Minneapolis City Council adopts 2026 budget, approves 8% maximum levy growth and a $213 million bonding package

The Minneapolis City Council adopted the citys 2026 budget on Dec. 9, approving the general appropriation resolution as amended and a series of companion measures that set tax levies, utility rates and capital spending for the coming year.

Council members voted to approve the 2025 property tax levies to be paid in fiscal year 2026 after the budget committees recommendation; budget staff had certified a maximum property tax growth of 8% above 2025 and provided an interactive levy estimator showing a median residential homestead increase of about $242 under that scenario. The clerk recorded the roll call on the levy resolution; that vote carried (roll call recorded with 10 ayes when taken).

The council then adopted the general appropriation resolution fixing maximum departmental operating budgets for fiscal year 2026. The resolution was adopted after the body considered and disposed of a packet of amendments (final adoption roll call recorded with 12 ayes). Key amendments that passed include a financial-policy change requiring quarterly accounting of costs tied to the settlement agreement with the Minnesota Department of Human Rights, an amendment establishing an economic development and cultural activation grant, and a provision to prioritize funding for 31 civilian investigator positions in the Minneapolis Police Department budget.

The council also adopted a six-year capital improvement program covering 202631. Debate on the capital plan included objections from at least one council member about a planned police training facility; the capital program passed on a roll call of 8 ayes and 4 nays. Related to capital funding, the council approved three bonding resolutions requesting the Board of Estimate and Taxation authorize issuance and sale of city bonds totaling $213,111,460.

Separately, the council adopted a resolution setting municipal utility rates for water, sewer, stormwater and solid waste to become effective Jan. 1, 2026 (adopted by roll call with 12 ayes).

What changed in the budget markup

- Transparency and settlement accounting: An amendment led by Council Member Wansley and co-authors modifies the citys financial policies to require quarterly reports that account for the full costs and forecasted costs of implementing the settlement agreement between the City of Minneapolis and the Minnesota Department of Human Rights. Proponents said taxpayers deserve clearer, centralized reporting; the amendment passed as part of the markup package.

- Civilian investigator funding: The council adopted an amendment that earmarks funding for 31 civilian investigator positions in MPD to prevent those positions from being reallocated as a funding-offset for other public-safety initiatives. The amendments author said the change protects existing investigative capacity and helps address a backlog of more than 5,000 cases.

- New cultural-activation grant: Council members approved a program, to be administered through CPED, to provide grants for culturally significant events and festivals across the city, with discussion about how the grant could coordinate with existing Meet Minneapolis programs.

Votes and next steps

The final adoption of the 2026 general appropriation resolution was recorded with 12 ayes. The capital program and bonding authorizations also passed; the bonding package asks the Board of Estimate and Taxation to authorize borrowing for multiple capital projects. The council set utility rates that will take effect Jan. 1, 2026.

Budget staff said the adopted amendments and the adopted budget will be reflected in the adopted budget book to be published after council action; staff noted some one-time items will be rolled forward to accommodate implementation timelines.

Reporting

The council directed additional reporting and legislative directives alongside the budget adoption, including quarterly updates on nonfatal-shooting task force implementation and MPD clearance rates, and a resolution forwarded for later council action concerning the citys contract with a third-party vendor.

The meeting recessed briefly for staff to reset before resuming for the business votes and concluded after members offered brief announcements.