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

In that budget, public works employees receive a 30-percent pay increase over the next three years and police get a 21-percent pay hike.

Frey said the city faced a $21 million budget shortfall, but the city tapped its reserve account to help keep city services at the same level as 2024. The proposed property tax hike, according to the city, amounts to $209 for a median home of $330 thousand.

“These investments are in line with the values that I have had since day one,” said Frey. “Inflation, significantly higher but necessary labor costs have increased the cost of delivering excellent city services.”

Frey also approved an increase for the Park and Recreation Board’s portion of the property tax.

“We’ve been nationally recognized for our world-class parks and bike systems. That’s right,” said Frey.

But, the Park Board will receive $88 million, two million less than the $90 million it requested.

Park Board President Meg Forney told 5 EYEWITNESS NEWS the mayor’s proposed budget is unfair.

Forney told KSTP it would mean the Park Board would have to consider possible cuts, including staff.

“Devastating. Absolutely devastating. And, the largest group that’s going to be hit is our employees,” said Forney. “It’s just downright harmful what’s happening.”

Forney said the Park Board will appeal this proposal before the Board of Equalization and Taxation in September.

“The ripple effect is mind-blowing. And, I can tell you this, he’s got a fight on his hands,” said Forney. “We will not bow down to this. We need that funding.”

The proposed property tax increase is just the city’s portion. The rest of a property owner’s tax bill comes from Hennepin County, the Minneapolis School District and the Metropolitan Council.