11 27 23 Special City Council MinutesNew Hope City Council November 27, 2023
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City of New Hope
4401 Xylon Avenue North
New Hope, Minnesota 55428
City Council Minutes November 27, 2023
Special Meeting City Hall, 6:30 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 6:30 p.m.
ROLL CALL Council present:
Staff present:
Kathi Hemken, Mayor
John Elder, Council Member
Andy Hoffe, Council Member
Michael Isenberg, Council Member
Jonathan London, Council Member
Reece Bertholf, City Manager
Erin Enstad, Abdo Financial Solutions
Valerie Leone, City Clerk
Susan Rader, Director of Parks and Recreation
Jeff Sargent, Director of Community Development
Stacy Woods, Assistant City Attorney
2024 PROPOSED
BUDGET
Item 11.1
Mayor Hemken introduced for discussion Item 11.1, Public hearing to take
comments on 2024 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 2024. She stated the City
Council adopted the preliminary budget at the September 11 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 11 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.
Ms. Erin Enstad, Abdo Financial Solutions, reviewed the budget process. She
reported the general fund tax levy is $12,674,488, or a 4.95% increase over the 2023
budget. She reported that the total tax levy including the general fund, street and
park infrastructure fund, EDA levy, HRA levy and prior debt levies is $20,075,245,
or 5.36% increase over 2023:
General Fund
Street Infrastructure Fund
Park Infrastructure Fund
Economic Development Authority
Housing and Redevelopment Authority*
$12,674,488
1,783,553
946,444
168,683
459,743
New Hope City Council November 27, 2023
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Fire Capital
Swimming Pool Capital
City Hall Capital
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
100,000
100,000
100,000
235,017
206,685
259,352
1,706,828
865,784
468,668
$20,075,245
Ms. Enstad reviewed increases to the tax levy including 5% for street
infrastructure, 2.3% for park infrastructure, 5% for EDA redevelopment projects,
and 5% for HRA for scattered site housing program. She stated three new levies of
$100,000 each were added for future capital needs for the fire station, aquatic center
and city hall/police facility. She also discussed prior debt levies and noted that
overall the combined debt levies are decreasing by $11,720. She commented that
no new bonds are planned for the next ten years.
She stated the major increases include:
$607,767 increase to fund 3% increase in wages/benefits, step increases,
adjustments to health insurance contributions, and council salary
increase.
$177,132 increase in West Metro Fire‐Rescue District joint powers
agreement, which included the aerial lease and two new truck leases.
$58,366 increase in IT charges.
$272,960 increase in central garage charges.
$64,768 increase in elections budget for election judge costs.
Ms. Enstad stated the city is scheduled to receive $1,306,156 in local government
aid (LGA) which is an increase of $458,326 from 2023, 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 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 reported that the median home value in 2023 is $326,050 which is an
.32% increase from 2022. She stated the estimated impact on residential homes
based on the 5.36% increase in city tax levy is 3%. Homes valued between $175,000
and $500,000 will realize a tax increase of $29 to $93 for the city’s share of taxes
(subject to no market value increase). Ms. Enstad explained the city’s tax rate and
noted it is projected to increase from 57.162% in 2023 to 58.831% in 2024.
New Hope City Council November 27, 2023
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Ms. Enstad reviewed the utility rate increases and noted a typical bill for a user of
5,000 gallons of water is $112.29 which is an increase of $5.34 over last year.
Mr. Reece Bertholf, city manager, commented on the information provided by the
county assessor regarding tax impact to the 4,825 single‐family properties in the
city. He stated approximately 26% of properties will realize a tax decrease in the
city’s share of taxes, and approximately 72% of properties will increase between
.1% and 9.9%. He reported that increases will be between $0.01 and $150 for 61%
of the properties, between $150 and $300 for 9% of properties, between $300 and
$450 for 2% of properties, between $450 and $600 for 1% of properties, and more
than $600 for less than 1% of properties.
Mr. Bertholf reviewed a summary of the 2023 city services survey that was
conducted between July 1 and October 1, 2023. There were 561 total responses and
ratings were similar to prior years. He noted the 2023 survey was conducted in‐
house compared to the 2022 professional survey that was conducted by the Morris
Leatherman company.
Mr. Bertholf reported the City Council will act on the city’s final budget at its
meeting of December 11, 2023. He noted the budget document is posted on the
city’s website.
Mayor Hemken opened the floor for comments from the audience. There was no
one present desirous of addressing the City Council regarding the proposed
budget.
Council 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
the Council. All present voted in favor. Motion carried. The New Hope City
Council adjourned at 6:52 p.m.
Respectfully submitted,
Valerie Leone, City Clerk