As vice chair of the City Council’s Budget Committee, I want to give readers an overview of where things stand in the city’s budget process.
A staff report the council requested this summer compared our budget process with those of Seattle, Denver, Milwaukee and Detroit. None of those cities takes longer than two months. Ours takes four, running this year from the mayor’s proposal Aug. 13 to the Truth in Taxation hearing Dec. 15.
I don’t think this is to our credit, and I’m hoping it’s something we can change in next year’s cycle.
That said, here’s how we do things in Minneapolis.
“ Last year’s budget came down to the eleventh hour, and this year could be worse.”
August: The Mayor’s Proposal
In August, the council received the mayor’s proposed budget for 2027. This year, Mayor Jacob Frey proposed a $2.3 billion budget, with $753 million in general fund spending, which pays for core services like police, fire, 911 and street maintenance. The proposed budget relies on an 11.3% increase in the property tax levy.
Part of that levy increase isn’t new spending at all. For the most part, commercial and industrial property values in Minneapolis fell again this year, shifting more of the tax burden onto residential homeowners and renters.
Notably, this budget increases the Minneapolis Police Department’s overtime from $2 million in 2026, which will be greatly exceeded by spending this year, to $13 million in 2027, which the mayor proposed as a more accurate forecast given continued officer staffing shortages. It also cuts around 100 positions across city departments and proposes increasing the Minneapolis Park and Recreation Board’s levy by only 2.5%, instead of the 5.86% the Park Board was seeking.
September: Setting the Levy Ceiling
Next, the Board of Estimate and Taxation set the maximum levy. This year the board was deeply divided, but it ultimately decided to give the Park Board and the mayor their full asks. That brought the maximum approved levy increase to 11.9%.
That 11.9% figure represents a ceiling and not a floor, and I’ve been very vocal in urging my council colleagues to think about it that way. This is the largest levy increase since at least 2000, and with Minneapolis’ commercial valuations continuing to fall, we are not on sound financial footing.
In fact, S&P Global Ratings recently put the city on notice, lowering its outlook on our AAA bond rating to negative and citing expected declines in our reserves. Losing that AAA rating would make it more expensive to borrow money, which means we could do fewer capital projects, like replacing roads and bridges, in the future.
September and October: Department Presentations
September and October have been filled with nearly 40 budget presentations from city staff. Each city department gives an overview of its proposed spending and cuts for 2027 based on the mayor’s budget and answers questions about how those cuts would affect the services it provides.
“ That 11.9% figure represents a ceiling and not a floor, and I’ve been very vocal in urging my council colleagues to think about it that way.”
November and December: Amendments, Votes and a Deadline
After these presentations, council members can submit their own amendments to the budget, which are due Nov. 18. The marked-up budget, with all council members’ amendments, will be published Dec. 7 in LIMS, the city’s online legislative system, so residents can see what’s on the table before we vote.
We begin voting at a markup session Dec. 10, with more sessions Dec. 11 and Dec. 14 if needed. On Dec. 15, the council will hold the Truth in Taxation hearing, the final public hearing on the budget and levy. Once the hearing closes, we take up any remaining amendments and vote to adopt a budget.
Adoption takes at least seven votes. If the mayor vetoes the budget, the council can override with nine votes. Otherwise, we go back into negotiations to hammer out an agreement with him. State law gives us a hard deadline of Dec. 28 to certify the final levy.
What’s at Stake
Last year’s budget came down to the eleventh hour, and this year could be worse. With the council closely divided, the mayor’s veto of any budget the council passes would likely be upheld.
To ensure the future fiscal sustainability of our city, I remain committed to fully funding our core services, bringing down the levy and putting the city’s finances on solid ground. I firmly believe these three goals are shared by a majority of my Ward 7 constituents, as well as a majority of the entire city. It’s common sense.
Elizabeth Shaffer represents Ward 7 on the Minneapolis City Council and is vice chair of its Budget Committee.
