EHB on BET

@ehbforbet.bsky.social

South Minneapolis resident, tax policy wonk, and winter enthusiast. Commissioner on the Minneapolis Board of Estimate and Taxation. Unofficial account. https://linktr.ee/ehbforbet

Another day, another hateful and desperate statement from President Trump, attacking our Somali neighbors. CD5 is proudly home to the largest population of Somali Americans in the State of Minnesota. They include business owners, health care workers, and so much more.

We Love Our Somali Neighbors

This morning I sent the following letter to the City Council, sharing my thoughts about last week’s maximum levy. I stand by my vote, which was based on my faith that the City Council will use the markup process to pass a budget that ensures accountability and strengthens our long-term outlook. 1/

Last week, the Board of Estimate and Taxation voted to set a maximum property tax levy of $609,542,025, which represents a potential increase of 11.9% with City and Parks combined. Of that, $413 million is for the City’s General Fund — a $52 million or 14.4% increase over the enacted 2026 budget. This was a difficult decision and I am writing to express my hope that you will use this fiscal flexibility to protect core services and strengthen the city’s budget outlook, while also ensuring adequate accountability for taxpayer dollars.

In the weeks leading up to our final levy setting, I spoke with many of you about my concerns over our long-term fiscal outlook and the impact of such a large tax increase. I worked hard to find a comprehensive agreement that would improve our fiscal position and minimize the impact on city residents. I was disappointed by the lack of appetite for a deal to lower the maximum levy at the BET level, but I understood the argument that additional dollars were necessary to allow for productive negotiations and to address some of the concerns I had raised.

Ultimately, I supported a higher overall levy because I feared that a lower levy limit would further weaken our general fund balance and imperil key services. I also thought it would be unfair to force a deal at MPRB’s expense. I did not take this vote lightly, but at the behest of Council President Payne and CM Chughtai, I placed my confidence in the Council to deliver a lower levy increase and a responsible budget that strengthens our city.

My conversations with all of you taught me that there is wide agreement on the need to cut wasteful spending, while investing in unmet needs and strengthening our most impactful programs. I urge you to find these areas of agreement and to reserve funding capacity for its highest and best use. I also hope that you will be united in insisting that your power of the purse is respected and that democratic checks and balances are maintained at City Hall.
…Whereas, the Minneapolis Board of Estimate and Taxation (“the Board”) is responsible for setting the maximum property tax levy, approving city bond issuances, and generally representing the combined interests of city residents as it relates to the city’s fiscal policy; and

Whereas, the Mayor has proposed an 11.3% overall property tax levy increase, which is the largest proposed increase in at least 26 years; and

Whereas, a levy increase near this scale would result in a substantial tax increase for city residents, equating to $400 per year for the median homeowner; and

Whereas, the Mayor’s levy 11.3% levy increase was proposed as a means of correcting the city’s long-term budget trajectory; and

Where, City finance authorities have established a general fund balance target of 17% of annual operating expenditures in order to ensure strong reserves and adequate liquidity; and

Whereas, the City has drawn down its general fund balance by over $100 million over the last three years resulting in a projected fund balance of 13% of operating expenditures, which is $22 million below target; and

Whereas, general fund draw downs are an unsustainable method of funding City operations; and

Whereas, bond ratings agencies have cited the City’s general fund draw down as a reason for downgrading our future outlook; and

Whereas, lowered bond ratings would have a significant impact on interest rates paid on municipal debt and overall construction costs, amounting to an additional $6 million per year by 2034 according to Finance staff estimates; therefore

Be it resolved that the the Board of Estimate and Taxation requests that the Mayor and the Council commit to ending the practice of using the general fund balance to supplement City spending; and

Be it resolved that the Board of Estimate and Taxation requests that the Mayor and the Council commit to seeking savings and funds to replenish the City’s general fund balance. 
Whereas, the Minneapolis Board of Estimate and Taxation (“the Board”) is responsible for setting the maximum property tax levy, approving city bond issuances, and generally representing the combined interests of city residents as it relates to the city’s fiscal policy; and

Whereas, the Mayor has proposed an 11.3% overall property tax levy increase, which is the largest proposed increase in at least 26 years; and

Whereas, a levy increase near this scale would result in a substantial tax increase for city residents, equating to $400 per year for the median homeowner; and

Whereas, the Mayor’s levy 11.3% levy increase was proposed as a means of correcting the city’s long-term budget trajectory; and

Whereas, independent research commissioned by the City showed that Minneapolis is unusually dependent on taxes and property taxes in particular; and

Whereas, the City faces strict statutory limitations on the taxes and fees that it can levy; and 

Whereas, the Mayor elected not to update the city’s fee schedule for the second year in row, resulting in a larger levy increase than otherwise would have been necessary; and

Whereas, City leaders should aim to improve city finances by balancing tax and non-tax revenues and by charging adequate fees to ensure cost recovery wherever possible; therefore

Be it resolved that Council Members of the Board commit to increasing license and permit fees in line with city costs; and 

Be it resolved that the Mayor and Council Members of the Board commit to prioritizing the creation of payment in lieu of taxes (PILOT) program, with proceeds dedicated to city asset acquisition and improvement, as suggested in the Board’s resolution number 2026-007; and

Be it resolved that the Mayor commits to expediting the fee study formally requested on October 26, 2024 by City Council Action no. 2024A-0787; and

Be it resolved that the Mayor commits to expediting the implementation of fees for police off-duty work as authorized by Ordinance No. 2025-0…Whereas, the Minneapolis Board of Estimate and Taxation (“the Board”) is responsible for setting the maximum property tax levy, approving city bond issuances, and generally representing the combined interests of city residents as it relates to the city’s fiscal policy; and

Whereas, the Mayor has proposed an 11.3% overall property tax levy increase, which is the largest proposed increase in at least 26 years; and

Whereas, a levy increase near this scale would result in a substantial tax increase for city residents, equating to $400 per year for the median homeowner; and

Whereas, the Mayor’s levy 11.3% levy increase was proposed as a means of correcting the city’s long-term budget trajectory; and

Whereas, this substantial levy increase was proposed largely in order to accommodate for previously unbudgeted police overtime and recruitment costs; and

Whereas, the Minneapolis Police Department (MPD) already represents nearly one-third of general fund spending and overspent its budget in the 29 out of 30 cost areas in 2025; and

Whereas, city residents should be assured that their tax dollars are being spent with the utmost care, and that large tax increases are not passed lightly by members of the Board of Estimate and Taxation; therefore

Now, be it resolved that the Mayor and Council Members of the Board should avoid a police contract that exceeds the City’s funding capacity or that further imperils City finances; and

Be it resolved that the Mayor and Council Members of the Board should practice the highest degree of cooperation in ensuring that MPD expenditures are effective and appropriate so as to protect key services, achieve public safety goals, and manage the tax burden on residents; and

Be it resolved that the Mayor should ensure that MPD presents its monthly budgetary updates in compliance with the City’s Financial Policies Section 1.3 - Budgetary Controls, Reporting on Anticipated Overspending; and

Be it resolved that Minneapolis Board of Estimate and T…

My thoughts on last night’s BET levy-setting. Not the outcome I hoped for but very happy to have fully funded Parks and highlighted my concerns about MPD overspending and the City’s financial direction. That work will continue.

Many people who were critical of MPD cost overruns were denounced as alarmist or anti-police. Now MPD has admitted to the abuse of overtime hours. I am grateful current leadership is cracking down but deeply frustrated by this betrayal of the public trust and the time it took to get answers.

Minnesota Star Tribune@startribune.com · 2w ago

Minneapolis police officials admitted Monday that overtime has been mismanaged and abused in recent years, leading to record overspending.

I greatly appreciate KSTP digging into the pressure that MPD overspending is placing on our budget and property taxes. The Mayor's budget contains an enormous increase in police spending and it's only reasonable to ensure they will stick to these limits and be held accountable.

5 Eyewitness News@kstptv.bsky.social · 3w ago

Minneapolis leaders are under pressure after a letter said police spending oversight has failed and called the department’s costs unsustainable.

Here’s an update from last night’s BET meeting, which failed to reach an agreement, as well as some thoughts on my position. I am confident we will arrive at a productive plan before our deadline next week.

Hi Everyone,
Here is an update from yesterday's meeting: Last night, the BET failed to pass a levy increase and adjourned until Tuesday, 9/29 at 4pm. The Board deadlocked over a number of proposals including the Mayor's original plan and several amendments. I voted against proposals to permit an overall levy increase of 11.8% in order to accommodate MPRB's full request, and also against proposals that would have taken the Parks increase out of the city budget, or provided just a 4% increase for the Parks.

My honest expectation was that an acceptable deal would be struck between the City and the MPRB and that my vote would become largely irrelevant, but the City and MPRB did not reach a suitable agreement and so my no votes ended up contributing to the deadlock.

My position was clear to my colleagues well in advance of this meeting: I support the parks and strong city services but I do not feel comfortable voting for this levy increase without commitment on reining in MPD overspending, protecting our general fund balance, and collecting additional non-tax revenues. I had productive conversations about these ideas with the Mayor, President Olsen, and our representatives from the City Council, but we did not arrive at a final agreement before last night's meeting. 
My responsibility as an elected member of the BET is to advocate for the city's long-term fiscal health and I am deeply concerned about the direction we are headed. I believe it is likely that MPD will overspend the $13 million it has been allotted for overtime and that we will draw down our general fund further, placing our bond ratings at risk and sending our long-term budget trajectory in an even worse direction. I appreciate the concern from some leaders and advocates who are eager to see a deal struck that protects vital services. Those services will be in far greater peril if the City does not agree to collaboratively confront the challenges we are facing. I feel that raising this alarm is an appropriate and necessary use of my voice on this board and that my colleagues should join me in a public commitment to better collective stewardship.

I am confident that the board will arrive at a figure that adequately funds our parks and provides the City the room it needs to maneuver towards a final budget. As MPRB and the City continue negotiations, I will make a more formal proposal to the Mayor and City Council representatives on the items I have highlighted and I am hopeful that this commitment could be part of a global deal that earns five or six votes next week. 

I will keep you all updated as things progress. onBildBild

Jokes aside, the city and MPRB failed to come to agreement. I’ve been consistent in my perspective that city residents deserve a commitment from the Mayor and Council about how they will rein in MPD overspending, improve non-tax revenue, and protect bond ratings. So far, no tangible offers.

Wedge LIVE!™@wedge.live · 3w ago

BET deadlock on the property tax levy tonight. They will come back at a later date before the end of September deadline to satisfy the demands of hostage taker Eric Harris Bernstein.

Yesterday I outlined my thoughts on the mayor’s budget and levy request in the Star Tribune. For me, the decision hinges on how the money will impact our long-term budget outlook. I highlight five key points that would put us on a better track. 1/ www.startribune.com/jacob-frey-b...

Opinion | How much should Minneapolis property taxes rise?

Mayor Jacob Frey's proposed 11.3% increase could be justified with a few budget tweaks that fill some glaring needs, according to one official involved in the decision-making.

startribune.com

Funding for our parks and the very financial foundation of Minneapolis are jeopardized because police spending is out of control. To avoid a reduction in our credit rating and future park service reductions the Mayor and City Council must take action to rein in spending. Please read and share.

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This morning, myself, BET President Brandt, MPRB President Olsen sent a letter to Mayor Frey, Council President Payne, and CM Chughtai outlining our concerns about unaccountable spending by MPD, and its impact on our city's long-term fiscal outlook. 1/

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Budget update with one week to go until levy setting: I’m working hard to ensure this budget protects core services and puts us on a better long-term trajectory. I’m concerned about rising police spending, risk to our credit rating, and cuts to our universe-leading parks. Email your officials!

I agree with much of what BET President Steve Brandt wrote in the Strib. I'm concerned about the impact of the mayor's proposed tax increase, especially without policy to reign in MPD spending. Read his thoughts and share your own at our hearing on September 9th. www.startribune.com/twin-cities-...

Opinion | Minneapolis can’t afford an 11.3% property tax levy hike

Mayor Jacob Frey and the Minneapolis City Council should look harder for savings, writes Board of Estimate and Taxation president Steve Brandt.

startribune.com

I want to share publicly that I plan to support MPRB's request for a 5.6% levy increase. The mayor's proposal of 2.5% would hurt our parks and save taxpayers little. Minneapolis parks are the best in the country and we should build on our strengths, not weaken them. www.minnpost.com/community-vo...

A message to the city of Minneapolis: Consolidation would hurt our parks

The quality of our Minneapolis parks would erode under consolidation and be an ineffective use of taxpayer dollars.

minnpost.com

🚨🚨🚨EHB talks MPD 🚨🚨🚨 I am extremely concerned about the impact that MPD spending will have on our property taxes and budget priorities this year. Now is the time to speak up to stop MPD cost growth from consuming the investments we need in our communities.

Capped off yesterday’s scorcher with a visit to the Webber Natural Swimming Pool and a spin through the new Upper Harbor park space. I was blown away by both. Webber was buzzing with people loving the cool water, and these rivers-side picnic tables are gorgeous. We can do great things when we try!

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EHB’s first resolution! On Wednesday the BET passed my resolution recommending that the city council explore a payment-in-lieu-of-taxes (PILOT) program to encourage tax-exempt orgs like foundations and universities to contribute to a city asset fund or urban wealth fund. More on the idea:

My great grandparents fled pogroms in the Ukraine in search of freedom in the U.S. Like generations of immigrants before and since, they went to work building this country. I'm grateful to them for the opportunities I later received and I want that for generations to come. Happy Independence Day.

An official EHB budget update before the big holiday weekend. I am tracking MOD over spending and other fiscal pressures and I am ready to fight for an accountable budget that expresses a positive vision of a brighter future.

Extremely proud of my friend @aishaforward10.com for taking this step to prioritize her mental health. Aisha has given so much to all of us and deserves our full support as she takes time to heal. I know she will return an even stronger champion for the people of this city. We are with you, Aisha!

Aisha Chughtai@aishaforward10.com · 3mo ago

Like millions of Americans, I work to manage my mental health daily. I’ve long ignored my need for more help. That’s why I’m sharing some personal news. I’m taking a leave from the City for a month to get help at a rigorous outpatient program for clinical depression and anxiety.