State Auditor Blaha Releases 2023 Minnesota City Finances Report - March 3, 2026

Contact: Nadine Kottom-Dale | 612-391-7000

State Auditor Blaha Releases 2023 Minnesota City Finances Report

“Minnesota cities started 2023 in a solid financial position, with revenues growing at a faster pace than expenditures and reserves remaining stable,” said State Auditor Julie Blaha.

SAINT PAUL, Minn. – State Auditor Julie Blaha released the 2023 Minnesota City Finances Report today.

The 2023 City Finances Report was compiled from city reporting forms, financial statements and audits. The Report summarizes the current and long-term trends for city revenues, expenditures and debt.

“Property taxes remain the foundation of city finances,” Auditor Blaha said. “But federal grants are up 186.5% since 2014 and have played a significant role in shaping local budgets, so careful planning is essential for sustainability.”

Highlights and Trends from the report:

• Total governmental fund revenues for all Minnesota cities totaled $7.9 billion in 2023, a 13.9% increase over 2022 revenues. Total governmental fund expenditures totaled $8.3 billion, a 7.0% increase.
• Revenue growth was uneven across city size. Cities with over 2500 in population saw revenues increase 14.7%, while cities under 2500 experienced growths of 5.3%.
• Between 2014 and 2023, property tax revenues grew 63.1%, while intergovernmental revenues increased 70.8%. Over the same period, federal grants rose 186.5%, state grants 50.4% and total grants 84.3%.
• Property taxes grew both in dollars and as a share of total revenues, increasing from 38.7% in 2014 to 40.9% in 2023.
• Small cities carried a significantly higher long-term debt burden per capita in 2023, at $4,375 compared to $2,008 for large cities.
• Financial reserves also differed substantially by city size. Unrestricted fund balances averaged 111.0% of current expenditures in small cities, compared to 52.2% in large cities.

The complete report is available on the OSA website.