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City councils

Minneapolis Adopts 2012 Budget with No Increase in Property-Tax Levy

Strategic Insights

— 2 min read

Minneapolis Mayor Rybak's budget, which includes no increase in the City's property-tax levy, has been passed unanimously by the Minneapolis City Council. The 2012 City budget makes a significant investment in street improvements and the coordinated One Minneapolis initiative to reduce racial inequity in unemployment. The budget also maintains investments in public safety and eliminates no positions in the Fire Department. Mayor Rybak highlighted the City's fiscal health, citing the paydown of $183 million in debt since 2002 and the restoration of its AAA credit rating. The budget is flat compared to 2011 and 9 percent lower than 10 years ago, with 12 percent fewer full-time positions than 10 years ago.

Key Takeaways:

  • The 2012 Minneapolis City budget was passed unanimously by the Minneapolis City Council, reflecting a major new capital investment in street improvements and the coordinated One Minneapolis initiative to reduce racial inequity in unemployment.
  • The budget maintains investments in public safety, which have lowered violent crime citywide to historic lows, and eliminates no positions in the Fire Department.
  • Under Mayor Rybak's leadership, the City has paid down or avoided $183 million in debt since 2002 and restored its AAA credit rating.
  • City spending in the 2012 budget is flat compared to 2011 and 9 percent lower than 10 years ago, with 12 percent fewer full-time positions than 10 years ago.
  • Mayor Rybak negotiated a merger of two closed City pension funds with the State's public-employee retirement system, averting a $20 million tax increase that would have been forced on taxpayers in 2012.
  • The City will invest $150 million in street improvements over the next five years, 60 percent more than had been planned.
  • Mayor Rybak and City leaders are working to address jobs and income disparities through the One Minneapolis initiative.

Statistics:

  • The City will pay down or avoid $183 million in debt since 2002.
  • City spending in the 2012 budget is 9 percent lower than 10 years ago.
  • The City will have 12 percent fewer full-time positions than 10 years ago.
  • The City will invest $150 million in street improvements over the next five years.
  • The City will spend $9 million more in street improvements in 2012 than previously planned and $23 million more in 2013.
  • The City has lowered violent crime to historic lows.

Sources:

  • Minneapolis Mayor Rybak's 2012 budget document
  • Minneapolis City Council press release on 2012 budget adoption
  • Statement by Mayor Rybak on budget adoption

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