At its Dec. 12 meeting, the New Hope City Council approved the 2023 budget and tax levy.
The 2023 preliminary general fund budget is $17,235,207, an increase of $1,056,014 (6.5%) over the 2022 budget of $16,179,193. The total tax levy for 2023, including the general fund, street and park infrastructure funds, economic development and housing and redevelopment authorities, prior debt levies and bonds, is $19,053,316, a 4.51% increase. The total levy includes a 5% increase in the street and park infrastructure levies to support long-term funding plans for street and park improvements.
Also included in the 2023 budget is a Housing Redevelopment Authority (HRA) tax levy of $437,850 to help fund redevelopment activities, including the City’s Scattered Site Housing Program. The HRA levy also received required approvals from the New Hope City Council and the Economic Development Authority at the Dec. 12 meetings.
New Hope will receive $847,830 in local government aid (LGA) in 2023, an $18,812 decrease from 2022. The City will utilize the LGA revenue in the general fund to offset central garage equipment and building replacement charges; LGA revenue is not used for general operations.
While the overall tax rate may appear high compared to other cities, New Hope includes infrastructure improvements in the general property tax levy rather than assessing the benefiting property owner. Thus, New Hope does not assess taxable properties for street improvements.
The estimated tax impact on residential homes valued between $150,000 and $400,000 is an increase of $61 to $192 per year or an 8% increase.
Property Tax Relief Programs
The State of Minnesota provides direct property tax relief to taxpayers who qualify: the Homestead Credit Refund Program, the Targeting Property Tax Refund and the Senior Citizen Property Tax Deferral Program. More information about these programs is available at
revenue.state.mn.us/property-tax-relief.
Links to the 2023 budget and corresponding presentation are available at
newhopemn.gov/finance.