Minnesota Cities Navigate Not So Rosy Budget Outlooks

(Adobe Stock via Minnesota News Connection)

(By Mike Moen. Minnesota News Connection) – From St. Cloud to Bloomington, Minnesota’s local governments are getting a read on their next city budgets. The thorny issue of tax hikes overshadows some of these discussions.

Jake Anderson, mayor of St. Cloud, proposed during this month’s city council meeting a 4.5% property tax increase. It would be the first tax hike for homeowners in this central Minnesota city in two decades. With rising operating costs, pressure from inflation, aging infrastructure and delayed equipment purchases, Anderson said the move is needed to protect services.

“We would have to cut staff, implement hiring, freezes, eliminate or reduce road projects and cut programs,” Anderson outlined.

The League of Minnesota Cities said St. Cloud is not alone, noting local governments around the state are doing the same balancing act. The League said it is hard to say how many other towns and cities will turn to higher property taxes. A statewide moratorium on boosting local sales taxes just expired, and the group said it is possible leaders will give the option a look, even though it is a longer and complex approval process.