2020 Preliminary Budget Presented to City Council

2020 Preliminary Budget Presented to City Council
Posted on 09/05/2019

The preliminary 2020 budget for the city of New Hope was presented by staff at the City Council work session on Monday, Aug. 19. The presented general fund budget is $15,410,550, which is an increase of $1,186,438 (8.3%) over the 2019 budget of $14,224,112.

Approximately $700,000 of the increase in expenses is for adding the new swimming pool facility operation back into the city budget.

Although total general fund expenses increased by more than $1 million, they are largely offset by $1,049,955 of increased revenue from pool operations, local government aid, building permits and franchise fees.

This offset makes the tax levy for the 2020 general fund $10,511,431, which is a minimal $136,483 or 1.32% increase over the 2019 general fund levy of $10,374,948. Every effort was made to keep the general fund levy low to help offset the impact of the 2018/2019 pool and park bond levies.

The total tax levy for 2020, including the general fund, street and park infrastructure funds, economic development authority, the levies for the city center, Northwood South and Northwood North infrastructure bonds, the 2017 police station/city hall facility bonds, and the new 2018/2019 pool and park improvement bonds is $16,896,716. This represents a 10.42% or $1,595,106 increase over the 2019 levy of $15,301,610.

The vast majority of the levy increase ($1,334,505 or 8.72%) is for the pool and park improvement bonds.

The estimated overall impact of the city tax levy on residential properties ranges from $67 to $212 per year for market values ranging from $150,000 to $400,000, or an estimated increase of 8%. According to the Hennepin County Assessor, the total taxable property market value in the city increased by 6.55% from 2018 to 2019. More information on the proposed impact will be available after final tax capacities are certified with Hennepin County.

View the 2020 preliminary budget here.

Sept. 5, 2019 Update:
Hennepin County has now provided an updated tax capacity estimate that will decrease the overall estimated tax rate from 67.49% to 64.55%.

The change reduces the total tax levy change percentage from 10.42% to 10.08%.

The cumulative result of these changes is a decrease on the estimated impact to property owners, going from 8% to 3%. That means for New Hope homes valued between $150,000 and $400,000 the 2020 tax increase is now estimated to be $28 to $87, instead the originally projected amount of $67 to $212.