08 15 22 Work Session MinutesCity Council Work Session August 15, 2022
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City of New Hope
4401 Xylon Avenue North
New Hope, Minnesota 55428
City Council Minutes
Work Session Meeting
August 15, 2022
Northwood Conference Room
CALL TO ORDER The New Hope City Council met in work session pursuant to due call and notice thereof;
Mayor Hemken called the meeting to order at 6:30 p.m.
ROLL CALL Council present:
Kathi Hemken, Mayor
John Elder, Council Member
Andy Hoffe, Council Member
Michael Isenberg, Council Member
Jonathan London, Council Member
Staff present:
Tim Hoyt, Acting City Manager
Vicki Holthaus, Abdo
Valerie Leone, City Clerk
Jeff Sargent, Director of Community Development
Also present: Sarah Larson, WMFRD Chief
2022 TIF
PROJECTIONS
Item 11.1
Mayor Hemken introduced for discussion item 11.1, Update on Tax Increment Finance
(TIF) 2022 cash flow projections.
Mr. Jeff Sargent, community development director, informed Council that Abdo has
completed the annual analysis regarding the city’s active TIF districts. He introduced
Bonnie Schwieger of Abdo to review the report.
Ms. Bonnie Schwieger of Abdo reviewed the active TIF districts (03‐1, 04‐1, 04‐2, 11‐1,
1615, 1616, 1617, 1618 and 1619) as well as the inactive districts (85‐1, 85‐2 and 86‐1).
She called attention to the available cash, outstanding obligations and projected cash
remaining at the end of each district’s life. She reviewed the cash balance and
“available pooling” which could be used to fund the scattered site housing program,
TIF eligible costs, or other initiatives determined by the EDA.
Ms. Schwieger reported that TIF Districts are allowed to charge up to ten percent for
allowable administrative costs and recommended close tracking of EDA staff time and
other internal resources used on TIF projects.
Ms. Schwieger stated by using tax increment as an economic development tool, total
market value within the TIF districts has increased $206,728,400.
Ms. Schwieger responded to questions from Council regarding TIF funding.
Director Sargent commented regarding the success of the scattered site housing
program. He also noted the strong interest from residents for the new curbside appeal
program.
City Council Work Session August 15, 2022
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Council thanked Ms. Schwieger for the report.
WMFRD 2023
BUDGET
Item 11.2
Mayor Hemken introduced for discussion item 11.2, Discuss West Metro Fire‐Rescue
District 2023 Budget.
Ms. Sarah Larson, West Metro Fire‐Rescue District Chief, reported on the 2023 budget
which has not changed since it was presented to Council during the quarterly update
on May 16, 2022. She stated West Metro Fire‐Rescue District’s proposed budget is
$3,031,190 which is $1,479,373 for Crystal and $1,551,817 for New Hope. She stated the
increase for New Hope is $133,594. The general operating budget increase is 249,090 or
11%, based on increases in salaries, PERA, health insurance, workers comp. insurance,
medical exams, financial services and communications. There is a $20,000 decrease to
the special revenue pension fund contribution. The contributions to the budget from
cities include a $103,600 lease payment for the aerial truck (tower) and $70,000 lease
payment for the new engines.
Ms. Larson explained the costs of the budget are split between the two cities based on
a cost sharing formula that includes average number of calls over a five‐year period,
population, and taxable market value.
Council Member London noted an 11% increase of the general operating budget is not
sustainable. He commented that the cities want to limit bonding but by leasing fire
engines the cities are still assuming debt.
Council Member Elder stated Chief Larson and her team have an ongoing dialogue
with the Fire Board during the year which greatly assists during the budget process. It
was noted that the Fire Board unanimously approved the budget.
Council thanked Chief Larson for the budget presentation.
2023 PRELIMINARY
GENERAL FUND
BUDGET AND TAX
LEVY
Item 11.3
Mayor Hemken introduced for discussion item 11.3, Discussion regarding 2023
preliminary general fund budget and tax levy.
Mr. Tim Hoyt, acting city manager, stated the preliminary budget was distributed to
Council last week. He stated the City Council must set the preliminary maximum tax
levy for certification to the county auditor by September 30. Staff recommends
adopting the preliminary tax levy at the September 12 Council Meeting. Directors will
be invited to the September work session to review general fund budgets and to the
October 17 work session to review enterprise and utility fund budgets.
Ms. Vicki Holthaus, Abdo, stated staff recommends setting the total tax levy at
$19,053,316 which is an increase of $822,305 or 4.51% over last year. She noted last
year’s increase was 4.67%. She stated the budget includes a 5% levy increase for the
street infrastructure fund and the park infrastructure fund.
Ms. Holthaus stated the proposed budget includes an increase of $643,628 for wage
and benefits, an increase of $145,000 for portable radios for the police department, and
an increase of $133,595 for the fire district joint powers agreement. She indicated a 3%
cost of living adjustment is budgeted and noted she will email Council a survey
conducted by Abdo showing other cities’ wage increases, for comparison purposes.
City Council Work Session August 15, 2022
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Council discussed the 18% increase of residential property values from 2022 to 2023.
Ms. Holthaus pointed out the higher costs for utilities, oil, and construction costs which
impact the budget. She noted New Hope is fortunate to have healthy fund reserves
that can be used if necessary. She stated due to other pressures, capital levies for fire
facility, city hall facility and the aquatic center will be postponed to 2024.
Council Member London inquired of the value of the city’s vehicle fleet. Ms. Holthaus
responded that the total is $10 million for city‐owned vehicles/equipment.
Council agreed upon the recommended maximum tax levy and conducting the budget
hearing on December 5.
PERFORMANCE
EVALUATION
Item 11.4
Mayor Hemken introduced for discussion item 11.4, Resolution calling for a closed
meeting of the New Hope City Council authorized by Minn. Stat §13D.05 to conduct
acting city manager’s performance evaluation.
RESOLUTION 2022‐95
Item 11.4
Council Member Elder introduced the following resolution and moved its adoption:
“RESOLUTION CALLING FOR A CLOSED MEETING OF THE NEW HOPE CITY
COUNCIL AUTHORIZED BY MINN. STAT §13D.05 TO CONDUCT ACTING
CITY MANAGER’S PERFORMANCE EVALUATION.” The motion for the adoption
of the foregoing resolution was seconded by Council Member London, and upon vote
being taken thereon, the following voted in favor thereof: Hemken, Elder, Hoffe,
Isenberg, London; and the following voted against the same: None; Abstained: None;
Absent: None; whereupon the resolution was declared duly passed and adopted,
signed by the mayor which was attested to by the city clerk.
ADJOURNMENT The meeting was adjourned at 7:15 p.m. as there was no further business to come
before the Council at its work session.
Respectfully submitted,
Valerie Leone, City Clerk