One of the primary concerns raised was the increasing dependency on property taxes as the main source of revenue for Minneapolis. The committee discussed the trend of rising property tax levies nationwide, acknowledging the limitations imposed by state regulations on adjusting these levies. A breakdown of property tax allocations revealed that a substantial portion is diverted to entities like the Park Board and pension-related expenses, with only 65% supporting the general fund. This has prompted the city to explore alternative revenue sources to relieve pressure on property tax payers.

The conversation highlighted potential new taxation options, such as an excise tax on beverages and other targeted taxes on specific goods or services. The idea of implementing a Payment in Lieu of Taxes (PILOT) program was also discussed, drawing on examples from cities like Boston, where tax-exempt organizations voluntarily contribute to city revenues. Despite the potential benefits, the committee recognized the challenges posed by state laws, which limit the city’s ability to introduce new taxes independently.

The committee discussed the potential for leveraging these districts to benefit broader city initiatives while ensuring that any revenue generated is reinvested into the district itself.

Turning to departmental budget considerations, the meeting delved into the Minneapolis Health Department’s proposed 2026 budget. The Health Commissioner outlined a budget totaling approximately $46 million, with a slight increase from 2025 due to new grants. Despite this, the department faces a 2% reduction target, primarily impacting contractual services. Concerns were raised about the reduction in full-time equivalents (FTEs), particularly in school-based mental health counseling. A contingency plan is in place to address potential losses in federal funding, with ongoing discussions with the Mayor’s office to mitigate the impact.

The Health Department’s presentation highlighted progress in initiatives like mental health screenings in schools and environmental health programs. However, the department’s reliance on federal and state funding poses risks to maintaining service levels. Efforts to address funding challenges include exploring partnerships to leverage trauma-informed care funding and opioid crisis response funds.

Another presentation came from the Youth Coordinating Board, which emphasized the need for coordinated efforts to support the city’s youth. The board’s work focuses on early childhood, youth development, and engagement, addressing challenges such as food insecurity and homelessness. Funding cuts to afterschool programs, particularly the uncertainty surrounding federal 21st Century Community Learning Center grants, were noted as a threat to the sustainability of these programs.

The discussion also included the Information Technology Department’s budget proposal, which prioritizes system health, security, and workforce efficiency. The department aims to maintain a network connectivity rate exceeding 99.9% and improve server availability. Cybersecurity remains a prominent concern, with a focus on protecting against ransomware and social engineering attacks.

The Technology Improvement Plan (TIP) was another focal point, outlining significant projects like the 3-1-1 Customer Relationship Management system replacement and the Enterprise Resource Planning project. These initiatives aim to modernize city processes and improve collaboration across departments. The TIP includes a six-year technology forecast, with initial appropriations for 2026.