12 05 22 Special City Council MinutesNew Hope City Council December 5, 2022
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City of New Hope
4401 Xylon Avenue North
New Hope, Minnesota 55428
City Council Minutes December 5, 2022
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
John Elder, Council Member
Andy Hoffe, Council Member
Michael Isenberg, Council Member
Jonathan London, Council Member
Tim Hoyt, Acting City Manager
Erin Enstad, Abdo Financial Solutions
Vicki Holthaus, Abdo Financial Solutions
Valerie Leone, City Clerk
2023 PROPOSED
BUDGET
Item 11.1
Mayor Hemken introduced for discussion Item 11.1, Public hearing to take
comments on 2023 city budget.
Mayor Hemken reported the purpose of this public hearing is to take public
comments on the city’s proposed budget and tax levy for 2023. She stated the City
Council adopted the preliminary budget at the September 12 Council Meeting and
has been reviewing all the budget details with the city manager and department
heads for the last several months. The final budget and tax levy will be adopted at
the December 12 Council Meeting.
Mayor Hemken stated the city manager and financial consultant will be making
the presentation on the budget and then the public hearing will be opened for the
council to take public comments on the budget. She advised the Board of Appeal
and Equalization Meeting, held in April, is the forum to contest market values.
Mr. Tim Hoyt, acting city manager, prefaced the presentation by informing the
public that city staff takes input throughout the year from council and citizen
contacts as it relates to the city’s budget. He noted the budget is shaped through
input and guidance by Council and residents, a professional survey conducted by
the Morris Leatherman Company, and planning by the staff management team.
He reviewed the results of the survey showing positive results. He reported that
the preliminary budget had been approved by the city council on September 12
and that general fund budgets were reviewed at the council work session on
September 19, and utility and enterprise funds would be reviewed at the October
17 work session, along with the HRG budget and utility rate recommendations. He
stated information from the county assessor was reviewed at the work session on
November 21 along with the city services survey results and the budget public
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hearing presentation. He stated the budget hearing at this time is for public input,
and the Council will consider the final budget at its meeting on December 12, 2022.
Mr. Hoyt reviewed the 2023 budget initiatives for redevelopment, central garage
equipment, personnel costs for a 3% cost of living increase, additional staff
(Evidence Technician in the police department and Golf Superintendent at the golf
course), fire district, redevelopment, park and recreation initiatives, Emerald Ash
Borer program, contractual arrangements for finance and information technology,
and continuation in the GreenSteps program.
Ms. Erin Enstad, Abdo Financial Solutions, reported the general fund tax levy is
$12,076,955, or a 6% increase over the 2022 budget. She reported that the total tax
levy included the general fund, street and park infrastructure fund, EDA levy,
HRA levy and prior debt levies, and noted that it had amounted to an overall
increase of $822,305, or 4.51% over 2022.
Ms. Enstad reviewed increases to the tax levy including 5% for street
infrastructure, 2.24% for park infrastructure, 5% for EDA redevelopment projects,
and 5% for HRA for scattered site housing program. She also discussed prior debt
levies and noted that two of the bond levies would be decreasing by a total of
$2,993, while four of the bond levies would increase by a total of $12,063.
Ms. Enstad reported that the median home value in 2023 is $325,000 which is an
18% increase from 2022. She stated the estimated impact on residential homes
based on the 4.51% increase in city tax levy is 8%. Homes valued between $150,000
and $400,000 will realize a tax increase between $61 to $192 for the city’s share of
taxes. Ms. Enstad explained the city’s tax rate and noted it decreased from 62.826%
in 2022 to 57.225% in 2023. She pointed out that this decrease would not necessarily
equate to a property tax decrease, as it was based on the change in residential
property values, which had increased at a faster pace than commercial property
values.
Ms. Enstad reported on property tax relief programs.
Ms. Enstad reviewed the general fund budget of $17,235,207 which is an increase
of $1,056,014 over last year or 6.5%. She illustrated the 2023 tax supported budget
with a 4.51% 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
$12,076,955
1,698,622
925,185
160,650
437,850
237,853
208,745
263,709
1,705,515
867,464
470,768
$19,053,316
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*proposed to be administered as a separate taxing district levy
She stated the major increases include:
$643,628 increase to fund 3% increase in wages/benefits, which includes
evidence technician position, new union contract rates, adjustments to
health insurance contributions, and council salary increase.
$145,000 increase for the replacement of half of the portable radios in the
police department.
$133,595 increase in West Metro Fire‐Rescue District joint powers
agreement, which included the aerial lease and two new truck leases.
$62,158 increase in IT charges.
$62,661 decrease in central garage charges.
$38,000 decrease in elections budget for election judge costs.
Ms. Enstad stated the city is scheduled to receive $867,286 in local government aid
(LGA), and the full LGA amount will be used to offset central garage equipment
and building replacement charges, not general operations.
She explained the city’s street and park infrastructure funds and 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. She indicated a 5% increase is proposed for both the street infrastructure and
the park infrastructure funds and noted 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. She stated the street levy is approximately 13% of
the local tax bill. Ms. Enstad reviewed the central garage fund and utility rate
increases that equate to approximately $4.86 per month for a residential user. Ms.
Enstad reported the City Council will act on the city’s final budget at its meeting
of December 12, 2022.
Mayor Hemken opened the floor for comments from the audience. Mr. and Mrs.
Dewane Pagel, 3525 Decatur Court North, were recognized. Ms. Pagel questioned
their property tax increase and property value.
Staff explained that the statement regarding the city’s portion of property tax
increasing between $61 to $192 for homes valued between $150,000 and $400,000
is based on a scenario of no change in market value. It was also noted that the
market value exclusion decreases for homes valued greater than $400,000.
Council thanked the Pagels for their questions and thanked staff for the budget
presentation.
MOTION Motion was made by Council Member Elder, seconded by Council Member
Isenberg, to close the public hearing. All present voted in favor. Motion carried.
ADJOURNMENT
Motion was made by Council Member Isenberg, seconded by Council Member
Elder, to adjourn the meeting, as there was no further business to come before
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the Council. All present voted in favor. Motion carried. The New Hope City
Council adjourned at 7:30 p.m.
Respectfully submitted,
Valerie Leone, City Clerk