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City Council Approves Preliminary 2024 Budget

City Council Approves Preliminary 2024 Budget
Posted on 10/17/2023

The New Hope City Council approved the 2024 New Hope preliminary budget and maximum tax levy at its meeting on Sept. 11, and both were certified to the Hennepin County auditor.

The proposed 2024 general fund budget is $18,578,101, a 7.8% increase over the 2023 budget. The 2024 budget aims to hold the line on spending while continuing to provide existing services and programs with current resources. This allows the City to keep the general fund tax levy as low as possible. Significant changes in the 2024 budget include:

  • An increase of $601,767 for wage and benefit increases.
  • The City’s share of the joint powers agreement for West Metro Fire-Rescue District increased $178,066 over last year.
  • A $58,366 increase in IT charges.
    A $272,960 increase in central garage charges.
  • A $64,768 increase in the elections budget as 2024 is an election year.

New Hope is scheduled to receive $1,306,156 in local government aid in 2024, an increase of $458,326 from 2023. The City will utilize the revenue to offset central garage equipment and building replacement charges; it is not used for general operations.

The total preliminary tax levy for the 2024 budget is $20,075,245, representing a 5.36% increase over the 2023 levy of $19,053,316. New for 2024 is the addition of three new levies of $100,000 each to build reserves for future capital needs for City facilities, including the fire station, aquatic park and city hall/police facility as outlined in the City’s long-term plan. Also included is a 5% increase in the street and park infrastructure levies to support the long-term funding of street and park infrastructure improvements. An HRA tax levy of $459,743 and an Economic Development Authority (EDA) levy of $168,683 will help fund redevelopment activities within the City, including the Scattered Site Housing Program. The EDA approved the levy at its Sept. 11 meeting.

According to the Hennepin County Assessor, the median home value for taxes payable in 2024 is $326,050, a 0.32% increase from 2022. Per updated information from the County, the estimated impact for residential homes valued between $175,000 and $500,000 based on the proposed 5.36% is between $29 and $93 per household.

The City's tax rate is projected to increase from 57.16% in 2023 to 58.83% in 2024. 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.

The 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 2024 budget is posted on the City’s website at

The proposed 2024 budget and tax levy will be presented at a public hearing at New Hope City Hall on Monday, Nov. 27, at 6:30 p.m. Interested residents are invited to attend the public hearing and ask questions. The New Hope City Council will consider the final 2024 budget and tax levy for approval by mid-December.

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