Frequently Asked Questions

Questions about the Plan and the Referendum

  • The city is proposing an $80 million investment plan, called “Our Legacy, Our Future,” to address critical infrastructure issues and provide additional space and amenities at three major parks and rec destinations -- the Richfield Community Center, Wood Lake Nature Center and Veterans Park.

    Under this plan, the city’s aging community center would be replaced with a facility designed to support more activities for residents of all ages. The city would build a new nature center building at Wood Lake Nature Center. At Veterans Park, several serious issues would be addressed, including major repairs to the swimming pool and ice arena.

    For additional details, visit our Plan page.

  • Several parks and recreation amenities are so old and deteriorated that they are on the verge of closure without reinvestment. Others have outlived their useful life and are no longer able to provide what our residents and community desire. The following provides a closer look at our challenges:

    o   Richfield Community Center: The 63-year-old building has critical infrastructure challenges that need to be addressed, including problems with the foundation that lead to flooding when it rains. The facility no longer offers the space or AV updated equipment to support the community programs, meetings and activities desired by residents. Previously a library, the building cannot support larger community meetings, fitness activities, or sports activities. The center also lacks flexible meeting and educational spaces with up-to-date AV equipment and technology.

    o   Wood Lake Nature Center: The Nature Center building was built 50 years ago and is not ADA accessible. Due to erosion of the foundation, uninvited animals frequently find their way into the aging facility. After so many years of heavy use, the building has requires repairs and infrastructure updates that would be too costly to address through renovation.

    o   Veterans Park: The pool’s main shell was built over 63 years ago and still has its original liner and basin, which need to be replaced. Without reinvestment, the pool will have to  shut down. The ice arena, other buildings on the grounds, and the trail system need repairs and upgrades in order to avoid further deterioration and continue serving the community. Without important repairs, some trails will be closed in the coming years as they are becoming a safety hazard for visitors.

    For more information, visit our Challenges page.

  • The city is proposing a new community center building to replace the existing facility. If approved, the new building would provide additional event and community spaces, a modern kitchen, gyms and sports courts and an indoor walking track. This center will be designed in a way to support a wider range of programs for all users. For more on the proposed projects, visit our Plan page.

  • A new educational facility would replace the current nature center building to provide an accessible and welcoming setting for residents and visitors to gather, learn and reconnect with nature. State and federal funding has already been secured for this project. For more on the proposed projects, visit our Plan page.

  • Projects at the most visited park in Richfield would include:

    o   A new pool liner and basin

    o   Upgrades to the trails and pavilion

    o   Repairs and improvements to the ice arena

    o   Additional maintenance throughout the park including landscaping, bandshell gutters and roofing, and repairs to the minigolf building

    For more on the proposed projects, visit our Plan page.

  • The development of these projects has been largely driven by the feedback the city received from residents. Facility assessments have also identified areas of serious concern. Residents have shared their ideas and priorities through surveys and at meetings, community events and other engagement activities. Based on this feedback, city staff and council developed the “Our Legacy, Our Future” investment plan.

  • Dozens of cities and counties across the state, including Bloomington, Edina and Minneapolis, have used a local sales tax to invest in major public projects that benefit residents and communities.

    Recent examples include Edina (parks and recreation investments), Golden Valley (public safety and public works facilities) and Bloomington (new community center, arena repairs, and parks and recreation projects).

  • No. Despite regular maintenance, the critical repairs and upgrades at these parks and rec destinations have reached the point where reinvestment is necessary to keep the amenities running and safe to use.

    Without critical repairs and upgrades, many of the amenities and programs residents currently enjoy at the Community Center, Wood Lake Nature Center and Veterans Park will be closed in the near future to ensure the safety and health of Richfield residents.

  • The City of Richfield is committed to helping residents get the information they need about the “Our Legacy, Our Future” plan and the referendum to support it. This dedicated website was created to help ensure that residents have an easy-to-use resource that explains the projects, the long-term challenges they address, the cost, and tax impact, as well as various reports and other background materials.

Questions about the Proposed Investments

  • The most likely location for the new community center would be Augsburg Park where the current community is located. The city will consider other viable options if they emerge. Construction is estimated to begin in 2030, and further engagement with the community will be underway in the coming years.

  • The city can’t invest the level of money that would be required for detailed design and engineering plans without first securing the necessary funding for each of these projects. If the projects are approved, more in-depth design work would begin, and residents would play a part in this process.

  • Yes. Just as residents played a major role in helping shape this investment plan, the city will continue to engage residents for their ideas and feedback as these projects move forward. In the meantime, residents are encouraged to ask questions and share their ideas through our Connect form.

Financing the Plan and Tax Impact

  • The city will finance the projects through three primary funding sources:

    o   A half-percent local sales tax: The city has been authorized by the Minnesota Legislature to seek voter approval to generate $65 million via a half-percent local sales tax to help pay for the three projects. If approved by voters in November, the tax would be in place for up to 20 years or when a sufficient amount has been collected to cover the cost of the approved projects, plus financing costs, whichever comes first.

    o   State funding: To support the pre-design and construction of a new educational facility at Wood Lake Nature Center, the city has already secured $12 million in state funding that requires a one-to-one match to be used.

    o   Federal funding: An additional $3 million in federal funds has been awarded to the Wood Lake Nature Center project and must be used by September 2031 or it must be returned.

  • Much like how a family uses a mortgage to purchase a house, the city will use bonds to finance the three proposed projects and pay both principal and interest. This allows residents to benefit from these investments much sooner than if the city waited to start work until all the money was collected from the sales tax. The projects would cost much more than current estimates and take much longer to complete without bond financing.

    To learn more about the cost and finances, visit our Cost page.

  • The following summarizes how funding will be spread if voters approve a half-percent sales tax for all three projects:

    o   Woodlake Nature Center: $26 million, including $11 million from the local sales tax, plus $12 million from state funding and $3 million from federal funding.

    o   Veterans Park: $9 million from the local sales tax collections.

    o   Richfield Community Center: $45 million from the local sales tax. The total cost of a new community center is projected to be approximately $65 million if construction were to begin in 2030. If the project is approved by Richfield voters this November, the city will explore additional funding sources, outside of the sales tax, to complete the financing of this project. Other funding sources could include state bonding money, grants, sponsorships and other options.

    The sales tax will remain in effect for 20 years or until the funding obligations of the projects have been met, whichever comes sooner. To learn more about the cost and finances, visit our Cost page.

  • The local half-percent sales tax ensures that both residents and nonresidents share in the cost of the projects. If a property tax increase was used, only residents who own or rent their housing or who own other types of property in the city would pay for the costs of the projects.

    According to research by the University of Minnesota, 55% of the sales tax in Richfield would be paid by nonresidents. This means approximately $35 million of the $65 million sales tax would be paid by nonresidents who purchase goods and services within the city.

    If the local sales tax is approved, Richfield residents would only pay about one-third of the total cost of the projects. The remaining two-thirds would come from nonresident contributions through the local sales tax and state and federal funding already secured for Wood Lake Nature Center.

    To learn more about why a sales tax was chosen, visit our Cost page.

  • The half-percent sales tax adds one penny for every $2 spent. In other words, an additional 5 cents will be added to a $10 purchase, or 50 cents for a $100 purchase.

    For residents of Richfield, the estimated cost of the local half-percent sales tax is about $3.92 per month, or $46.99 per year, according to a recent study by the University of Minnesota Extension Center. If the city used a property tax increase to fund these projects, the owner of an average-valued home in Richfield would pay roughly an additional $250 per year in property taxes ($20.83 per month).

    For more information on the investment plan and tax impact, visit our Cost page.

  • Yes. There are a wide range of exemptions for essential goods under a local sales tax, including groceries, clothing, prescription drugs and baby products. For more information, view this list of most nontaxable items from the Minnesota Department of Revenue.

  • Yes. If funding for the projects is approved, the city will explore ways to reduce costs and improve efficiency throughout the construction process. Further, the city will take advantage of better financing terms when there is an opportunity to do so.

  • If approved by voters this November, collections of the sales tax will begin in the spring of 2025, and the tax will expire within 20 years. If the bonds for the projects are paid off before then, the sales tax expires earlier. The only way the tax could be extended is with legislative authorization and reapproval by Richfield voters.

  • The University of Minnesota analyzed the economic effects of a local sales tax increase in several Minnesota cities and found little evidence that overall sales growth for businesses was impacted.

  • The state law authorizing the City of Richfield to present the local sales tax option to voters clearly states that the city must use the funds solely for the projects that are approved by voters. The only way the city could use collections from the sales tax on something else would be if the state legislature authorizes the change and local voters approve it in a future election.

  • No. The sales tax would be in place for a maximum of 20 years or until the funding obligations of the projects have been met, whichever comes sooner. To learn more about the cost and finances, visit our Cost page.

  • Dozens of cities and counties across the state, including all cities immediately surrounding Richfield, have used a local sales tax to invest in public projects that benefit communities. Recent examples include Edina’s parks and recreation investments and Golden Valley’s public safety and public works facilities.

  • Information and forms for calculating and paying the use tax are available on the sales and use tax page of the Minnesota Department of Revenue website.

  • Many businesses are required by law to collect state and local sales taxes from online purchases. The products and services that are taxed are the same as those taxed for in-store purchases. In other words, the local sales tax would be applied when the state sales tax is.

    However, there is one important way that the laws governing e-commerce are different than those governing in-person shopping. According to the Minnesota Department of Revenue, when you pick up a product at a seller's location, the sales tax is based on that location. So, if you went to a store in Bloomington to pick up the item, you would pay Bloomington’s sales tax.  If the product is shipped to you, the tax is based on the delivery address.

    For a full list of taxable and non-taxable items, visit the Department of Revenue’s website.

  • Online sales are not included in the projections, which are based on sales data collected by the Minnesota Department of Revenue. Approximately 15% of Minnesota purchases subject to sales tax occur online, according to the University of Minnesota Extension Center.  As a result, residents who make a significant amount of taxable purchases online may have a higher sales tax impact than the average amount paid by other residents.

    However, if more local sales taxes are collected than estimated, either in store or online, the construction bonds for the project(s) would be paid off more quickly, and by law the sales tax will expire. This would lower the total interest costs that the city would have to pay to finance the project(s).

  • If the referendum passes, the city will provide information and notices to businesses on next steps. There are also resources available on the MN Department of Revenue website. Business owners are also encouraged to consult with their accountants to discuss their specific needs, questions and situation.