At its Dec. 8 meeting, the New Hope City Council approved the City’s 2026 budget and property tax levy, setting the financial plan for City services, infrastructure investments and long-term priorities in the coming year.
The approved 2026 property tax levy is $22.5 million, a 4.93% increase over 2025. The levy supports core City services and planned investments in streets, parks, public safety facilities, the aquatic park and other infrastructure, along with housing and redevelopment efforts.
WHAT THE 2026 BUDGET INCLUDES
The 2026 budget includes a $20.4 million general fund, reflecting a 4.1% increase from 2025. It provides funding for employee wages and benefits, including cost-of-living adjustments, health insurance increases, and Minnesota Paid Leave. The budget also accounts for increased costs for fire services through the West Metro Fire-Rescue District and continues the City’s investment in maintaining reliable utilities, streets and City facilities.
The City will receive $1.32 million in Local Government Aid (LGA) in 2026, a modest increase from 2025. LGA helps offset major equipment and building replacement costs rather than day-to-day operations.
IMPACT ON HOMEOWNERS
For taxes payable in 2026, the median home value is $335,400, an increase of 2.4% from last year. For homes valued between $175,000 and $500,000, the estimated City tax increase ranges from approximately $80 to $277 per year. The City’s portion of the property tax bill typically represents about one-third of the total, with the remaining amount going to the county, school district and other taxing authorities.
HOW THE BUDGET WAS DEVELOPED
The City’s 2026 budget was developed over the course of several months. Budget planning began in the spring with staff training and early financial reviews, followed by summer work sessions where the City Council discussed legislative updates, community needs, long-term priorities and major cost drivers such as wages, infrastructure, technology and public safety services. Department heads worked closely with City management and financial consultants to prepare and review budget requests.
In late summer, the City Council reviewed the preliminary budget and proposed property tax levy and refined the plan. In September, the Council adopted a proposed budget and certified a preliminary tax levy to Hennepin County, as required by state law. Throughout the fall, the Council continued reviewing department budgets and utility and enterprise funds. Property owners received Truth in Taxation notices in November and were invited to provide feedback at a public hearing before the City Council adopted the final 2026 budget and tax levy on Dec. 8.
PROPERTY TAX RELIEF PROGRAMS
The State of Minnesota provides direct property tax relief to qualified taxpayers, including the Homestead Credit Refund Program and the Senior Citizen Property Tax Deferral Program. More information about these programs and others is available at
revenue.state.mn.us/property-tax-relief.
Links to the 2026 budget and corresponding presentation are available at
newhopemn.gov/finance.