Property Tax Shock Could Be Ahead for Minneapolis Residents

Minneapolis residents may want to start saving now for next year's property taxes.

The Board of Estimate and Taxation met Tuesday afternoon and with no compromise reached since its last meeting, the Board voted 4-2 to approve a maximum city levy increase of 11.3% along with the full 5.86% increase sought by the Park Board.

Combined, the maximum levy could exceed 11.7%.

And I have a note here to explain that the park board levy is part of the city levy.

So their portion in terms of dollars is much smaller than the city's portion.

And therefore, there isn't a one-to-one impact on the percentage.

The mayor originally proposed 2.5% placeholder for the MPRB increase.

The additional 2.83% adds roughly 0.4% to the total city levy.

So I hope that's clear.

Commissioner Eric Harris Bernstein introduced the amendment to fully fund both requests.

Quote, I'm offering this amendment to avoid what will be a catastrophic loss of funds if we didn't pass something tonight, he said.

The catastrophe he described was a return to last year's levy, which would have happened if the board had deadlocked again.

Commissioner Mayor Jacob Frey and Commissioner Steve Brandt cast the two dissenting votes, both held firm in wanting a lower levy.

Brandt used the moment to reflect on the board's makeup, saying, I think the discussion this year has sort of pointed out the value of having a third public member on this board.

As the board is now constituted, City Hall, whether the mayor and the council typically agree or disagree, can essentially veto any other faction of the board.

And I believe that this board was set up historically so that City Hall didn't have a majority of the seats.

And it operated that way until the library board was abolished.

And I intend to look into the process for adding that third member via referendum.

The budget now goes to the City Council for review and amendment.

The Council may make cuts, which would lower the final levy, but we won't know where it lands until mid to late December.

Minneapolis residents may want to start saving now for next year's property taxes.

The Board of Estimate and Taxation met Tuesday afternoon and with no compromise reached since its last meeting, the Board voted 4-2 to approve a maximum city levy increase of 11.3% along with the full 5.86% increase sought by the Park Board.

Combined, the maximum levy could exceed 11.7%.

And I have a note here to explain that the park board levy is part of the city levy.

So their portion in terms of dollars is much smaller than the city's portion.

And therefore, there isn't a one-to-one impact on the percentage.

The mayor originally proposed 2.5% placeholder for the MPRB increase.

The additional 2.83% adds roughly 0.4% to the total city levy.

So I hope that's clear.

Commissioner Eric Harris Bernstein introduced the amendment to fully fund both requests.

Quote, I'm offering this amendment to avoid what will be a catastrophic loss of funds if we didn't pass something tonight, he said.

The catastrophe he described was a return to last year's levy, which would have happened if the board had deadlocked again.

Commissioner Mayor Jacob Frey and Commissioner Steve Brandt cast the two dissenting votes, both held firm in wanting a lower levy.

Brandt used the moment to reflect on the board's makeup, saying, I think the discussion this year has sort of pointed out the value of having a third public member on this board.

As the board is now constituted, City Hall, whether the mayor and the council typically agree or disagree, can essentially veto any other faction of the board.

And I believe that this board was set up historically so that City Hall didn't have a majority of the seats.

And it operated that way until the library board was abolished.

And I intend to look into the process for adding that third member via referendum.

The budget now goes to the City Council for review and amendment.

The Council may make cuts, which would lower the final levy, but we won't know where it lands until mid to late December.