Minneapolis Budget Committee Meeting – September 10, 2026

Chair Aisha Chuktai called the Minneapolis Budget Committee meeting to order on Thursday, September 10, 2026. Seven members were present, establishing a quorum; Councilmembers Payne, Rainbow, Osman, Stevenson, Whiting, and Chadry were absent. The committee received two presentations: budget director Sean Green's overview of the mayor's 2027 recommended budget and city auditor Robert Timmerman's workforce optimization and comparative benchmarking study.

Mayor's 2027 Recommended Budget Overview

• Director Green reported that the 2027 recommended budget totals approximately $2.29 billion with independent boards and transfers included, supports about 4,285 city FTEs (a net decrease of about seven), and includes a general fund of about $753 million, $97.3 million for the Minneapolis Parks and Recreation Board, $359 million in 2027 capital program funding, and about $11.85 million for the technology improvement plan.
• The recommended property tax levy is approximately $606 million, an 11.3% increase. Green said the city faced more than $60 million in general fund pressure: a $28–$33 million current service level gap plus about $27 million from under-budgeted recurring costs such as police and fire overtime and settlement agreement compliance.
• Without action, the implied levy requirement would have exceeded 17%. The mayor's budget includes about $33.5 million in investments and $23.7 million in divestments/cost savings, for a net general fund change of roughly $9.8 million. The roughly 100 FTE divestment figure is an estimate, not a final position list.
• Green noted the unrestricted general fund balance is projected to fall to 13% by the end of 2026, below the 17% policy target, and that S&P Global affirmed the city's AAA rating but revised its outlook to negative. He said the budget avoids using reserves as an operating solution.
• Revenue data presented included $2.16 billion total city revenue excluding independent boards and transfers (up 7%), a proposed $47.5 million downtown assets-to-general fund transfer, and local government aid of approximately $82 million total, with the city's share about $72.1 million. A second-quarter projection showed major general fund revenues underperforming the adopted budget by nearly $15 million.
• Major investments include $13.1 million for police overtime, $3.4 million for fire overtime, 40 police community service officer and cadet positions, 23 community safety ambassadors, and 15 firefighters. Divestments include consolidating communications and NCR, reorganizing PMI and REIB functions, reducing violence interrupter contracts, and personnel budget reductions across departments.
• Green said one levy point equals approximately $5.45 million, so reducing the recommended 11.3% levy to 11% would require about $1.6 million in recurring offsets, and to 10.5% about $4.4 million.

Council Discussion on the Recommended Budget

• Councilmember Chavez argued that police misconduct and legal settlements are a major driver of budget pressure and that cuts to housing inspections, violence prevention, and other services are paying for police liabilities. She asked for details on the proposed NCR/communications merger and employee impacts. She also cited over $700 million in impacts from the federal occupation, including a $62.8 million estimate of assistance needed from December through March.
• Councilmember Wandsley criticized the ClearGov budget book for lacking line-by-line expenditure detail and for presenting merged departments before government structure ordinance changes are approved. She urged aggressive pursuit of LGA changes, alternative revenues such as PILOT and vacancy taxes, and off-duty police fee reform. She also asked why the settlement agreement now has dedicated funding after officials previously said it did not need it.
• Councilmember Palmasano said department heads he consulted do not yet know which specific positions will be cut; he announced he would file notices of intent for ordinance changes needed to implement consolidations. He expressed concern about the negative bond outlook, the downtown assets transfer, and proposed cuts to the city clerk's office and elections support. He also suggested moving the budget amendment deadline earlier than November 18.
• Vice Chair Schaefer asked how to locate the downtown assets transfer in the budget book and why prior five-year levy forecasts differed from current estimates. She praised the presentation's clarity and called on the council to work together to lower the levy.
• Councilmember Vito said the 11.3% levy is difficult for North Minneapolis residents and that she had asked the mayor for deeper cuts, including a 5% target. She questioned duplicate services and public safety overruns and joined calls for more line-item transparency.
• Councilmember Warren said some city-funded services, including health and human services functions and BCR, may belong under county jurisdiction rather than the city, and that the city should operate in its lane. She noted one-time ARPA dollars are gone and said Ward 5 residents face an estimated 11–18% tax increase.

Workforce Optimization and Comparative Benchmarking Report

• City Auditor Robert Timmerman presented a study conducted with 65th North Group using fiscal year 2024 data from benchmark cities Baltimore, Colorado Springs, Tulsa, St. Paul, and Portland. He said the nearly 200-page report was advisory, not an assurance audit.
• The report's 11 recommendations included embedding REIB functions within HR; considering moving property assessment to the county; evaluating whether health department services should be shared with or delivered by the county; reviewing the Minneapolis Building Commission's governance; conducting a fraud risk vulnerability study; improving cross-departmental alignment; evaluating crime lab service delivery; assessing consolidation of parks police and administrative functions; reviewing council staffing and the full-time council model; consolidating the solid waste call center into 311; and evaluating BCR for in-house delivery or stronger contract oversight.
• Timmerman said the administration responded with a letter committing to continuous improvement and that some recommendations were considered in the proposed budget. He encouraged the council to ask the administration which recommendations were implemented and which were not. He also noted that his office is conducting a full review of BCR, with a report anticipated in October.

Council Discussion on Benchmarking

• Councilmember Vito asked about fire inspections being housed outside the fire department. Timmerman said the arrangement appeared to be historical, no one in interviews said it made sense, and his office could provide additional background; Vito said moving fire inspections into the fire department is a priority for her.
• Vice Chair Schaefer asked about duplication and fraud risk. Timmerman explained that enterprise risk management is a management responsibility, not an audit function, and that the absence of such a function increases fraud risk.
• Councilmember Wandsley thanked the auditor for the study and said prior government structure reorganization felt piecemeal. She discussed REIB's unclear role, MBC governance, BCR and PMI history, and the need for thoughtful county coordination and shared-cost agreements. Councilmembers Vito and Warren added views on county versus city responsibility for social and community safety services.

Key Outcomes

• The committee filed both the mayor's 2027 recommended budget overview and the workforce optimization/comparative benchmarking study; no amendments or formal votes were taken.
• Chair Chuktai said department budget presentations will continue through September and October, public hearing dates will be noticed later, amendments will be considered in early December, and the City Council public hearing and final adoption are scheduled for Tuesday, December 15, 2026, at 6:05 p.m.
• The next budget committee meetings are scheduled for Monday, September 14, 2026, at 10 a.m., including presentations on the 2026 council dedicated funds, the 2026 change items report, and the biannual personnel report.