On Aug. 13, 2026, Minneaplis Mayor Frey released his recommended budget for 2027-28. He has recommended a property tax increase of 2.5% for the Minneapolis Park and Recreation Board (MPRB). The MPRB has requested a 5.86% increase which equates to an increase of 1% on the total City property tax. "He has stated 2.5% is a placeholder and that we will continue our discussions. MPRB will engage in those discussions, recognizing they start from a reality that the Mayor’s recommended level of 2.5% for the MPRB equates to the loss of up to 26 employees, representing 2.6% of MPRB’s workforce," stated MPRB in a press release. Whereas, a review of the City’s budget reflects a net loss of seven full-time employee equivalates or 0.2% of its workforce (Schedule 5: Staffing Information - 2027-28 Mayor's Recommended Budget).
"This level of loss to MPRB will result in significant changes in service.
"Recognizing the pressure on property owners, MPRB worked to keep projected property tax increases steady and stay close to those forecasts. The MPRB’s 2027 forecast anticipated a 5.58% increase. Despite rising costs, including significant health insurance increases, MPRB held its 2027 request to 5.86% while maintaining current staffing and services. Conversely, the Mayor released a request today of 14.4% for the City’s general fund. This is 10% more than the 4.8% projected by the City for 2027 in its 2026 approved budget. MPRB was within 0.3% of its own projections.
"The Mayor suggested consolidating MPRB's internal services (Human Resources, Payroll, and Information Technology) with the City's operations to eliminate what he characterized as system duplication. While this sounds good in theory, there are numerous complexities that question if there would be true cost savings. MPRB pays for services it receives from the City. Any shift in internal services to the City would be charged back to MPRB, versus reducing a tax burden. In 2027, the MPRB is projected to pay the City $1.5 million for the services the City provides the MPRB. This will be a factor in any discussions."
MPRB regularly reviews the costs associated with its internal services to ensure efficiency, according to staff. "In preparation for future discussions, MPRB started initial reviews and found that MPRB’s costs are competitive or lower than the City for similar functions. MPRB Human Resources services cost $1,880 per employee and the City’s cost is $2,666 per employee, for Information Technology the per employee cost for MPRB is approximately $3,500 and the City is approximately $11,000. This difference also highlights the very different systems each organization operates to service community needs.
"Over the past 10 years, MPRB has demonstrated fiscal stewardship in a number of ways. Our property tax rate has increased by 63% and the City’s has increased by 104%. MPRB has kept annual property tax increases consistently lower than the City’s by budgeting vacancy savings, re-organizing versus expanding staffing to meet new support service needs, and implementing budget freezes and hiring freezes. As a result, MPRB will focus on proportional impacts in any discussions."
The Board of Estimate and Taxation ultimately approves the property tax increase for the MPRB. MPRB Board of Commissioners determines how to address any reductions in the budget.
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