Budget Committee September 19, 2025   9/19/2025

Good morning.

My name is Aisha Chugtai and I am the chair of the Budget Committee.

I'm going to call to order our adjourned meeting for Friday, September 19, 2025.

Before we begin the meeting, I want to offer a friendly reminder to all members, staff, and the public that these meetings are broadcast live to enable greater public participation.

These broadcasts include real-time captioning as a further method to increase the accessibility of our proceedings to the community.

Therefore, all speakers need to be mindful of the rate of their speech so that our captioners can fully capture and transcribe all comments for the broadcast.

We ask all speakers to moderate the speed and clarity of their comments.

At this time, I will ask the Clerk to call the roll so we can verify the presence of a quorum.

Vita, present.

Ellison, absent.

Osman is absent.

Cashman is absent.

Chowdhury, present.

Palmisano, present.

Vice Chair Koski, present.

There are nine members present.

Let the record reflect that we have a quorum.

I will also note that we have been joined in this committee by Council Member Cashman.

we have one item on our agenda today which is to receive public comments on the mayor's recommended 2026 budget.

Mayor Frey presented his budget on August 13th this year providing a proposed fiscal plan for the city's operations next year totaling just about two billion dollars with an increase

to the city property tax levy of about 7.8%.

The board of estimate and taxation met just this week and voted to authorize a tax levy of up to 8%.

A copy of the mayor's recommended budget is posted on the city's website which is available at minneapolismn.gov slash budget.

A PDF version is available on LIMS.

Since the mayor presented his budget, the Budget Committee has begun meeting to receive a series of presentations to examine the details of each department's budget requests.

These meetings are available on demand on the city's YouTube channel.

They take place in these chambers and anyone in the public is welcome to attend.

Today's public hearing is the first of four hearings that the City Council will conduct on the proposed 2026 budget.

The Budget Committee will hold our second public hearing on Monday, October 6th at 1.30pm in these chambers.

Our third hearing will be on Wednesday, November 19th at 6.05pm.

and then our fourth and final public hearing, which will be the one required by state law, is scheduled for a meeting of the City Council on Tuesday, December 9th at 6.05pm.

And now before we open the floor to public comments, I will recognize Mr. Justin Coles, our budget manager, who will provide a brief summary of the proposed budget.

Good morning Chair Chugtai and Committee Members.

My name is Justin Coles and I serve as the Budget Manager within the Budget Division of Finance and Property Services.

I'm here today to provide a brief overview of the resources available to both the Committee as well as the public, and to highlight some key milestones remaining in the 2025 calendar year as we collectively work towards to adopt the 26th budget.

These milestones represent important opportunities for community engagement in the budget process and for individuals to make their voices heard.

For a more robust discussion of the 2026 recommended budget, I recommend viewing the budget overview that we presented to this body on September 8th.

In this abridged presentation, I'll begin by walking through the structure of the budget book and highlighting key sections that help identify changes within the budget.

Following that, I'll present the maximum property tax levy residents can expect as adopted by the Board of Estimate and Taxation earlier this week.

I'll additionally provide a demonstration or preview of the Levy Impact Estimator.

That tool offers a more detailed analysis of how levy growth translates to a sample property tax bill.

Finally, I'll conclude with a preview of the remaining key dates in the budget process and outline opportunities for public input and engagement.

The budget team works hard to publish the budget book every year, and we make refinements annually based on feedback from our colleagues and the public.

Our goal is a readable document that explains financial and policy decisions.

We design each page to answer those key questions.

This year we added more detail on each department page on staffing levels.

That info was available last year, but it was harder to find.

Now it's directly on the department's page.

We also added a 2026 budget changes section on department pages as applicable, which narrates the funding reductions and limited increases, as well as any transfers in between departments.

The QR code on the top left of this slide will take the reader directly to the budget page on the City's website.

From there, you can select the 2026 recommended budget, which is shown alongside the adopted budget for the current year.

Additionally, the link at the top of this slide that says Online Budget Book will take you directly to the budget document.

This is a preview of what you will find in the table of contents on the budget book.

As indicated on the left of the slide, the third and fourth sections detail the operating and capital budgets in the 2026 recommended budget.

Really key to focus in here is the operating departments section, which is then broken down by office.

And that is where you will find significant budget changes as well as FTE changes within each of the departments.

Over the next few slides, I'll preview the levy table and five-year financial direction as well as the levy impact estimator tool.

As adopted by BET earlier this week, the maximum property tax growth in the 26 budget is capped at 8% above 2025.

This will be certified to the county as required by September 30th.

And while the approved growth in 26 exceeds that of 25, if you look in the out years of the financial direction, you will see decreases closer to 2-3% heading into 2031.

The Budget Division has once again partnered with the Assessor's Department to develop an interactive levy impact estimator for both residents and members of this committee.

This tool allows users to input specific property values and explore how various proposed levy scenarios could affect their estimated property tax bill.

It's intended to support data-informed decision-making and promote transparency throughout the budget process.

The tool is directly linked in the budget book, available on the City Assessor's public website, and available via the QR code on this slide.

In the example here, we're examining a city-wide residential homestead property under an 8% levy increase.

The table below outlines the estimated tax impact across a range of market values, while the map above illustrates how those are impacted by ward.

Please note that these figures are estimates.

Certain elements of the final tax calculation, such as assessed property values and state aids, will not be finalized until later in the year.

This final slide outlines the remaining department budget presentations and public engagement opportunities for the rest of the calendar year.

We're currently at the first of four scheduled public hearings, with the final hearing taking place before the full council on December 9th.

To enhance participation, these hearings have been scheduled in both daytime and early evening hours.

In addition, we encourage everyone to follow the departmental budget presentations, which began this week and will conclude October 27th.

The QR code displayed on this slide links directly to the Budget Committee's calendar where you can find full details for each engagement opportunity and access all the related presentation materials.

Finally, I'll note that Director DeCenza and myself are currently in talks with council members to come out to community and provide curated budget presentations and those will be announced through your respective council members.

Thank you for your presentation.

Before we proceed to the public hearing, I want to see if any of my colleagues have any comments or questions related to either this presentation or the recommended budget.

Wonderful.

Not seeing any.

So with that, we are going to proceed to open the public hearing in just a minute here.

I want to start first by reviewing a few procedural matters so we are all on the same page.

If you have written comments or materials to submit, whether that looks like you are someone that doesn't want to come up and offer testimony, but you have something to share and want to submit that in writing, or if you've run out of time and you want to make sure the rest of your comments are still received by this body, you can please give those to the clerks either over here to my right-hand side and your left.

or you can bring those outside to the registration table that was right where you walked into the chambers.

We have printed comment forms available at the registration table if you would like to submit a comment but don't have something written out already.

I would also encourage everyone to take advantage of submitting your comments about the budget in other ways.

The easiest way to submit your comments and make sure that they are added to the public record is to send those from the city's website at minneapolismn.gov slash public comment.

All submitted comments, again, will be included in the official public record related to the 2026 budget.

We will be taking speakers in the order that they are registered.

If you would like to testify, I invite you to register your name with the clerks at the table in the hallway outside of these chambers.

Every speaker should be assigned a number.

You've got a little ticket that has a number on it.

We will be calling speakers by number because we are limited on available seating in this room, and I believe we still have a little bit more space in here.

So we're doing pretty well.

There is an overflow room where the public can monitor this meeting.

If you're registered to speak but aren't able to sit in the chamber, please head towards the chamber as we get close to your number.

I will list them out three at a time so you'll have a little bit of a heads up and can start making your way into the chambers.

If you are someone who just ends up missing your name, you will have the opportunity to come up and speak at the end.

Don't worry if you accidentally get skipped over.

Each registered speaker will be given two minutes to address the committee.

We have a timer available that's sitting right by the clerks that we will use to monitor time.

It makes a very loud beep when you are out of time.

We ask that you wrap up your comments when your time has expired so that we can accommodate all speakers today and that we're fair to everyone.

We also ask that everyone be respectful of all the speakers and of all opinions that are offered even when they differ from our own.

We have arranged for interpretation services for those who may need assistance to participate in today's hearing.

If you are someone who is needing that assistance,

Please let the clerks at the registration table know.

We have interpreters that are available here today for those who are needing Spanish or Somali services.

I understand there are sometimes interpreters that come in that are part of organizations.

You can just choose whichever interpreter you feel the most comfortable with and you are welcome to make your way here.

If you are someone who will be supported by an interpreter, we will accommodate your time to four minutes so that you are given a fair opportunity to also share your comments with us.

I understand that we have, I believe, 10 speakers who are registered to speak today.

again before I open the public hearing I'll invite anyone who has not registered and wishes to speak to register with the clerks at the table in the hallway outside of the chambers you can do that now or at any point before we close this public hearing today

We'll ask each speaker to self-identify for the public record before your comments, so just let us know your name, if you want to share, you know, an organization you're affiliated with, a neighborhood that you live in, if you know your ward, that information can be helpful too.

With that, we are ready to open our public hearing.

So, today our first five speakers are Mayra Arreira

Artemis Swanson, that's speaker number two.

Speaker number three is Steen Bergeson.

Speaker number four is Jake Dungy.

And speaker number five is Faduma Mohamed.

So we'll begin with speaker number one, Myra, if you want to make your way over.

My name is Mayra Herrera.

I am a Minneapolis resident and worker.

I live in Ward 9, Council Member Chavez's ward.

I'm so sorry, I'm going to interrupt and if we can just pause their timer.

My salary was three weeks.

I completed my house cleaning work exactly as I was asked to and when it was time to receive my check, she told me that she couldn't pay me the full amount that I was owed.

She continued stalling for days, and I finally decided to confront her in person, which went badly since she didn't take me seriously and just told me to leave her alone.

As an immigrant, my first language is not English.

I have taken pride in the choices that Minneapolis has made that protects my community locally.

Thank you.

We will now welcome up speaker number two, who is Artemis Swanson.

Good morning everyone.

My name is Artemis Swanson.

I'm a resident in Ward 1 and a hospitality worker in Ward 10.

I've worked a number of customer service jobs in this city, from retail management to front desk at a hotel, and if I had to use one word to describe my experience as a worker, it would be resignation.

I have felt resigned to rarely take time off, and even when I do, I am resigned to being available to come to work lest my hours be cut.

I've been resigned to having promised bonuses and raises be delayed and even denied, despite meeting performance metrics.

Above all else, I have felt resigned not to truly progress in my career, as I've seen how my fellow workers who've dedicated years of their lives to their employers rarely get the respect and care they need.

And so it was at one of my lowest points of resignation that two representatives of Setul walked into my workplace and did something that none of my employers ever truly did.

They listened.

Organizations like SATUL are at the forefront of making sure our city is a solid place to work, and yet year after year we have to come to hearings like this in order to defend a program we know is necessary.

We are in an incredibly trying time for labor in this country.

We have a federal government dead set on dismantling all of the protections workers have fought for, from the NLRB to OSHA to the EEOC.

In this time, we need our city to be leading the charge for better working conditions, not shrinking from the moment.

Will we sacrifice our best system for recognizing labor violations and empowering workers so that we can make slightly more revenue from industries that pocket or waste the majority of that wealth?

Or will we stand by our workers in this difficult moment, find alternative fiscal options, and make Minneapolis one of the best places to work in the United States?

I urge the City Council to reject the Mayor's proposed reduction of the co-enforcement budget and to, in the future, consider a raising of the co-enforcement budget to $800,000 as recommended by the Workers' Advisory Committee.

Thank you very much.

If you've got any additional comments you were not able to share with us, you're certainly welcome to bring those over to the Clerks so we can

Good morning.

My name is Christine Bergeson.

I go by Steen and I use they them pronouns.

I live in Ward 10 and I work downtown in the North Loop.

I'm here today to fight back against Jacob Fry's proposed cuts to the co-enforcement budget.

Last year we saw real leadership from this council finding sustainable funding at the highest level the program has ever had.

So much has been done to support workers and now Mayor Fry wants to cut that by more than half.

That's ridiculous.

I moved here from South Dakota a decade ago to work in Minneapolis restaurants where I assumed people were paid and treated well.

So when I found out that my friends had their tips and wages stolen or when female co-workers confided in me about sexual harassment, I didn't know how to help or what recourse any of us had.

It was incredibly frustrating and when I brought my concerns to my corporate managers, they told me that without proper documentation there was nothing they could do.

Our owners and managers do nothing to prevent these injustices from happening and take no action after harm has occurred They literally just shrug their shoulders and move on and it feels very helpless and powerless Say tool has brought groundedness and knowledge into my work life and without say tool in the course Co-enforcement program.

I would not know the full extent of my rights or how to fight back when they're violated and

If the budget is slashed for co-enforcement, vital work being done to legitimize our experience in the industry will also be damaged.

In order to survive and thrive in a high violation industry, we have no choice but to continue showing up.

Mayor Frey stands with us in celebration of the two million dollars recovered from stolen wages, but our work is not finished.

Vote to restore the funding for the co-enforcement budget and prove to the workers of Minneapolis that you support us.

Thank you.

Next we will welcome up Jake, speaker number four, followed by speaker number five, Fadumal.

Thank you.

Good morning.

My name is Jake.

I live in Ward 7 and work at a restaurant in the North Loop.

Last time I was here, I spoke to the Public Health and Safety Committee about the need for paid rights trainings for workers in high-violation industries.

And I told members a story about a co-worker of mine, a line cook, who was pressured into coming into work despite being ill and spread his illness around.

Today, I'm here to speak about the need to fully fund the co-enforcement program.

As the story I shared last time illustrates, the restaurant industry has a toxic culture that thrives on sweeping violations under the rug.

Workers are pressured to come in when they're sick, keep quiet about harassment and discrimination, and work in unsafe conditions like extreme heat.

In my restaurant, the air conditioner has been broken for some time now, and I've personally seen the thermostat in the kitchen.

rise regularly above 100 degrees.

It's especially bad for the cooks and dishwashers whose jobs are very physically demanding.

There's a certain pressure within restaurant culture that forces you to take on more than you want to, or even more than what's lawful, and not to make a fuss about it.

There's also a fear of retaliation for speaking up about poor working conditions.

The co-enforcement program makes me feel like my coworkers and I have a safety net if we're ever retaliated against, otherwise we wouldn't know where to go.

The first step toward changing restaurant culture is worker education.

In working with Satul I've had access to an organizer who understands restaurant culture and can help my co-workers and I to navigate the issues that we face.

We're now able to educate each other and I can help co-workers make sure that they're getting their earns sick and save time despite any hurdles management might put in their way.

My co-workers and I now have a resource that we can turn to to make sure that our rights are respected and every time we assert those rights it gets easier.

This is how we're slowly turning the tide on restaurant culture in my workplace.

Let's not go backwards.

Please vote to restore funding to the co-enforcement program.

Thank you.

The next three speakers that we will welcome are speaker number five, Faduma Muhammad, speaker number six, Varnesia Neal, speaker number seven, Davante Hickman, and speaker number eight, Malcolm Wells.

Welcome, Faduma.

Good morning Chair Chuktai and Council members.

My name is Fadum Mohammed and I organize that new justice project and with workers across Minneapolis.

I am here today to urge you not to cut co-enforcement funding because this program is one of the most effective tools we have to protect workers' rights in our city.

Just seven months ago, Mayor Frey

Mayor Frey stood beside workers and celebrated the success of the Labor Standard Enforcement Division and covering almost $2 million in stolen wages.

Yet now he is proposing 50% cut.

The kind of reversal is not just a budget decision.

It is a betrayal of low-wage workers.

black and brown workers, immigrants, and single parents who are most at risk of having wages and sick time stolen.

We know this program works.

Since 2018, co-enforcement community partners have helped recover nearly a million in stolen wages with Minneapolis workers, and the reach of this work grows every year.

Again, we are tired of showing up every year to defend the basic funding for this program.

The industries with the highest rates of violation are protected to just keep growing.

Cutting funding now when violations are increasing and immigrant workers are under attack is a dangerous step backward.

If this administration is serious about fully funding co-enforcement, then it isn't serious about protecting workers or enforcing the rights the city has put into law.

We are grateful to the Council members who continue to defend this program every year.

But this should be seen and treated as an essential program that is non-negotiable.

Minneapolis cannot afford to turn its back on workers.

This program needs to remain fully funded and the budget cuts of any kind are unacceptable.

Protecting this money means protecting workers and we need you to protect the workers' rights in Minneapolis.

Thank you.

Good morning Council President Payne and Council Members.

My name is Fernice Chanel and I am a resident of Ward 5.

I am a proud member of the New Justice Project Minnesota and I am here again to testify in support of the permanent funding of the co-enforcement.

Last year I stood here before you and shared my story about experiencing wage theft.

I talked about working more than 100 hours at a job I love to only never be paid.

I talked about how losing over $2,100 left me and my five children homeless and forced into unsafe living conditions.

It made me choose between daycare, food, and keeping my family together.

That experience changed my life and while I'm still feeling the effects today, what I want you to understand is this.

I shouldn't have to keep coming back here every year to beg for the protection of the workers like me.

I shouldn't have to come here every year just to beg for the protection that workers like me desperately need.

Workers are tired of having to show up again and again to fight to protect the co-enforcement program and its funding.

Cutting funding is a betrayal to workers and our families, especially low-wage workers, black and brown workers, immigrant workers, women, parents, and single mothers.

who are most at risk of having their wages and sick time stolen.

Co-enforcement works.

It educates workers on their rights.

It helps us fight back when our employers take advantage of us.

it makes sure families like mine don't fall through the cracks but the truth is we need more than just defending this program every budget cycle we need we need to strengthen it by creating a labor standard board so that workers have a permanent seat at the table so today I'm not just asking you to maintain this program I'm demanding that you fully fund co-enforcement permanently

and take the next step to creating the Labor Standards Board.

Workers deserve better.

I deserve better.

My children deserve better.

Thank you.

Thank you very much.

Good morning, Council.

My name is Devonta Hickman.

I'm a Ward 5 resident and a member of the New Justice Project, and I am here again to testify in support of permanent funding for co-enforcement.

I was here last year sharing my story about what happened to me when I worked at Fogo De Childe and Mada De Boer.

Because of my health issues, I get sick more than most people at Fogo De Childe.

I missed shifts because of my health, what I didn't know, and what nobody told me.

was that I had the right to pay sick time.

Because I wasn't informed, I lost what added up to an entire paycheck.

At moderate board, I was fired even after bringing in a doctor's note.

I lost my job simply for being sick.

That left me without a job with a felony background that made

Finding work harder and with four children at home to provide for their stress was overwhelming I was trying to do the right thing, but the system pushed me to the edge I said this last year, and I'll say it again, today no one should lose their job just because they're sick

But here I am again because workers like me are still facing the same challenges and workers are tired of having to show up every single year to fight for the same thing, protecting the co-enforcement program is fun and cutting.

Funding is a betrayal to workers in our families, especially low-wage workers, black and brown workers, immigrant workers, and single parents who are most at risk of having wages and sick time stolen.

If this administration isn't serious about a fully funded co-enforcement program, then it isn't serious about protecting workers and our basic rights.

Meanwhile, our work only

Meanwhile, our work has only grown stronger in just the first four months of 2025.

Devonta, if you want to give us the rest of your comments, we can include that over here.

Thank you so much.

Welcome.

Thank you.

Please and good morning council.

My name is Malcolm.

I'm a Minneapolis resident, worker, organizer, program director, New Justice Project.

I'm gonna just get straight to it.

For the businesses to make a lot of money in the industries where we're supporting workers from retail to restaurants to grocery stores, you gotta take a lot of money to make a lot of money.

You don't get record profits over five years to a decade without exploiting workers.

It's not possible.

If you know there are workers being exploited in this city and you know we have ordinances to protect workers, why in the world would we cut funding to a program that does a deep relationship building and trust development

that's required to address workplace violations.

Now these employers are comfortable doing what they do because status quo says we got you, you're protected.

Status quo says you're insulated and a problematic employer is emboldened by a system that allows for it to happen.

Now imagine knowing you can't miss a single hour of work in this economy.

Imagine how much more difficult it can be to address an employer that's not paying you fairly, that's not honoring your earned sick time, or an employer that has created and upheld a work environment of harassment

and Bullying filled with safety violations that make it difficult to do the job at hand.

Our organizers are capable of doing this because we've been there.

We live in the same community, vote for the same candidates, eat at the same restaurants, shop at the same stores.

It's a lot easier confronting that employer that's done you wrong with the folks you've intentionally built community with.

It's easier standing up for ourselves together.

Now my concern with this budget cut of 50% to co-enforcement is that it explicitly tells us where the priority is.

Clearly the priority is not the workers who have been exploited.

It's not addressing stolen wages.

It's not addressing corrupt employers.

This budget cut communicates to the working class people of the city that we do not care.

We do not care that your boss is not paying you fairly but you better pay your taxes.

We do not care about the environment you work in, but you better show up and get the job done.

We should not have to come back every year to fight for a budget line item that's a drop in the bucket compared to where you send money across other departments and programs in the city.

So today, we are asking that you honor our requests, not only to scratch the budget cut, but do what's right and hit the dollar mark to fully fund the co-enforcement program.

Thank you.

Next we've got speaker number nine, Estella Tirado.

followed by speaker number 10, Shelly Stein.

Hello, good morning.

My name is Estella.

I live in Minneapolis, in the District 1, and I work in El Danto.

I have been working for various years, and I have been working for the program of comfort.

Hello, good morning.

My name is Estella.

I live in Minneapolis in Ward 1 and I work downtown.

I have been coming here for several years to ask for support for the co-enforcement program.

I know from personal experience that we workers need this program to protect and protect ourselves I know from personal experience that we workers need this program to protect and strengthen us

If there is no money in the budget for this program, there are few opportunities for us workers to be supported and to be heard.

Organizations like SAITUL are very important for workers.

I'm so sorry, Mr. Ano.

Organizations like CITUL have changed our lives and it's very important that you invest in workers.

Thank you very much.

Thank you very much.

Thank you very much.

All right.

Our last speaker of the day, I believe, is going to be Shelly.

Welcome.

Shelly, before you start, I'm just going to offer one more reminder.

I know some folks have come in since we opened the public hearing, but if you are someone who would like to offer testimony today, please see the clerks right over here at the end of the dais and you can get signed up.

Thanks Councilmember.

I'm Shelly Stein.

I'm the director of ROC Minnesota.

We're a worker center that has been here for 10 years in Minneapolis working to improve the conditions for workers in the food service and restaurant industry.

I'm here because once again the mayor has cut the budget to co-enforcement despite its proven effectiveness over the past few years in the city.

Me and my staff every day talk to restaurant and food service workers who still don't know that they have the right to sick time, to protections from wage theft, even at times to the minimum wage.

Yesterday, I was in a cafe with a worker who started working in restaurants when she was 15.

She's worked in the city for almost 20 years, and she did not know she had sick and safe time paid.

And that's just sort of the tip of the iceberg She also talked about working off the clock regularly as a normalized practice in our industry These are things that workers even who have been in the city who she's studying to be a paralegal y'all like it's not like she's ignorant of what's going on in the city and she still doesn't know her rights and

this budget that the mayor consistently cuts year after year that we come back year after year to advocate for that many of you have passed ongoing funding for is crucial to workers being protected and when it comes to law enforcement it's a double standard where the law enforcement budget in this city for owning class people is enforced with a lion's share of the budget while our budget is being cut

and is already minuscule.

I actually was hoping to come here to advocate that you all raise the budget this year and right now I'm actually just asking that you reinstate the budget that we passed last year together as ongoing funding.

Thanks.

Thank you.

Shelly, you are

It's very welcome to submit the remainder of your comments to the clerks or do that later and submit those online.

That goes for everyone.

With that, we've reached the end of our registered speakers so far.

Is there anyone who is here who is wishing to speak or offer testimony today?

I'm going to wait for ten whole seconds.

We're going to sit in silence.

okay I think we can sufficiently say that there's no one else who is wishing to speak today so with that I will close this public hearing I will remind everyone that we will have our second public hearing on Monday October 6th at 1 30 p.m. in these chambers I want to sincerely thank everyone who participated in this hearing today and everyone who spoke or submitted comments

We appreciate your engagement in this important work that helps move our community forward.

I want to sincerely thank the interpreters that are here today helping make sure that our neighbors are able to offer us their testimony as well and it's really difficult work, I know.

So with that we have concluded all business to come before the committee today.

I will remind my colleagues that our next Budget Committee meeting will be on Monday September 22nd at 10 a.m. where we will be receiving presentations from the Intergovernmental Relations Convention Center and Downtown Assets and Office of Community Safety Departments.

All three of those presentations are available for your review right now in LIMS.

If there is no objection, we stand adjourned.