subject: Proposed Tax Increase For Minneapolis [print this page] Property Tax Increase Will Be Smaller Than Expected
This year, the Mayor of Minneapolis, R.T. Rybak, is planning to increase property taxes by 1.7 percent. Last year, taxes had been frozen as a result of tax payers outrage over the proposed increases.
The proposed tax increase is half of what it would have been had Vikings stadium legislation not directed city sales taxes to pay for Target Center bills instead of property taxes. Because property taxes will not be used to pay Target Center bills, property taxes will increase by 1.7 % instead of 3.4%.
Most homeowners will not notice the increase. In fact, it is estimated that 70% of homeowners will not see an increase because their property values have not increased.
Tax Increase Results in Significant Benefits for Residents
While no one likes an increase in taxes, all residents of Minneapolis will benefit from the tax increases since the extra funds will go towrdas hiring additional police officers and fire fighters.
The citys police budget will increase by $2.5 million. This means there will be ten additional police officers hired to work in Minneapolis.As well, Mayor Rybak would like to add $1.1 million to the fire budget each year for five years to hire additional fire fighters. Rybak predicts that many firefighters and police officers will be retiring in the next few years and younger people are needed. He hopes that up to fifteen more fire fighters will be hired in the first year.
City Council Will Help Reduce Spending
Mayor Rybak and Council Members are working hard to ensure that the city government is not incurring more costs than necessary. City Council has plans to reduce city government spending significantly in several ways. Through reorganization of city government, the City of Minneapolis will save between $430,000 and $400,000 a year. The reorganization includes the elimination of some management positions.
While this news sounds promising for tax payers, some Council Members such as Betsy Hodges are carefully considering the decisions made this year in the hopes of lessening the impact of tax increases in 2014 on homeowners.
