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Description
An overview of the diverse revenue streams that make up the City of Minneapolis budget and how the property tax levy is determined. Learn more at https://minneapolismn.gov/budget
A
The
city
of
Minneapolis
has
a
1.7
billion
dollar
budget
and
the
revenue
sources
used
to
fulfill
that
budget
are
as
diverse
and
complex
as
the
services
provided
when
most
people
think
of
city
revenues
they
think
of
property
taxes.
However,
property
taxes
only
account
for
about
20%
of
the
city's
overall
budget.
The
remaining
80%
of
the
city's
budget
is
funded
by
a
wide
variety
of
other
revenue
sources,
including
licenses
and
permit
fees,
charges
for
services,
sales
and
entertainment
taxes,
utility
rates,
revenue
from
city
parking
facilities
and
local
government
aid
from
the
state
of
Minnesota.
A
In
many
cases,
laws
and
accounting
rules
require
the
city
to
directly
link
revenues
and
expenses,
for
instance,
the
money
residents
and
businesses
pay
for
drinking
water
can
only
be
spent
on
everything
it
takes
for
the
city
to
deliver
that
water
to
your
tap.
This
money
cannot
be
spent
on
affordable
housing
programs
or
food
inspections.
A
Similarly,
the
city
collects
pollution,
control
fees
that
pay
for
pollution,
control
activities,
trash
and
recycling,
collection
fees
for
trash
and
recycling
activities,
and
a
wide
variety
of
other
specialized
revenues
such
as
taxi
cab
and
food
truck
license
fees
that
pay
for
specific
functions
that
most
directly
benefit
an
individual
or
group
of
people,
but
some
revenue
sources
like
property
taxes
or
local
government
aid,
can
be
used
to
pay
for
anything
the
city.
Does
these
general
revenues
pay
for
core
city
services,
such
as
police,
fire
and
street
maintenance,
which
benefit
everyone?
A
A
The
levy
is
calculated
by
subtracting
all
non-property
tax
revenue
coming
into
the
city
like
the
business
licenses
or
user
fees
we
talked
about
earlier
from
the
total
amount
the
city
intends
to
spend.
What's
left
is
the
amount
needed
to
be
raised
through
property
taxes
or,
what's
known
as
the
property
tax
levy,
once
we
know
how
much
is
needed,
the
levy
is
spread
among
all
taxable
properties,
according
to
their
tax
capacity,
which
is
roughly
equal
to
a
property's
assessed
value
and
that's
how
each
individual
properties
tax
statement
is
generated
in
most
years.
A
A
The
needs
and
work
of
the
city
are
always
changing,
and
the
city's
budget
reflects
those
priorities.
In
recent
years,
the
property
tax
levy
has
made
up
about
a
fifth
of
the
city's
revenue
for
the
annual
budget.
So
four
out
of
every
five
dollars
the
city
currently
spends
are
raised
from
sources
other
than
property
tax.
We
hope
this
gives
you
a
better
understanding
of
the
relationship
between
revenues
and
expenses
and
how
we
determine
how
much
the
city
needs
to
raise
each
year
and
property
taxes
to
learn
more
about
the
city's
budget.
Go
to
our
website.