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MINNEAPOLIMEDIA NEWS | Frey Proposes 11.3 Percent Minneapolis Property Tax Levy Increase and Elimination of About 100 City Positions
Mayor Jacob Frey’s proposed $2.3 billion Minneapolis budget would increase the property tax levy by 11.3%, eliminate approximately 100 city positions and restructure parts of municipal government as the city confronts a projected budget imbalance exceeding $60 million.
MINNEAPOLIS, MN (August 13, 2026) Minneapolis Mayor Jacob Frey has proposed an 11.3% property tax levy increase, the elimination of approximately 100 city positions and broad reductions in programs and contracts as part of a 2027 budget built around what his administration describes as a significant structural financial imbalance.
Frey presented the proposed budget Wednesday. The plan totals approximately $2.3 billion, including a $753 million General Fund.
According to the mayor’s office, the proposed levy increase would add an estimated $409 annually, or about $34 a month, to the city portion of the property tax bill for the owner of a median-value home. The actual effect on an individual property would depend on its assessed value, changes in the tax base and levies adopted by other jurisdictions.
The proposal is not final. The Minneapolis City Council will review and amend the mayor’s recommendations before adopting the city’s 2027 budget later this year.
Frey said Minneapolis entered the budget process with an estimated financial gap exceeding $60 million. That calculation included a current-service shortfall estimated between $28 million and $33 million, along with a separate imbalance of more than $20 million to $30 million between department base budgets and projected operating costs.
Without spending reductions and other changes, the administration estimated that maintaining current operations could have required a property tax levy increase exceeding 19%.
The proposed budget would reduce spending by more than $20 million through the elimination or reduction of programs and contracts. It also calls for approximately 100 positions to be removed from city government.
City officials emphasized that eliminating positions does not mean every affected position will result in the layoff of a current employee. The administration plans to consider vacancies, departures and scheduled retirements when determining the effect on the existing workforce. Frey acknowledged, however, that some employees could lose their jobs.
The proposal also would consolidate selected city operations and examine areas where Minneapolis and the independently elected Minneapolis Park and Recreation Board maintain similar administrative systems. Frey cited human resources, information technology and payroll as possible areas for consolidation, although any such restructuring would require further review and cooperation.
Public safety spending remains a significant part of the proposal.
The budget would allocate $13.1 million for Minneapolis Police Department overtime. Frey said the increase is intended to reflect the department’s actual operating expenses more accurately after a 2026 overtime allocation of $2.3 million proved insufficient.
The proposal also reduces police recruitment costs by $4.3 million. The mayor said the city reviewed its recruitment investments to concentrate resources on candidates most likely to complete training and become officers.
In the Department of Neighborhood Safety, funding for violence interrupters would continue but at a reduced level. The administration said performance tracking had not demonstrated sufficient results to maintain the existing level of spending. The Community Safety Ambassador program would continue.
The budget would place a social worker within the 911 dispatch system to help connect callers experiencing behavioral-health or addiction-related emergencies with appropriate services. It also proposes $1.4 million for opioid-response and treatment programs operated through the Minneapolis Health Department.
Housing programs receiving continued or new investment would include $7.3 million for the Affordable Housing Trust Fund, $1.5 million for Minneapolis HOMES and continued funding for Stable Homes Stable Schools. The city would also continue contributing $5 million annually to the Minneapolis Public Housing Authority through its housing levy.
The City Council’s budget process will determine which reductions, investments and structural changes remain in the final plan. Council members may revise both spending priorities and the proposed levy before adoption.
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