City of Minneapolis Annual Budget Process
Departmental Performance Information
City department heads bring their annual work plan and accomplishments to the Executive Committee, who then refers the work plan to the relevant Policy Committee for review and file.
Preliminary Year-End Budget Status Report
The Finance Department presents a year-end budget status report for the previous year to the Ways and Means/Budget Committee. This is a preliminary report because the audited Comprehensive Annual Financial Report (CAFR) is not available until second quarter of the year.
Capital Improvement Budget Development
The City has a five-year capital improvement plan. Annually, departments prepare and modify capital improvement proposals. Capital improvement proposals are reviewed by the Finance Department, the City Planning Department and the Capital Long-Range Improvements Committee (CLIC). CLIC is the citizen advisory committee to the Mayor and City Council on capital programming.
Preliminary Strategic Planning
The City Council and Mayor met for two half-day retreats to concentrate on financial and community development. The activities included a Strengths, Weaknesses, Opportunities and Threats (SWOT) presentation by department heads and a financial exercise.
Operating Budget Development
Departments work in coordination with the Finance Department to prepare department operating budget requests referred to as the "Current Service Level" (CSL). The Current Service Level Budget reflects the current year cost of providing the same level of service as provided in the prior year. In addition to preparing a Current Service Level budget, departments also prepare proposals which describe policy and the organizational changes with financial implications. The Current Service Levels and proposals form the basis for the Mayor's budget meetings with departments in June and July.
Mayor's Recommended Budget
The Mayor holds departmental budget hearings to review department budget proposals, other additional policy changes, and alternative funding choices. In addition to reviewing operating budgets, the Mayor meets with representatives from CLIC in preparation of finalizing the capital budget recommendation. Following the departmental budget hearings and meetings with CLIC, the Mayor prepares a final budget recommendation with the assistance of the Finance Department. The Mayor prepares and submits a budget to the City Council no later than August 15. The budget includes the Mayor's recommendation on annual property tax levy amounts.
Maximum Proposed Property Tax Levy
As required by State law, the maximum proposed property tax levy increase is set by September 15. The Board of Estimate and Taxation sets the maximum property tax levy. The Board of Estimate and Taxation must set a maximum property tax levy for the City, Municipal Building Commission, Public Housing Authority, Library Board and Park Board.
The City Council, with assistance from the Finance Department and leadership from the Chair of the Ways and Means Committee, addresses mission, goals, and key business decisions.
City Council Budget Review and Development
The City Council holds public hearings on the budget. Departments present their Mayor Recommended Department Budgets to the Ways and Means/Budget Committee with all Council members present. Following departmental budget hearings, the Ways and Means/Budget Committee approves and moves forward a final recommended budget to the City Council. The Committee recommended budget includes any and all changes that are made to the Mayor's Recommended Budget.
Truth in Taxation
"Truth in Taxation" property tax statements are mailed by Hennepin County to property owners indicating the maximum amount of property taxes that the owner will be required to pay. These statements also indicate when the Truth in Taxation public hearings will be held, which is in early December as required by State law.
City Council Budget Adoption
The City Council adopts a final budget that reflects any and all changes made to the Mayor's Recommended Budget. Once the final budget resolutions are adopted, all requests from City departments for additional funds or positions made throughout the year are brought before the Ways and Means/Budget Committee and City Council for approval as amendments to the original budget resolutions.
The independent boards and commissions adopt their own operating budgets.
Last updated Sep. 27, 2011