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For the second year in a row, all three bond rating agencies have assigned the highest credit rating possible to the City of Minneapolis. The AAA rating by S&P Global, Fitch Ratings and Moody’s is yet another sign that the state of the City’s finances, credit standing and revenue recovery is on solid footing.

Mayor Jacob Frey highlighted the AAA ratings during his 2026 budget address, during which he outlined a disciplined, long-term vision for the City brought to life through durable investments in vital programs and infrastructure – all supported by a sturdy fiscal foundation and growth outlook exemplified in these bond ratings.

“AAA ratings from all three major credit agencies send a crystal-clear message: Minneapolis is strong, stable and well-managed,” said Mayor Jacob Frey. “These ratings don’t just happen — they’re earned through years of thoughtful stewardship, smart budgeting and a commitment to delivering core services for our residents. That kind of fiscal strength means we can invest in our city’s future while keeping costs low for taxpayers.”

The AAA ratings affirm Minneapolis’ position at the center of a strong and diverse regional economy, low long-term liability and a sound financial profile. In fact, only a handful of cities and towns across the country maintain the top ratings for several years in a row. The City plans to take bids for the $141 million bond issue on August 20.

The City has “very stable operations supported by strong financial management practices that include multiyear budgeting and long-term capital planning,” pulled from Moody’s report. Fitch reports a “high level of budgetary flexibility” and healthy general fund reserves.

“These ratings validate our budget resilience and robust financial standing,” said City CFO Dushani Dye. “Year after year, we remain confident in our reserves and plans to manage the City’s finances.”

Minneapolis Mayor Jacob Frey delivered his 2026 Budget Address in front of Council Members, City leaders, and community and business partners. The mayor’s proposed budget reflects a disciplined, long-term vision for a city “built to last,” with investments in programs and infrastructure that strengthen Minneapolis for decades to come.

Mayor Frey’s budget proposal emphasizes protecting core services, supporting the City’s workforce, and continuing to deliver on Minneapolis priorities: affordable housing, modernized public safety, climate and public health investments, inclusive economic growth, and downtown vitality.

Simply sustaining the City’s current operations would have increased the 2026 property tax levy by 13% -- far too much for residents to shoulder. City staff identified savings and cuts that reduced the projected levy increase by 40%, bringing it down from 13% to 7.8%.

The mayor’s $2 billion proposed budget includes:

• $23 million in smart savings
• No layoffs
• No interruptions to core City services
• Maintained fiscal reserves to withstand potential federal funding instability

“Great cities aren’t accidents—they are built to last,” said Mayor Frey. “This budget makes disciplined choices to keep Minneapolis strong for the long term. We’re protecting the services residents rely on, investing in programs that work, and building a city that our kids and grandkids will be proud to call home.”

Community safety and police recruitment

• Supports recruitment to continue rebuilding the MPD, now at more than 600 officers and the most diverse force in city history.
• Prioritizes a full-spectrum public safety system with police, fire, EMS, civilian responders, and violence prevention efforts working together.
• Fully funds compliance with the federal consent decree and state settlement agreement, including two new positions in the Implementation Unit.
• Sustains 24/7 Behavioral Crisis Response (BCR) services and community-led violence prevention initiatives.
• Advances key public safety capital projects, including the modernization of the 4th Precinct and the Public Safety Training and Wellness Center.

Affordable housing and homelessness response

• Continues the Stable Homes Stable Schools program, keeping thousands of Minneapolis students and families stably housed.
• Sustains investments in the Affordable Housing Trust Fund and the Minneapolis Public Housing Authority, putting more apartments and homes to own in reach of more residents.
• Dedicates $1 million for homelessness response, to ensure shelters can operate safe, dignified, and supportive spaces for unsheltered neighbors.

Climate action and public health

• Advances the Climate Legacy Initiative (CLI), including investments in cleaner energy, green infrastructure, and waste reduction.
• Supports the Zero Waste Plan to move toward the City’s 2030 waste diversion goals.
• Uses opioid settlement funds to launch a Mobile Medical Unit, expand access to Narcan vending machines, and support hospital-based intervention programs for overdose survivors.

Economic inclusion and downtown vitality

• Supports the Ownership and Opportunity Fund, helping Black, brown, and immigrant entrepreneurs build lasting wealth by owning their businesses and properties.
• Funds Vibrant Downtown Storefronts and Nicollet Mall activation, keeping downtown lively and welcoming for residents, workers, and visitors.
• Invests in cultural and commercial districts, including Uptown and Lake Street, through technical assistance and small business support programs.
• Provides dance programming in schools, downtown, and at the Cowles Center, which is slated to reopen next year under new operator Arts Nest/Zenon Dance Company.
• Continues outreach and services for vulnerable communities, including immigrants and refugees.

Good governance and fiscal discipline

• Generates $23 million in savings through vacancy management, scaling back nonessential spending, and prioritizing proven programs.
• Protects City jobs, avoiding layoffs, and maintains the City’s AAA bond rating, saving taxpayers millions through lower borrowing costs.
• Budgets responsibly to prepare for potential federal funding reductions amid continued uncertainty in Washington.

“This budget invests in homes that are stable, streets that are safe, neighborhoods that succeed, and a city government that keeps its promises,” Frey said. “We’ve done the hard work to make sure Minneapolis is strong today and built to last for tomorrow.”

The full text of Mayor Frey’s speech as prepared for delivery is attached, and you can watch the mayor’s full address on the City’s YouTube page.

Mayor Jacob Frey joined City Council Member LaTrisha Vetaw and local community leaders to celebrate the official signing ceremony for the Community Performing Arts Center, marking a major milestone in the Upper Harbor Terminal redevelopment on the Northside. 

The 8,000-seat concert venue will be operated by the legendary Minneapolis nightclub First Avenue and the Minnesota Orchestra. The venue is expected to host around 50 ticketed events each year, with $3 in proceeds from each sale reinvested directly into the local community through a partnership with the African American Community Development Corporation (AACDC). 

“Imagine a warm summer night in Minneapolis, sitting by the river, watching your favorite band play live at a state-of-the-art venue—that’s what we’re delivering to the Northside,” said Mayor Frey. “The Community Performing Arts Center is a generational investment. Not only does it bring jobs and tourism to the community, with our partners at First Avenue and the Minnesota Orchestra committed to reinvesting revenue back into North Minneapolis, it brings real change.” 

A long-term investment

“The Upper Harbor Terminal is more than a development, it’s a long-term investment in North Minneapolis,” said Council Member LaTrisha Vetaw. “This project creates real jobs, builds community wealth, and opens doors for residents who have historically been left out of major economic opportunities. I am proud to help bring this vision to life and ensure that Northside families benefit from every phase of this project.” 

The AACDC will manage and distribute funds generated from commercial ticketed sales at the Community Performing Arts Center, reinvesting revenue into social, cultural, and economic initiatives on the Northside. The Minnesota Orchestra has put together a fundraising coalition to raise private funds to support the building of the amphitheater. When the venue is complete, the Orchestra will play both a performance role—playing at the venue each season—and an operational one, working alongside First Avenue on the venue’s long-term oversight. 

“This milestone is the result of countless hours of community planning, co-creation, and dedicated neighborhood input,” said Dayna Frank, President and CEO of First Avenue Productions. “We are honored to be a part of such an incredible project and look forward to building a world-class, inviting, boutique urban amphitheater on the Mississippi riverfront. Thank you to the State of Minnesota, the City of Minneapolis, our partners at the Minnesota Orchestra and AACDC, and the hundreds of Northside community members who contributed ideas to make this project truly special. We are thrilled to be moving forward and building a cherished community asset to be enjoyed for generations to come.” 

“The Orchestra is proud to partner with First Avenue, another home-grown music organization, and the AACDC to expand the musical footprint of Minneapolis with this beautiful outdoor amphitheater,” said Minnesota Orchestra Board Chair Nancy Lindahl. “We are grateful to the Mayor and City of Minneapolis for their support and to the coalition of generous funders who rallied together to make this vision a reality. These private individuals were drawn to support the project because of a shared belief in the important role music, the Orchestra and the arts can play in strengthening our City, and we now look forward to seeing this come to life along the riverfront for audiences for decades to come.” 

In addition to world-class musical acts, the amphitheater will also host year-round community programming in public spaces, with a strong focus on including Northside residents, businesses and organizations. Construction of the Community Performing Arts Center will create more than 500 jobs, and once completed, amphitheater operations will employ more than 250 people.  

"We are thrilled to reach this milestone in our journey — excited to collaborate with the community and this incredible team to bring year-round programming, public art, career paths, and local vendor opportunities to life," said AACDC Board Chair Keith Baker. "Can’t wait to see years of community planning become a vibrant reality." 

Upper Harbor Terminal Redevelopment 

The Upper Harbor Terminal, a 48-acre riverfront site off Dowling Ave. N and I-94, is currently being redeveloped by the City in partnership with the Minneapolis Parks and Recreation Board and a group of local developers with additional investments from the State of Minnesota and the federal government. 

The $350 million investment—including $20 million from the City—reconnects North Minneapolis to the Mississippi River and will include affordable housing, a health and wellness hub, 20 acres of riverside parkland, hundreds of new living-wage jobs, and more. Infrastructure work was completed at the site last summer, with construction set to begin this fall. The amphitheater will begin hosting events for the 2027 concert season.