Good morning — and thank you for joining me for my 2026 Budget Address.

I want to begin with a simple truth: a great city doesn’t happen by accident—it’s built to last.

Built to weather tough seasons.

Built to serve not just this year, but the next generation.

Built to keep its promises to the people who call it home.

That’s what this budget is about: building a city to last.

And as some of you know, this theme is personal to me right now. Just a few weeks ago, my wife Sarah and I welcomed our second daughter into the world: Estelle Bloom Frey.

It’s been beautiful. It’s been humbling. And, like any new parent will tell you, it's been a little messy.

But more than anything, it’s been clarifying. Holding Estelle reminds me that the work we do here is not just about the next fiscal year. It’s about the Minneapolis we’re building for her, for my older daughter Frida, and for every family in our city.

A city where their streets are safe.

Where their neighbors have homes.

Where small businesses succeed and culture blossoms.

And where city government isn’t a punchline—it’s a promise kept.

This year’s budget reflects that commitment. It’s honest, disciplined, and focused on the core services that make Minneapolis strong—so that decades from now, our city is still standing tall, still working for its people, still built to last.

It is the most cliche, overused political, rhetorical flourish to say that budgets are more than numbers—they are expressions of our values.

But some things are cliche because they are true. Budgets show what we prioritize and what kind of city we choose to be.

And sometimes, that means not chasing every new idea but investing in the things that already work.

Doing the work

This budget didn’t happen in a vacuum.

Over the last several months, our City departments and budget team rolled up their sleeves. They went through their budgets line by line. They evaluated every program, every vacancy, every dollar spent. And they used data to come forward with real solutions to close our gap without breaking the services residents rely on.

That’s the kind of government residents expect, and I couldn’t be prouder of their work.

Contrast that with Washington: agencies dismantled, departments hollowed out, services cut off midstream, and people left wondering if their government works at all.

Here in Minneapolis, we do it differently: we plan ahead, we govern responsibly, and we bring our staff along. All of them.

Disciplined budget

Despite this hard work, this was not an easy budget year.

But it’s also not a crisis budget.

This is a disciplined budget.

We knew this year would require focus and tough calls—because good governance sometimes means refocusing and doubling down on what works.

Our first and most important task was reducing the projected levy increase. In a post-pandemic world, the value of large office buildings is going down in every major city, and Minneapolis is no exception.

Unfortunately, that has a pronounced impact on our tax base and budget. With no action, this year’s property tax levy increase was projected to reach 13%. That would have been unacceptable and unaffordable to working families. The impact on renters and homeowners alike would have been unsustainable. Minneapolis has been a national leader on affordable housing, but a 13% levy increase would have set us back dramatically.

Today — I am proud to announce our City staff have identified savings and cuts that reduce the projected levy increase by 40% — bringing it down from 13% to 7.8%.

Our approach to identifying these savings was straightforward:

• Protect the core services our residents rely on every day.
• Invest in proven programs instead of launching new ones that are untested or unsustainable.
• Keep City staff—the people who make this city work—on the job.
• And do everything possible to keep the levy down, recognizing that this money belongs to the people of Minneapolis and we need to manage it wisely.  

And we achieved all of this without layoffs.

Because our people—our plow drivers, 911 dispatchers, housing inspectors, and public safety officers—are the backbone of city government. In a proud union city like ours, protecting those jobs protects the services residents count on.

We also worked smarter.

In past years, departments submitted long lists of proposals for new programs. Last year, we had 145 new spending proposals. This year, we said don’t give us any.  

Instead, we told departments:

• Evaluate what isn’t working or has shifted to other jurisdictions.
• Identify programs that have delivered — and distinguish them from those that have not.
• Take a closer look at vacant positions and cut them if they aren’t absolutely needed.
• And recommend reductions that don’t impact core city services.

Here’s what that looked like:

• Reducing Open Streets from four events to three — keeping the program alive but scaling responsibly.
• Sunsetting vacant positions that departments agreed weren’t critical to operations.
• Shifting funding from untested new initiatives to ones we know work: like the Stable Homes Stable Schools program that’s already keeping thousands of students housed.
• Scaling back select pilots that weren’t yet operational.
• And ending double overtime for MPD — saving taxpayer dollars while still meeting our public safety obligations.

We also generated new revenue responsibly, with tools that are standard and resident-friendly:

• Adding credit card processing fees for utility payments, which many cities, the state, and the county already do.
• And expanding convenient payment options like Venmo, making it easier for residents to pay on time and avoid incurring a fee.

And let’s be real: part of responsible budgeting this year was planning for the unknown.

Washington, D.C. is in chaos. Federal cuts have become a regular threat. And with Donald Trump in office, the uncertainty isn’t just about politics—it’s about whether cities like ours can rely on federal partnership at all.

That’s why we budgeted intelligently. We saved where we could. Because when you don’t know what’s coming down the road, the smartest move is to make sure you’re ready.

The result? $23 million in savings, a levy increase held to 7.8%, and a budget that reflects both discipline and vision, while making sure we’re still able to provide necessary services to our residents.

Every decision came back to one question: Will this make Minneapolis stronger for the long term? Will this make Minneapolis a city built to last?

Building for the future

One of the reasons Minneapolis can make strategic, long-term investments—even in a tight budget year—is because we’ve earned and maintained a AAA bond rating from the three major rating agencies.

I know that sounds like accounting jargon. But here’s why it matters:

• A “AAA rating” is the highest a city can receive.
• It signifies strong, responsible financial management.
• And it saves taxpayers millions, because we can borrow for major projects at lower interest rates.

That strong financial footing allows us to move forward on capital projects that make a visible, daily difference in the lives of residents. A few examples:

• Rebuilding the Nicollet Avenue Bridge over Minnehaha Creek — This $63 million project, mostly funded by state and federal dollars, will replace a failing bridge and keep a critical connection open for our neighborhoods.
• We’re paving 55 miles of parkways and improving 377 miles of alleys, so getting around Minneapolis is safer and easier for everyone.
• Reimagining the former Kmart site on Nicollet—We’re reopening Nicollet Avenue and transforming the site into a vibrant hub with affordable housing, local businesses, and space for the community to gather.
• Minneapolis Democracy Center —At the former 3rd Precinct site, we’re creating a new home for Election & Voter Services alongside a community partner—turning a place of division into a place for civic engagement.
• Upper Harbor Terminal — Local artists are helping reimagine our riverfront, creating permanent public art that tells the stories of the Northside community.

These investments are the backbone of a city built to last—stronger streets, safer bridges, better transit, and corridors that support local commerce.

And alongside these community-focused investments, our capital plan also fulfills court-enforceable commitments under the state settlement agreement and federal consent decree to modernize public safety, including:

• A Public Safety Training and Wellness Center to provide modern training facilities for police and firefighters.
• And 4th Precinct modernization and 5th Precinct roof replacement, along with an Evidence Warehouse, Forensic Garage, and K9 Facility upgrades—critical improvements that meet our legal obligations and strengthen safety.

All of these projects are possible because we’ve managed our finances carefully and responsibly.

Good governance today means a stronger, safer, more resilient city tomorrow.

Investing in the core of our city

Even as we tightened our focus, this is not an austerity budget.

This is a recalibration—an investment in the fundamentals that make Minneapolis strong:

• Housing
• Safety
• Climate
• Economic Inclusion
• And the good governance that ties it all together

Affordable housing

At the foundation of a successful city is a safe, stable home.

We know that when families have a roof over their heads, everything else gets stronger: kids do better in school, parents can focus on work, and neighborhoods become safer and more connected.

That’s why this budget doubles down on the strategies we know are working:

Stable Homes Stable Schools continues to be a cornerstone of our housing strategy. Thousands of Minneapolis kids have stayed in their schools because their families were able to stay in their homes. We are keeping this program strong because it’s not just housing policy that’s proven to be successful—it’s education and public safety policy too.

We’re making ongoing investments in the Affordable Housing Trust Fund, which remains our most effective tool to keep housing in reach for all residents and creating more options so residents can live in the neighborhood of their choice. Year after year, this fund has delivered hundreds of units for the residents who need them most.

And we’re continuing support for the Minneapolis Public Housing Authority, because public housing is one of the most important sources of stability for thousands of residents. Every dollar we invest preserves long-term, deeply affordable homes for generations.

At the same time we’re growing and preserving housing, we’re also confronting homelessness and encampments with urgency and compassion. Over the last several years, we’ve implemented a coordinated, multi-departmental, multi-jurisdictional response—connecting unsheltered residents to housing and services, and when necessary, closing encampments that pose health and safety risks. And we’ve seen significant improvements.

With $1 million in funding — we're continuing that progress, investing in additional shelter because our neighbors deserve a place to sleep at night and a roof over their heads. Shelter is a critical link to permanent housing, and until recently—was covered by significant funding from the State. This investment recognizes that the work of getting unhoused people off the streets MUST continue, but we also must work together with our partners at the county and state to ensure those dollars are restored.

Our approach hasn’t changed:

• Lead with housing and services.
• Prioritize safety for residents and neighbors.
• Coordinate every step with our partners.

This work is hard. It’s complex. But it is necessary, and our City team has shown that when we align our resources and stay persistent, we can get more people in homes.

In short, this budget says clearly: housing is the foundation. When we keep families stable, we keep our neighborhoods and our city strong.

Community safety

A strong city also means a safe city. And safety has the be the top priority for any mayor of any city.

This budget keeps our city moving toward a 21st-century public safety system—one that is effective, accountable, and built to last. And we’re doing it by investing in the full spectrum of safety, from first response to violence prevention.

First, we’re continuing the work of police recruitment. The Minneapolis Police Department is the most diverse it has been in our city’s history. Applicants and recruits are coming on board in numbers we have not seen in years — and we now have more than 600 officers. 

We are fully funding the work required under our state settlement agreement and federal consent decree, and as planned in our biennial budget, we are adding two new compliance positions to the Implementation Unit. This ensures we don’t just meet our obligations on paper—we follow through with the oversight, training, and accountability that build public confidence.

And public safety in Minneapolis isn’t just about police. It’s about a comprehensive approach:

• Our Behavioral Crisis Response program continues, connecting residents in crisis to the help they need.
• Our violence prevention efforts continue to focus on community-led, data-driven strategies that break cycles of violence before they begin.
• And we’re maintaining our full sworn complement of firefighters, while also adding 15 firefighters to the general fund in 2026 to keep pace with service demands and keep residents safe.

Our emergency preparedness work also remains strong. Already this year, our Emergency Management team has put the training into action, preparing the City for multiple storms and making sure we’re ready for whatever comes our way.

This is what a modern, resilient safety system looks like: a department meeting its legal and moral obligations, supported by civilian professionals, and prevention strategies—all working together to keep Minneapolis safe and built to last.

Climate action and public health

When we talk about building a city that lasts, it’s not just about streets and bridges—it’s also about the air we breathe, the water we drink, and the health of our families and neighbors.

This budget makes real, tangible investments to ensure Minneapolis is both climate-resilient and healthy for the next generation.

On the climate front:

• We’ve done more to combat climate change in the last year than the previous 10 years combined.
• We are continuing to lead with our Climate Legacy Initiative (CLI), which through more than $8.4 million—is delivering cleaner energy, greener infrastructure, and a roadmap to meet our ambitious emissions goals. The CLI is retrofitting homes for energy efficiency, expanding renewable power across city facilities, and investing in neighborhoods most vulnerable to climate impacts.
• Our Zero Waste Plan is moving us closer to a future where far less ends up in the landfill, and where every household has the tools to reduce, reuse, and recycle.
• And through the Energy Conservation and Emissions Reduction Project — we're providing $1.5 million in up-front capital to retrofit City buildings and equipment, cutting energy use, lowering costs, and shrinking our carbon footprint.

This is how you prepare for the impacts of climate change while keeping the city functional and beautiful.

On the public health front:

We are confronting the opioid crisis with compassion and data-driven strategies. Through a combination of opioid settlement funds and federal grants, we are making key investments.

Let me explain the vision we’re working toward:

When someone is heavily addicted to opioids, help is often not accepted whether they’re intoxicated or going through withdrawal. But there is a middle zone, where people are more open to accepting care.  

By investing in Brixadi — we can expand that middle zone — easing withdrawal symptoms so more people are ready for treatment and long-term recovery.

And then, when we do bring someone in for treatment, we need health professionals ready to provide care immediately. Not in a week and a half, not when the next appointment becomes available, but right now.

That’s where our Mobile Medical Unit comes in. It will drive literally to where people are at. It will offer service and care and ultimately, we can provide people access to Brixadi, making the likelihood of treatment and a possibility for recovery directly within reach.

But we aren’t stopping there.

Our Narcan vending machines, will make sure life-saving overdose reversal medication is not only close at hand, but free.

And through our hospital-based intervention program, First Step, we’re connecting overdose survivors to treatment and support the moment they are ready to accept help.

We’re doing the work to save lives, so that healthy people can live them.

Economic inclusion and small business growth

A strong Minneapolis is an inclusive Minneapolis—one where every resident, no matter where they come from or what barriers they face, can participate in our economy and see themselves in our city’s success.

That’s why this budget continues to support the Ownership and Opportunity Fund—our tool to help Black, brown, and immigrant local entrepreneurs not just open businesses, but build wealth and lasting roots in our city. Because inclusion isn’t just about participation—it’s about ownership.

We’re also keeping up the investments that turn economic inclusion into real action. We’re maintaining our support for Black businesses and immigrant entrepreneurs and families, because immigration is a cornerstone of our city’s economic and cultural vibrancy.

While the Trump administration vilifies immigrants, Minneapolis welcomes them. We are a proud Welcoming City—and that’s not just a title, it’s a commitment. Our policies, programs, and budget reflect that commitment by supporting immigrant entrepreneurs, expanding access to City programs regardless of status, and funding trusted services that help people build a life here. Because in Minneapolis, we don’t scapegoat immigrants—we stand with them, invest in them, and grow stronger because of them.

Our budget also makes strategic investments to keep downtown clean, safe, and successful year-round:

• We are moving forward with the reimagining of Nicollet Mall to a 24-hour downtown corridor that supports business, arts, and culture — including new events like the Big Honkin’ Truck Parade and Dinner Du Nord. Expect more of them!
• Vibrant Downtown Storefronts will continue to activate empty retail spaces, attract new businesses, and keep our street-level experience lively for residents and visitors.
• And through the Developer Technical Assistance Program with $350,000 in funding, we are maintaining and improving the public spaces and amenities that keep downtown functional and inviting.

And then there’s our parks system — the shining gem of our city. It’s the very reason I chose to live here, and I know I’m not unique. Consistently rated as the best park system in the entire country, the Minneapolis Park and Rec Board has done extraordinary work expanding recreational opportunities for kids and families, maintaining and improving world-class facilities, like North Commons, and creating beautiful park spaces within a 10-minute walk of anyone that calls Minneapolis home. That’s why they awarded us the gold medal of excellence, and why we’re investing an additional $3.2 million in 2026 to keep this great work going.

These investments are not just about physical spaces—they are about confidence in our city’s future.

Ending: A city built to last

Minneapolis is on solid footing.

This budget keeps it that way by investing wisely in a city built to last:

• Homes that are stable.
• Streets and bridges that are safe.
• A public safety system that is trusted and effective.
• A downtown that succeeds.
• A city government that works.

That’s the city I want our daughters — and every child — to inherit.

This budget says that in Minneapolis, we believe in:

• Doing the work.
• Making smart choices today to protect the city we’ll hand off tomorrow.
• Keeping our promises to the people who rely on us.

When our kids are adults, they won’t remember this year’s levy number. They won’t know the line-item adjustments or the capital plan schedule.

But they will live in the city we’re building together—

• A city where their streets are safe.
• Where everyone has a place to call home.
• Where small businesses succeed in corridors that are alive with arts and culture.
• Where city government is not a punchline, but a promise kept.

We have done the hard work to make sure Minneapolis can weather the unknown, grow stronger, and keep moving forward.

So, let’s take pride in the discipline we’ve shown, the values we’ve upheld, and the future we’re securing—together.

This is the city I love.

This is the city I am proud to lead.

And this is the budget I am proud to present.

Thank you.

This is the speech as prepared, not a transcript.