##VIDEO ID:mzLbaGsgeCo## >> GOOD AFRNOON, EVERYONE. HOW ARE WE DOING? IT IS SO GOOD TO  SEE EVERYONE AS WE PREVENT --  PRESENT THE FISCAL YEAR 2025  BUDGET. I'M SO HONORED TO BE  HERE WITH ALL OF YOU AS I KNOW  THAT EACH AND EVERY ONE OF YOU  CARES SO DEEPLY ABOUT THE CITY  OF MINNEAPOLIS. WE'RE JOINED BY  A NUMBER OF EXCEPTIONAL COUNCIL  MEMBERS AND ELECTED OFFICIALS.  COUNCIL PRESIDENT ELLIOTT PAYNE, COUNCIL VICE PRESIDENT AISHA  CHUGHTAI,OUNCIL MEMBER ROBIN  WONSLEY, COUNCIL MEMBER MICHAEL  RAINVILLE, COUNCIL MEMBER  LATRISHA VETAW, COUNCIL MEMBER  JEREMIAH ELLISON, COUNCIL MEMBER JAMAL OSMAN, COUNCIL MEMBER  KATIE CASHMAN, COUNCIL MEMBER  ANDREA JENKINS, COUNCIL MEMBER  JASON CHAVEZ, COUNCIL MEMBER  EMILY KOSKI, COUNCIL MEMBER  AURIN CHOWDHUR COUNCIL MEMBER  LINEA PALMISANO, WE HAVE CITY  LEADERS. COMMUNITY PARTNERS. OUR EXECUTIVE DIRECTOR OF  MINNEAPOLIS HOUSING AUTHORITY,  AS WELL AS CHAIR TOM HOKE, AND  THE PRESIDENT OF THE BOARD OF  ESTIMATE AND TAXATION, STEVE  BRANDT, AMONG SMANY OTHER  DISTINGUISHED GUESTS. AGAIN, I'M HONORED TO BE HERE WITH ALL OF  YOU. A BIG THANK YOU TO THE CITY LEADERS FROM ACROSS ALL  DEPARTMENTS THROUGHOUT OUR CITY  THAT HAVE HELPED MAKE THIS  POSSIBLE. A BIG THANK YOU TO OUR BUDGET TEAM.  [APPLAUSE] >> YES. AND I WILL SPECIFICALLY  LL WITHOUT OUR BUDGET LEAD.  YES.  [APPLAUSE] ANDREA FROM MY OFFICE, AS WELL  AS ALLIE PETERS WHO HELPED CRAFT THIS SPEECH. AND THANK YOU, TO  MY COUNCIL COLLEAGUES FOR YOUR  DEEP COLLABORATION. IT'S BEEN NO SECRET THAT THIS BUDGET LOOKS  DIFFERENT. BUT YOUR INPUT HAS  BEEN INVALUABLE. AND WHILE THIS  IS MY ROMMENDED BUDGET, I HOPE THAT YOU SEE YOUR GOOD GUIDANCE  AND YOUR ADVOCACY REFLECTED  WITHIN. THANK YOU SO THE BOARD  OF ESTIMATE AND TAXATION  COMMISSIONERS THAT I'VE  MENTIONED. YOU DO, INDEED, HAVE  AN IMPORTANT ROLE TO PLAY,  ESPECIALLY ON A YEAR LIKE THIS  ONE. PROTEING THE MINNEAPOLIS  TAXPAYER THROUGH THE CITY'S  MAXIMUM LEVY, I CAN ASSURE YOU  THAT TREMENDOUS AMOUNT OF WORK  HAS BEEN DONE. AND UNDERGONE  WITH THAT SENTIMENT IN MIND. IN  THIS BUDGET CYCLE ALSO PILOTED A NEW APPROACH TO ENGAGEMENT. WE  GAVE SEVERAL COMMUNITY GROUPS A  DEEP DIVE INTO THE CITY'S  BUDGETARY PROCESS. WE EXPLAINED  THE LEVY. WE EXPLAED THE  BUDGET. WE EXPLAINED  RAMIFICATIONS AND EXTERNALITIES  WITH EVERY ADD-ON, EVERY CUT,  EVERY CHOICE. AND GETTING THEIR  INPUT CONCERNING THOSE  EXTERNALITIES WAS DEEPLY  HELPFUL. UPON LEARNING THE  CIRCUMSTANCES OF THIS BUDGET,  THEY INDEED PROVIDED PHENOMENAL  FEEDBACK. THANKS TO THE  MINNEAPOLIS ADVISORY COMMITTEE  ON PEOPLE WITH DISABILITIES, AND SEVERAL OF OUR COMMUNITIES,  HMONG AND AMERICAN INDIAN  COMMUNITIES, MANY WHO ARE HERE  WITH US TODAY. WE'VE LEARNED A  LOT FROM YOU, AND WE INTEND TO  EXPAND ON THAT COMMUNITY  ENGAGEMENT GOING FORWARD. AND SO TODAY, WE FIND OURSELVES AT THE  CROSS SECTION OF WELL-EARNED  SUCCESS AND UNCOMFORTABLE  TRANSITION. NOBODY SHOULD  DOWNPLAY THE RENAISSANCE  MINNEAPOLIS IS PRESENTING  EXPERIENCING. OUR DOWNTOWN WAS  RANKED NUMBER ONE IN THE COUNTRY FOREST REBOUND ACTIVITY.  [APPLAUSE] >> THAT'S RIGHT. WE'VE BEEN  NAMED THE HAPPIEST CITY IN  AMERICA. WE'RE THE BEST SPOT FOR RECENT COLLEGE GRADS. WE'RE TOP  FIVE IN THE NATION FOR  ACCESSIBILITY. AND AGAIN, WE'VE  BEEN NATIONALLY RECOGNIZED FOR  OURWORLD-CLASS PARKS AND BIKE  SYSTEMS.  [APPLAUSE] >> THAT'S RIGHT. BUT MORE  IMPORTANT THAN THOSE ACCOLADES  IS THE WORK OUR CITY DOES EACH  AND EVERY DAY FOR RESIDENTS WE  ARE RESPONSIBLE FOR SERVING. I  WANT TO TAKE A QUICK MOMENT TO  CIRCLE BACK. OVER THE LAST SIX  AND A HALF YEARS, OUR INVESTMENT AND POLICY HAVE MADE US THE  NATIONAL LEADER IN AFFORDABLE  HOUSING WORK, AND PROVIDED  PEOPLE WITH THAT MOST BASIC  HUMAN NEED, A HOME. OUR  INVESTMENTS IN CLIMATE WORK,  INVESTMENT OF $10 MILLION  ANNUALLY, TEES UP MINNEAPOLIS AS A BEACON OF FORWARD THINKING,  EARTH-SAVING, CLIMATE FOCUSED  WORK. FOR GENERATIONS, NORTH  MINNEAPOLIS HAS BEEN CUT OFF  FROM THE RIVERFRONT. NO LONGER.  NOW AS YOU WALK DOWN DOWLING,  YOU DON'T HIT A DEAD-END, DUSTY, VACANT LAND. NORTHSIDE RESIDENTS ARE ABLE TO ACTUALLY TOUCH THE  WATER OF THE MISSISSIPPI RIVER,  AND TAKE A STROLL ALONG ITS  BANKS IN A BEAUTIFUL PARK. WE'RE NOT STOPPING THERE. NORTH  MINNEAPOLIS IS GETTING ANOTHER  PARK. WE'RE TALKING DISNEY WORLD LEVEL. AN UPGRADED NORTH CMONS THAT I HAVE A FEELING WILL NOT  JUST BE A COMMUNITY ASSET, BUT A DESTINATION FOR FAMILIES ALL  AROUND THE CITY. PLANS FOR  GEORGE FLO SQUARE ARE MOVING  FORWARD. OPTIONS HAVE BEEN LAID  OUT. PARTNERSHIPS HAVE BEEN  FORGED. AND A CLEAR VISION FOR  HEALING AND HOPE IS TAKING  SHAPE. AND AS YOU KNOW, WE'RE  ALL RALLYING AROUND A SOUTHSIDE  COMMUNITY SAFETY CENTER, WHICH  WILL BE A REALITY IN EARLY TO  MI NEXT YEAR.  [APPLAUSE] >> THAT'S RIGHT. THESE  INVESTMENTS ARE IN LINE WITH THE VALUES AND I'VHAD SINCE DAY  ONE. A DIFFICULT BUDGETARY CYCLE DOESN'T MUTE THE CORE VALUES  GUIDING OUR SHARED WORK. AT THE  SAME TIME, THE REALITY OF  BUDGETING IS THAT ONE BUDGET  CYCLE CAN LOOK SUBSTANTIALLY  DIFFERENT FROM THE NEXT. AND  THIS YEAR, WE'RE FACING A FEW  REALITIES. INFLATION, AND  SIGNIFICANTLY HIGHER BUT  NECESSARY LABOR COSTS HAVE  INCREASED THE COST OF DELIVERING EXCELLENT CITY SERVICES. THE  SPEND DOWN OF ARPA FUND AND  REDUCED VALUATION OF OFFICE  BUILDINGS HAVE SHIFTED THE  IMPACT OF THOSE COSTS TO  HOMEOWNERS AND RENTERS THROUGH  INCREASED PROPERTY TAXES. IN  PAST YEARS, WE COULD SAY YES A  WHOLE LOT MORE. THIS YEAR, NOT  AS MUCH. WE LEARN EARLY THAT  JUST MAINTAINING SERVICES WOULD  RESULT IN A $21 MILLION DEFICIT  OR ROUGHLY AN 11% LEVY INCREASE. AND WITH THE NEW AND OFTENTIMES  REQUIRED INVESTMENTS, WE WOULD  BE LOOKING AT A 13% LEVY  INCREASE. THAT WOULD HAVE BEEN  ACCEPTABLE TO NOBODY. THAT'S WHY MY ADMINISTRATION WORKED TO FIND WAYS TO DO MORE WITH LESS. AND  I'M REALLY PROUD TO SAY THAT WE  DID. OUR PUBLIC WORKS TEAM IS  MINIMIZING COSTS BY REPLACING  NON-NETWORKED EV CHARGERS WITH  NETWORKED CHARGERS SO OUR FLEET  CAN CHARGE DURING OFF-PEAK HOURS WHEN THE COST OF ENERGY IS LESS  EXPENSIVE. WE'RE SUNSETTING THE  COMMERCIAL ACQUISITION REVOLVING FUND CPED, SAVING $500,000 ON AN ANNUAL BASIS. INSTEAD OF ASKING  FOR NEW FUNDING, OUR 311 AND  SERVICE TEAMS REALLOCATED  EXISTING RESOURCES TO COVER  UNANTICIPATED COSTS INCLUDING  MORE TRANSLATION SERVICES, AND  OVERTIME FOR LARGE EVENTS LIKE  THE TASTE OF MINNESOTA, LIKE USA GYMNASTICS AND PRIDE. OUR  EMERGENCY MANAGEMENT TEAM  LEVERAGED FEDERAL RESOURCES TO  TRAIN 65 STAFF ON THE NATIONAL  INCIDENT MANAGEMENT SYSTEM BACK  IN MARCH. AND WILL CONTINUE  REGULAR TRAINING AND EXERCISES  TO PREPARE OUR CITY FOR ANY  EMERGENCY EVENT.  [APPLAUSE] >> THAT'S RIGHT. WE'VE INCREASED OUR USE OF CASH AND REALLOCATED  FEDERAL GRANT FUNDING STILL  MAINTAINING NECESSARY RESERVES  AND CONTINGENCIES, BUT  MAXIMIZING THE USE OF FUNDS WE  ALREADY HAVE ON HAND. THIS  INCLUDES A TRANSFER FM THE  DOWNTOWN ASSETS FUND TO MORE  FULLY COVER THE CRITICAL  ECONOMIC DEVELOPMENT WORK THAT  IS ALREADY UNDERWAY. SO THANKS  TO OUR CITY TEAM'S CREATIVE  LEADERSHIP AND THOUGHTFULNESS,  WE'VE MANAGED TO DO WHAT FELT  LIKE A PIPE DREAM A FEW MONTHS  AGO, KEEP THE LEVY INCREASE  UNDER 10%. AND THEN THROUGH  EFFICIENCIES AND MANY HARD  CHOICES, WE'VE MANAGED TO DRIVE  DOWN THE LEVY TO 8.1% INCREASE.  NOW I'M NOT EXPECTING US TO  CELEBRATE THIS LIFT BECAUSE OUR  RESIDENTS HAVE A NEW LIFT OF  THEIR OWN IN PROPERTY TAXES. BUT THIS BUDGET PROVIDES A WAY  THROUGH. WE'RE DOUBLING DOWN ON  PROGRAMS THAT WORK, WE'RE  ENSURING OUR RESOURCES ARE USED  EFFECTIVELY, AND WE'RE MAKING  SURE OUR COMMUNITIES FEEL THE  BENEFIT. THE TOUGH DECISIONS WE  MADE TO GET DOWN TO THAT 8% LEVY WILL CONTINUE THROUGHOUT NEXT  YEAR WE WILL ANALYZE STAFFING  LEVELS AND PROGRAM EFFICACIES TO BEST PROVIDE EXCELLENT SERVICES  TO OUR RESIDENTS WITHOUT  ERBURDENING THEIR BLIEN.  IMPLEMENTING COST-SAVING  MEASURES WHERE THEY EXIST. AND  MY ADMINISTRATION WILL DO ITS  PART. OUR PERFORMANCE MANAGEMENT AND INNOVATION DEPARTMENTS  LAUNCHING OUTCOMES MINNEAPOLIS,  WHICH SUPPORTS DEPARTMENTS IN  ACHIEVING THEIR MISSIONS,  ALIGNING PRIORITIES, MAKING  DATA-DRIVEN DECISIONS, AND  DRIVING PROGRESS TOWARDS CITY  GOAL THROUGH THIS PROGRAM,  WE'RE DEVELOPING DEEPER METRICS  TO ANALYZE PROGRAM EFFICACY.  WHERE RESULTS ARE CLEAR, WE  DOUBLE DOWN. AND WHERE THEY'RE  LACKING, WE ADMIT IT AND CHANGE  COURSE. IT'S ALSO IMPORTANT TO  NOTE WHAT GOES INTO OUR LEVY.  INCLUDED IN AN OVERALL CITY  SPEND ARE LEVIES FOR THE  MINNEAPOLIS PARK AND RECREATION  BOARD, AND THE HOUSING  REDEVELOPMENT AUTHORITY, MPHA,  THAT GOES TOWARDS PUBLIC  HOUSING. LAST YEAR WE  REACTIVATED THAT PUBLIC HOUSING, HRA LEVY, PROVIDING $5 MILLION  ON AN ANNUAL BASIS TO THE MPHA  TO ASSIST IN THE PRESERVATION  AND EXPANSION OF DEEPLY  AFFORDABLE HOUSING IN  MINNEAPOLIS. WE'RE NOT WALKING  WAY FROM OUR CORE VALUES OF  GETTING MORE RESIDENTS INTO  SAFE, STAB, AND PERMANENT  HOUSING. AND WE'RE PROUD TO  CONTINUE THIS WORK BY ENSURING  THAT LEVY'S CONTINUATION. OVER  THE LAST FEW YEARS WE'VE  INCREASED PARK FUNDING BY CLOSE  TO $10 MILLION, AND FOR GOOD  REASON. THE WORK TO IMPROVE  YOUTH RECREATION, PARKWAY  PAVING, AND WATER QUALITY, HELP  MAINTAIN US AS THE TOP RANKING.  OUR COMMONLY OWNED PARK LAND HAS NOT BEEN SACRIFICED FOR PRIVATE  INTERESTS OR BUDGETARY FIXES,  AND WE WON'T START NOW. THIS  YEAR, OUR INDEPENDENT PARK BOARD WHO HAVE THEMSELVES EXPERIENCED  AN INCREASE COSTS FROM MATERIALS TO LABOR, WILL SEE -- CONTINUE  THE GREAT WORK THAT THEY ARE  KNOWN FOR. THIS AMOUNTS TO A 7%  INCREASE FOR THE PARK BOARD  BRINGING THE LEVY TO NEARLY  $88.5 MILLION IN 2025 FOR THE  PARKS. HUGE PORTIONS OF NEXT  YEAR'S BUDGET ARE ESSENTIAL. ONE BEING OUR EMPLOYEES. WE HAVE TO  FILL POTHOLES, WE HAVE TO PLOW  SNOW. WE ALSO HAVE TO RETAIN AND RECRUIT OUR WONDERFUL EMPLOYEES  THAT DO THAT WORK. DOING SO HAS  RESULTED IN SIGNIFICANT COST  INCREASES FOR EVERY GOVERNMENT  AND BUSINESS OVER THE LAST  SEVERAL YEARS. BECAUSE THOSE  EMPLOYEES HAVE SEEN THEIR OWN  COSTS INCREASES. OUR EMPLOYEES  SPECT BUILDINGS, THEY TAKE  CARE OF SHELTER ANIMALS, THEY  WORK IN OUR CIVIL RIGHTS  DEPARTMENT, THEY SAVE LIVES.  THEY ALSO FEED THEIR FAMILIES,  THEY PAY FOR DAYCARE, AND THEY,  LIKE, EVERYONE, THEY HAVE  MEDICAL BILLS. THE INCREASES IN  EMPLOYEE SALARIES ARE PROVIDED  BECAUSE WE VALUE OURMPLOYEES  AND THE RESIDENTS THAT THEY  SERVE. WE ARE NOT ALL UNIQUE IN  SEEING THESE LABOR COSTS. THE  DIFFERENCE IS WE AS GOVERNMENT  SHOW THOSE INCREASES  TRANSPARENTLY. AND BY THE WAY,  THESE INCREASES HAVE HAD A  REALLY POSITIVE IMPACT. WE HAVE  A TURNOVER RATE OF 3.9%, WAY  BELOW THE AVERAGE OF MOST OTHER  CITIES. APPLICATIONS ARE UP 62%. AND WE'VE BEEN NATIONALLY  RECOGNIZED FOR BEING A  WOMEN-FLENDLY, AND LGBTQ+  FRIENDLY EMPLOYER.  [APPLAUSE] >> THAT'S RIGHT. AS MOST OF YOU  KNOW, A COUPLE OF YEARS AGO, WE  WERE STRUGGLING TO RETAIN  EMPLOYEES. AND NOW WE'RE  RECRUITING THE VERY BEST. AND  OUR VERY EXCELLENT EMPLOYEES ARE PROVIDING VERY EXCELLENT SERVICE FOR OUR CITY. AT THE CONVENTION  CENTER, JENNIFER JOHNSON IS  PASSIONATELY LEADING A NEW  SUSTAINABILITY COMMITTEE,  EMBRACING OUR CITY'S CLIMATE  GOALS AND PUTTING THEM TO WORK.  HER TEAM HAS HELPED REDUCE WATER BY 50%, REDUCED POWER USE BY  16%, AND MAINTAINED A RECYCLING  RATE THAT REACHED 65% LAST YEAR. OVERALL, THESE EFFORTS HAVE LED  TO A 77% REDUCON IN CARBON  GREENHOUSE EMISSIONS. OVER AT  MINNEAPOLIS ANIMAL CARE AND  CONTROL, WE HAVE STAFF LIKE  MADISON, WESISSENBORN, WHO  HELPED START OUR FIDO FIELD  TRIPS. THIS PROGRAM LETS  RESIDENTS TAKE SHELTER DOGS OUT ON A FIELD TRIP FOR THE DAY.  SINCE MAY, MORE THAN 1,100  PEOPLE HAVE SIGNED UP TO PARTAKE IN THIS NEW PROGRAM, WHICH HAS  LED TO AN INCREASE IN ADOPTIONS. OUR MINNEAPOLIS EMERGENCY  COMMUNICATIONS CENTER, STAFF  HAVE WORKED HARD TO OPEN A NEW  911 CENTER, AND DECREASE  VACANCIES. THEY'VE IMPROVED  THEIR CALL ANSWER TIME TO 78%  WITHIN 10 SECONDS. WITH A GOAL,  BY THE WAY, OF 90%. WE'RE GOING  TO GET THERE. SO YES, OUR  WORKFORCE PAST AND PRESENT ARE  WORTHWHILE, AND THEY ARE  NECESSARY INVESTMENTS. THERE'S  ANOTHER NECESSARY INVESTMENT,  POLICE AND POLICE REFORM. FROM  OUR COMMISSIONER TO OUR POLICE  CHIEF TO OUR ENTIRE COMMUNITY,  EVERYONE IS GALVANIZED AROUND  PROACTIVELY MAKING CHANGE IN OUR POLICE DEPARTMENT. THE NATURE OF THAT CHANGE WILL BE FORMALIZED  IN A CONSENT DECREE WITH THE  DEPARTMENT OF JUSTICE, AND THE  WORK WE'RE ALREADY DOING TO  COMPLY WITH THE MNESOTA  DEPARTMENT OF HUMAN RIGHTS  SETTLEMENT AGREEMENT. ADOPTING A CONSENT DECREE DOES NOT INDICATE COMPLETION OF THE WORK. RATHER,  IT FORMALIZES THE TARGETS. FROM  TRAINING TO PERSONNEL. SO WE  AREN'T WAITING FOR THE INK TO  DRY ON A FORMAL AGREEMENT, WE'RE BUILDING OUT THE TEAM TASKED  WITH COMPLIANCE NOW. WE NEED TO  GET PEOPLE ON BOARD, TRAINED IN  AND IN LINE WITH THE MISSION.  WE'RE INVESTING NOW SO WE DON'T  FIND OURSELVES BEHIND LATER. AND WE'RE DEDICATING $1.3 MILLION IN NEW STAFFING FOR THE  MULTI-DEPARTMENTAL  IMPLEMENTATION TEAM, AND  DEDICATING ADDITIONAL RESOURCES  TO ACCOMPLISH ENTERPRISE-WIDE  DATA TRANSFORMATION. THAT  UPFRONT INVESTMENT WILL COVER  EXPERTS IN ADULT LEARNING TASKED WITH OVERSEEING TRAINING, STAFF  WITH THE SKILLS TO EVALUATE, AND AUDIT OFFICER COMPLIANCEITH  THE AGREEMENT, AND OVERHAULING  DATA SYSTEMS. MORE THAN  $20 MILLION OF OUR CONSENT  DECREE FUNDING IS GOING TOWARD  FACILITY IMPROVEMENTS. INCLUDING $17 MILLION FOR OUR SOUTHSIDE  COMMUNITY SAFETY CENTER. THIS  FIRST OF A KIND PROJECT WILL  BRING TOGETHER A MULTITUDE OF  SAFE RESOURCES UNDER ONE ROOM.  FROM POLICE TO VIOLENCE  PREVENTION, TO SOMETHING WE  HAVEN'T THOUGHT O YET. THERE'S  NEAR UNANIMITY OF AGREEMENT. WE  ALL WANT THIS SAFETY CENTER TO  SUCCEED. AND WE WANT OUR  RESIDENTS TO FEEL CONNECTED FROM THE VERY FIRST MOMENT THEY CALL  FOR HELP OR WALK IN THE DOOR.  WITH A $200,000 INVESTMENT, WE  CAN HIRE STAFF TO BE OUR FIRST  TOUCH POINT WITH RESIDENTS. THEY WILL GREET CONSTITUENTS, TAKE  NON-EMERGENCY REPORTS, AND  CONNECT RESIDENTS WITH CITY  SERVICES AND COMMUNITY RESOURC THAT THEY NEED. OFTENTIMES, THE  NEEDED RESOURCE IS A RESPONSE  FROM A POLICE OFFICER, WHICH  OVER THE LAST SEVERAL YEARS HAS  BEEN IN SHORT SUPPLY. BUT TODAY, THROUGH A STRATEGIC RECRUITMENT  CAMPAIGN CALLED IMAGINE  YOURSELF, A ROBUST OUTREACH TO  POTENTIAL POLICE CANDIDATES, AND SUBSTANTIAL WORK FROM OUR POLICE CHIEF AND BEYOND, I'M PROUD TO  SAY WE ARE NOW SEEING SOME VERY  POSITIVE RESULTS.  [APPLAUSE] >> APPLICATIONS ARE UP. MORE  CANDIDATES ARE COMING THROUGH  OUR DOORS. AND WE WILL CONTINUE  THIS CAMPAIGN'S MOMENTUM WITH  ANOTHER $500,000 IN 2025. TO  ONBOARD MORE POLICE OFFICERS, WE ALSO NEED TO REDUCE THE TIME I  TAKES TO VET AND PROCESS  APPLICANTS. SO THEY TURN INTO  HIRES RATHER THAN DECIDING TO  PURSUE ANOTHER PROFESSION OR  DIFFERENT DEPARTMENT. WITH  $385,000 TO INCREASING THE PACE  OF BACKGROUND CHECKS, WE CAN  HIRE FASTER, VET APPLICANTS  FASTER, AND GET THE BEST  CANDIDATES INTO OUR PROGRAM AND  OUT ON THE STREET FASTER. ALSO  IMPORTANT, OUR SAFETY BEYOND POLICING INITIATIVES. TAKE OUR  BEHAVIORAL CRISIS RESPONSE TEAM, FOR EXAMPLE. OUR $5.9 MILLION  COMMITMENT TO THIS TEAM WILL  CONTINUE PROVIDING FUNDING  LEVELS FOR TWOUR-HOURS A DAY  SERVICE ACROSS ALL FIVE  PRECINCTS OF THE CITY. WE KNOW  POLICE AREN'T T ANSWER FOR  EVERY CRISIS SITUATION, AND OUR  BCR TEAM MEETS PEOPLE WHERE  THEY'RE AT. PROVIDING CARING  SUPPORT WHERE IT'S NEEDED MOST.  SINCE THEY STARTED, THEY'VE  RESPONDED TO MORE THAN 20,000  CALLS. AND THAT NUMBER KEEPS  GOING UP. SO IT'S CLEAR, THEIR  WORK MATTERS AND IT'S CRITICA  FOR THE COMMUNITY THEY SUPPORT.  WE ALSO HAVE NEW TOOLS THAT  PROVIDE MORE EFFICIENT SAFETY  RESPONSES. I'VE HEARD FROM  RESIDENTS AND FROM OFFICERS  ALIKE THAT OUR POLICE SHOULD BE  FOCUSED ON THE MOST SERIOUS  CRIMES. BUT RELNG ON OFFICERS  LESS FOR LOWER LEVEL OFFENSES  LIKE TRAFFIC VIOLATIONS MEANS  RELYING ON TECHNOLOGY MORE.  THROUGH A $1.2 MILLION  INVESTMENT IN A NEW TRAFFIC  SAFETY CAMERA INITIATIVE, WE  WILL USE STAFF TIME MORE  EFFICIENTLY. WE'VE ALL HEARD IT, RECKLESS DRIVING. BLOWING A RED  LIGHT DOESN'T JUST BREAK THE  LAW, IT CAN RESULT IN SOMEONE  LOSING THEIR LIFE. WE KNOW FAR  TOO OFTEN PEOPLE ARE VIOLATING  THE LAW WITHOUT REPERCUSSIONS.  THERE WILL SOON BE CONSEQUENCES. BUT MORE IMPORTANTLY, WE HE  THIS INVESTMENT WILL SAVE LIVES. A BIG PART OF ANY BUDGET IS  DEVOTED TO CAPITAL PROJECTS. AND  USUALLY DON'T FOCUS ON THESE  VERY MUCH IN ANY BUDGET ADDRESS. THEY'RE TYPICALLY FUNDED THROUGH OUR CITY'S BONDING AUTHORITY.  WE'RE ABLE TO BORROW MORE MONEY  TO PAVE MORE STREETS WHEN  LENDERS KNOW THEY'RE GOING TO  GET PAID BACK. IF BANKS HAVE  SS CONFIDENCE IN OUR ABILITY  TO REPAY, WE GET LESS MONEY.  THEREFORE, WE CAN PAVE FEWER  STREETS. SO WHEN IN NOVEMBER OF  2017, MINNEAPOLIS' CREDIT RATING WAS DOWNGRADED TO AA+, IT  REDUCED THE NUMBER OF CITY  PROJECTS WE WERE ABLE TO FUND  BECAUSE THE COST OF BORROWING  WENT UP. BUT SINCE THEN, OUR  CITY HAS BEEN UPGRADED TO THE  HIGHEST RATING POSSIBLE, AAA,  THANKS TO SRT FISCAL PLANNING  BY OUR AWARD-WINNING STAFF,  INCLUDING OUR TOP-RATED  GOVERNMENT CFO, THE CITY'S BOND  TEAM AND OUR AMAZING BUNLT  DIRECTOR. WHAT THIS MEANS IS WE  HAVE HIGH FINANCIAL RESILIENCY  AND CAN WITHSTAND BUDGET  VARIANCES. HELPING US LOWER OUR  INTEREST RATES FOR BONDING, AND  IN TURN, MAKING MORE PROGRESS ON CITY PROJECTS OUR RESIDENTS CARE ABOUT. HERE'S A FEW EXAMPLES.  $17 MILLION IN BONDING FOR THE  SOUTHSIDE COMMUNITY SAFETY  CENTER WOULDN'T BE POSSIBLE  WITHOUT THIS SMART FISCAL  MANAGEMENT. THE $1.2 MILLION  INCREASE IN 2025 FOR PARKWAY  WAVING. AND $2.2 MILLION IN  2026, WOULDN'T HAVE HAPPENED BUT FOR THE FAITH AND CREDIT IN  MINNEAPOLIS. PAVING PROJECTS  FROM 2025 TO 2030. THIS IS EXTRA MONEY THAT WOULD NOT BE POSSIBLE IF WE HAVE NOT BEEN ABLE TO  LEVERAGE OUR CITY'S DEBT  CAPACITY. NOR WOULD THE 3,000  CITY-OWNED STREETLIGHTS RECENTLY CONVERTED FROM HIGH PRESSURE  SODIUM TO LED LIGHTS, RESULTING  IN 3,000 TONS OF CO2 EMISSIONS  SAVED. RECONNECTING NICOLLET AT  LAKE IN SOUTH MINNEAPOLIS. ALL  CAN BE CARRIED OUT DUE TO SMART  FISCAL PLANNING. IT MAY NOT BE  THAT EXCITING, BUT IT MATTERS.  IN THE AREA OF ECONOMIC  REVITALIZATION, MINNEAPOLIS HAS  EXPERIENCED A MAGNIFICENT  COMEBACK. NOT BASED ON A RETURN  TO THE OLD NORM, BUT ONE THAT  SETS THE FOUNDATION FOR CHANGE.  PART OF THAT CHANGE IS HAPPENING DOWNTOWN. THIS YEAR, DOWNTOWN  MINNEAPOLIS SAW THE BIGGEST JUMP IN FOOT TRAFFIC NATIONWIDE. YOU  COULD FEEL IT ON THE STREETS,  YOU CAN SEE IT IN THE NUMBERS.  IN JUNE, WE HIT A RECORD MONTH  FOR HOTEL REVENUES. NOT JUST  SINCE THE PANDEMIC, AN ALL-TIME  RECORD. THE MOMENTUM AND PACE OF CHANGE MUST CONTIN. LET'S  BEGIN WITH NICOLLET MALL.  ENVISION DOWNTOWN AS A  PLAYGROUND. WE COULD SKATE DOWN  THE MALL IN THE WINTER, ANDPEN IT UP TO FESTIVALS AND MARKETS  IN THE SUMMER. MINNESOTA'S MAIN  STREET COULD BE THE BEST OF  THAT. A MALL WITHOUT BUSES BUT  WITH NOTHING TO DO IS UNLIKELY  TO GENERATE EXCITEMENT AND  UNLIKELY TO KEEP PEOPLE SAFE. SO WE'RE GETTING GOING NOW WITH A  $550,000 INVESTMENT TO ACTIVATE  NICOLLET MALL. LET'S OPEN THE F  HAVE ICE RINKS, ZIPLINES, FERRIS WHEEL. AND WE COULD HAVE A WHOLE LOT OF ART AND CREATIVITY, WHICH HAS LONG BEEN A DRIVER OF  ECONOMIC REVIOLATIONIZATION. ART IS TRANSFORMATIVE. IT IS A  CREATIVITY THAT IS A DRIVING  FORCE. YOU MAY HAVE HEARD WE'VE  LLED OUT OUR VIBRANT  STOREFRONTS INITIATIVE TO HELP  BEAUTIFY AND REVAMP VACANT  STOREFRONTS ACROSS DOWNTOWN.  HEAD OVER T HARMON PLACE.  STARTING THIS FALL, AND YOU CAN  SEE FOR YOURSELF. WE'RE FILLING  VACANT STOREFRONTS WITH COLOR,  BEAUTY, AND CREATIVITY FROM OUR  LOCAL ARTISTS. BECAUSE THE  INITIATIVE IS WORKING, WE'RE  INVESTING $1.43 MILLION TO KEEP  IT DOWNTOWN, AND EXPAND IT TO  UPTOWN AND CULTURAL DISTRICTS.  WHAT ABOUT UPTOWN? UPTOWN'S  HISTORY IS WOVEN TOGETHER WITH  CREATIVITY. IN THE PAST, ART WAS AN INSTIGATOR OF INCREASED  VALUES, AND NOW THROUGH THE  EXPANSION OF OUR VIBRANT  STOREFRONTINITIATIVE, ART  WON'T JUST BE AN INSTIGATOR, IT  CAN BE A MAINSTAY. $300,000  ALLOCATION TO OUR BUSINESS  TECHNICAL ASSISTANCE PROGRAM, A  THIRD OF WHICH CAN GO TO UPTOWN. UPSTART SMALL BUSINESS OWNERS  ALREADY HAVE A STEEP CURVE, BUT  BY PROVIDING FINANCIAL AND  MARKETING SUPPORT, WE CAN HELP  THEM SCALE AN IDEA. WE DON'T  WANT A GREAT IDEA TO BE THE  CAUSE OF DISPLAMENT. WE'VE  SEEN THIS TREND TIME AND AGAIN.  AN ENTREPRENEUR CREATES A  POPULAR BUSINESS, WHICH THEN  BOOSTS CUSTOMER TRAFFIC, THEN  THE RENTS GO UP AND THEY GET  DISPLACED FROM SOME OF THE  COMMUNITIES THEY MADE WONDERFUL  TO BEGIN WITH. SO THE PREMISE  BEHIND OUR OWNERSHIP AND  OPPORTUNITY FUND IS THAT  BUSINESS OWNERS SHOULD REAP THE  BENEFIT FROM THE INCREASED  VALUE, AND ARE BETTER ABLE TO  BUILD GENERATIONAL WEALTH FOR  THEIR FAMILIES. TWENTY-FOUR  BUSINESS OWNERS HAVE ALREADY  REALIZED THIS DREAM. AT GORGE  FLOYD SQUARE, PEOPLE NEED TO  KNOW THAT PROGRESS IS HAPPENING. THEY WANT TO KNOW HOW THE  STREET, THE LAYOUT, A MEMORIAL,  THE PEOPLE'S WAY, WILL HONOR OUR HISTORY AND IMPROVE THEIR  NEIGORHOOD. ACTION IS FINALLY  AFOOT. AND WE'RE INVESTING IN A  PLAN TO GET US THERE. WITH  $300,000 IN THIS BUDGET FOR ART  PRESERVATION AT GEORGE FLOYD  SQUARE IN 2026, THREE OPTIONS  FOR STREET LAYOUTS PROVIDED TO  RESIDENTS, AND A FINAL DECISION  EXPECTED WITHIN MONTHS. THE  PEOPLE OF OUR CITY WILL SEE  PROGRESS. THE HISTORIC ART THAT  OUR COMMUNITY HAS CREATED WILL  BE MAINTAINED. AND A GRAND  VISION FOR HONORING THE HISTORY  AND POINTING TOWARDS THE FUTURE  WILL BE MADE. WHILEUDGETS AND  FINANCES CHANGE, OUR CITY'S CORE VALUES DON'T. FROM THE VERY  BEGINNING OF MY FIRST  ADMINISTRATION, MY FIRST BUDGET  AS MAYOR, WE'VE MADE RECORD  SETTING INVESTMENTS IN  AFFORDABLE HOUSING AND ACHIEVED  RECORD RESULTS. I'M SURE YOU'VE  HEARD ME TALK ABOUT THIS AD  NAUSEUM. WE ARE PRESENTLY  PRODUCING 6.5 TIMES THE AMOUNT  OF DEEPLY AFFORDABLE, LOW-INCOME HOUSING THAN BEFORE THIS  ADMINISTRATION TOOK OFFICE. THIS BUDGET ENSURES THAT TRAJECTORY  CONTINUES. WITH $17.9 MILLION  INVESTMENT IN THE AFFORDABLE  HOUSING TRUST FUND, WE ARE  PRODUCING A RECORD NUMBE OF  HOMES FOR PEOPLE WHO NEED THEM.  OUR PUBLIC HOUSING STOCK. LAST  YEAR, WE CHANGED THAT BY  REESTABLISHING THE MINNEAPOLIS  PUBLIC HOUSING AUTHORITY LEVY,  ALSO KNOWN AS THE HRA LEVY,  INCREASING THE ALLOCATION  FIVE-FOLD. THE IMPACT CANNOT BE  OVERSTATED. THAT MONEY CAN BE  USED FOR IMPORTANT SAFETY  UPGRADES LIKE SPRINKLERS,  DEFERRED MAINTENANCE AND  REPAIRS. IT CAN ALSO INCREASE  THE NUMBER OF PUBLIC HOUSING  UNITS IN OUR CITY TO PROVIDE  HOMES FOR THOUSANDS OF PEOPLE  WAITING IN LINE. THIS YEAR,  WE'RE HOLDING STRONG TO THAT  COMMITMENT, AND CHARTING A NEW  TRAIL-BLAZING PATH THAT COULD  SET THE EXAMPLE FOR OTHER CITIES TO FOLLOW. FEW CITIES IN THE  ENTIRE COUNTRY HAVE SUCCESSFULLY USED HUD'S FAIRCLOTH TO RAD  PROGRAM TO PRODUCE MORE HOUSING  UNITS. WE'RE GOING TO BE ONE OF  THE FIRST TO GET THIS RIGHT. AND WE'RE GOING TO BE THE FIRST TO  DO THIS IN EXCELLENT FASHION. AT THE SPRING STREET HIGH RISE IN  NORTHEAST, WE'LL HAVE A TEST. IF THIS IS SUCCESSFUL, OUR  $1.3 MILLION ALLOCATION WILL  LEVERAGE TENS OF MILLIONS MORE,  AND IT WILL SOLIDIFY AN  INNOVATIVE BLUEPRINT TO PROVIDE  EXPONENTIALLY MORE PUBLIC  HOUSING. IN MINNEAPOLIS, WE CAN  LEAD. AND FOR THE RECORD, OUR  STRONG SUPPORT FOR HOMEOWNERSHIP WILL CONTINUE WITH AN ADDITIONAL $1.5 MILLION, HELPING US  CONTINUE OUR MARCH TOWARD  BUILDING GENERATIONAL WEALTH FOR OUR BLACK COMMUNITY THAT HAS  BEEN HISTORICALLY GROOIFD OF IT. ALSO FOR THE RECORD, WE WILL  CONTINUE OUR ONGOING COMMITMENT  TO THE GROUND-BREAKING PROGRAM  STABLE HOMES STABLE SCHOOL WE  CAN ADD TO THE OVER 4,800 KIDS  WE'VE SUCCESSFULLY HOUSED  PREVENTING HOMELESSNESS AND  PROVIDING IMPORTANT SUPPORT FOR  THE MINNEAPOLIS PUBLIC SCHOOLS  THEY ATTEND. I WAS EXCITED BY  3,000, 4,800, THISS LEAVING A  MARK THAT WE CAN ALL BE PROUD  OF.  [APPLAUSE] >> THAT'S RIGHT. FINALLY, FOR  THE RECORD, WE'RE GOING TO  CONTINUE A PROGRAM TO HELP LOW  INCOME HOMEOWNERS ADDRESS SOME  OF THE OUTANDING ORDERS  THEY'VE GOT TO KEEP THEM IN  THEIR HOMES. THESE ARE SMALL  INVESTMENTS THAT HAVE CEREMONY  LARGE DIVIDENDS AND INCREASING  HOUSING STABILITY. WHILE SAFE,  STABLE, AND PERMANENT HOUSING IS THE END GOAL, WE KNOW IT'S NOT A REALITY FOR ALL OF OUR  RESIDENTS. JUST LIKE MOST CITIES ACROSS THE NATION, MINNEAPIS  IS WORKING TO ADDRESS  HOMELESSNESS, AND UNSHELTERED  HOMELESSNESS. IN THE LAST TWO  YEARS WE HAVE MADE PROGRESS.  HENNEPIN COUNTY FIGURES SHOW A  NEARLY 25% REDUCTION IN THE  NUMBER OF PEOPLE SLEEPING  OUTSIDE. THIS IS DUE TO  INCREASED IESTMENTS WE'VE  MADE. ADDING NEW SHELTERS TO OUR SYSTEM, AND WORKING WITH  PARTNERS LIKE THE COUNTY AND OUR NON-PROFIT ORGANIZATIONS TO  PROVIDE CULTURALLY SENSITIVE  SUPPORT AND WRAPAROUND SERVICES. AND STILL, WE NEED TO DO MORE.  THAT'S WHY I'M PROPOSING  INVESTING NEARLY $1.5 MILLION IN HOMELESSNESS RESPONSE. I'VE  HEARD FROM COUNCIL MEMBERS. THEY WANT MORE OUTREACH AND SUPPORT  FOR RESIDENTS. IT'S IN THIS  BUDGET. I'VE HEARD FROM UNHOUSED NEIGHBORS THAT MORE STORAGE  SPACE WOULD HELP. IT'S IN THIS  BUDGET. AND I'VE HEARD FROM OUR  RESIDENTS AND COUNCIL MEMBERS  THAT THEY HAVE HEALTH AND SAFETY CONCERNS REGARDING ENCAMPMENTS.  THERE WILL BE TIMES WHEN WE NEED TOLOSE ENCAMPMENTS. WITH THIS  BUDGET, WE HAVE THE TOOLS TO DO  SO HUMANELY. AND WHEN WE CAN  SUCCESSFULLY CONNECT A PERSONO SHELTER OR HOUSING, WE WILL.  ANYONE WHO WORKS AT THE CITY OF  MINNEAPOLIS IS HERE TO MAKE A  LASTING IMPACT. A LEGACY. THERE  IS PERHAPS NO GREATER LEGACY  THAN PROTECTING OUR PLANET. THIS BUDGET PRESENTED A CHALLENGE  BETWEEN HONORING COMMITMENTS  MADE AND RECOGNIZING THE IMPACTS THAT THOSE COMMITMENTS CAN HAVE  ON TAXPAYERS. THE TENSION WAS  FELT ACUTELY IN OUR DECISION TO  CONTINUE THE FRANCHISE FEE  ALLOCATION ESTIMATED AT  $10 MILLION COMMITTED TO OUR  CLIMATE LEGA INITIATIVE. BUT  FOR ALL OF US, I THINK IT WAS A  COMMITMENT WORTH HONORING.  THROUGH OUR CLIMATE LEGACY  INITIATIVE, WE ARE CONTINUING  OUR MARCH TOWARD HE  WEATHERIZATION IN OUR CITY'S  GREEN ZONES. NEIGHBORHOODS IN  BOTH SOUTH AND NORTH THAT HAVE  BEEN IMPACTED BY HIGH RATES OF  POLLUTION, WHICH WILL REDUCE OUR PER CAPITA CARBON FOOTPRINT, AND HELP BRING DOWN ENERGY BILLS FOR PEOPLE THAT DON'T HAVE A LOT OF  EXPENDABLE INCOME. WE'RE ALSO  PLANTING MORE TREES. EXPANDING  GREEN JOBS AND TRAINING.  INVESTING IN EV CHARGING  INFRASTRUCTURE, AND WE'RE POISED TO BE THE FIRST CITY IN THE  NATION TO START PRODUCING  BIOCHAR, A TOOL THAT HELPS  REMOVE CARBON FROM THE  ATMOSPHERE. OFTENTIMES WE TALK  ABOUT THE WORK WE DO TO FIGHT  CLIMATE CHANGE AS REDUCING. THIS IS ONE AREA WHERE WE CAN GO ON  OFFENSE. ON THE OTHER SIDE OF  CLIMATE, THERE'S NO TIME TO  WASTE. SPEAKING OF WASTE, WE'RE  TRYING TO GET DOWN TO ZERO OF IT BY 2030 THROUGH OUR NET ZERO  WASTE PLAN. WITH $300,000  INVESTMENT, WE'RE LAUNCHING OUR  INITIATIVE TO MINIMIZE THE  AMOUNT GENERATED, AND MAXIMIZE  THE RECOVERY OF RESOURCES  THROUGH RECYCLING, COMPOSTING,   METHODS. OUR GOAL IS TO ACHIEVE  FUNCTIONAL ZERO EVEN AS WASTE  GENERATION IS PROJECTED TO RISE. SO THIS BUDGETARY TRANSITION  WE'RE EXPERIENCING DOES NOT  NEGATE THE WELL-EARNED SUCCESS  OUR CITY IS PRESENTLY SEEING. ON MANY FRONTS, THE TIMES, THEY ARE A CHANGING, AND WE HAVE TO  CHANGE WITH THEM. THE WAY PEOPLE USE DOWNTOWN IS CHANGING, AND SO WE MUST ADAPT TO A NEW FUTURE.  THE WAY PROPERTY TAXES ARE  COLLECTED IS CHANGING, AND WE  MUST FIND NEW REVENUE STREAMS  THAT DON'T DISPROPORTIONATELY  IMPACT OUR NEIGHBORS AND  RESIDENTS. COSTS IN MANY AREAS  HAVE RISEN, AND IT'S ON US TO  CHANGE OUR PRACTICES, TO FIND  EFFICIENCIES, AND YES, MAKE  DATA-DRIVEN AND NECESSARY  DECISIONS ON WHEN AND WHATO  CUT. WHILE CHANGE CAN BE  UNCOMFORTABLE, WE WILL FIND A  WAY THROUGH. WE ALWAYS HAVE. AND DURING THE TRANSITION, WE WILL  NOT COMPROMISE OUR CORE VALUES.  OUR PLANET DEMANDS WORK TO  REDUCE CARBON OUTPUT, AND IN  MINNEAPOLIS, WE CAN TAKE STEPS  TO DELIR. PEOPLE NEED THE  STABILITY OF A HOME, AND IN  MINNEAPOLIS, WE CONTINUE TO LEAD THE NATION IN PROVIDING  AFFORDABLE HOUSING. OUR STREETS  NEED TO BE SAFE. A TOP PRIORITY  FOR ANY MUNICIPALITY. IN  MINNEAPOLIS, WE CAN DO BOTH  INNOVATIVE AND HONEST WORK TO  MAKE THAT HAPPEN. A CHANGING  CITY RISES, AND OUR GREAT CITY  IS RISING. AND WE WILL RISE  HIGHER BECAUSE WE ARE COMMITTED TO FINDING A WAY THROUGH  TOGETHER. THANK YOU ALL, AND  THANK YOU FOR LOVING  MINNEAPOLIS. [APPLAUSE]