Mayor Jacob Frey delivers 2025 budget address

The mayor's proposed budget continues investments in the City's nation-leading affordable housing production, inclusive economic recovery, community safety and reform initiatives, downtown revitalization, and historic climate work

Budget underscores the mayor's commitment to City's workforce and competing in tight labor market while balancing the impact on property tax payers

Today Minneapolis Mayor Jacob Frey delivered his 2025 Budget Address in downtown Minneapolis in front of several Council Members, City leaders, and community partners. The mayor's proposed budget addresses the increased cost of maintaining current City services while continuing to fund core programs, initiatives, and infrastructure important to Minneapolis residents.

In prepared remarks, Mayor Frey outlined his budget proposal which features investments for the City's workforce, funding for the federal consent decree and state settlement agreement, and continued commitments towards the City's nation-leading affordable housing work, sustainable climate action, downtown revitalization, and inclusive economic development.

The mayor's proposed 2025 budget totals $1.88 billion with an 8.1% increase in the tax levy.

"What we are providing through this budget is a way through. We're doubling down and investing in programs that work for the long haul, we're ensuring our resources are used effectively, and we're making sure our community will see the benefits," said Mayor Frey.

"These investments are aligned with the values I've had since day one, and a difficult budgetary cycle doesn't mute the core values guiding our shared work.," Mayor Frey continued.

"Our planet demands work to reduce carbon output, and in Minneapolis we can take steps to deliver. People need the stability of a home, and in Minneapolis, we can continue leading the nation in providing affordable housing. Our streets need to be safe, and in Minneapolis, we can do both innovative and honest work to make that happen."

Property tax levy

Mayor Frey's budget reflects a commitment to maximizing City resources. Inflation and significantly higher but necessary labor costs have increased the cost of delivering excellent City services. The spending down of American Rescue Plan Act (ARPA) funds and a reduced valuation of office buildings have shifted the impact of those costs to homeowners and renters through increased property taxes.

To address these realities without cutting essential city services, the City has:

• Reassessed and reduced longstanding General Fund transfers to other funds.
• Increased the transfer into the General Fund from the Downtown Assets Fund to more fully cover the critical economic development work.
• Phased out the Commercial Acquisition Revolving Fund, saving $500,000 on an annual basis.
• Increased use of cash and reallocated existing federal grant funding, still maintaining necessary reserves and contingencies but maximizing the use of funds we already have on hand.
• Leveraged the City's AAA credit rating to borrow funds at lower interest rates for critical capital projects, saving taxpayer dollars.
• Utilized the City's debt capacity to expand the capital program and meet obligations for street paving and parks.

Multiple other levies factor into the City's overall property tax levy, including independent boards like the Minneapolis Park and Recreation Board, the Municipal Building Commission, and the Minneapolis Public Housing Authority.

Highlights from Mayor Frey's proposed budget

Community safety and police reform

• Contributes $1.3 million toward new hires for the implementation of the consent decree and funds training, compliance, and new data systems
• Invests $17 million in the new Southside Community Safety Center, including $220,000 to staff the center
• Continues the "Imagine Yourself" police-recruitment campaign in 2025 with a $500,000 investment
• Invests $385,000 to increase the pace of sworn and non-sworn community safety background checks, ensuring new MPD recruits are vetted and on the streets faster
• Continues $5.9 million to support the Behavioral Crisis Response team, providing funding levels for 24/7 culturally responsive services across the city
• Allocates $1.2 million for a new traffic camera initiative to combat reckless driving and better utilize police resources

Affordable housing

• Invests $17.9 million in the Affordable Housing Trust Fund, a key City resource for affordable housing production and preservation
• Sustains $5 million ongoing funding for the Minneapolis Public Housing Authority, helping to rehab existing units and increase public and deeply affordable housing units in our city
• Provides $1.3 million to Spring Street High Rise in Northeast, solidifying a blueprint to provide exponentially more public housing under HUD's Faircloth to RAD program
• Adds $1.5 million toward Minneapolis Homes program, providing homeownership opportunities and assistance in building wealth for residents
• Continues a $2.2 million investment into Stable Homes Stable Schools, which has provided housing or housing assistance to more than 4,800 Minneapolis Public Schools students
• Provides $1.5 million to stabilize existing affordable rental housing units
• Increases housing stability by providing $100,000 in assistance to low-income homeowners to address housing repair orders, allowing them to stay in their homes 
• Invests $1.5 million in homelessness response for more outreach, support, storage space, and health and safety initiatives

Climate and public health

• Continues investing $10 million in the Climate Legacy Initiative, including:
• $355,000 for electric vehicle charging infrastructure
• $446,000 in workforce training
• $300,000 in the tree canopy
• $180,000 for a first-in-the-nation biochar facility
• $300,000 in the City's Net Zero Waste plan, an initiative aimed at getting down to zero waste by 2030
• Continues our commitment to addressing opioid addiction with the use of opioid settlement dollars and local resources
• Retains three staff members for mental health services in school-based clinics

Economic inclusion and recovery

• Adds $2 million to the Ownership and Opportunity Fund in 2026, helping business owners not just own their businesses, but the underlying real estate as well
• Invests $550,000 to activate Nicollet Mall and revitalize downtown
• Expands the Vibrant Downtown Storefronts and Cultural Districts program with $1.43 million, helping to fill vacant storefront spaces in downtown and Uptown with color, beauty, and creativity from local artists
• Provides $300,000 to the Business Technical Assistance Program, providing small businesses and local entrepreneurs with technical, financial, and marketing support, including a focus on Uptown businesses
• Invests $300,000 in George Floyd Square for art preservation in 2026 as plans for the future use of the street and the People's Way come into focus

Good governance

• Provides $9.5 million to help run elections in 2025 and 2026
• Adds a new Labor Relations position in the Human Resources Department to help the City negotiate effectively and efficiently with labor partners
• Sustains East African cultural media programming, a valuable means of communicating with people in Minneapolis and connecting them to government
• Provides $385,000 for the development of a Racial Equity Framework, which will be a guiding document for all City staff to embed racial equity principles in day-to-day work

You can watch the mayor's full address on the City's YouTube channel.

Read the full proposed budget documents on the City website.

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