New Hope City Council Approves 2019 Budget

New Hope City Council Approves 2019 Budget
Posted on 12/11/2018
The New Hope City Council approved the 2019 city of New Hope budget and tax levy at its December 10 meeting.

The 2019 general fund budget is $14,224,112, which is an increase of 3.5% over the 2018 budget. The tax levy for the entire 2019 budget is $15,301,610, which is an increase of 18.5% higher than 2018.

However, the majority of the levy increase, $1,709,452 or 13.24%, is for the new police station/city hall bonds.

The estimated overall impact of the city tax levy of residential properties ranges from $105 to $333 per year for market values between $150,000 to $400,000, which is an estimated increase of 13%. According to the Hennepin County Assessor, the total taxable property market value in New Hope increased 8.06% from 2017 to 2018.

Other major changes in the budget in 2019 include:

• Approximately $366,000 for wage and benefit increases; a 3% cost of living adjustment is budgeted for employees along with an increase in the city’s share of health insurance coverage. This amount includes the compensation plan adjustments that were approved in 2018. A 3% increase in City Council salaries is also included in the budget.

• $69,027 increase for 100% equipment replacement costs and future building improvements at public works

• $28,995 increase in West Metro Fire-Rescue District Joint Powers Authority

• $27,000 increase in street department for 19% increase in cost of salt for snowplowing

• $21,000 increase in Hennepin County assessment services contract due to new development

New Hope is scheduled to receive nearly $700,000 in Local Government Aid from the state of Minnesota in 2019. The revenue will be utilized in the general fund to offset central garage replacement costs.

While the overall tax rate may appear high when compared to other cities, this is because New Hope includes infrastructure improvements in general property tax levy rather than assessing to benefiting property owner (street levy is approximately 15% of local tax levy). Thus, New Hope does not assess taxable properties for street improvements.

Links to the 2019 city of New Hope budget and a PowerPoint presentation about the budget and tax levy are available at newhopemn.gov/finance.