Listen to taxpayers: Reduce the 2025 property tax increase plans

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During last month’s election, voters made one point exceedingly clear: The economy, higher prices and the affordability of household essentials are top priorities for American taxpayers. And in the state’s two largest cities, Minneapolis and St. Paul, taxpayers are mincing no words telling elected officials the same thing in pleas for lower property tax increases.

It’s a message that must be heard. Leaders in the two core cities and elsewhere should dig deeper into proposed budgets for more savings to assist beleaguered taxpayers. Mayors in both cities had previously proposed budget hikes of around 8%, which this editorial board called too high.

During a packed hearing before St. Paul City Council last week, residents reiterated that theme by saying that years of double-digit property tax hikes have jeopardized their ability to stay in their homes. For more than two hours, residents testified against Mayor Melvin Carter’s proposed property tax levy increase of 7.9%.

A woman from the city’s North End said, “You’re pushing me out of my home with property taxes.” Two other residents from the city’s central and northern Wards 3 and 5 said their taxes have increased by 40% during the last three years — including a proposed 24% increase for 2025. One of them, a new homeowner said: “We’re here, we want to be here and we’re already wondering if we’ve made a mistake.”

In both cities, residential property values are going up, while values have fallen somewhat for commercial and industrial properties. That depreciation then puts a greater tax burden on residential properties.

In both cities, there has been some response to taxpayer concerns. Minneapolis Mayor Jacob Frey has floated an adjusted proposal that would increase the city’s overall levy by 6.4% — down from his original 8.1%. Council members meanwhile have advanced a plan that would lower the original levy increase to 6.9%

Frey said his major concern about the council’s higher levy proposal is how it arrived there. With the use of amendments (more than 70) to his budget plan, Frey says some council members are “cutting needs and adding wants.”

“They want to add things or start pilot programs that may be benevolent, but now is not the time to do shiny new things” with one-time money that cannot be sustained, said Frey.

Meanwhile in St. Paul, council members say they want to reduce Mayor Carter’s proposed spending package down closer to 5%, according to Council President Mitra Jalali and member Rebecca Noecker, who said this year’s public pleas in opposition to tax increases feel different.

“We are the voice of the constituents, the ward-level elected representatives,” Jalali told the Star Tribune. “And this year feels tougher than most because of the factor of inflation.”

Mayor Carter has said holding the city levy increase to 5% would force the police department to cut its authorized strength by 16 officers and possibly shutter libraries and recreation centers.

Though it may be painful to cut into municipal services that constituents want, cities need to make some of the same tough decisions that property owners are making as they try to manage their household budgets.

Countless administrations and councils are currently doing that tough work. They must remain laser focused on ways to adopt fair and reasonable 2025 tax increases during these particularly difficult financial times for average Minnesota citizens.