshop is the first Monday in August.
Okay. Is everybody else ready to? All right. Well, start us June 1st. We're here, can't believe it's June for our city council workshop. And again, we only have two items on the agenda tonight the preliminary long range financial plan. And then secondly, a CIP preliminary discussion going on. We did have a couple unforeseen situations come up with council members, but thankfully we do have four of us. But uh note votes will obviously be taken tonight because it's a workshop and it is being videotaped. So for other council members, they'll be watching that and for the public. So thanks so much, everybody for being here tonight. And again, 2A is the long range financial plancial plan. And I believe Marshall is going to uh give us a little intro on this, correct? I will definitely try first. Thanks for giving up uh such a beautiful evening to spend a little bit of time with us here at City Hall. Appreciate it. Um the presentation is on the preliminary long range financial plan. It and this plan is preliminary. It will it's a I think of it more of an art than a science. As things happen and data progresses, we can update uh this long range plan. Uh, we're actually going to be provided the model from Northland will leave us with the model so it'll be available for years. We can use it for years to come to help um uh engage in our planning work. I also want to mention this long range financial plan is uh actually a part of a broader um community engagement, community development planning effort, including the uh land feasibility analysis and other analysis that'll be done using that community energy transition grant we received uh a year or two back. Um it's the long range financial plan and some of the other work is really very similar to what Monticello had used to do some of its long range planning previously, too. To the plan itself, we contracted with Northland to do the long range planning for us, and with us tonight is Tammy Omdahl and Jessica Green, both managing partners, if I remember correctly with Northland, vast amounts of public finance experience, uh having worked in public finance and then moving on to Northland and other greener pastures, as they say. But uh if you want, you come up and introduce yourselves and please uh give us a quick cruise through the long range financial plan, preliminary loan range plan. Thank you, Marshall. I think both of these will pick up my voice. Madam Mayor, Madam Mayor, I understand Madam President, the mayor is not here tonight. It should be online if it matters, possibly. But greetings. Um Tammy Umdahl with Northland Public Finance, and as introduced my colleague Jessica Green, I will be presenting tonight. And yes, um, we do this work all across the state of Minnesota on capital financing, bond issuance, and long-term financial planning because it goes hand in hand. And as introduced, this seems real formal. The presentation, the numbers, there's a hefty report that was in your packet. It is preliminary in several fronts. One, we are still working with staff on the capital improvement plan, which I know that's on your agenda tonight, as well as certain assumptions on development that will be informed by the other plan that is also under the on in process.