For the first time in 30 years, Minneapolis is decreasing its property tax levy.
The 1 percent decrease, suggested by Mayor R.T. Rybak for the 2014 budget (PDF), won unanimous City Council approval Wednesday evening.
The property tax levy for 2014 totals $281.7 million, down $2.3 million from this year.
An estimated 67 percent of city households will see a decrease in their city property taxes.
“The property tax for your individual home will be dependent on a number of items, including a change in valuation of your individual property. In addition, you will also need to consider a change in valuation of your neighbor’s property,” said Budget Director Sandy Christensen. “You will probably not see a direct result of a 1 percent reduction.”
A property’s total tax bill includes taxation from several taxing districts. Of those, the Minneapolis portion represents 43 percent, with 28 percent from Hennepin County, 26 percent from Minneapolis Public Schools and 3 percent from other taxing districts.
The city’s property tax portion on a home with an estimated value of $195,500 is $1,312.
Minneapolis’ total budget will be $1.119 billion, an increase of 2.2 percent, or $24.5 million. Local Government Aid from the state totals $76 million, an increase of $12 million.
Next year’s budget includes new hires in the Police and Fire departments and $21 million in street construction. The budget also extends the 311 non-emergency operator service to six days by adding Saturday.
The budget also includes $400,000 for eventual use of on-person video cameras for police officers. That option is being studied by a work group assembled by Police Chief Janee Harteau.
The budget includes an increase of $1.83 per average household in monthly utility bills, which include water, sewer, solid waste and storm water. That average bill is currently $80.69 a month.
“This is my last budget as a council member, and there are a lot of thanks to be made,” said Mayor-elect Betsy Hodges, who chairs the Ways and Means/Budget Committee. She thanked city staff, council members and Rybak for the work they have done on the last four budgets.
Only one member of the current budget committee, Council Member Elizabeth Glidden, will be returning to the Council.
“I want to thank the mayor for taking this on with great passion and gusto,” said Council Member Lisa Goodman. “You left the city in a far, far better financial shape than anyone could remember.”