Minneapolis council member warns of property tax spike amid projected budget shortfall
Council member warns property tax hike ahead
Minneapolis City Council member Michael Rainville is warning residents of a potentially substantial property tax hike ahead if the city does not trim its budget with an estimated $30 million deficit next year.
MINNEAPOLIS (FOX 9) - As the city projects a $30 million budget deficit for 2027, Minneapolis City Council Member Michael Rainville says without changes to city spending, property taxes could go up 13% next year.
Minneapolis property taxes
What we know:
Council member Rainville says the city is grappling with inflation and the lingering impacts of Operation Metro Surge.
"Back in January and February with Operation Metro Surge, we had a lot of public safety people working day and night keeping us safe. You notice there were no buildings burned down during then," Rainville told FOX 9 Tuesday.
There’s also a projected $30 million budget deficit projected for next year, something the city is required by law to fix before passing a final budget.
Rainville said Tuesday the deficit comes from a mix of decline in commercial business and higher costs associated with city employees.
"It's a process of the dropping in commercial tax values and thus the revenue, as well as just the increased costs. You know, policing costs more, fire costs more, and we need more police and more fire. You know health insurance has gone up," Rainville said.
Minneapolis council member warns taxes could rise due to city spending
Minneapolis City Council Member Michael Rainville said Tuesday without changes to city spending, property taxes could go up as much as 13 percent. There's a projected $30 million deficit, inflation and lingering impacts of Operation Metro Surge, all as city officials work to balance next year's budget. FOX 9's Emily Pofahl has more.
Dig deeper:
A Minneapolis homeowner with a property assessed at $400,000 right now is paying a little more than $6,000 in property taxes.
A 13% hike would add about an extra $780, making the homeowner’s property tax total close to $7,000.
Mayor Jacob Frey’s Office said in a statement to FOX 9 on Tuesday: "No final decisions have been made. The budget process is still underway, and the mayor is continuing to evaluate every department and engage with city council members before presenting his proposed 2027 budget."
The mayor doesn’t present his proposal to the council until mid-August.
Meanwhile, Rainville said he’s hoping to get a head start in engaging with his constituents.
"I want to let my constituents know I’m thinking about them. And I do not want to have to go to them with this high number, and this is the start."
The city won't finalize its budget until December.