This story has been updated to correct inaccuracies and to include statements by Mayor Jacob Frey, City Operations Officer Margaret Anderson Kelliher, and Community Safety Commissioner Toddrick Barnette.
Veto and override vote mark historic moment
The Minneapolis City Council passed its 2025 budget after intense debate and a final override of Mayor Jacob Frey’s veto. The budget, which totals $1.9 billion, includes a 6.8% increase in the property tax levy and sets the course for how city funds will be allocated for the upcoming year.
The process began with significant tension between the mayor and the council. The override signals a contentious yet decisive moment in the budgetary process.
In August 2024, Frey introduced his proposed budget for 2025, outlining expenditures of $1.883 billion and revenues of $1.896 billion. The mayor’s budget included an 8.3% property tax increase, the highest in more than a decade.
The mayor initially proposed a property levy of 8.1%. The Board of Estimation and Taxation later voted to increase that to 8.3%. The mayor was the only member of the board to vote against the increase at that time.
The mayor’s budget also included no cuts to city departments, with a proposed $36.8 million increase in expenses from the previous year.
Frey’s proposal allocated substantial funds to redevelop the 4th Police Precinct. He also recommended cutting funding for the city’s Affordable Homeownership Preservation program, which helps low-income homeowners with repairs and stabilization services, and the Small Business High-Road Labor Standards Intervention Pilot Project, which provides support services to BIPOC-owned small businesses to create equitable jobs. These proposals from the mayor were ultimately denied.
In response to Frey’s proposal, council members voiced concerns about the proposed property tax increase and the overall allocation of funds. Council members worked through a series of amendments, upward of 70 overall.
When the 70-plus amendments came to light, the mayor sent a letter to the Council expressing concerns with many and how they would impact Minneapolis residents and core services. Before sending the letter, Frey’s office asked Council Vice President Aisha Chughtai, in her role as the Chair of the Budget Committee, to negotiate on several amendments to get to a place where the mayor would support their proposed budget. That offer, and another subsequent request, was declined, Frey’s office said.
Among the most significant changes was the reduction of the proposed property tax increase. The City Council found savings and reallocations that resulted in lowering by 1.5% the property tax levy from the 8.3% increase.
Through the council’s efforts, $7.12 million in cuts were made to expenses and revenues, and $3.875 million was pulled from the city’s current fund balance to offset new one-time spending.
Other amendments proposed by council members addressed various needs, including public safety, affordable housing, and economic development. These initiatives included funding for a Latino Cultural Destination project and a new Community Safety Center in North Minneapolis.
The council-approved budget includes $1.880 billion in expenses and $1.893 billion in revenues, with the 6.8% property tax levy increase representing a compromise between the council’s reductions and the mayor’s original proposal.
“We know there are even harder times ahead, with downtown valuations expected to fall further next year,” City Operations Officer Margaret Anderson Kelliher said of the Council’s budget after its vote. “Now is the time to make responsible decisions with the City’s reserve funds so that we have the tools to weather the storms ahead and to minimize the tax burden on our residents in the future.”
The council’s budgeted funds for crime prevention, police reform, and support for community-based safety initiatives, also raised concerns by Community Safety Commissioner Todd Barnette.
“The Council’s budget threatens to make this task more difficult by rearranging services, and cutting necessary funding — leaving us unable to plan with certainty for the future as we determine which critical programs and initiatives could be slowed or canceled, while at the same time, evaluating if any new, unvetted allocations can be implemented within the ecosystem alongside existing priorities,” he said.
Additionally, the council’s budget focused on affordable housing and homelessness, with specific funding for emergency housing vouchers and stabilization of programs like Avivo Village, which helps unhoused individuals transition out of encampments. The council also addressed economic inclusion with investments in small businesses, particularly those with BIPOC ownership, through initiatives such as the Latino Cultural Destination and the Ownership and Opportunity Fund.
The budget also allocated resources for seniors with increased funding for services that support aging in place, including transportation and housing stabilization programs. Council members emphasized the importance of creating a budget that was both reflective of community needs and responsive to the economic realities of the city.
Frey vetoed the council’s budget, possibly marking himself as the first mayor in Minneapolis’ history to veto a city budget. It was his 16th veto since becoming mayor in 2018 — surpassing the number of vetoes by the last two mayors combined.
Frey argued that the council’s decision to add $6.53 million in new spending, much of which was funded through cash reserves and transfers from the Downtown Assets Fund, was an unsustainable approach. Frey wrote off many of the City Council’s suggested initiatives as “ward-specific pet projects.”
“The Council’s budget increases property taxes for years to come. It cuts essentials like unsheltered homelessness response and recruitment of police, then turns around and uses the money to fund pet projects,” Frey said. “Fiscally, times are tight — federal funding will likely be withheld and state dollars are in short supply. We need to be responsible with our tax dollars.”
Frey also objected to the council’s cuts to the police department, including a reduction of $1.8 million from police programs, and its redirection of funds toward short-term projects and outside organizations.
“Minneapolis residents amended our City Charter to create a ‘strong mayor’ system,” said Council Member Emily Koski, who is challenging Frey in the mayoral race. “It’s clear Mayor Frey interprets this to mean conflict at all costs, communication only through press releases and conferences, and abandoning Minneapolis residents clamoring for a city that actually works. Being an actual ‘strong mayor’ is about more than a veto pen — it’s about connection, consensus, and compromise.”
The council, however, was determined to move forward with the budget as amended. In a 9-4 vote, the council voted to override Mayor Frey’s veto. Nine votes were required to secure the override, which was supported by Council Members Robin Wonsley, Jeremiah Ellison, Jamal Osman, Katie Cashman, Jason Chavez, Emily Koski, Aurin Chowdhury, Council President Elliott Payne, and Council Vice President Aisha Chughtai.
Council Members Michael Rainville, LaTrisha Vetaw, Andrea Jenkins, and Linea Palmisano voted to sustain the mayor’s veto. Notably, Jenkins had voted in favor of the budget during the initial vote but opposed the veto override, providing a one-vote difference from the initial 10-3 approval.
Despite the tension, the final budget aims to address key priorities in Minneapolis such as public safety, affordable housing, and economic inclusion for all residents.
“Thank you to everyone who took the time to attend a meeting or to contact our office to share their thoughts with us,” said Council Member Katie Cashman. “I took your feedback seriously and did my very best to honor it.”
Alexzia Shobe welcomes reader responses at ashobe@spokesman-recorder.com.
seems like a lot of jargon and no specifics. current mayor over spending oh wait the council actually is they are just taking money from other places that shouldn’t be used. making hard decisions that not every one likes is important.