Minneapolis Mayor Jacob Frey on Wednesday proposed a $1.88 billion budget for 2025 that includes an 8% property tax increase.

In this budget, public sector employees will receive a 30 percent pay increase over the next three years and the police will receive a 21 percent pay increase.

Frey said the city has a $21 million budget deficit, but the city has drawn on its reserves to keep city services at the same level as in 2024. The proposed property tax increase is $209 for an average home valued at $330,000, according to the city.

“These investments are consistent with the values ​​I have held since day one,” Frey said. “Inflation and significantly higher but necessary labor costs have increased the cost of providing excellent city services.”

Frey also agreed to increase the Parks and Recreation Authority’s share of property taxes.

“We have received national recognition for our world-class parks and bike systems. That’s true,” Frey said.

However, the park administration will receive $88 million, two million less than the $90 million requested.

Parks Committee Chair Meg Forney told 5 EYEWITNESS NEWS that the mayor’s budget proposal was unfair.

Forney told KSTP that this would mean the park administration would have to consider possible cuts, including in staff.

“Devastating. Absolutely devastating. And the biggest group that will be affected is our employees,” Forney said. “What’s happening is just damaging.”

Forney said the park service will appeal the proposal to the Board of Equalization and Taxation in September.

“The ripple effects are overwhelming. And I can tell you, he’s got a fight on his hands,” Forney said. “We’re not going to give in to that. We need that funding.”

The proposed property tax increase affects only the city’s share. The rest of the property owners’ tax burden comes from Hennepin County, the Minneapolis School District and the Metropolitan Council.