Mayor Frey's Minneapolis budget proposes 8.1% property tax levy increase

Minneapolis Mayor Jacob Frey has unveiled his $1.88 billion 2025 city budget proposal, which includes an 8.1% increase to the property tax levy.

During his budget address Wednesday, Frey said inflation, higher labor costs, the reduced valuation of office buildings and other factors have made the cost of maintaining existing city services in 2025 much more expensive.

Frey said keeping the levy increase under 10% once seemed like a "pipe dream", but he praised his administration for their efforts in finding ways to "do more with less."

"Through efficiencies and many hard choices we've managed to drive down the levy to an 8.1% increase," Frey said.

"Now, I'm not expecting us to celebrate this lift because our residents have a new lift of their own in property taxes," he continued. "But this budget provides a way through. We're doubling down on programs that work. We're ensuring our resources are used effectively and we're making sure our communities feel the benefit."

The median homeowner would see approximately a $200 property tax increase under the proposal, according to Axios , which reports the 8.1% increase would be the largest since at least 2008.

Key components of Frey's proposed budget include $17 million to construct and staff the South Minneapolis Community Safety Center , which will include the 3rd Precinct police station following the previous precinct's destruction during the 2020 civil unrest.

Nearly $6 million is proposed to continue support of the city's Behavioral Crisis Response team.

In regards to housing, the proposal includes a $17.9 million investment in the Affordable Housing Trust Fund and $5 million to sustain funding for the Minneapolis Public Housing Authority.

The budget also furthers the city's efforts for bolster climate resilience and reduce carbon emissions, with a $10 million proposed investment in the Climate Legacy Initiative.

The allocation includes a proposed $300,000 for the city's Net Zero Waste Plan, which aims to achieve zero waste operations by 2030.

Explore the full budget proposal on the city's website here .