Minneapolis Sets Maximum Property Tax Levy Increase for Next Year
Minneapolis property owners face potential tax increases next year after the Board of Estimate and Taxation voted to set a maximum property tax levy increase of 11.87%. The decision surpasses Mayor Jacob Frey’s initial 11.3% proposal, as city leaders grapple with mounting municipal service costs and unbudgeted police spending ahead of the final adoption vote scheduled for mid-December.
Board of Estimate and Taxation Adopts Higher Levy Cap
The 11.87% cap approved by the Board of Estimate and Taxation exceeds the administration’s earlier projections. Under Mayor Frey’s original 11.3% proposal, the owner of a median-valued Minneapolis home worth approximately $319,000 faced a projected property tax increase of $408 per year. With the newly established ceiling, that financial impact on local residents could climb even higher.
Bernstein pointed out that the city is staring down a significant property tax increase primarily driven by the need to fund escalating service costs alongside expenditures that were not previously built into municipal budgets.
Police Overtime Spending and Agency Accountability
A central point of contention during the board deliberations involved spending by the Minneapolis Police Department. Police leaders approached the city earlier in the week to request a $20 million funding increase, a figure that includes $13 million earmarked specifically for overtime. Department representatives acknowledged publicly that the agency has experienced overuse and some mismanagement of those overtime funds.
Mayor Frey voiced opposition to the levy increase, arguing that heavy tax burdens hit low-income residents and seniors disproportionately. At the same time, the mayor acknowledged the practical staffing realities facing the city’s law enforcement infrastructure. “Look, I’m going to be real.”
Park and Recreation Board Funding and Independent Audits
The board’s vote also greenlit a 5.86% funding increase sought by the Minneapolis Park and Rec Board, overriding Mayor Frey’s preference for a 4% cap. To address concerns over administrative efficiency, the Park Board’s approved plan allocates $150,000 to bring in an outside auditor.
“Being able to point out, you know, inefficiencies here, duplications of efforts there, waste abuse here.”
As property owners and local administrators evaluate these fiscal changes, the Minneapolis City Council, the mayor, and the Park Board have all indicated they will pursue targeted budget reductions to potentially lower rates before the final tax levy is formally adopted in mid-December.