Board of Estimate and Taxation

The mission of the Board of Estimate and Taxation (BET) is to obtain resident input on the maximum tax levies of the City per the City Charter and the Truth in Taxation State Statute. After receiving recommendations from the Mayor, City Council, Minneapolis Park and Recreation Board (MPRB), and the public, the BET sets the maximum property tax levy for each of the following: City General Fund, Bond Redemption Fund, Municipal Building Commission, Fire Relief Association, Police Relief Association, Minneapolis Employee Retirement Fund, Park & Recreation Fund, Estimate & Taxation Fund, and the Teachers’ Retirement Association.

When requested by the City Council and/or MPRB, the BET may authorize the issuance and sale of General Obligation Bonds to support capital infrastructure programs. The BET requires a two-thirds affirmative vote on such actions. The BET action pledges the full faith and credit of the City for payment of bond principal and interest.



Financial arrangements and city funding relationships

The BET is an independent governing entity within the broader City of Minneapolis structure, and as such, it sets its own budget and levy independently of the City. Generally, the yearly budget of the BET has been funded through a modest property tax levy that ranges from approximately $100,000-$300,000 depending on the year. More information regarding the BET’s structure and budget can be found at the BET website.

Purpose and context

The Board of Estimate and Taxation is given two primary powers by the Minneapolis City Charter: to set the maximum property tax levy for the City and to issue bonds to support capital infrastructure programs. To fulfill these duties, the BET also has certain other secondary powers such as the ability to review departmental capital and operating budget requests concurrently with the Mayor and to request and receive any other required financial information from city departments, officers, commissions, and boards. Through the exercise of its powers, the BET ensures taxpayers have a voice in the direction of city property taxes and debt. In addition, because BET membership is made up of directly elected citizens, City elected officials, and an MPRB elected official, the BET acts as an important coordinating body between the City and MPRB in matters of taxation and budget.



Services provided

The BET must meet at least monthly per the City Charter. At its meetings, BET members vote on various actions including but not limited to:

• Fixing the maximum certified tax levies payable in a given budget year
• Passing bond resolutions to support capital projects
• Approving the addition of assessable projects to the list of projects for which the BET will consider approving the issuance of future assessment bonds
• Reallocating excess bond proceeds for capital projects and programs being closed

Prior to setting the maximum tax levy, the BET holds a public hearing to ensure that the voices of Minneapolis residents are heard. For all actions, four of six members must vote affirmatively for passage.



Race equity impacts

The BET serves the entire community through its actions. Because property taxes are by nature a regressive form of taxation, special care must be taken by the board to balance the need for vital city programs with avoiding undue financial burden on families and residents. This balance has been especially important in recent years. The pandemic’s negative impact on commercial property values has shifted more of the property tax burden onto homeowners. Further, property taxes have been rising more quickly in North Minneapolis, where home values and assessments have been rising relative to other areas of the city; this has had a disproportionate impact on BIPOC communities. Camden neighborhood, for example, which has seen some of the largest property tax hikes, is 57% BIPOC (compared to Minneapolis as a whole, which is 36% BIPOC).

The board strives to ensure that resident voices are heard throughout the taxation and bonding processes. In 2019 for example, the board’s public hearing on the property tax levy drew numerous speakers from diverse backgrounds who advocated for additional funding for youth programming. MPRB’s funding request for youth programming was, in fact, fully funded during the 2021 budget cycle through a combination of property taxes approved by the board along with supplemental ARPA dollars.

BET powers are derived from the City Charter, primarily articles V and IX.