Dec 15 Rybak, Council Raise Mpls Property Taxes By Up To 15%

Compared to similar budget decisions in years past, this year’s move by the City of Minneapolis to raise taxes and cut services received less media attention but more public outrage. Kudos to the Star Tribune for covering the issue today after the city council voted in the wee small hours of the morning last night to move forward with a budget proposed by Mayor RT Rybak that raises taxes to historic levels and cuts city services-including police. Kare 11 coverage here as well.

The increase will effect nearly every homeowner in Minneapolis, anywhere from 5-15%, as part of the 2011 budget of approximately $1.4 billion. Nearly 75 people spoke during the lengthy meeting, mostly opposing the cuts and increases. Beforehand, a larger-than-average crowd gathered in protest, organized by the Minneapolis Taxpayers United group, which has been active in debate over the issue for years. They highlight on their site that property taxes have doubled during Rybak’s term.

As part of the cuts, 24 cops will be taken off the streets, 32 firefighters and utility bills for residents will also be increased. Rybak’s administration has consistently cut police, read more about some of this history in our recent post. Runaway pension servicing is also running up the bill for the city, this ought to be reformed. Not unlike past tax increases, the city continues to blame the state’s cuts in LGA and uncertain financial stability for this latest move. They also plan on increasing property taxes around 6% year-on-year for at least the next five years.

 

When will the excuses end and solutions begin? It is time for the City of Minneapolis to hear the wake up call and get their financial house in order. LGA is not an appropriate revenue stream for Minneapolis to be sourcing its public safety budget out of. Business revenue to tax in the city has decreased (also cited as a reason for raising homeowner taxes) which means the climate for entrepreneurs and investors is becoming less favorable. The process of annual budgeting cannot simply be a game of firing employees and raising the cost of living. Minneapolis must recognize businesses and citizens as essential partners for longterm success instead of ATM machines.

Cross-posted and comments welcome at MN Democrats Exposed.