Board of Estimate and Taxation hears review of alternative revenue options; final Guidehouse report due in November

Andrew Hawkins, director of the Legislative Research and Oversight (LRO) office, presented an overview of city revenue sources and a comparative analysis of options the city could consider to reduce reliance on property tax at the Board of Estimate and Taxation meeting on Oct. 22.

Hawkins said the presentation and a preliminary Guidehouse report are Phase 1 of a two-stage effort; the final Guidehouse report and an expanded LRO analysis are scheduled for November. “These materials were broken up into 2 different phases, in order to allow legislative research and oversight to deliver certain pieces at an earlier date,” he said.

The presentation summarized Minneapolis’ current revenue mix, noting the city is unusually dependent on property tax and intergovernmental revenue. Hawkins cited the city’s 2025 projections, saying property tax is projected to be more than 50% of the city’s revenue absent other sources. “Absent additional revenue sources, we’re looking at property taxes being the bulk of at least 50% or more of the city's overall revenue,” he said.

Ha…