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City of New HopeMinnesota

Council Approves Preliminary 2023 Budget

Council Approves Preliminary 2023 Budget
Posted on 09/13/2022

The New Hope City Council approved the 2023 New Hope preliminary budget and maximum tax levy at its meeting on Sept. 12, with both certified to the Hennepin County auditor.

The proposed 2023 general fund budget is $17,235,207 which is an increase of $1,056,014, or 6.5%, over the 2022 budget. Major changes in the 2023 budget include:

  • An increase of $643,628 for wage and benefit increases.
  • An increase in IT charges to the general fund for $62,158.
  • An increase of $145,000 for police department portable radios due to the phase-out of their current equipment.
  • An increase of $133,595 in the budget for West Metro Fire‚ÄźRescue District for payment toward two new fire truck leases.
  • A $62,661 decrease in central garage charges.

The City is scheduled to receive $847,830 in LGA (local government aid) in 2023, an $18,812 decrease from 2022. The City will utilize the revenue to offset central garage equipment and building replacement charges; it is not used for general operations.

The preliminary tax levy for the 2023 budget is $19,053,316, representing a 4.51% increase over the 2022 levy of $18,231,011. 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 HRA tax levy of $437,850 and an Economic Development Authority (EDA) levy of $160,650 will help fund redevelopment activities within the City, including the Scattered Site Housing Program. The EDA approved the levy at its Sept. 12 meeting, following the council meeting.

According to the Hennepin County Assessor, the median home value for taxes payable in 2023 is $325,000, an 18% increase from 2022. Per updated information recently received from the County, the estimated impact on residential homes based on the proposed 4.51% increase in the city tax levy is 8%. For homes valued between $150,000 and $400,000, the tax increase amounts to a property tax increase of between $61 and $192 per household. The city tax rate is projected to decrease from 62.82% in 2022 to 57.23% in 2023. Although New Hope’s property tax rate appears higher than neighboring communities, approximately 13% of the rate accounts for the street infrastructure levy. The levy funds street infrastructure projects, spreading the cost of improvements across all tax-paying properties in the community rather than assessing project adjacent properties. More information on the proposed impact will be available after the final tax capacities are certified with Hennepin County.

City Council will continue to refine the budget and tax levy over the next few months. The final budget and levy numbers may decrease but cannot increase. The 2023 budget is posted on the City’s website at newhopemn.gov/finance. The proposed 2023 budget and tax levy will be presented at a public hearing at New Hope City Hall on Monday, Dec. 5, at 7 p.m. Interested residents are invited to attend the public hearing and ask questions. The New Hope City Council will consider the final 2023 budget and tax levy for approval by mid-December.


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