12 07 20 Special City Council MinutesNew Hope City Council December 7, 2020
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City of New Hope
4401 Xylon Avenue North
New Hope, Minnesota 55428
City Council Minutes December 7, 2020
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 7:03 p.m.
Due to the COVID‐19 pandemic, some members of the Council, city staff, and
consultants participated remotely.
PLEDGE OF
ALLEGIANCE
The Pledge was not recited since the meeting was not held in the council chambers.
ROLL CALL Council present:
Staff present:
Kathi Hemken, Mayor
John Elder, Council Member
Cedrick Frazier, Council Member
Andy Hoffe, Council Member
Jonathan London, Council Member
Kirk McDonald, City Manager
Vicki Holthaus, AEM
Valerie Leone, City Clerk
2021 PROPOSED
BUDGET
Item 11.1
Mayor Hemken introduced for discussion, Item 11.1, Public hearing to take
comments on 2021 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 14 Council Meeting.
Mr. Kirk McDonald, city manager, introduced Vicki Holthaus of AEM Financial
Solutions to assist with the public hearing/presentation of the proposed 2021
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 14 meeting. Mr. McDonald reviewed the components of
the budget presentation and shared the budget schedule.
Mr. McDonald stated at the September 14 meeting the City Council adopted
resolutions establishing a maximum 2021 property tax levy and adopting a
proposed 2021 tax‐supported budget. Mr. McDonald stated the Council reviewed
the budgets at work sessions and the proposed 2021 general fund budget is
$15,936,977 or an increase of $526,427 over last year.
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Mr. McDonald stated the major changes in the budget include increases for
wage/benefits, phase 1 of police department body and squad camera purchases,
the West Metro Fire‐Rescue District budget, central garage charges, and city hall
budget.
He reviewed past levies, bonds, and fluctuations in local government aid. He noted
the city is scheduled to receive $865,307 in LGA (local government aid) in 2021, an
increase of $49,684 over 2020. 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 commented on central garage equipment and vehicle
replacement funding:
2011 and 2012 – no funding
2013 and 2014 – funded at 25%
2015 – funded at 50%
2016 – funded at 75%
2017‐2020 – funded at 100%
2021 – proposed to fund at 100%
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 2021 budget initiatives:
Continue to provide existing services/programs with current resources.
Utilize $865,307 of LGA in the general fund to help fund equipment
replacement savings at 100%.
Public safety is a high priority; implement Phase 1 purchase of body worn
camera systems and replacement of squad camera systems/software.
Support/coordinate with West Metro Fire‐Rescue District/partnership
with Crystal; including emergency preparedness training and support of
long‐term capital plan based on major apparatus report.
Redevelopment of city center and other areas is a high priority as well as
completion of Windsor Ridge single‐family home development.
Property maintenance and inspections to continue as high 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 final
wear course on 2020 reconstruction project, 2021 street infrastructure
improvements in Lions Park neighborhood and Erickson Drive, annual
seal coat/crack repair/fog seal improvements and sewer lining, coordinate
on Meadow Lake drawdown and golf course pond improvements.
Continue to review public works facility improvements, continue
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coordination with Joint Water Commission and maintain partnerships
with Northwood Lake and Meadow Lake Watershed Associations.
Open new aquatic facility for 2021 season, replace playground equipment
at Corner Park, replace basketball court at Little Acre Park and make
parking lot repairs at Hidden Valley and Lions Park.
Facility improvements at ice arena and golf course.
Continue dance, gymnastics, and Movies in Park program.
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 AEM, update long‐term 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.
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 839 responses compared to 610 the prior year. He stated the
rating of overall quality of city services was 81% as excellent or good. He stated
most of the ratings were similar to prior years.
Ms. Vicki Holthaus, AEM, was recognized. She reported on information provided
by Hennepin County Assessors:
Single family residential property valuation in city increased
approximately 5% for 2020
Total taxable property market value in city increased 10.37% from 2018 to
2019 (payable 2020)
Taking the total tax levy into consideration (city/county/school district),
approximately 32% of 4,912 single‐family properties will see a property
decrease, approximately 50% will see an increase between 0 and 4.9%, and
approximately 13% will see an increase between 5 and 9.9%.
Ms. Vicki Holthaus reported on proposed utility rate increases:
Water – 5%
Sewer – 5%
Street lights – 5%
Storm drainage – 5%
Recycling – no increase
She explained the rate increases are necessary to pay for increasing water purchase
costs from Minneapolis, sewage disposal costs from MCES, and infrastructure
improvements. She noted the impact to an average residential user based on 5,000
gallons of water is an increase of $4.34 per month.
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Ms. Holthaus reported on 2020 legislative session impacts. She also illustrated
general fund revenues and expenditures for 2019, 2020, and the proposed 2021
budget years. She stated the city strives to maintain a fund balance of 45% of
expenditures and with the 2021 proposed budget, the fund balance will be close to
50% of expenditures. She pointed out 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.
Ms. Holthaus illustrated the 2021 tax‐supported budget with a 3.4% tax levy
increase:
General Fund
Street Infrastructure Fund
Park Infrastructure Fund
Economic Development 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
$10,879,465
1,540,700
885,655
365,000
237,747
206,828
260,979
1,705,515
867,464
468,248
$17,417,601
Ms. Holthaus reviewed tax capacity information and the city tax rate for the past
10 years. She stated the city’s estimated 2020 tax rate is 62.47 which is driven by
property market values in the city. She stated the tax rate is based on the tax levy
divided by the tax capacity. Ms. Holthaus noted some communities have a large
industrial tax base and others may have a higher residential tax base. She explained
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.
Ms. Holthaus informed the Council the budget will be presented to the Council for
adoption at its meeting of December 14, 2020, and the budget and tax levy will be
certified to the state auditor as required by state law. She stated the budget
document will be available at city hall and posted on the city’s website. Ms.
Holthaus reviewed property tax relief programs.
Mayor Hemken thanked the city manager and AEM representative for the
presentation.
Mayor Hemken opened the public hearing for comments.
There was no one present desirous of addressing the Council for the public
hearing.
MOTION
Motion was made by Council Member London, seconded by Council Member
Frazier, to close the public hearing. All present voted in favor. Motion carried.
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ADJOURNMENT
Motion was made by Council Member Elder, seconded by Council Member
Frazier, 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 7:35 p.m.
Respectfully submitted,
Valerie Leone, City Clerk