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V.1. Resolution Approving the 2026 Tax Levy, 2026 HRA Levy and Adopting the 2026 General and Special Revenue Fund Budgets; Bishop CITY OF HOPKINS City Council Report 2025-171 To: Honorable Mayor and Council Members Mike Mornson, City Manager From: Nick Bishop, Finance Director Date: December 1, 2025 Subject: Hold 2026 Truth in Taxation Hearing and Approve 2026 Tax Levies and Budgets _____________________________________________________________________ RECOMMENDED ACTION MOTION TO Adopt Resolution 2025-074 Approving the 2026 Tax Levy, 2026 HRA Levy and Adopting the 2026 General and Special Revenue Fund Budgets. OVERVIEW The tax levy being recommended is $22,147,904, a $1,499,799 or 7.26% increase from 2025. City taxes on a median value home ($376,200) will be $2,452, a $192 or 8.50% increase from 2025. The tax levy being proposed has been reduced by $146,909 since the preliminary levy was adopted on September 16th. The preliminary levy increase has been lowered from 7.98% to 7.26% when compared to 2025. The reductions come primarily from staffing reductions and efficiencies. The Deputy City Clerk and Young Adult Program Specialist positions have been combined as a temporary assignment in 2026. The Special Project and Initiatives Manger position has been replaced with an HR Technician. The proposed 2026 budget has also been updated for the Fire Department SAFER Grant. The budget includes costs for six additional firefighter positions, which are offset by federal revenue, reduced paid-on-call wages, other salary savings and equipment sales. The final levy can be adopted any time after the close of the public hearing but must be adopted and submitted to Hennepin County by December 28th. SUPPORTING INFORMATION • Tax Levy and Budget Overview • HRA/EDA Levy Overview • 2026 Tax Levy Summary • Truth in Taxation FAQ’s – Hennepin County Assessor Office • Resolution 2025-074 • General Fund Budget Overview • Truth in Taxation Statements Summary • 2026 General Fund and Special Revenue Fund Budgets Finance Department Tax Levy and Budget Overview The Final 2026 levy would be set at $22,147,904, a $1,499,799 or 7.26% increase from 2025. City taxes on a median value home ($376,200) will be $2,452, a $192 or 8.50% increase from 2025. The two largest areas supported by the levy are public safety and capital projects & debt. This is a breakdown of City property taxes: $ Cost Percent Public Safety 1,044$ 42.7% General Government 367 15.0% Public Works 275 11.2% Parks and Recreation 184 7.5% Activity Center 48 1.9% Pavilion 48 1.9% Arts Center 42 1.7% Capital projects & debt 444 18.1% Total 2,452$ 100.00% Median Value Home - $376,200 Public Safety is comprised of police, fire and inspection departments. In total they make up 42.7% of the levy. The Police Department’s Mission is to serve the community with Honesty, Integrity and Respect. They accomplish this through community engagement, relationship building and providing education and youth initiatives. They also responded to 24,755 calls for service in 2024. They work diligently to prevent and deter crime. The Fire Department makes a positive difference every day by providing quality fire response, prevention services, emergency medical, hazardous materials handling and emergency preparedness. In 2024, they responded to 2,720 calls, with an average response time of 5.0 minutes and a turn out time of 1 minute and 51 seconds. Inspections – this is the smallest department within public safety and accounts for 1.23% of the tax levy. The Inspections Department budget is primarily funded through charges for service. The 2025 budget includes revenues of $844,500 and expenditures of $1,250,349. Capital projects and debt is the next largest portion of the levy making up 18.1%. It supports street reconstruction, capital projects at municipal buildings and equipment purchases. The City is completing a street reconstruction plan paid for through bond issuance, special assessments and user charges for water, sewer and storm-sewer. All streets in Hopkins are planned to be reconstructed by 2030. Continuing this program ensures the future preservation of our streets and helps maintain the quality-of-life Hopkins residents have come to expect. In order to fully realize the benefits of Southwest Light Rail the city invested in 8th Avenue and created the Artery. The Artery is a bike, pedestrian and vehicle connection and community space between a future light rail transit station and the City’s historic downtown. The $5.7 million project leveraged $2.6 million of grants from Metropolitan Council, Hennepin County and Three Rivers Park District. The City has also invested in the Blake Road Corridor. The City is adding several pedestrian friendly amenities including: multi-use trails, landscaped boulevards and upgraded street lighting. The Road will also be upgraded to handle future traffic and development demands. The $16 million project will receive reimbursements from Hennepin County ($8 Million) and utilize Municipal State Aid of ($3 million). The City’s share of the Artery project and Blake Road reconstruction were funded with debt. They also took advantage of limited outside funding sources in order to make needed improvements. Delaying the projects would likely result in higher costs and a larger City-share of the overall cost. The Pavilion levy being proposed is $431,000 or 1.9% of the levy. In 2018, the Pavilion was upgraded and expanded. The City needed to complete a project to replace a 27- year-old refrigeration system that was unreliable, developing leaks and being phased out by the EPA. The City was able to increase the scope of the project to include remodeled locker rooms, shower rooms, expanded lobby, remodeled offices, remodeled concession stand and expanded restroom facilities after receiving contributions from Hopkins School District ($1.0 Million) and Hopkins Youth Hockey Association ($1.0 Million). The project still required bond proceeds of $3.1 million to complete. The debt service for the bonds will be paid with a Pavilion levy through 2033. The Activity Center is a separate facility that is included in the general fund budget. The general fund levy amount being used for the Activity Center is $431,565 or 1.9% of the levy. The Activity Center’s mission is to provide pathways to “Experience the Upside of Aging”. It is a gathering place for mature adults. It is also used as a rental facility and community space. The Arts Center levy being proposed is $380,000 or 1.7% of the total levy. The Arts Center is a premiere cultural and artistic destination drawing over 250,000 visitors annually. The City believes that it is an excellent economic development tool that helped make Mainstreet vibrant and authentic. With this levy, the Arts Center will continue to be an asset to the Community. General Fund Budget Overview The City Council reviewed a draft version of the General Fund Budget on August 4th and approved the Preliminary Budget on September 16th. The preliminary revenue budget adopted was $21,660,376 an increase of $2,139,886 or 13.5%. The preliminary expenditure budget adopted was 21,660,376 or an increase of $2,139,886 or 11.1%. The revenue budget being proposed for adoption is $22,152,609 an increase of $2,632,119 or 13.48%. The proposed revenue budget is $492,233 higher than preliminary. The revenue budget has been increased for the Fire Department’s SAFER Grant, which was approved on October 21st , equipment sales and credit card fee revenue. The revenue budget increases are also offset by a decrease in tax revenue from staffing reductions and efficiencies. The expenditure budget being proposed for adoption is $22,152,609 an increase of $2,132,119 or 10.65%. The proposed expenditure budget is $492,233 higher than preliminary. The increase is because of the addition of six new employees in the fire department who will be hired through the SAFER grant. The Fire Department expenditure increases are offset by reduced paid-on-call staffing costs and salary savings related to new personnel. Additional costs savings come from staffing reductions and efficiencies. The Special Projects and Initiatives Manager position has been replaced with an HR Technican, resulting in costs savings and providing needed support for the City’s HR Division. The Youth Program Specialists position and Deputy City Clerk positions will be combined as a temporary assignment in 2026. The combination results in cost savings in both the General and Depot Funds. HRA/EDA Levy Overview 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. There are levy limits based on 0.01850% of the City’s estimated market value. The market value used for the 2026 Levy is $2,974,091,600, resulting in a maximum tax levy of $551,750 which would be an increase of $40,104 or 7.84% from 2025. Tax Year Maximum Allowable Levy HRA/EDA Levy $ Increase % Increase 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 526,794 511,646 23,993 4.92% 2026-Proposed 551,750 551,750 40,104 7.84% Economic Development Fund 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 HRA/EDA levy is a separate levy and appears on tax statements under Other Taxing Districts. In 2026 the Economic Development Fund will support: • Arts Center • Art Street • Elevate Hennepin • Façade Improvement Program • Marketing • Public Art at Shady Oak & Downtown LRT Stations • ACE Program • Think Hopkins Truth in Taxation Summary Based on preliminary levies, the total taxes on a median value home in Hopkins will increase by $269 or 4.93%. Hennepin County adopted a preliminary levy increase of 7.4% and Hopkins Public Schools adopted a preliminary levy increase of 0.2%. The Truth in Taxation statements do not include taxes related to the Hopkins Public Schools bond referendum, which was passed on November 4th. . Actual 2025 Preliminary 2026 % Increase Median Value Home 378,800 376,200 -0.69% Hennepin County 1,402.41 1,467.70 4.66% City of Hopkins 2,259.54 2,470.44 9.33% School District 270*1,466.87 1,451.73 -1.03% Metropolitan Council 74.32 73.41 -1.22% Other Special Taxing Districts 245.66 254.25 3.50% 5,448.80 5,717.53 4.93% TOTAL TAX COMPARISON Hennepin County provides Cities with summarized data from Truth in Taxation statements. The following chart shows the percentage of each property type that will see a decrease or increase in total taxes based on preliminary levies. The changes are caused by preliminary tax levies, changes to estimated market value and changes to the homestead market value exclusion program. Residential properties include single family houses, condominiums, townhomes and duplexes. Apartments will see the largest decreases. Residential Apartment Commercial/ Industrial Decrease/No Change 19.46% 47.30% 5.59% Increase .1% - 4.9%17.61% 24.33% 36.57% Increase 5.0% - 9.9%34.84% 24.32% 54.48% Increase 10.0% - 14.9%12.18% 2.70% 1.49% Increase 15.0% and Over 15.91% 1.35% 1.87% *based on total taxes CITY OF HOPKINS Most Cities in Hennepin County are experiencing similar trends. This chart shows the changes in total taxes for residential properties in Hopkins and Hennepin County. City of Hopkins Suburban Hennepin County Hennepin County Decrease/No Change 19.46% 9.14% 10.73% Increase .1% - 4.9%17.61% 28.93% 29.61% Increase 5.0% - 9.9%34.84% 42.60% 37.26% Increase 10.0% - 14.9%12.18% 14.67% 15.50% Increase 15.0% and Over 15.91% 4.66% 6.90% *based on total taxes RESIDENTIAL SINGLE FAMILY PROPERTIES City of Hopkins Tax Levy For the Year Ending December 31, 2026 Proposed December 1, 2025 Actual Proposed % Increase Purpose FY2025 FY 2026 (Decrease) General Operations General Fund 15,321,075 17,224,277 12.42% Capital Levy 445,000 262,500 -41.01% Arts Center 380,000 380,000 0.00% Pavilion Fund 448,500 431,000 -3.90% Equipment Replacement 180,000 - -100.00% Permanent Improvement 50,000 - -100.00% Parking 75,000 100,000 33.33% Total General Operations 16,899,575 18,397,777 8.87% Debt Levy 3,748,530 3,750,127 0.04% Total Levy 20,648,105 22,147,904 7.26% Actual Proposed FY2025 7.26% Increase City Taxes 2,260$ 2,452$ Dollar Increase 69$ 192$ Percentage Increase 3.15%8.50% Proposed Tax Calculation for a Median Value Home City of Hopkins General Fund Revenue Budget For the Year Ending December 31, 2026 Proposed December 1, 2025 Department Adopted 2025 Budget Revised 2025 budget Proposed 2026 budget % Increase (Decrease) Property Taxes 15,406,075 15,406,075 17,309,277 12.35% Intergovernmental Revenue Local Government Aid 1,084,775 1,084,775 1,091,250 Intergovernmental Revenue - State 810,000 810,000 890,000 Intergovernmental Revenue - Federal - - 591,642 Total Intergovernmental Revenue 1,894,775 1,894,775 2,572,892 35.79% Licenses, Permits & Fines Court Fines & Penalties 176,000 176,000 176,000 Building Permits & Inspections 693,500 693,500 647,000 Inspection Fines & Citations 3,000 3,000 3,000 City Clerk - Business Licenses 12,400 12,400 11,000 PD - Liquor, Animal Licenses & Penalties 110,150 110,150 121,225 Fire - Licenses & Permits 4,000 4,000 4,500 Public Works - Licenses & Permits 19,615 19,615 1,215 Planning & Zoning - Licenses & Permits 4,000 4,000 4,000 Total Licenses, Permits & Fines 1,022,665 1,022,665 967,940 -5.35% Charges for Service Finance Department 8,600 8,600 8,500 Inspections 274,775 274,775 234,500 Police 35,000 35,000 35,000 Fire 10,500 10,500 10,500 Public Works 3,000 3,000 45,000 Activity Center 154,500 154,500 180,000 Planning & Zoning 16,000 16,000 11,000 Total Charges for Service 502,375 502,375 524,500 4.40% Miscellaneous Revenue Franchise Fees 620,600 620,600 621,500 Miscellaneous 45,000 45,000 100,000 Finance Department 3,000 3,000 3,000 Police 500 500 500 Fire 3,500 3,500 28,500 Public Works 8,000 8,000 8,000 Activity Center 14,000 14,000 16,500 Total Miscellaneous 694,600 694,600 778,000 12.01% Total Revenues 19,520,490 19,520,490 22,152,609 13.48% City of Hopkins General Fund Expenditure Budget For the Year Ending December 31, 2026 Proposed December 1, 2025 Department Adopted 2025 Budget Revised 2025 Budget Proposed 2026 budget % Increase (Decrease) City Council 156,598 156,598 141,198 -9.83% Administrative Services 661,290 661,290 708,661 7.16% Communications 240,000 240,000 230,894 -3.79% Information Technology 718,226 718,226 766,859 6.77% Diversity, Equity & Inclusion 107,000 107,000 58,000 -45.79% Finance 616,129 616,129 654,335 6.20% Legal 265,000 265,000 270,000 1.89% Municipal Building 407,462 407,462 390,991 -4.04% City Clerk 327,542 327,542 326,262 -0.39% Inspections 1,265,343 1,265,343 1,250,349 -1.18% Police 7,519,164 7,519,164 8,356,223 11.13% Fire 1,982,178 2,082,178 3,193,241 53.36% Public Works 4,289,317 4,289,317 4,467,380 4.15% Recreation 276,735 276,735 287,077 3.74% Activity Center 609,694 609,694 678,867 11.35% Planning & Zoning 247,455 247,455 221,732 -10.40% Community Development 125,357 125,357 115,540 -7.83% Tuition Reimbursement 19,200 19,200 10,000 -47.92% Contingency 25,000 25,000 25,000 0.00% Transfer to Depot/ACE Program 61,800 61,800 - -100.00% Total Expenditures 19,920,490 20,020,490 22,152,609 10.65% City of Hopkins Special Revnue Funds Budget For the Year Ending December 31, 2025 Proposed December 1, 2025 Revenues Fund No.2025 Budget 2026 Budget % Increase (Decrease) 203 State Chemical Assessment 65,000 65,000 0.00% 204 Economic Development 591,646 656,750 11.00% 212 MN Public Safety 453,901 - (100.00%) 214 Parking 164,000 173,000 5.49% 216 Hopkins Race & Equity Iniative 6,000 - (100.00%) 217 Communications (Cable TV)30,961 40,000 29.19% 219 Depot Coffee House 285,611 322,700 12.99% 231 TIF 2.11 Super Valu 2,820,000 2,600,000 (7.80%) 233 TIF 1.4 - Marketplace & Main 245,000 245,000 0.00% 234 TIF 1.5 - The Moline 1,770,000 1,825,000 3.11% 235 TIF 1.6 - Blake - 50,000 100.00% 250 Arts Center 1,232,470 1,290,784 4.73% 260 Sustainability 345,000 366,000 6.09% Expenditures Fund No.2025 Budget 2026 Budget % Increase (Decrease) 203 State Chemical Assessment 65,000 65,000 0.00% 204 Economic Development 555,646 692,520 24.63% 212 MN Public Safety 453,901 - (100.00%) 214 Parking 161,185 171,932 6.67% 216 Hopkins Race & Equity Iniative 6,000 6,000 0.00% 217 Communications (Cable TV)30,961 40,000 29.19% 219 Depot Coffee House 270,611 274,051 1.27% 231 TIF 2.11 Super Valu 2,900,000 2,600,000 (10.34%) 233 TIF 1.4 - Marketplace & Main 44,768 50,000 11.69% 234 TIF 1.5 - The Moline 1,729,914 1,800,000 4.05% 235 TIF 1.6 - Blake - 47,500 100.00% 250 Arts Center 1,219,259 1,240,434 1.74% 260 Sustainability 345,000 363,745 5.43% Fund Fund Hennepin County Assessor’s Office 300 South Sixth Street, Minneapolis, MN 55487 hennepin.us Truth in Taxation FAQ’s Tax Questions Why did my taxes go up? There are several items that affect your property taxes. Items that typically have a large impact include: • Changes to the tax levy (amount of money a government wants to collect from property taxes) made by the city, county, school district or special taxing districts. • Changes to the market value of your property. • Changes in the market values for the area or a shift in values for a certain type of property. • Legislative changes to the property classification rates, state aid formulas and other tax laws. • Legislative unfunded mandates (usually seen as an increase in local government tax levy). • New taxes approved by referendum. Why did my taxes go up more than my neighbors? Properties within the same neighborhood may show different value changes based on physical characteristics. There are numerous factors to be considered in each property, which will cause value to change differently. Some of the factors that can affect value are location, condition, size, updates or remodeling, quality of construction, number and type of amenities such as baths and fireplaces, basement finish, garages, decks, porches, and many others. Property information may have been corrected, resulting in an increase or decrease in value different from your neighbor. My neighbor doesn’t keep his house up and I do—And I get penalized for it in the form of higher taxes. Why? It’s not fair! Property taxes are calculated using the market value. Market values are based on what your home could sell for on the open market. A home that is well maintained should sell for more than a home that is not. Who do I talk to about why my taxes increased or how to lower my taxes? There are three entities that have a role in determining your property tax. • The State Legislature establishes property classes and class rates, determines levels of state aid to local units of government, sets the state general tax rate, and mandates unfunded programs to local government. • Local units of government determine their tax levy amount. • The county assessor assigns each property a market value and property classification as provided by state statute. The property tax is the result of actions taken by all three entities. The times and dates for the appropriate budget meetings impacting your property are on the TNT notice. The purpose of these meetings is for the taxing authorities to gain feedback and guidance to help finalize their budgets. Are there any programs out there, where can I get some property tax relief? https://www.revenue.state.mn.us/property-tax-refund Minnesota has two types of property tax refunds for homeowners: the regular property tax refund and the special property tax refund. You may be eligible for one or both, depending on your income and the size of your property tax bill. • The regular property tax refund is based on your household income and the amount of property tax you pay on your principal residence. • The special property tax refund requires your net property tax to have increased by more than 12% and at least $100. The special property tax refund is not based on income. • Senior Citizens Property Tax Deferral Program: This program allows people 65 or older to defer a portion of their homestead property taxes and is also administered by the State of Minnesota. Is it likely that the amount on my proposed property tax notice will be different than the amount on my tax statement? The amount on the proposed tax notice is an estimate. The actual amount will likely differ due to: • New school referendums could cause the estimate to be higher or lower than the estimated tax amount depending on if the referendum passes or not. • Change in homestead classifications. • Jurisdictions lowering their levy. The statement currently contains the maximum levy the taxing authorities can pass, this is usually very close to the actual tax amount, but it could change based on input received at the meeting. • Special assessments and other non-tax charges that may be billed on the tax statement. Value Questions How can you raise my value this much? There is no limit on the amount your property value can increase in any given year. Values are based on the market and what the property would sell for as of January 2 nd of each year. I haven’t done anything to my house in 10 years, but my value and taxes keep going up. Why? The estimated market value is what the assessor estimates your property would likely sell for on the open market. The estimated market value on your property indicates the value as of January 2, 202 4, for taxes payable in 2025. Property values can increase or decrease depending on the market even if no improvements have been made to the property. I just bought my property and want to know why you have my value more than my purchased price. I want to appeal the value, what is my option? Is it too late to appeal my value? The sale itself may not be a good, arm’s length transaction. The sale could have been a purchase of a foreclosure or a transaction between related parties. Refer to the sales verification document to guide you in more specific questions about the sale. Every spring, value notices are mailed out to property owners. Some cities have local board meetings and others have open book meetings. If your city has a local board meeting, you have from the time you receive your notice to the date of the meeting to appeal your value. If your city has an open book meeting , you have from the time you receive your notice until mid-May to appeal your value. Once this window has passed the only option is to appeal to tax court. • Depending on the type of appeal, you may take your case to either the Small Claims Division or the Regular Division of Tax Court. You have until April 30 of the year in which the taxes are payable to file an appeal with the Small Claims Division or the Regular Division of Tax Court for your valuation and classification. • For more information, contact the Minnesota Tax Court: • Phone: 651-539-3260 or for MN Relay call 1-800-627-3529 • On the web: https://mn.gov/tax-court/forms/ Why do I have an improvement on my property when I didn’t do anything? This is the assessor’s estimate of the value of new or previously unassessed improvements made to your property. This amount is included in the estimated market value of your property. How do you assess my property and what is it based on? How do I know it’s fair? Assessors value properties using a mass appraisal process to review sales of similar properties in the area over a set time period. This “estimated market value” represents what your property would sell for in an “arms -length” sale on the open market. To estimate a property’s 2024 market value, the assessor reviews property sales from October 1, 2022, to September 30, 2023. They adjust the prices for market trends to estimate the market value of your property on the next assessment date, January 2, 2024. Property owners can also look at the Hennepin County website and see what neighboring properties are valued at and what nearby properties have sold for. The building right next door to mine is valued lower but it is the same, why? There are multiple reasons why two similar buildings may be valued differently. First, the building may be the same, but the use is different which could constitute a different value. Or the outside of the structures are similar, but the inside of one of them may have gone through a major remodel and the interior quality of construction may be superior. Also, the site the structures sit on could be different in size or even location such as on a lake versus the non-lakeshore one across the street. Why is my value increasing when the market is declining? To estimate a property’s 2024 market value, the assessor reviews property sales from October 1, 2022, to September 30, 2023. They adjust the prices for market trends to estimate the market value of your property on the next assessment date, January 2, 2024. Sales that have occurred between October 1, 2023, and September 30, 2024, will be analyzed and reviewed for the 2025 assessment for taxes payable in 2026. The Notice of Valuation and Classification will be sent out in the spring of 2025 and any changes to the market will be reflected on that notice. Homestead Questions Why is my property non-homestead / Why is my property changing from homestead to non - homestead? If there has been a change in the ownership or occupancy of your property, this could be why the status changed. Even something as simple as a name change can affect your homestead status. Please note, anytime there is a change in ownership and occupancy, a new application is required. You can apply for homestead at: www.hennepin.us/homestead I just purchased my home, and it isn’t showing homestead on my notice or the public website? why? Our systems can take up a couple of weeks to update, but just to confirm, have you reapplied for homestead at this new web address? Anytime there is a change in ownership and occupancy, a new application is required. If needed, you can apply for homestead at: www.hennepin.us/homestead Why is my Homestead exclusion going down? Why do I no longer have a homestead credit on my taxes? For a homestead residence valued at $95,000 or less, the exclusion is 40 percent of market value, yielding a maximum exclusion of $38,000, at $95,000 of market value. For a homestead valued between $95,000 and $517,200, the exclusion is $38,000 minus 9 percent of the value over $95,000. The exclusion is therefore phased out for properties valued at $517,200 or more. Typically, the homestead exclusion will save you no more than a few hundred dollars on your annual property taxes. The homestead credit that was applied to your taxes was replaced by this homestead market value exclusion and is now applied prior to taxes being calculated. Classification Questions Why is my classification Residential Lakeshore when I don’t live on a lake? The classification of a property is based on the use of the property. It is possible for a property that has deeded access to a lake to be classified as residential lakeshore because the property has the ability to use the lake/dock. The tax rate for a residential classification and a residential lakeshore classification is the same at 1% up to $500,000 and 1.25% over any value over $500,000. My neighbors have an AG property classification, why don’t I when I have 2 acres of field? What can I do to get AG class? If I can get AG class how much will my taxes go down? Per MN Statute 273.13 subd. 23, In order for a property with a house on it to get the agricultural classification, the property must have at least 10 acres in production on the property. The statute also defines what qualifies as ag production. https://www.revisor.mn.gov/statutes/cite/273.13 The tax rate for agricultural classification will be determined by if it is homestead or not. If it is homestead, the rate is 0.5% and non-homestead is 1%. Why is my property classified as seasonal? What does that mean? The seasonal class is for properties that are not the primary residence of the owner and is not rented to anyone else. This property is typically a ‘cabin’. This class cannot change back to residential unless the original owner files for homestead or it sells. This cannot be homesteaded by a relative of the original owner. Miscellaneous Questions Why did my mortgage payment go up? It would be our recommendation that the property owner call their mortgage company to find out the specifics, but it could be that their escrow amount has changed. This change could be because of the taxes or their insurance. No specific questions, homeowner just wants to vent about taxes and value. Be polite and let them talk. Answer questions as needed and do your best to address their concerns. The value of my property increased 10% even though interest rates are higher than they have been in years. Inflation is high, prices are high – when is this going to stop and start to go down again? Assessors value properties using a mass appraisal process to review sales of similar properties in the area over a set time period. This “estimated market value” represents what your property would sell for in an “arms -length” sale on the open market. To estimate a property’s 2024 market value, the assessor reviews property sales from October 1, 2022, to September 30, 2023. They adjust the prices for market trends to estimate the market value of your property on the next assessment date, January 2, 2024. If outside factors such as interest rates start to affect the sale prices, we will follow those sales once we see the market show the affect. My business is terrible this year, why is my value so high? Any current adverse impacts to business operations are not directly relevant to the valuation of the real property in the same year. Market sales and data from the previous period are considered when setting the current value. Contact Assessor’s Office Office: 612-348-3046 Assessor.AO@hennepin.us Website https://www.hennepin.us/residents/property/property-taxes CITY OF HOPKINS HENNEPIN COUNTY, MINNESOTA RESOLUTION 2025-074 RESOLUTION APPROVING THE 2026 TAX LEVY, 2026 HRA LEVY AND ADOPTING THE 2026 GENERAL AND SPECIAL REVENUE FUND BUDGETS THEREFORE BE IT RESOLVED, that the City Council of the City of Hopkins hereby approves the following sums be levied for 2026 upon the taxable property in the City of Hopkins, for the following purposes: General Levy General $18,397,777 Special Levies Debt Levies 2014A GO Street Reconstruction Bonds (3011A) 68,000 2014A GO Improvement Bonds (3011B) 50,000 2015B GO Tax Abatement (3013) 125,000 2015A GO Street Reconstruction Bonds (3014) 260,000 2016A GO Improvement Bonds (3017) 120,000 2016B GO Tax Abatement Bonds (3018) 22,000 2017A GO Street Reconstruction Bonds (3021) 960,000 2017B GO Tax Abatement Bonds (3022A) 9,700 2018A GO Street Reconstruction Bonds (3024A) 100,000 2018A GO Improvement Bonds (3024B) 300,000 2018A GO Equipment Certificates (3024C) 50,998 2019A GO Street Reconstruction Bonds (3025A) 92,000 2019A GO Improvement Bonds (3025B) 228,892 2019A GO Capital Improvement Bonds (3025D) 40,000 2020A GO Improvement Bonds (3027A) 35,288 2020A GO Improvement Bonds (3027B) 112,505 2020A GO Street Reconstruction Bonds (3027D) 11,332 2020B GO Refunding Bonds (3029) 268,167 2021A GO Improvement Bonds (3030A) 199,620 2021A GO Street Reconstruction Bonds (3030C) 16,925 2022A GO Equipment Certificates (3031A) 125,213 2022A GO Improvement Bonds (3031B) 202,462 2023A GO Temporary Improvement Bonds (3032) 261,832 2024A GO Bonds 90,193 Subtotal Special Levies $3,750,127 TOTAL LEVY $22,147,904 HRA LEVY Housing & Redevelopment Authority Levy $551,750 This levy is made based on current law and the 2026 General Fund Budget of $22,152,609 That based upon staff analysis of special assessments currently levied for Permanent Improvement Bonds, alternative revenue sources for the Capital Improvement Bonds and Equipment Certificates, and available reserves within all debt service funds listed below, that the debt service levies for 2026 for the following issues be levied at amounts less than provided by the bond covenants. Bond Issue 2014A GO Street Reconstruction Bonds (3011A) 68,000 2015A GO Street Reconstruction Bonds (3014) 260,000 2016A GO Improvement Bonds (3017) 120,000 2017A GO Street Reconstruction Bonds (3021) 960,000 2017B GO Tax Abatement Bonds (3022A) 9,700 2018B GO Tax Abatement (3023) - 2018A GO Street Reconstruction Bonds (3024A) 100,000 2018A GO Equipment Certificates (3024C) 50,998 2019A GO Street Reconstruction Bonds (3025A) 92,000 2019A GO Improvement Bonds (3025B) 228,892 2019A GO Capital Improvement Bonds (3025D) 40,000 2020A GO Improvement Bonds (3027A) 35,288 2020A GO Improvement Bonds (3027B) 112,505 2020A GO Street Reconstruction Bonds (3027D) 11,332 BE IT FURTHER RESOLVED, that the following amounts are budgeted for the Special Revenue Funds: Chemical Assessment $65,000 Economic Development $692,520 Parking $171,932 Race & Equity Initiative $6,000 Communications $40,000 Depot $274,051 TIF 2.11 Super Valu $2,600,000 TIF 1.4 Marketplace & Main $50,000 TIF 1.5 The Moline $1,800,000 TIF 1.6 Blake $47,500 Arts Center $1,240,434 Sustainability $363,745 Adopted by the City Council of the City of Hopkins this 1st day of December, 2025. By:___________________________ Patrick Hanlon, Mayor ATTEST: ___________________________ Amy Domeier, City Clerk