12 06 21 Special City Council MinutesNew Hope City Council December 6, 2021
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City of New Hope
4401 Xylon Avenue North
New Hope, Minnesota 55428
City Council Minutes December 6, 2021
Special Meeting City Hall, 7:00 p.m.
CALL TO ORDER The New Hope City Council met in regular session pursuant to due call and notice
thereof; Mayor Hemken called the meeting to order at 7:00 p.m.
ROLL CALL Council present:
Council absent:
Staff present:
Kathi Hemken, Mayor
Andy Hoffe, Council Member
Michael Isenberg, Council Member
Jonathan London, Council Member
John Elder, Council Member
Kirk McDonald, City Manager
Valerie Leone, City Clerk
Blake Torbeck, Abdo
2022 PROPOSED
BUDGET
Item 11.1
Mayor Hemken introduced for discussion, Item 11.1, Public hearing to take
comments on 2022 city budget.
Mayor Hemken reported the purpose of the meeting is for input on the proposed
budget and tax levies. She outlined the key highlights of the budget. Mayor
Hemken advised residents that the Board of Appeal and Equalization Meeting
held in April is the forum to contest market values. She reported the Council will
adopt the budget at the December 13 Council Meeting.
Mr. Kirk McDonald, city manager, introduced Blake Torbeck of Abdo Financial
Solutions to assist with the public hearing/presentation of the proposed 2022
budget. Mr. McDonald recommended Council accept public comments following
the presentation. He stated the Council will formally adopt the budget and set the
tax levy at its December 13 meeting. Mr. McDonald reviewed the components of
the budget presentation and shared the budget schedule.
Mr. McDonald stated at the September 13 meeting the City Council adopted
resolutions establishing a maximum 2022 property tax levy and adopting a
proposed 2022 tax‐supported budget. Mr. McDonald stated the Council reviewed
the budgets at work sessions and the proposed 2022 general fund budget is
$16,179,193 or a 1.5% increase over last year.
Mr. McDonald stated the major changes in the budget include increases for
wage/benefits, IT charges, West Metro Fire‐Rescue District budget, Emerald Ash
Borer removal/replacement program, the elections budget, and a decrease in
central garage charges.
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He reviewed past levies, bonds, and fluctuations in local government aid. He noted
the city is scheduled to receive $866,642 in LGA (local government aid) in 2022, an
increase of $4,916 over 2021. The revenue will be utilized in the general fund to
offset central garage equipment/building replacement charges (it is not used to
fund general operations). He stated the central garage equipment replacement
savings will be funded at 100% for 2022. He pointed out the city often delays
equipment purchases when it is fiscally responsible. Mr. McDonald also reported
the city is leasing some new police vehicles in 2022 to achieve savings on
replacement costs.
Mr. McDonald explained the city’s street and park infrastructure funds. He
pointed out that New Hope does not assess taxable properties for street
improvements, as street and park infrastructure improvements are paid through
the general property tax levy. He stated a 5% increase is proposed for both the
street infrastructure and the park infrastructure funds. He pointed out the tax rate
in New Hope may be higher than comparable sized cities since New Hope includes
infrastructure improvements in the general property tax levy rather than imposing
assessments to benefitting property owners. He stated the street levy is
approximately 13% of the local tax levy.
Mr. McDonald reviewed 2022 budget initiatives:
Continue to provide existing services/programs with current resources.
Public safety is a high priority; continue community engagement
programs with the Joint Community Policing Partnership with Crystal
and Robbinsdale, expand officer wellness program and complete CIP
purchases.
Support/coordinate with West Metro Fire‐Rescue District/partnership
with Crystal; including emergency preparedness training and support of
long‐term capital plan and station 3 improvements.
Redevelopment of city center and other areas is a high priority, potential
improvements at St. Therese Nursing Home campus and new medical
equipment facility at 27th and Nevada.
Property maintenance and inspections to continue as top priority;
continue aggressive scattered site housing program to remove or renovate
deteriorated homes and increase property values with new construction
or rehabilitation.
Continue infrastructure/environmental improvements; complete street
and water infrastructure improvements in Liberty Park neighborhood,
including Bass Lake Road watermain loop; coordinate with Hennepin
County on Bass Lake Road mill and overlay project; continue coordination
on Boone and 42nd Avenue signal replacement and future 42nd Avenue
bridge replacement, continue annual seal coat/crack repair/fog seal
improvements and sewer lining, coordinate on Meadow Lake drawdown
and golf course culvert improvements. Continue coordination with Joint
Water Commission and maintain partnerships with Northwood Lake and
Meadow Lake Watershed Associations.
Operate second season of new aquatic facility, replace playground
equipment at Hidden Valley Park, replace additional picnic tables at
Northwood Park picnic shelter, replace park name signage and make park
lighting improvements.
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Facility improvements at ice arena and golf course.
Continue dance, gymnastics, and Movies in Park program and coordinate
Off Broadway Musical Theatre musical performances.
Continue Emerald Ash Borer removal/replacement program on public
property and buckthorn removal in parks.
Continue contractual arrangement with Solution Builders for IT services
Continue financial services contract with Abdo, update ten‐year financial
plan, pavement management plan and long‐term capital improvements
plan.
Conduct professional city‐wide survey with Morris Leatherman to solicit
resident feedback on city services; encourage public participation on city
projects and promote inclusiveness.
Continue MN GreenStep Cities program.
Implement cost of living increase (3%) and shared increase for insurance
contributions included for employees; council salary adjustments.
Coordinate the 2022 gubernatorial election year and orient new council
member to city departments, programs, and operations.
Mr. McDonald also reviewed the city survey results conducted this summer. He
noted there were 663 responses compared to 839 the prior year. He stated the
rating of overall quality of city services was 82% as excellent or good. He stated
most of the ratings were similar to prior years.
Mr. Blake Torbeck, Abdo, was recognized. He reported on information provided
by Hennepin County Assessors:
Single family residential property valuation in city increased
approximately 7% for 2021
Total taxable property market value in city increased 7.72% from 2019 to
2020 (payable 2021)
Taking the total tax levy into consideration (city/county/school district),
approximately 2% of 4,774 single‐family properties will see a property
decrease, approximately 28% will see an increase between 0 and 4.9%, and
approximately 53% will see an increase between 5 and 9.9%.
Mr. Torbeck reported on proposed utility rate increases:
Water – 4%
Sewer – 4%
Street lights – 5%
Storm drainage – 4%
Recycling – 6.67% increase ($.25)
He explained the rate increases are necessary to pay for increasing water purchase
costs from Minneapolis, sewage disposal costs from MCES, and infrastructure
improvements. He noted the impact to an average residential user based on 5,000
gallons of water is an increase of $3.90 per month.
Mr. Torbeck reported on 2021 legislative session impacts. He also illustrated
general fund revenues and expenditures for 2020, 2021, and the proposed 2022
budget years. He stated the city strives to maintain a fund balance of 45% of
expenditures and with the 2022 proposed budget, the fund balance will be close to
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50% of expenditures. The city receives its two large revenue payments (property
taxes) from the county in June and December and a fund balance is necessary to
maintain operations.
Mr. Torbeck illustrated the 2022 tax‐supported budget with a 4.67% tax levy
increase:
General Fund
Street Infrastructure Fund
Park Infrastructure Fund
Economic Development Authority
Housing and Redevelopment Authority*
Debt service (2015 GO TIF Bonds – City Center)
Debt service (2015 GO Imp Bonds – Northwood So.)
Debt service (2016 GO Imp Bonds – Northwood No.)
Debt service (2017 GO Bonds – Police/City hall)
Debt service (2018 GO Tax Abatement Bonds – Pool and Park)
Debt service (2019 GO Tax Abatement Bonds – Pool and Park)
Total tax‐supported budgets
*proposed to be administered as a separate taxing district levy
$11,393,354
1,617,735
904,938
153,000
417,000
235,227
205,240
262,502
1,706,828
862,739
472,448
$18,231,011
Mr. Torbeck reviewed tax capacity information and the city tax rate for the past 10
years. He stated the city’s estimated 2021 tax rate is 62.72% which is driven by
property market values in the city. He stated the tax rate is based on the tax levy
divided by the tax capacity. It was noted some communities have a large industrial
tax base and others may have a higher residential tax base. The fiscal disparities
program in the seven‐county metro area helps balance tax burdens to communities
through an area‐wide distribution which impacts the tax capacity.
Mr. Torbeck informed the Council the budget will be presented to the Council for
adoption at its meeting of December 13, 2021, and the budget and tax levy will be
certified to the state auditor as required by state law. He stated the budget
document will be available at city hall and posted on the city’s website. Mr.
Torbeck reviewed property tax relief programs.
Mayor Hemken thanked the city manager and Abdo representative for the
presentation.
Council Member London commented on the revenue the city will be receiving
through the fiscal disparities program and whether it would be reduced by higher
property values. Mayor Hemken noted the city also pays into the program.
Mr. Torbeck explained that the distribution levy (the amount of the property tax
levy paid to the city through the fiscal disparities program) is based on different
factors than the contribution formula.
Mayor Hemken opened the public hearing for comments.
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There was no one present desirous of addressing the Council for the public
hearing.
MOTION
Motion was made by Council Member Isenberg, seconded by Council Member
Hoffe, to close the public hearing. All present voted in favor. Motion carried.
ADJOURNMENT
Motion was made by Council Member Isenberg, seconded by Council Member
Hoffe, to adjourn the meeting, as there was no further business to come before
the Council. All present voted in favor. Motion carried. The New Hope City
Council adjourned at 7:24 p.m.
Respectfully submitted,
Valerie Leone, City Clerk