Hodges' budget for Mpls. would spend more, raise taxes

Mayor Betsy Hodges used her first budget address Thursday to press for increased spending on affordable housing, police, recycling, and a host of other programs.

To help pay for her priorities and cover the cost of inflation, the mayor proposes increasing the city's property tax levy by 2.4 percent.

For most of the last decade, Minneapolis officials spent each budget cycle looking for ways to cut spending, because of a struggling economy and reduced state aid. But the city is now receiving more state money, while also experiencing a building boom that has generated more than $1 billion in construction permits in each of the last three years.

Hodges, who voters elected last fall, isn't proposing any cuts to city staff or services. Instead, the new mayor is ready to spend money to bring much needed changes, saying it's what Minneapolis voted for.

"We voted to end our racial disparities and move toward a brighter future all together, and this budget invests in that," Hodges said. "We voted for a city that is growing in ways that builds on our strengths in deliberate, intentional ways, and this budget invests in that. We voted for a city where we are the best possible stewards of our resources as we can be, and this budget invests in that."

Some of the spending aims to address the inequality that persists across Minneapolis. Minority residents lag behind the white population in income, health and housing.

Toward that end, Hodges' broad-based proposal spreads small funding increases over a wide array of city programs that disproportionately benefit minorities. She wants more homes inspected for lead, more students connected with summer jobs, more parents educated to be good mentors, more assistance for small business owners, and more grants for community organizations.

Many of those items come relatively cheap — $50,000 dollars here, $75,000 there.

The biggest ticket item for helping minority residents is an extra $1 million for affordable housing.

Hodges also has her eye on spending aimed at growing the city. The most expensive is $3.5 million to fill a funding gap in the planned renovation of Nicollet Mall. The mayor also proposes spending an additional $750,000 on bike lanes.

To enhance public safety, Hodges wants to add more than $3.5 million to the police budget. That would grow the force by 10 officers, fill expected vacancies, hire more civilian community service officers, and outfit police with body cameras. Hodges also proposes hiring a class of firefighters and four additional 911 operators.

But one of the most visible changes for residents in Hodges' proposed budget is what the mayor calls "organics recycling."

"The entire city will be able to recycle food waste and surprising things like cotton balls and dryer lint," she said. "I'm guessing you're applauding for the first time dryer lint has ever been said in a budget speech."

The city is under pressure from Hennepin County to roll out the program next year, but some members of the City Council are skeptical.

President Barb Johnson isn't convinced it's worth the $8 million price tag to launch the program. She also thinks her north Minneapolis constituents will be reluctant to separate their compostable food waste from the rest of their garbage.

"It's very expensive to provide organics collection, because you have to send another truck down the alley," Johnson said. "If not everybody participates, it could be a very costly endeavor."

Hodges would pay for the program with a $40 yearly fee for every household — whether they participate in it or not. The budget also includes a 3 percent increase in water fees and a 1.8 percent increase in sewer fees.

The 2.4 percent property tax levy increase is identical to what St. Paul Mayor Chris Coleman proposed Wednesday.

That's a concern, said Cam Winton, a Republican who ran against Hodges in last year's mayor's race.

"You know, I'm not crying wolf here. I've had plenty of opportunities. I've taken them. I work hard. I make money. And so if my property tax rate goes up by 2.4 percent personally, ok fine. I'll pay that. And I'll continue to love living in the city," Winton said. "But there are many residents of the city who are not as fortunate."

Hodges said even with the proposed increase, only about half of city residents will see their property taxes rise next year. The city's Board of Estimate and Taxation weighs in on the levy next month. The City Council begins its work on the budget after that.