Minneapolis Mayor Proposes 8.1% Property Tax Hike

Minneapolis Mayor Jacob Frey has proposed an 8.1% property tax hike as part of his $1.9 billion budget plan, marking the largest increase since 2008. This increase, expected to raise taxes by about $200 for the median homeowner, comes in response to declining downtown property values and the expiration of federal pandemic relief funds. The budget prioritizes funding for city operations, affordable housing, and police reform in light of the ongoing federal oversight following George Floyd's murder. Frey also aims to enhance downtown areas, including reactivating Nicollet Mall with various community features. Furthermore, the budget includes significant raises for public works and police employees, while a potential additional tax hike from the Park & Recreation Board could further increase the overall burden on residents. The final tax increase will ultimately be determined by the Minneapolis Board of Estimate and Taxation.