Property tax sticker shock prompts tough questions
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A Minneapolis board could pave the way for the city's biggest property tax levy increase in decades when it meets Wednesday — but the board's members are asking tough questions about what the city will get in exchange.
Why it matters: Minneapolis headlines a list of Twin Cities communities where property taxpayers could endure a steeper hike than usual as local governments work through a difficult budget year.
Catch up quick: Minnesota law requires cities, counties and school districts to alert property taxpayers by Sept. 30 how high their bill might climb next year.
- Budget trims can reduce the final levy amount, set in December — but the levy can't exceed the limits set in September.
State of play: In Minneapolis, Mayor Jacob Frey is likely to face tough questions from his fellow members of the Board of Estimate and Taxation (BET), which sets this levy limit.
What they're saying: BET chair Steve Brandt will likely vote against Frey's proposal for an 11.3% levy hike. Any increase greater than 10% would be "too onerous" for taxpayers, he tells Axios.
- BET vice chair Eric Harris Bernstein also tells Axios he wants a clearer plan for reining in police spending, collecting fees the city's owed, and restoring the city's dwindling savings account.
- "If we ask for 11.3% and then we don't do the right thing …," Bernstein tells Axios, "the challenges we're facing are going to be even tougher" next year.
Plus: There's likely to be tension over a Park Board proposal that could push the city's levy increase even higher — to 11.9%.
St. Paul property taxpayers would see a smaller levy hike — as much as 6.8% — under a proposal by Mayor Kaohly Her.
Zoom out: All seven metro counties are considering levy increases of at least 7.9%.
- Since 2016, the average county levy increase has been between 4% or 5%, according to state records.
Zoom in: Dakota County leaders on Tuesday green-lit a potential 18.5% hike.
- Supportive commissioners framed that increase as necessary to replenish the county's depleted reserves and avoid cuts to things like library hours or homelessness services.
"I'm trying to get past … the pit in my gut right now," commissioner Liz Workman said at the meeting, objecting to the double-digit increase.
- She voted against the 18.5% proposal, which passed 5-2.