120720 City Council Special Meeting Packet
NEW HOPE CITY COUNCIL
SPECIAL MEETING AGENDA
December 7, 2020
7:00 p.m.
City Hall – Council Chambers
4401 Xylon Avenue North
Mayor Kathi Hemken
Council Member John Elder
Council Member Cedrick Frazier
Council Member Andy Hoffe
Council Member Jonathan London
The City Council wants and encourages citizen participation at Council Meetings. Your input and
opinions count and are valuable. You are encouraged to bring forth your comments and issues at
the appropriate point on the agenda.
A 15‐minute maximum Open Forum is held at the beginning of each Council Meeting. At this time
any person may address the Council on any subject pertaining to City business not listed on this
agenda or scheduled as a future agenda item. The Council requests that you limit your presentation
to 3 minutes. Anyone wishing to address the City Council on a particular item should raise their
hand and be recognized by the Mayor. Approach the podium and speak into the microphone by
first stating your name and address. Also, please record your name on the roster at the table near
the door so that your name will be spelled correctly in the minutes.
Individuals should not expect the Mayor or Council to respond to their comments tonight; Council
may refer the matter to staff for handling or for consideration at a future meeting. You are welcome
to contact the city clerk at 763‐531‐5117 after the council meeting.
COUNCIL MEETING BROADCASTS AND STREAMING
Government Access channel 16 programming includes live/taped meeting replays
Live on‐line meetings and past meetings on‐demand are available through www.nwsccc.org.
www.newhopemn.gov
New Hope Values and Vision
City Mission
Strong local government that is proactive in responding to the community needs and issues by delivering quality
public service to all city residents, businesses, property owners, and organizations in a prudent and e cient manner.
Values
Excellence and Quality in the Delivery of Services
We believe that service to the public is our reason for being and strive to deliver quality services in a
highly professional and cost-e ective manner.
Fiscal Responsibility
We believe that fi scal responsibility and the prudent stewardship of public funds and city assets is essential if
residents are to have confi dence in government.
Ethics, Integrity and Professionalism
We believe that ethics, integrity, and professionalism are the foundation blocks of public trust and confi dence and
that all meaningful relationships are built on these values.
Respect for the Individual
We believe in the uniqueness of every individual, and welcome, appreciate, and respect diversity and the di ering
of opinions.
Open, Honest, and Respectful Communication
We believe that open, honest, and respectful communication is essential for an informed and involved citizenry
and to foster a positive environment for those interacting with our city.
Cooperation and Teamwork
We believe that the public is best served when all work cooperatively.
Visionary Leadership and Planning
We believe that the very essence of leadership is to be responsive to current goals and needs, and visionary in
planning for the future.
Vision
e city is a great place to grow as a family, individual, or business.
All within our city are safe and secure.
Essential services will be those that promote a safe and healthy environment for all residents.
Essential services and programs will be enhanced and streamlined, and will be provided in an economical manner
and with measurable results.
e city views residents as its greatest asset and seeks their input and participation.
e city will meet the communication needs of citizens, elected o cials, and city sta .
Strategic Goals
e city will maintain and improve its infrastructure (water distribution, storm water, sewer, roads, parks,
lighting, and city facilities).
e city will use frugal spending and resourceful fi nancial management to maintain its fi scal health.
e city will encourage maintenance, redevelopment, and reinvestment of existing properties to improve
or enhance its tax base.
e city will provide core services with a professional sta who are equipped with the necessary tools and
equipment and given necessary direction.
e city will facilitate and improve communications to promote e ective intergovernmental cooperation
between sta , citizens, and Council.
Adopted by the New Hope City Council, August 2006
Reaffirmed by the New Hope City Council, February 2019
CITY COUNCIL
SPECIAL MEETING
Monday, December 7, 2020
7:00 p.m.
New Hope City Hall
4401 Xylon Avenue North
Council Chambers
Mayor Kathi Hemken
Council Member John Elder
Council Member Cedrick Frazier
Council Member Andy Hoffe
Council Member Jonathan London
City Hall will be open to the public for this meeting; however due to the current COVID‐19
pandemic, the meeting is also available via Webex. The public may participate in this
meeting by phone by calling 415‐655‐0001 and entering meeting/access code 177 349 7589
followed by the # sign. When prompted for a password, simply press #.
1. CALL TO ORDER – December 7, 2020
2. ROLL CALL
11. UNFINISHED & ORGANIZATIONAL BUSINESS
11.1 Public hearing to take comments on 2021 city budget
12. OTHER BUSINESS
13. ADJOURNMENT
I:\2021 Budget\Mayor 2021 Budget Public Hearing Opening Comments.docx
Mayor’s 2021 Budget Public Hearing Opening Comments
December 7, 2020
The purpose of this public hearing is to take public comments on
the city’s proposed budget and tax levy for 2021. The city council
adopted the preliminary budget at the September 14 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 14
council meeting.
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.
No official action will be taken on the budget at this meeting.
Here are a few key points about the 2021 budget:
The General Fund tax levy is increasing 3.5% or $368,034
over the 2020 tax levy.
The major increases are for wages and benefits and for
public safety (police and West Metro Fire‐Rescue District).
$156,000 is budgeted for Phase 1 of police department body
and squad camera purchases, and the cost will be funded
with a transfer in from the IT reserve fund.
The total tax levy, including infrastructure funds and debt, is
an increase of 3.4% over the 2020 tax levy.
A 5% increase is being recommended for the street and park
infrastructure funds. New Hope does not assess tax paying
I:\2021 Budget\Mayor 2021 Budget Public Hearing Opening Comments.docx
properties for street improvements; the cost is included with
the overall taxes being paid and accounts for about 13% of
the tax levy.
The city tax rate will decrease from 64.721% in 2020 to
62.471% in 2021.
The median home value in 2021 is $257,000, which is a 5.33%
increase over 2020.
The estimated tax impact on residential properties based on
a 3.4% increase in the city tax levy is 2%.
The city’s long‐term financial plan shows no new debt
issuance over the next 10 years.
The city’s portion of your tax bill is about 35‐38%, with the
other major taxing jurisdictions being Hennepin County and
the School District.
I:\RFA\City Manager\2020\Budget 2021\CM 120720\11.1 Q ‐ Budget Hearing 2021 120720.docx
Request for Action
December 7, 2020
Approved by: Kirk McDonald, City Manager
Originating Department: City Manager
By: Kirk McDonald, City Manager
Agenda Title
Public hearing to take comments on 2021 city budget
Requested Action
This is a public hearing to take public comments on the 2021 proposed final budget. Representatives from
AEM will be in attendance to make a presentation along with the city manager. Staff recommends that
Council take public comments following the presentation and then either continue or close the public
hearing. Staff is recommending that Council formally adopt the budget and set the tax levy at the
December 14 council meeting.
Policy/Past Practice
The City Council annually conducts a public hearing on the city budget and tax levy to take public input on
the proposed budget and levy.
Background
The preliminary budget and tax levy was adopted at the September 14 city council meeting. This is the
maximum tax levy and budget that can be adopted; it can be reduced before final adoption in December, but
it cannot be increased. The Council reviewed all general fund budgets with department heads at their
September work session and reviewed utility and enterprise fund budgets at the October work session. The
Council reviewed the final budget hearing presentation at the November work session, as additional
information had been added regarding results of the 2020 city services/performance measurements survey,
average utility rate increases, and Hennepin County Assessor information. No changes have been made to
date on the budget.
2021 Budget
The 2021 general fund budget is $15,936,977, which is an increase of $526,427 (3.4%) over the 2020 budget of
$15,410,550. The major changes in the budget include:
An increase of $243,524 for wage and benefit increases ($193,013 in police department and $50,511 for
other departments); a 3% cost of living adjustment is budgeted for employees along with an increase in
the city’s share of health insurance coverage; and a 3% increase in City Council salaries is included in the
budget (to be considered in October 2020).
$156,000 is budgeted for phase 1 of police department body and squad camera purchases (phase 2
scheduled for 2022). It is recommended that this cost be funded with a transfer in from the IT reserve
fund (utilized for IT purposes including security systems at city facilities) in order to keep the general
fund tax levy to a minimum.
There is an increase of $85,288 in the budget for West Metro Fire‐Rescue District due to a $54,673 or
4.2% increase in New Hope’s share of the joint powers agreement and a $33,265 increase in central garage
charges due to a new replacement charge for the new emergency generator shared between the fire
Agenda Section
Public Hearing
Item Number
11.1
Request for Action, Page 2
district and the police station/city hall facility. For 2021 it is recommended that New Hope’s share of the
aerial lease payment (51,800) be funded by the general fund instead of a transfer from the Fire Capital
Projects fund so that the capital funds can be saved for future major apparatus replacement. The lease
payment is included in the joint powers agreement budget.
General fund central garage charges increased by $57,427 based on the equipment replacement schedule
and include a 100% replacement charge and a portion of the $400,000 building replacement charge for
future public works facility improvements. Department allocations were adjusted according to the
long‐term replacement plan, with some increases and some decreases.
The city is scheduled to receive $865,307 in LGA (local government aid) in 2021, which is an increase of
$49,684 over 2020. The revenue will be utilized in the general fund to offset central garage equipment and
building replacement charges; it is not used for general operations. The total cost of general fund
equipment/building replacement charges in 2021 is $917,949 so LGA does not cover the full amount;
approximately $52,642 is needed from other revenue sources.
2021 is not an election year so there is a decrease of approximately $60,000 in the elections budget as
compared to the 2020 budget. In 2020 funds were budgeted for three elections (Presidential Primary,
Primary, and General). Funds are budgeted for equipment maintenance and postage expenses.
There is a $49,000 increase in the city hall budget due to the new replacement cost for the new generator
($24,000) and increases in utility costs and liability insurance for a larger building ($22,000 and $17,000,
respectively); offset by a $14,000 decrease in repairs, furniture/fixtures and postage.
Similar to 2020, in 2021 general fund IT charges will increase approximately $33,000 and are based on the
new allocation method implemented in 2020 for indirect charges (number of phones, computers and
employees per department), with direct departmental Logis IT costs being allocated to the benefitting
department.
There is $99,506 in revenue increases budgeted for an increase in right‐of‐way and easement fees,
franchise fees, and state aid for streets and police pensions.
There is a $60,000 decrease budgeted for police charge outs due to the uncertainty of the school resource
officer program.
2021 Tax Levy
The tax levy for the general fund is $10,879,465, which is $368,034 or a 3.5% increase over the 2020 general
fund levy of $10,511,431. The total tax levy for 2021, including the general fund, street and park infrastructure
funds, economic development authority and prior levies for City Center, Northwood South and Northwood
North infrastructure bonds, the 2017 police station/city hall facility bonds, and the 2018/2019 pool and park
improvement bonds is $17,417,601. This represents a 3.4% or $572,885 increase over the 2020 levy of
$16,844,716, which was a 10.08% increase. The total tax levy includes a 5% increase in the street and park
infrastructure levies to support the long‐term funding plans for street and park improvements. An additional
$100,000 has been added to the park infrastructure levy for ice arena debt service and capital improvements
(final year of increase), per the funding plan approved by the Council. A $17,000 increase in the EDA levy is
recommended to support the scattered site housing program and other redevelopment. Four of the debt bond
tax levies are decreasing (2015 City Center, 2015 Northwood South, 2017 City Hall and 2019 Pool and Park)
for a total decrease of $7,285. Two of the debt bond tax levies are increasing are increasing (2016 Northwood
Request for Action, Page 3
North and 2018 Pool and Park) for a total increase of $3,674. Overall, the combined debt levies are decreasing
by $3,611.
The median home value for taxes payable in 2021 is $257,000, which is a 5.33% increase from the median
value home in 2020. At this time the estimated impact on residential homes based on the proposed 3.4%
increase in the city tax levy is 2%. For homes valued between $150,000 and $400,000 the tax increase estimate
is $14 to $43. The city tax rate is projected to decrease from 64.721% in 2020 to 62.471% in 2021.
Information recently provided by the Hennepin County Assessor was included in the November 16 work
session materials. The single‐family resident valuation in the city increased by 5% for 2020. The total taxable
property market value in the city increased by 10.37%, from $1,831,436,951 to $2,021,382,123. The estimated
market value median for 2020 was $257,000. Property tax comparisons were also provided for residential,
apartment and commercial/industrial properties and are attached with a summary. Taking the total tax levy
into account (city/county/school district), out of 4,912 single‐family properties, approximately 32% will see a
decrease, 50% will see an increase between 0% and 4.9% and 13% will see an increase between 5% and 9.9%.
Sample tax statements were provided for various property types. Staff calculated the percent for each taxing
jurisdiction on the statements; for residential properties the city portion is generally 38‐39%. The Truth in
Taxation statements were mailed to property owners on November 12, 2020.
Staff recommends the Council receive public input at this public hearing and provide direction to staff as to
whether any adjustments should be made to the budget prior to the December 9 council meeting.
Attachments
Hennepin County Assessor Information
2021 Budget/Tax Levy Presentation
Hennepin County
Assessor
Information
December 7
Budget Hearing
Presentation