2025 12-16 CC Packet - Laserfiche WebLink

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As mayors, we are committed to responsible budgeting, fiscal restraint, and delivering high-quality local services. Yet there is a growing disconnect between state-level fiscal decisions and the strain they place on the cities we lead. When the state expands programs or shifts responsibilities without stable funding, it is our residents—families, seniors, businesses, and workers—who ultimately bear the cost. Cities are the level of government closest to the people, responding when snowplows don’t arrive, when streetlights or water mains fail, when businesses need permitting help, or when seniors seek support. Every unfunded mandate or cost shift forces us into difficult choices: raise taxes, cut services, delay infrastructure, or stretch thin city staff even further. This strain now extends to the very core of community safety—our police officers and firefighters. They are the frontline protection for our residents, yet rising levies and state- imposed costs are making it increasingly difficult for cities to invest in the additional public safety staff our communities genuinely need to stay safe. Minnesotans expect the following from their elected leaders—at every level: •Responsible and transparent state budgeting •A regulatory and tax environment that supports jobs and economic growth •Protection for taxpayers—especially those on fixed incomes •Stability and predictability for local governments •Long-term fiscal sustainability that does not rely on one-time windfalls When these expectations go unmet, cities feel the consequences first—and our residents feel them the most. We extend our sincere appreciation to the legislators who continue to advocate for fiscal discipline, pro- growth policies, and local government stability. Your work does not go unnoticed. At the same time, we must emphasize: Our residents deserve better than deficits, economic decline, and policies that push families and businesses away. We, as mayors, can only support our cities for so long before the heavy hand of state mandates and financial pressure demands more than our communities can provide. Although state statute requires a balanced budget, relying on one-time surplus dollars to support ongoing commitments has created structural strain—reducing the state’s ability to sustain existing programs or invest in new ones in the years to come. Our state owes it to our citizens to practice responsible fiscal management and to stop taxing our families, seniors, and businesses out of Minnesota. We urge the Legislature to course-correct and to remember that every dollar you manage belongs not to the Capitol, but to the people of Minnesota. Respectfully, The Undersigned Mayors of Minnesota Footnotes (Print Version) 1.Minnesota Management & Budget Forecast / MPR News Coverage – Updated state economic forecast showing a projected $2.9–$3.0 billion deficit in FY 2028–29. Source: https://mprnews.org/story/2025/12/04/new-minnesota-economic-forecast-will-dictate-scope-of-2026-session 2.Minnesota Chamber of Commerce – Business Benchmarks Report Rankings on job growth, GDP growth, workforce strength, and business competitiveness. https://www.mnchamber.com/businessbenchmarks 3.KSTP News — “Which Minnesota cities are facing the biggest property tax hikes?” Preliminary 2026 levies show city increases up to 8.7%, county increases up to 8.1%. https://kstp.com/tracking-your-tax-dollars/which-minnesota-cities-are-facing-the-biggest-property-tax-hikes/ 4.KSTP News — Additional Tax Impact Reporting Coverage of statewide homeowner impacts and rising property tax burdens. https://kstp.com/kstp-news/top-news/minnesotans-could-face-950m-in-property-tax-increases-in-2026/