Mayor Frey delivered his 2027 Budget Address, calling on the City Council and City leaders to work together to stabilize Minneapolis’ finances after years of crisis, rising costs, and inflation.
The Mayor’s proposed $2.3 billion budget includes $753 million of General Fund expenditures and an 11.3 percent property tax levy increase. For the median-value homeowner, this would result in about $409 more per year, or roughly $34 per month.
The proposed levy is an effort to address a more than $60 million budget gap while reducing spending by more than $20 million. Without changes to City spending and tough choices about right-sizing imbalanced budgets, the gap would have required a property tax levy increase of more than 19 percent.
The gap reflects the growing cost of running the City: about $33 million to fully fund existing services and more than $30 million in additional cost pressures across City departments. Those costs have been compounded by inflation, higher labor and operating costs, the end of one-time federal pandemic relief funding, and lower downtown commercial property values.
“The circumstances that required us to respond in crisis are not the same circumstances that should define how we govern this city long-term,” said Mayor Frey. “For the long term, we need responsible stewardship. That means making difficult decisions, painful choices, and telling the truth about what it actually costs to run a city.”
The proposed budget reduces spending through program and contract reductions, the elimination of around 100 full-time positions, the consolidation of City operations, and other efficiencies. The elimination of these positions does not necessarily equate to lay-offs; the city will explore a broad range of options including leveraging vacancies, departures, and planned retirements to offset the impact of these reductions to current employees.
At the same time, the budget protects key investments in the future of Minneapolis, including:
Public Safety
- Rightsizing the Minneapolis Police Department’s overtime budget by $13.1 million, and external contracts by $3.1 million; $4.3 million to continue recruiting and rebuilding the department
- Funding for 15 floating firefighters expected to save up to $2 million annually in overtime
- $2.3 million for 23 Community Safety ambassadors
- $4 million for Settlement Agreement and police reform contracts
- $1.4 million for opioid response and treatment
- An embedded social worker in 911 dispatch
Housing
- $7.3 million for the Affordable Housing Trust Fund, bringing total funding for this program to $15.5 million in 2027
- $1.5 million for Minneapolis HOMES to expand affordable homeownership and
- Continued funding for Stable Homes Stable Schools
Economic Development
- Maintains $25 million in investments in downtown vitality, small businesses and cultural and commercial districts while making it easier to invest and do business in Minneapolis
The budget also focuses on making City government more efficient by reducing duplication, streamlining operations, and ensuring ongoing expenses are supported by ongoing revenues rather than one-time resources.
The Mayor's proposed budget will now go before the Minneapolis City Council for review and consideration.
Read and view Mayor Frey’s 2027 Recommended Budget Address. The full proposed Mayor's recommended 2027-2028 is located here.