Minneapolis budget proposes $1 million for homeless response, other increases
Minneapolis council approves encampment ordinances
The Minneapolis City Council offered up its solutions to the connected problems of homelessness and criminal violence on Thursday. They passed three measures a day after police responded to three shootings and two homicides near homeless encampments. The council majority and the mayor don’t see eye-to-eye on a lot of issues, including how to address homelessness.
MINNEAPOLIS (FOX 9) - Minneapolis leaders are looking to shape a budget for city services and its residents that would increase spending and raise property taxes for homeowners to help pay for it.
Budget proposal
The 2025-26 budget marks the second biennial budget, the second year in a two-year cycle.
According to Minneapolis Mayor Jacob Frey’s proposed budget, the year could see a $29.5 million increase in new spending across all departments and funds.
Sales tax revenues in the city hit pre-pandemic levels in 2023, while continued revenue growth in 2024 is projected to be positive, continuing into 2025 and 2026, according to the proposal.
However, to help pay for the increase in spending, Frey recommends in his budget a property tax increase of 8.1% in 2025, and 9.8% in 2026 – the proceeds of which would raise an additional $36 million in 2025.
The city says an 8% increase would result in a $36 increase in property tax for the median Minneapolis single family home.
City officials admit that a decrease in property values, especially downtown with the onset of remote work beginning with the COVID-19 pandemic has led to a expenses growing faster than revenues as costs for personnel and police officer settlements have increased also.
Across all departments, Frey’s proposed budget accounts for $1.88 billion in total spending for 2025, and 1.90 billion in 2026.
The Minneapolis City Council has its own budget targets aside from Mayor Frey’s. The two will need to hash out differences and draft a final version that can then be voted on in December prior to the new year.
Homeless response spending
As part of the proposed spending, Frey is budgeting $1 million for unsheltered homelessness response.
According to the state’s stats for active homeless encampments and responses, the city currently has 34 active.
From Sept. 24 to Oct. 21, Minneapolis’ 311 services took 112 calls regarding people experiencing homelessness. In the same timeframe, 55 housing referrals were made, according to the city’s statistics.
Encampments have sometimes been found to create environments that neighbors say has led to increases in crime.