Labor agreements boosted spending, including a 30% raise for Public Works employees over three years and a 21.7% raise for police. There will be additional spending on the new South Minneapolis Community Safety Center that will replace the burned Third Precinct building and offer other services to the community.
After projecting a $21.6 million shortfall earlier this year, the administration thought a tax increase of 10% or more might be needed. Frey said his team worked on finding reductions to reach the 8% level, which included drawing $19 million from city reserves.
“I’m not expecting us to celebrate this lift, but this budget provides a way through. We’re doubling down on programs that work — where we can see the benefits, and getting rid of those that don’t.” He added that the city can provide residents with information about state and federal resources to help them pay taxes if they are eligible.
St. Paul
For the capitol city, Mayor Melvin Carter recommends a 7.9% levy increase, which translates into a property tax jump of $132 for the median homeowner in 2025. That would support an $855 million budget, with a general fund increase of $24.5 million over the current year.
The budget proposal makes reasonable requests for public safety, housing, responses to unsheltered homelessness and downtown revitalization. Those include new firefighter positions and promotions to operate a new fire station, and housing creation that includes converting more office space to residential.
In an interview with an editorial writer and in his speech, Carter emphasized the importance of housing. “From ending unsheltered homelessness, to maximizing opportunities at Highland Bridge and The Heights, to converting office buildings to residential uses downtown, every key to the future for St. Paul depends on our ability to facilitate and accelerate our housing construction goals.”