2014 levy to decline for first time in 30 years
One-percent cut in maximum levy is 3.8 percent below growth in cost of current services
September 11, 2013 (MINNEAPOLIS) — The Board of Estimate and Taxation today ratified Mayor R.T. Rybak’s proposed one-percent property-tax cut in 2014.
The Board’s action guarantees that for the first time since 1984, the City of Minneapolis property-tax levy will decline.
“Today’s guarantee of a tax cut next year is the result of 12 years of tough choices,” Mayor Rybak said. “From reducing City spending and paying down debt, to reforming closed pensions and securing the stadium that took pressure off taxpayers, to finally reforming Local Government Aid after a decade of cuts, taxpayers are reaping the benefits of our long-term strategy to make Minneapolis financially sound. I thank the City Council, Governor Mark Dayton and the current Legislature for their partnership.
“But the real heroes are our residents and businesses,” Mayor Rybak continued. “When times were tough, we asked them to invest more to keep Minneapolis strong. With times getting a little better, we are now asking less.”
In presenting his final budget as mayor on August 15, Mayor Rybak proposed a one-percent cut in the property-tax levy, despite the fact that the cost of maintaining current services will grow 2.8 percent in 2014, before any new initiatives.
Four members of the Board — City Council President Barbara Johnson, directly-elected member David Wheeler, directly-elected Board President Carol Becker and City Council Ways and Means/Budget Committee Chair Betsy Hodges — voted for the tax cut. Board Member Bob Fine, representing the Minneapolis Park and Recreation Board, first abstained, then voted against the Mayor’s tax cut. Mayor Rybak, a member of the Board, was absent due to illness.