Finance Department

350 S. 5th St., Room 325M
Minneapolis, MN 55415
finance@minneapolismn.gov

City of Minneapolis Annual Budget Process

The City of Minneapolis annual budget process integrates information from the City's strategic and business planning process, capital long-range improvement committee process and the departmental performance measurement review process (Results Minneapolis) to establish annual resource allocations.

March
Preliminary year-end budget status report

Finance presents a year-end budget status report for the previous year to the Ways and Means/Budget Committee. This is a preliminary report because the audited comprehensive annual financial report (CAFR) is available in the second quarter of the year.

March–April
Capital improvement budget development
The City has a five-year capital improvement plan. The departments prepare and modify capital improvement proposals on annual basis. Finance, CPED, and the Capital Long-range Improvements Committee (CLIC) review capital improvement proposals of the departments. CLIC is the citizen advisory committee to the Mayor and the City Council on capital programming.

Strategic planning
The City engages in citywide strategic planning every four years to develop citywide goals and strategic directions. These citywide goals and strategic directions set guidelines for each department to develop its business plan. Early in 2014, the elected officials and department leadership participated in sessions aimed at setting a future direction for the City within the financial parameters anticipated. As a result of the decisions arrived at in these sessions, a new vision, five-year goals, and strategic directions were adopted.

April–June
Operating budget development
Departments work in coordination with Finance and Property Services to prepare operating budgets based on programs. In addition to preparing operating budgets for programs, departments prepare proposals that describe policy and organizational changes with financial implications. The program proposals form the basis for the Mayor’s budget meetings with departments held in June and July.

Capital Asset Request System (CARS) plan and budget development
Departments work in coordination with Finance and Property Services to prepare five-year plans for the replacement of smaller capital assets and operating capital. The plans are based upon the need for replacements and the addition of capital assets for operational effectiveness. Each request requires a justification and estimate of the impact on operating budgets, as well as identifying funding sources.

June–August
Mayor's Recommended Budget
The 2015 Mayor’s Recommended Budget will be based on program proposals submitted by departments. These program proposals are reviewed and discussed by the submitting department, the Mayor’s Office, Council Members, the Coordinator’s Office and Finance and Property Services for priority-setting. In addition to reviewing operating budgets, the Mayor meets with representatives from CLIC before finalizing the capital budget recommendation. By City Charter, the Mayor must make recommendations to the City Council on the budget no later than August 15.

September
Maximum proposed property tax levy

As a requirement of State law, the maximum proposed property tax levy increase is set by September 30 by the Board of Estimate and Taxation (BET). The BET sets the maximum levies for the City, the Municipal Building Commission, the Public Housing Authority and Park Board.

October–November
City Council budget review and development
The City Council budget review and development process beings with a series of public hearings on the budget. Departments present their Mayor’s Recommended Budget to the Ways and Means/Budget Committee with all Council members invited to attend. Following departmental budget hearings, the Ways and Means/Budget Committee amends and moves forward final budget recommendations to the City Council. The Committee-recommended budget includes any and all changes that are made to the Mayor's Recommended Budget.

Truth in Taxation
Truth in Taxation (TNT) property tax statements are mailed by Hennepin County to property owners indicating the maximum amount of property taxes that the owner will be required to pay. These statements also indicate the dates when TNT public hearings will be held. State law was changed in the 2009 Legislative session to eliminate a separate TNT hearing. It was replaced with a requirement to allow public comments at the meeting at which the final budget adoption occurs. The City Council has maintained this hearing however as part of the regularly scheduled budget meetings. According to State law, the meeting at which the budget is adopted must be held after 6:00 p.m.

December
City Council budget adoption

The City Council adopts a final budget that reflects any and all changes made to the Mayor's Recommended Budget. Once the final budget resolutions are adopted, requests from departments for additional funds or positions made throughout the year are to be brought as amendments to the original budget resolutions before the Ways and Means/Budget Committee and the City Council for approval.

The independent boards and commissions adopt their own operating budgets. State law requires that final budget adoption occur after November 24.

BUDGET OVERVIEW

The following links to video and accompanying PowerPoint presentations of budget overview topics were presented to the Ways and Means Committee.  

Debt Obligation  - PowerPoint

City Revenue - PowerPoint

Property Taxes - PowerPoint

City Expenses - PowerPoint

Operating Budget Process - PowerPoint

Capital Budget Process - PowerPoint
 

Last updated Jul 10, 2014