Minneapolis, St. Paul property tax hikes proposed: How much more you could pay
Minneapolis, St. Paul property tax hikes proposed: How much more you could pay
Minneapolis and St. Paul mayors have proposed budgets that include property tax increases and service cuts. St. Paul’s proposed budget would raise property taxes by 6.8% while Minneapolis is looking at an 11.3% hike.
MINNEAPOLIS (FOX 9) - Property owners in Minneapolis and St. Paul could soon see higher taxes and fewer city services as both cities’ mayors roll out their latest budget plans.
Proposed budgets mean higher taxes and fewer services
What we know:
Both St. Paul and Minneapolis are facing potential property tax hikes and cuts to some city services under the budgets proposed by their mayors. St. Paul Mayor Kaohly Her introduced an $888 million budget Thursday that would raise property taxes by 6.8%. Minneapolis Mayor Jacob Frey proposed an 11.3% property tax increase a day earlier.
The St. Paul budget could mean the closure of the Dayton’s Bluff Library and reduced hours at other libraries and recreation centers. The city’s police force would also shrink, but Mayor Her wants those cuts to come from supervisory positions. She is also proposing a $20,000 reduction to her own compensation and asking her three highest-paid employees to skip their 2027 cost-of-living raises.
"Leadership starts at the top. That is why I am proposing a $20,000 reduction to my own compensation. And why my highest three compensated employees will forego the 2027 cost of living increase," said Kaohly Her, St. Paul mayor.
The proposed budget aims to protect lower-paid city employees and invests in police academies and EMS training to maintain or improve public safety.
Some city council members in both cities are pushing back on the proposed increases, saying the tax hikes are too high. "I am concerned about hearing a budget that's going to have a 6.8 percent property tax increase. I am hearing from all of my residents, all the business owners in my ward, that affordability is the top concern. Costs are going up in every other way and we absolutely need to bring that down," said Rebecca Noecker, St. Paul City Council president.
For the median property owner, the proposed St. Paul budget means a $58 increase, while the Minneapolis plan would cost the median owner an extra $409.
Both cities already have the highest effective property tax rates in Minnesota, according to the most recent Department of Revenue report.
Mayor Frey also proposed reducing the size of the community service officer program and making drastic cuts to the violence interrupter program.
Big picture view:
Mayor Frey said the current property taxes and values reflect market conditions from 2024, which he described as the low point. He suggested there are signs of a turnaround that could benefit homeowners in the coming years. "The property taxes and property values that shape today's budget largely reflect market conditions from 2024, the low point," said Frey.
The final city budgets are still up for debate
Timeline:
The budgets proposed by the mayors are not final. Both cities will hold public hearings and city councils will negotiate the details before making final decisions in December. In recent years, the final tax levy has typically ended up lower than the initial mayoral proposals.
The cities are preparing for public input and council negotiations, with the final votes expected by the end of the year.
What we don't know:
It is not yet clear which specific services will ultimately be cut or how much the final property tax increases will be after council negotiations and public hearings.