What is the Board of Estimate and Taxation?

The Board of Estimate and Taxation is an independent local government in the City of Minneapolis. It has three functions:

• The Board sets the maximum property tax levy for the City of Minneapolis and the Park Board.

• The Board issues debt for these two organizations. Debt is how government borrows money to build parks, rebuild streets, construct water plants and make other needed long-term improvements. The Board does not handle economic development or tax increment financing borrowing, however.

• The Board oversees the internal auditor function, making sure that we have clean government in Minneapolis.

The Board has six members, the Mayor of Minneapolis, the City Council President, the Chair of the Ways and Means Committee, a representative from the Park Board and two independently elected individuals. The Library Board also had a member on the Board until it became a function of Hennepin County in 2008.

One informal thing that comes out of these functions is balancing the financial needs between the City and the Park Board. The Board of Estimate provides a check and balance on the financial activities of both of these organizations and the relations between the two boards.