A lower property tax levy and Latino Business Week funding passed Tuesday night by the Minneapolis City Council as they approved over 70 budget amendments and an approximate $1.9 billion budget.
While council members approved the budget in a 10-3 vote, Minneapolis Mayor Jacob Frey disavowed many budget changes the council made, and in a rare move, promised in a press release to veto the budget.
Frey said in his press release that while he approved of council members decreasing property tax levy from 8.1% to 6.9%, he would veto the budget amendments. Frey’s promise to veto came following hours of public comment and council deliberation Tuesday night about budget amendments to the 2025 budget.
In a statement, Frey said the budget amendments passed by the city council were fiscally irresponsible.
“The City Council’s 78 budget amendments reflect the largest number of changes in recent history — nearly double the number from last year,” Frey said in the press release. “These amendments represent an alarming trend of prioritizing new, unvetted initiatives over. The core functions that keep Minneapolis running smoothly, make our city safer, and maintain equity for all residents.”
In response, City Council President Elliott Payne (Ward 1) called the veto reckless and said the veto shows the rift between the council and mayor.
“The fact that the Mayor is willing to veto the entire 2025 City budget because his co-equal branch of government made amendments that accounted for less than 2% of the total $1.88 billion City budget is absurd,” Payne said in his statement.
The Minneapolis City Council can override Frey’s veto in a vote Thursday. Ten council members approved the budget meaning they have the nine votes necessary to override Frey’s veto assuming no council members change their votes.
Frey’s back-and-forth arguments come as the two-term mayor prepares for his 2025 mayoral run. As of Wednesday, four challengers have announced their campaign to unseat Frey including state Sen. Omar Fateh (DFL-Minneapolis) and current Council Member Emily Koski (Ward 11).
During the meeting, the City Council butted heads over different government programs including the funding of police horses.
City Council Member Jamal Osman (Ward 6) introduced the $7 million allocation for the Mni Sota Fund Indigenous Wealth Building Center Development Project, a program focused on economic development and cultural preservation for Indigenous people.
Council Member LaTrisha Vetaw (Ward 4) and Council Member Linea Palmisano (Ward 13) spoke out against the amendment and said the amendment did not go through the correct process.
“Indigenous wealth building is a very important thing for this city, but I don’t agree with the process, it’s picking winners and losers tonight, ” Palmisano said.
In response, Osman said it is the council’s job to move money around.
“It’s our job to move money around. It’s our job to allocate money around,” Osman said. “It’s not a bad thing. It’s not about picking winners and losers, it’s about helping our community.”
Public comments call for lower property tax levy
During public comments, Minneapolis residents asked for support for programs like the co-enforcement labor program, a program that helps workers learn about their rights.
While many were grateful for the city council’s work on city-based programs, residents like Jeff Williams said they worried about how the property tax would impact their ability to live in the city long-term.
“My wife and I are retired, we really want to make it a place where we can stay. But the city is giving us the message that they don’t want us here,” Williams said.
Minneapolis resident Eric Nelson from Ward 13 said he approved of many of the government programs the council voted on but still wants the property taxes to stay low.
“I don’t envy your jobs,” Nelson said. “Finding an appropriate property tax and the government programs we just heard about. I would love to stay in Minneapolis, I enjoy the lakes and the bicycle trails. But that depends on the property tax.”
