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Record of Proceedings

Minneapolis Budget Committee Meeting, 2026-09-28: PILOT Analysis, Regulatory Services, and Homelessness Response Budgets

City Council — Monday, September 28, 2026
BodyMinneapolis, Minnesota
SessionCity Council
DateMonday, September 28, 2026
StatusFILED
Video Record
0:00 / 2:44:46

Original source
Transcript — VerbatimClick a timed line to jump · ⧉ to share it

Speaker numbers apply only to this recording.

Speaker 1

0:22

Good afternoon.

0:24

My name is Aisha Chuktai, and I'm the chair of the budget committee.

0:27

I'm gonna call to order our regular meeting for Monday, September 28th, 2026.

0:32

Before we begin the meeting, I want to offer a friendly reminder to all members, staff, and the public that these meetings are broadcast live to enable greater public participation.

0:42

These broadcasts include real-time captioning as a further method to increase the accessibility of our proceedings to the community.

0:49

Therefore, all speakers need to be mindful of the rate of their speech so that our captioners can fully capture and transcribe all comments for the broadcast.

0:57

We ask speakers to moderate the speed and clarity of their comments.

1:01

At this time, I'll ask the clerk to call the roll so we can verify the presence of a quorum.

Speaker 2

1:06

Councilmember Payne present.

1:08

Councilmember Wandsley is absent.

1:11

Councilmember Rainbow.

1:13

Councilmember Vita is absent.

1:15

Councilmember Warren is absent.

1:17

Councilmember Osman is absent.

1:19

Councilmember Stevenson?

1:21

Present.

1:21

Councilmember Chavez.

1:23

Present.

1:23

Council Member Whiting is absent.

1:26

Councilmember Chowri.

Speaker 3

1:27

Present.

Speaker 2

1:28

Councilmember Palmasano is absent.

1:31

Vice Chair Schaefer.

Speaker 1

1:32

Present.

Speaker 2

1:33

And Chair Chung Tai.

1:35

Present.

1:35

There are seven members present.

Speaker 1

1:37

Let the record reflect that we have a quorum.

1:40

I'll remind my colleagues that we are using speaker management today.

1:43

So please make sure to sign in.

1:45

Our first um item on the agenda is a response to a staff direction regarding payment in lieu of taxes or pilots.

1:53

I'll invite I will invite Christina Keterling, the senior advisor to the Board of Estimate and Taxation to join us and begin this presentation.

2:02

Welcome, Miss Keterling.

Unassigned speaker

2:14

Good

Speaker 4

2:15

afternoon, Chair Chuck Chai, members of the committee.

2:17

I'm Christina Kiderleen.

2:18

I'm the senior advisor to the Board of Estimate and Taxation.

2:21

Um today what I'm going to be presenting for you is an analysis of Minneapolis's tax exempt landscape.

2:27

This is in result uh in response to a staff direction that this committee gave.

Unassigned speaker

2:33

I

Speaker 4

2:33

won't read it verbatim.

2:34

I'm sure you guys remember what you told, but basically what you were asking for was a list of numbers concerning the Minneapolis tax base, how many tax exempt properties we have of those properties, what's the makeup of them, what's the makeup of the organizations that own them?

2:48

So today, through um various different methods, we're gonna answer those questions for

Unassigned speaker

2:52

you.

Speaker 4

2:55

As a little roadmap of our discussion, first we're gonna start with an overview of the tax exempt landscape itself.

3:01

Then we're gonna move into an introduction of pilot or payment in lieu of taxes and go over what actually that is.

3:06

Introduce some alternative viewpoints, who likes pilot, who doesn't like pilot, explore how some example cities receive non-tax payments, how they manage their pilot programs, and then have a brief summary of Minneapolis City Services as part of the budget to kind of talk about what it might look like as a first pass on what a pilot program could maybe look like here.

Unassigned speaker

3:28

So

Speaker 4

3:28

here's the approach we took to answer your questions.

3:31

Like I said, in your request, it was very numbers heavy.

3:34

You wanted me to provide those numbers over to you so you could really get a feel for what kind of funds are you working with, what kind of assets exist here in Minneapolis.

3:41

So in order to answer that question, I created a custom spreadsheet using the raw assessing data.

3:47

Um so we do not own this data, it's the city assessor's office that owns this data.

3:51

And if you were to download it to today off of Cleargov, it would just be this um unformatted long list of tax exempt organizations and addresses here in Minneapolis.

4:00

So what I did was took that raw data and created a custom spreadsheet that you will be able to go through and filter and see who owns what, what's the estimated market value of that property, um, what that property might pay in taxes if they were not exempt, and what kind of services that organization provides.

4:17

So unfortunately, the spreadsheet is absolutely humongous.

4:21

We have an a very large presence here of um nonprofit organizations and things like that in Minneapolis.

4:28

So the spreadsheet itself is humongous.

4:30

IT is working on a good way for it to be incorporated as part of this presentation.

4:34

But in the meantime, if you want to actually crawl into this data yourself and take a look and maybe look up a particular address or a particular organization or type of organization, have your staff reach out to me.

Discussion Breakdown — Share of Meeting
Budget Management█████████████████████████25%
Homelessness██████████████████████22%
Public Safety████████████12%
Taxation████████8%
Animal Licensing██████6%
Inspection Services█████5%
Land Use and Zoning████4%
Personnel Matters████4%
Public Housing███3%
Summary of Proceedings

Minneapolis Budget Committee Meeting, 2026-09-28: PILOT Analysis, Regulatory Services, and Homelessness Response Budgets

On Monday, September 28, 2026, the Minneapolis Budget Committee met to review analysis and budget presentations related to the mayor's recommended 2027-2028 budget. No agenda or minutes were provided in the source materials, so this summary is based on the raw transcript. Roll call showed seven members present, establishing a quorum; Councilmembers Wandsley, Vita, Warren, Osman, and Whiting were marked absent. The roll call initially listed Councilmember Palmasano absent, but Palmasano later participated in discussion. Chair Aisha Chuktai presided.

Payment in Lieu of Taxes (PILOT) Analysis

  • Christina Keterling, senior advisor to the Board of Estimate and Taxation, presented an analysis prepared with Legislative Research and Oversight and the city assessor's office. Minneapolis has more than 6,000 tax-exempt properties; 1,625 are non-government-owned, held by roughly 770 unique entities, and 704 of those properties have an estimated market value of $1 million or more.
  • The assessor's office produced preliminary estimates for the top 50 most expensive exempt properties of what they would pay in 2026 if taxable. The gap between the top three properties and the 48th-50th properties is about $26 million. The University of Minnesota has nearly $4.3 billion in Minneapolis land assets; Keterling noted it is a land grant university with its own police force and land care operations.
  • Keterling explained PILOTs are voluntary payments that typically generate less than 1 percent of municipal revenue. Boston's routine annual model asks nonprofits with property valued over $15 million for 25 percent of the estimated taxable amount, allows up to 50 percent of that to be covered by community benefits, and received 76 percent of requested payments in 2024. Providence's long-term contract model produces about 2.7 percent of city revenue from PILOTs. Boston has begun moving toward negotiated long-term agreements. Keterling also noted criticisms that nonprofits have already earned tax exemption and that some fear voluntary payments could endanger their status.
  • Councilmembers asked about state-law authority, University of Minnesota street and emergency-call costs, corruption risks in negotiated agreements, and whether publicly funded institutions should be excluded. Councilmember Chavez said the city should consider PILOTs to help with budget constraints and requested a city attorney memo on whether either model is legal in Minneapolis. The committee received and filed the report.

Regulatory Services Proposed 2027 Budget

  • Director Enrique Velasquez presented Regulatory Services' proposed 2027 budget: 195.9 current FTE and a $31.7 million 2026 budget, rising to $35.1 million in the mayor's proposal. The $3.4 million net increase is mostly required internal service charges, liability allocation, contractual COLA and step increases, overtime, on-call, parking, and custodial costs; Velasquez said the proposal does not increase discretionary spending. Revenue is projected to decrease by $163,000.
  • The proposal includes $278,000 for overtime and on-call, $130,000 for parking and custodial costs at inspection services' new facility, and $458,135 to continue the traffic safety camera pilot. Proposed divestments total $1,177,199, including eight general fund FTEs and one special revenue FTE; exact position decisions were still in flux. One vacant housing liaison position would be repurposed to maintain an inspector II assigned to vacant, condemned, fire-damaged, and open-to-trespass buildings.
  • Division figures in the proposal: Code Compliance and Traffic Control, $10.1 million; Inspection Services, $14.1 million; Animal Care and Control, $5.7 million; Operations and Engagement, $3.8 million; and Homeless and Encampment Program, $1.3 million. Planned 2027 FTEs were pending further budget decisions.
  • Velasquez said Public Works will stop rubbish abatement service in March 2027, requiring a new $300,000 external contract at roughly twice current costs. Other contracts include $300,000 for yard maintenance, $335,000 for board-up services, and $250,000 for the Hennepin County winter warming center. Animal Care and Control will lose an ASPCA grant-funded foster coordinator at the end of December 2026; the department warned this could reduce foster capacity, lengthen shelter stays, and lower its 90-plus-percent live release rate.
  • Councilmember Chavez supported increasing rental license fees to preserve inspection capacity and asked for a breakdown of the $268,000 projected decline in inspection licenses and permits. Councilmember Rainville asked about license plate reader technology; staff said LPR is not currently allowed for regulatory parking enforcement without a state law change. Councilmember Chowdhury opposed outsourcing rubbish abatement and requested a Public Works follow-up. Chair Chugtai said the council needs clearer information about FTE cuts well before budget markup and called the initial budget book's lack of that information unacceptable.

Homelessness Response Budget

  • The final special-topic presentation covered the city's cross-departmental homelessness response. The proposed 2027 enterprise-wide budget is $12,426,518. Regulatory Services is proposed at $1.3 million, up 28 percent; Health at about $835,000, down 4 percent; Public Works at $200,000, up 100 percent; CPED at $9.8 million, down 46 percent; and MPD up 10 percent to fund one lieutenant assigned to homeless response. Chair Chugtai noted this is down from roughly $20 million in 2026.
  • Regulatory Services said its five-person homeless response team responded to more than 1,000 311 requests in 2026, later cited as 1,316; made nearly 2,000 engagements with unsheltered residents; and completed 275 housing referrals. Health's mobile medical unit served more than 900 people in 2026, about one-third with unstable housing, and made more than 600 referrals for housing, substance use treatment, dental care, primary care, and other services. Public Works will continue encampment cleanup and disposal.
  • CPED's housing director said the 46 percent decline reflects 2026 one-time funding that does not continue: $1.8 million for emergency housing vouchers, $3.8 million for emergency rental assistance, $2.0 million in Affordable Housing Trust Fund dollars for homelessness response, and $1.4 million for Stable Homes Stable Schools. CPED plans to provide more detail at the September 29 budget presentation. Councilmember Stevenson asked about the $2 million AHTF allocation; CPED said $1 million had been contracted with the county and $1 million was going through a county RFP process.
  • Councilmember Wandsley objected that emergency housing voucher funding was not carried forward despite a prior three-year commitment and asked what tools the council has to enforce budget commitments. Councilmember Chavez said the vouchers support 50 families and 50 adults and that she does not see a budget agreement without addressing the funding, adding trust has been broken. Councilmember Stevenson deferred detailed CPED questions to the next day's budget meeting. Health staff said the mobile medical unit's 4 percent reduction is a cost refinement, not a service cut. MPD reported it has not spent significant overtime on encampment closures in 2026 because there have been no large-scale encampments; Commander Monica Hansen said she would provide the exact figure as a follow-up.

Key Outcomes

  • The committee received and filed the PILOT report, the Regulatory Services budget presentation, and the homelessness response special-topic presentation; no formal roll-call vote was taken on their substance.
  • Staff follow-ups were directed on: city attorney review of PILOT legality; University of Minnesota land care, street maintenance, and 311/911 call data; exclusion of publicly funded institutions from PILOT estimates; a breakdown of the $268,000 inspection license and permit revenue decline; Public Works rubbish abatement transition details; MPD's exact 2026 encampment-related overtime figure; emergency housing voucher referral data; and whether the Health Department could hold medical records for a behavioral crisis response program.
  • The committee adjourned to Tuesday, September 29, 2026, for CPED and Minneapolis Public Housing Authority budget presentations.

Meeting Transcript

Good afternoon. My name is Aisha Chuktai, and I'm the chair of the budget committee. I'm gonna call to order our regular meeting for Monday, September 28th, 2026. Before we begin the meeting, I want to offer a friendly reminder to all members, staff, and the public that these meetings are broadcast live to enable greater public participation. These broadcasts include real-time captioning as a further method to increase the accessibility of our proceedings to the community. Therefore, all speakers need to be mindful of the rate of their speech so that our captioners can fully capture and transcribe all comments for the broadcast. We ask speakers to moderate the speed and clarity of their comments. At this time, I'll ask the clerk to call the roll so we can verify the presence of a quorum. Councilmember Payne present. Councilmember Wandsley is absent. Councilmember Rainbow. Councilmember Vita is absent. Councilmember Warren is absent. Councilmember Osman is absent. Councilmember Stevenson? Present. Councilmember Chavez. Present. Council Member Whiting is absent. Councilmember Chowri. Present. Councilmember Palmasano is absent. Vice Chair Schaefer. Present. And Chair Chung Tai. Present. There are seven members present. Let the record reflect that we have a quorum. I'll remind my colleagues that we are using speaker management today. So please make sure to sign in. Our first um item on the agenda is a response to a staff direction regarding payment in lieu of taxes or pilots. I'll invite I will invite Christina Keterling, the senior advisor to the Board of Estimate and Taxation to join us and begin this presentation. Welcome, Miss Keterling. Good afternoon, Chair Chuck Chai, members of the committee. I'm Christina Kiderleen. I'm the senior advisor to the Board of Estimate and Taxation. Um today what I'm going to be presenting for you is an analysis of Minneapolis's tax exempt landscape. This is in result uh in response to a staff direction that this committee gave. I won't read it verbatim. I'm sure you guys remember what you told, but basically what you were asking for was a list of numbers concerning the Minneapolis tax base, how many tax exempt properties we have of those properties, what's the makeup of them, what's the makeup of the organizations that own them? So today, through um various different methods, we're gonna answer those questions for you. As a little roadmap of our discussion, first we're gonna start with an overview of the tax exempt landscape itself. Then we're gonna move into an introduction of pilot or payment in lieu of taxes and go over what actually that is. Introduce some alternative viewpoints, who likes pilot, who doesn't like pilot, explore how some example cities receive non-tax payments, how they manage their pilot programs, and then have a brief summary of Minneapolis City Services as part of the budget to kind of talk about what it might look like as a first pass on what a pilot program could maybe look like here. So here's the approach we took to answer your questions. Like I said, in your request, it was very numbers heavy.

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