Mayor Frey: Minneapolis faces up to $200M in loss revenue amid pandemic

MINNEAPOLIS (FOX 9) - The City of Minneapolis faces $100 million to $200 million in lost revenue amid the COVID-19 pandemic, according to Minneapolis Mayor Jacob Frey.

Mayor Frey shared the update during his recorded State of the City address Wednesday. Taped in his office with a small amount of staff, it marked the first time in the city's history that the address was not delivered live. Frey described the economic losses as a "major hit."

"We are seeing reliable funding sources shrink, and we understand that circumstance will force difficult decisions for cities across the nation, including Minneapolis," he said.

In response, the city has enacted a spending freeze, a wage freeze, limited discretionary speeding and added a hiring freeze, except for positions directly related to COVID-19. To help small businesses and low-income families impacted by the pandemic, the city also created $5 million gap funding plan. He said more than 6,000 people will be getting assistance through the housing relief program.

Throughout his address, Frey applauded the efforts of first responders, health care workers and small business owners amid the trying times. While everyone is adapting to a new normal, Frey said the state of the city is "unbowed."

"[COVID-19] has reshaped every city, every town in America," said Frey. "It has reshaped Minneapolis. But it will not define us. Minneapolis has been and will always be defined by its people: their spirit, their fortitude, their compassion."