New Hope City Council Approves 2022 Budget

New Hope City Council Approves 2022 Budget
Posted on 12/17/2021

The New Hope City Council approved the 2022 City of New Hope budget and tax levy at its Dec. 13 meeting. The 2022 general fund budget is $16,179,193, which is an increase of $242,216, or 1.5%, over the 2021 budget. The tax levy for the entire 2022 budget is $18,231,011, representing a 4.67% increase over the 2021 levy of $17,417,601. 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. Three bond debt tax levies are increasing in 2022 while another three are decreasing, resulting in overall combined debt tax levies decreasing by $1,797 in 2022.

Also included in the preliminary 2022 budget is a new Housing Redevelopment Authority (HRA) tax levy of $417,000 to help fund redevelopment activities, including the Scattered Site Housing Program. The Economic Development Authority (EDA) tax levy is reduced by $212,000 in 2022 to offset the overall increase.

Significant changes in the budget for 2022 include:

  • An increase of $281,056 for wage and benefit increases, a 3% cost of living adjustment and an increase in the city’s share of health insurance coverage and a comparable cities adjustment. The budget also includes a 3% increase in City Council salaries.
  • An increase of $105,000 in IT charges.
  • An increase of $65,859 in the budget for West Metro Fire‐Rescue District due to a 4.9% increase in New Hope’s share of the joint powers agreement.
  • A $50,000 increase for the Emerald Ash Borer Removal/Replacement Program on public property (city right‐of‐ways, parks, etc.) due to the increasing occurrence of the disease in the northwest metro area.
  • A $39,000 increase in the budget for election costs due to the gubernatorial election in 2022.
  • There is a $315,454 decrease in central garage charges, primarily in the police department (for leasing vehicles) and the street department (reduced equipment purchases).
  • New Hope is scheduled to receive $866,642 in LGA (local government aid) in 2022, a $4,916 increase over 2021. The revenue will be utilized in the general fund to offset central garage equipment and building replacement charges; it is not used for general operations.
  • A decrease of $130,000 in building permits and related revenue, as the Windsor Ridge single-family home development will be completed at the end of 2021.

New Hope is scheduled to receive $866,642 in local government aid in 2022, a $4,916 increase over 2021. The revenue will be utilized in the general fund to offset central garage equipment and building replacement charges; it is not used for general operations.

While the overall tax rate may appear high compared to other cities, New Hope includes infrastructure improvements in general property tax levy rather than assessing the benefiting property owner (street levy is approximately 13% of local tax levy). Thus, New Hope does not assess taxable properties for street improvements.

Links to the complete 2022 City of New Hope budget and presentation about the budget and tax levy are available at newhopemn.gov/finance.