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VII.4. Resolution Approving the Proposed 2025 HRAEDA Tax Levy; Bishop CITY OF HOPKINS City Council Report 2024-106 To: Honorable Mayor and Council Members Mike Mornson, City Manager From: Nick Bishop, Finance Director Date: September 3, 2024 Subject: Approve Proposed 2025 HRA/EDA Tax Levy _____________________________________________________________________ RECOMMENDED ACTION MOTION TO Approve Resolution 2024-055 Approving the Proposed 2025 HRA/EDA Tax Levy OVERVIEW The City is required to certify a proposed HRA/EDA tax levy and submit it to Hennepin County by September 30th. There are levy limits based on 0.1850% of the City’s estimated market value. The market value used for the 2025 levy is $2,847,535,300, resulting in a maximum tax levy of $526,794 which would be an increase of $39,141 or 8.03% from 2024. The HRA/EDA Levy was set at the maximum allowed in 2020 & 2023 and lesser amount in 2021, 2022 and 2024. Tax Year Maximum Allowable Levy HRA/EDA Levy $ Increase % Increase 2020 367,951 367,951 17,797 5.08% 2021 407,727 378,070 10,119 2.75% 2022 434,750 391,302 13,232 3.50% 2023 451,531 451,531 60,229 15.39% 2024 497,414 487,653 36,122 8.00% 2025-Proposed 526,794 515,010 27,357 5.61% The HRA/EDA Levy is the main revenue source for the City’s Economic Development Fund and plays an important role in the City’s continued efforts for redevelopment. The fund also supports Artstreet, the Arts Center, the Façade Improvement program and marketing efforts. The HRA/EDA levy is a separate levy and appears on tax statements under Other Taxing Districts. Staff is recommending that City Council set the levy at $515,010, which is less than is allowed based on levy limits. This is an increase of $27,357 or 5.61%. The percentage increase matches the proposed increase to the City of Hopkins Levy. SUPPORTING INFORMATION • Resolution 2024-055 Finance Department CITY OF HOPKINS HENNEPIN COUNTY, MINNESOTA RESOLUTION 2024-055 RESOLUTION APPROVING THE PROPOSED 2025 HRA/EDA TAX LEVY NOW THEREFORE BE IT RESOLVED, that the City Council of the City of Hopkins hereby approves that the following sum be levied for 2025 upon the taxable property in the City of Hopkins, for the following purposes. HRA/EDA Levy Housing & Redevelopment Authority Levy $515,010 That the levy is less than the maximum allowable based on 0.01850% of market value as allowed by law for the City’s Economic Development purposes. BE FURTHER RESOLVED that the City Clerk is hereby ordered and directed to transmit a certified copy of this resolution to the County Auditor of Hennepin County, Minnesota. Adopted by the City Council of the City of Hopkins this 3rd day of September, 2024. By:___________________________ Patrick Hanlon, Mayor ATTEST: _______________________________ Amy Domeier, City Clerk