Minneapolis City Budget FY2015 & FY2016

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Nick
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Minneapolis City Budget FY2015 & FY2016

Postby Nick » August 13th, 2014, 8:47 pm

Any predictions for the budget proposal tomorrow? I was almost sure that there would be another property tax cut, but after actually looking into it today, I guess consensus is that there probably won't be. Which seems kind of disappointing...I do see cranes basically everywhere. You'd think that the City's financial position is considerably better than even "alright" at this point.

Jump to 2016 Budget here: https://forum.streets.mn/viewtopic.php?f=25& ... 806#p95806

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Re: Minneapolis City Politics General Discussion

Postby FISHMANPET » August 13th, 2014, 8:50 pm

Well, 40% of that growth is flying out the windows thanks to the Minnesota Miracle...

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Re: Minneapolis City Politics General Discussion

Postby Nick » August 13th, 2014, 8:51 pm

I think fiscal disparities only applies to commercial and industrial properties, so all those blocks and blocks along the Greenway and at the U and in the North Loop ought to be fair game.

http://www.mprnews.org/story/2012/02/01 ... isparities

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Re: Minneapolis City Politics General Discussion

Postby FISHMANPET » August 13th, 2014, 9:12 pm

Right you are. I actually found that article when trying to find the percentage, I should have read more carefully.

I'm surprised there's no Wikipedia article on Fiscale Disparities.

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Minneapolis City Budget

Postby mattaudio » August 14th, 2014, 11:29 am

Mayor Hodges held a presser this AM to highlight her 2015 budget proposal. Headline

Summary by Eric Roper here:
"Hodges proposes 2.4% levy hike, more spending on public safety"
http://www.startribune.com/local/blogs/271248061.html

I assume once there's a document, it will end up here. So far I can't find more details.
http://www.minneapolismn.gov/finance/bu ... dget_index

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Re: Minneapolis City Budget

Postby MNdible » August 15th, 2014, 11:47 am

2.4% seems completely reasonable, assuming that the baseline is a good one. Setting aside budgetary pressures, it would seem to me that a reasonable levy increase would be the rate of inflation multiplied by the population growth, minus some small factor based on an assumption that there are efficiencies to be gained by serving a larger population.

I still think there are some functions that the city should turn over to the county, and also believe that there are a number of park board functions that could be turned over to the city to increase efficiency.

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Re: Minneapolis City Budget

Postby FISHMANPET » August 15th, 2014, 11:54 am

In theory the price of housing should go up with inflation, so there's no need to raise the levy to account for inflation.

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Re: Minneapolis City Budget

Postby mattaudio » August 15th, 2014, 12:05 pm

FISHMANPET wrote:In theory the price of housing should go up with inflation, so there's no need to raise the levy to account for inflation.
That's not how property tax works in MN. We don't have a mill rate. It's the total levy divided across all property in proportion to individual property's share of the entire property tax base.

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Re: Minneapolis City Budget

Postby mplsjaromir » August 15th, 2014, 12:07 pm

FISHMANPET wrote:In theory the price of housing should go up with inflation, so there's no need to raise the levy to account for inflation.
Not really, the levy is basically the amount of dollars the city wants to collect in property taxes. Theoretically if the value of real estate increases, and the levy increases, the tax rate may not actually increase.

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Re: Minneapolis City Budget

Postby mattaudio » August 15th, 2014, 12:21 pm

Which is also the same reason why you can say that allowing new development in our city necessarily lowers everyone else's property tax incidence.

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Re: Minneapolis City Budget

Postby FISHMANPET » August 15th, 2014, 1:39 pm

Yup, I'm dumb, Levy /= Mill. Though if we don't use a mill rate how is property taxed?

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Re: Minneapolis City Budget

Postby MNdible » August 15th, 2014, 2:04 pm

Well, there is a mill rate, but it's back-figured. First they determine the property valuations, and then they figure out how much money they need to raise via property tax (the levy), then they do some behind the scenes adjustments based on things like homesteading and property classification, and then all of that determines what the mill rate needs to be.

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Re: Minneapolis City Budget

Postby VAStationDude » August 17th, 2014, 8:22 am

http://mobile.businessweek.com/articles ... al-discord

This is why the Minnesota Miracle is so important. Obviously Minneapolis, St Paul and poorer suburbs have suffered from continuous disinvestment but, thanks to regionalism, are not completely screwed financially.

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Re: Minneapolis City Budget

Postby mattaudio » August 17th, 2014, 5:31 pm

But it's Mpls, St. Paul and "poorer suburbs" (at least the ones with a more traditional land use pattern) that would have much stronger standalone balance sheets. Much more property value, sales, etc per acre and per dollar of infrastructure liabilities.

The problem isn't MN Miracle or no MN Miracle. It's subsidized growth in an unproductive land use vs no subsidized growth in an unproductive land use. Things like MN Miracle and fiscal disparities are needed only to counteract the overwhelming social engineering and redistribution of wealth to suburbanized rural areas that have no other raison d'etre. The St. Louis metro is similar to the Minneapolis metro (and every other metro in the country) in that they've actively pursued shifting money to the outskirts through land use regulation and infrastructure mis-investment. If we stopped making those larger mistakes, it would allow actual places (like Ferguson) to thrive based on their own intrinsic value due to land use patterns, not necessitating a MN Miracle.

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Re: Minneapolis City Budget

Postby PhilmerPhil » August 19th, 2014, 1:50 pm

From a Mayor Hodges email:
Some of the ways that my budget helps grow Minneapolis are:

-Fully funding the investment in the redesign of Nicollet Mall. Governor Dayton, the Legislature, and the downtown business community have already invested, and now we are adding our share to this long-term investment in our economic vitality.
-The first investments in a network of protected bike lanes, many of which will be in diverse and low-income neighborhoods in Minneapolis.
-A new transportation-planning division that will allow us to keep ahead of future projects
A new transportation-planning division? Interesting. This is the first place I've seen this mentioned. Any thoughts on this?

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Re: Minneapolis City Budget

Postby PhilmerPhil » November 24th, 2014, 4:25 pm

PhilmerPhil wrote:A new transportation-planning division? Interesting. This is the first place I've seen this mentioned. Any thoughts on this?
More info on this: http://www.minnpost.com/cityscape/2014/ ... epartments

This seems like a great, logical step forward.

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Re: Minneapolis City Budget FY2015

Postby twincitizen » December 1st, 2014, 10:24 pm

Some shenanigans and a close 7-6 vote brings the levy increase down to 2.2% instead of 2.4%, or roughly a loss of $620,000 from the budget (or gain for taxpayers).

http://m.startribune.com/local/minneapo ... inneapolis

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Re: Minneapolis City Budget FY2015

Postby David Greene » December 1st, 2014, 11:52 pm

twincitizen wrote:Some shenanigans and a close 7-6 vote brings the levy increase down to 2.2% instead of 2.4%, or roughly a loss of $620,000 from the budget (or gain for taxpayers).

http://m.startribune.com/local/minneapo ... inneapolis
Glidden's take, which I am sharing widely:
Elizabeth Glidden wrote:BUDGET UPDATE:

Today, at our "budget markup" meeting, the council approved on a close 7-6 vote a .18% property tax decrease (for a $180,000 home, we were told the savings would be approximately two dollars and fifty cents). I argued against this motion (and voted against it) for the simple reason that the small property tax savings were not worth the harm to critical investments, as well as creating a "budget hole" that will create challenges in future years.

What was cut to achieve this average savings of about $2.50? Our commitment to our Nation's first clean energy partnership (a commitment leveraging significant staff and resource contributions from our partner utilities), diverse homeownership support and foreclosure prevention for communities of color, depleting the One Minneapolis Fund targeted to support leadership development in communities of color, and cutting in half our support for the disparities study that forms the legal basis for setting race-based goals for business inclusion in worker inclusion goals.

Barely saved, on another 7-6 motion, was one of the new equity positions within the city coordinator's office. We have similar enterprise support positions in other key goal areas of the city, such as sustainability and the arts, and they have been highly effective in driving city-wide results and leveraging outside partnerships.

I am most concernedt that 7 of my colleagues voted to reduce our commitment to the Clean Energy Partnership - especially since this was one-time funding that will have no impact on the property tax levy. This investment would primarily be for designing and implementing programs to serve residents in Minneapolis. One of the highest on the list, in my mind, is how we address energy issues (and costs) at multi-unit residential buildings. I am hoping we can look for a solution on this item before the final budget approval of December 10.
I am seriously disappointed in Blong Yang.

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Re: Minneapolis City Budget FY2015

Postby lordmoke » December 2nd, 2014, 12:17 pm

Frey also voted for this, which is a disappointment. The other votes aren't all that surprising.

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Re: Minneapolis City Budget FY2015

Postby twincitizen » December 2nd, 2014, 1:37 pm

There could be some email organizing going on to restore the energy partnership thing. That seems like a really odd thing to cut, considering the partnership itself was approved unanimously just a few months ago and some of the councilmembers that just voted to cut the funding were at the ceremony thing celebrating its passage.


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