Operation Metro Surge leading to budget concerns for City of Minneapolis

There are concerns in the City of Minneapolis that Operation Metro Surge could lead to higher property taxes.

According to Budget Director Jayne Discenza, the city spent at least $5 million in just a couple of weeks in January in response to the federal immigration enforcement operations. She told City Council members that all of the 26 city departments are contributing to the response, from staffing to time.

“For just the police department, I think we’re at $4.3 million in overtime associated with this response,” said Discenza. “If you project that out, certainly over budget.”

After federal agents shot and killed Alex Pretti, Minneapolis Police Chief Brian O’Hara said the department did an emergency recall of all sworn personnel back to duty. Community Safety Commissioner Todd Barnette has also shared the stress the federal operation is having on city emergency response overall.

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In December, the city approved a 2026 budget that eliminated critical staffing overtime. It was considered a $3.6 million cost savings at the time. 

The city has a $2 billion budget overall with a $700 million general fund, according to Discenza. The city is required to have a contingency fund of 1% of the general fund balance. The 2026 budget lists the general fund contingency this year as $7.46 million.

“Previously, we have a small cushion between where our general fund balance is expected to sit at the end of 2026, assuming departments don’t overspend their budgets this year and, again, that might be difficult because of what they’re forced to do because of federal incursion,” said Discenza. “If we are to deplete our resources this year, we’ve been put on notice by bond agencies they are watching our use of fund balance. We have a AAA rating, and that matters to constituents because that allows us to borrow at a lower rate to do our capital work, so I think the concern long term would be without raising property taxes, we would be dipping below that minimum fund balance.”

Operation Metro Surge started Dec. 1, 2025. Homeland Security has not indicated when it will end.

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