Minneapolis elected officials voted to raise the ceiling on the city’s property tax levy Wednesday, approving a 5.7 percent increase over this year.

The Board of Estimate and Taxation voted 4-2 to raise the maximum levy by $18.7 million, which will help pay for new city employees, construction projects and affordable housing. That includes an extra $100,000 for parks and recreation, which was introduced at the meeting.

The levy provides funding to city services, including fire, police, bond repayment, parks, retirement for city employees and the general fund. Every year around this time, following the mayor’s budget proposal, the taxation board votes on whether to raise the maximum levy to account for projected funding needs.

Board President Carol Becker and Vice President David Wheeler wanted a lower levy increase. Mayor Jacob Frey, Council President Lisa Bender, Council Member Abdi Warsame and Park Board President Brad Bourn voted in favor.

Later this year, the county will calculate the estimated property taxes for every property in the city, and homeowners will have a chance to challenge them. Many in Minneapolis are already bracing for a hike based on the city’s assessments handed out earlier this year, which triggered a record number of appeals.

The City Council will ultimately vote on the levy change, which may be lower — but not higher — than what the tax board set this week. Minneapolis homeowner tax bills will ultimately factor in county and school levies, too.


Correction: An earlier version incorrectly stated which local government will calculate estimated property taxes for Minneapolis later this year.