St. Paul Mayor Melvin Carter’s 2019 budget proposal seeks to fill more potholes, expand funding for anti-poverty initiatives and recreation centers, and bolster the city’s housing efforts. None of it will be free.
In August, Carter proposed a $16 million increase to the city’s tax levy — an 11.5 percent tax hike to fund city services for the next year.
Double-digit increases aren’t unprecedented in St. Paul, but they can be a difficult sell for property owners.
Over the past six years, median home values in St. Paul have risen faster than inflation — and so have property taxes.
With a final public hearing on the 2019 budget and tax levy scheduled for Wednesday, city council members are still negotiating with the mayor’s office how to trim the hike by at least a percentage point, or $1 million or more.
“We’ve been committed to try to bring the levy down. … I think we’re pretty close,” said St. Paul City Council President Amy Brendmoen. “Hopefully we’ll have some interesting news on (Dec.) 5th.”
A compromise budget proposal is expected by Wednesday, and the council will finalize the city budget Dec. 12.
With the exception of police staffing, the two sides are not far apart.
Brendmoen said Carter’s initial budget proposal reflected many of the council’s longstanding priorities. For instance, council members have for years highlighted housing concerns and advocated for more funding for the city’s rec centers, several of which have closed or been partnered with nonprofits.
Nevertheless, Brendmoen is hoping the council can keep the tax levy increase below 11 percent to match the 10.46 percent growth in the city’s tax base, or the sum of all the property values within St. Paul.
“Everything is still on the table,” said Liz Xiong, a spokeswoman for Carter’s office.
A $300-PLUS TAX INCREASE?
If the proposed St. Paul, Ramsey County and St. Paul Public Schools maximum tax levies pass as planned, owners of a median-value St. Paul home — $186,000 — could see their tax burden increase by as much as $323 next year. That includes $135 from the new school district levy approved by voters on Election Day.
In other words, average individual tax bills could go up as much as 12.8 percent. Homeowners can expect wide variation by property type and neighborhood.
There’s also another $23 or so in St. Paul fee increases, as well as costs that vary widely by household, such as the impact of a new garbage-collection service in St. Paul.
On top of quarterly rates, organized trash collection imposes a $24.60 fee for administration and outreach, which will be added to property taxes.
BUDGET HIGHLIGHTS: NO POLICE BACK-FILLING, NO PARKING RAMP SALE FOR HOUSING?
Carter’s office had hoped to fund a $10 million affordable housing trust fund next year by selling a 1,170-stall downtown parking ramp across from the Minnesota Children’s Museum. However, negotiations over the sale of the municipal ramp to the owners of Wells Fargo Place recently ended without a sale.
Xiong said continued city ownership of the ramp means less lump-sum money for the housing fund upfront, but more funding over time. The council president agreed.
“In a way, it’s a better deal,” Brendmoen said.
The mayor drew both praise and hackles in August by proposing that the St. Paul Public Library system drop late fines entirely.
Library patrons would still be charged replacement fees if they lose a book, but returning one a few days late would involve no penalties. Previously, accrued fines of as little as $10 could get a patron locked out from borrowing materials.
For the library system, forgiving fines has meant some scrambling to fill the $215,000 difference. The city plugged the hole with other revenues.
“The actual library funding did not go down,” said City Finance Director Todd Hurley on Friday.
Police staffing represents a thornier challenge. In Carter’s budget proposal in August, he allocated funding for four additional investigators and two commanders. Patrol positions were not back-filled in the proposal.
City council members “strongly want to see more investigators,” while not losing patrol officers as they’re moved to investigative positions, Brendmoen said Wednesday.
“We agree with the mayor’s vision on policing and challenging some of our assumptions,” Brendmoen said. “I also think that we want to make sure that (police) have appropriate case loads, especially in investigative units.”
Peter Leggett, Carter’s communications director, said Friday that in addition to promoting sworn officers as investigators, the mayor’s budget includes the expansion of the St. Paul Police Department’s Mental Health Unit Co-Responder Program, which assists with calls involving mental health crisis.
St. Paul police officers also are among city employees getting raises, which the city council approved in a new contract in June.
“Combined with the mayor’s investments in our parks, recreation centers, libraries, and the unprecedented new $10 million housing trust fund, Mayor Carter has laid out a vision that takes a wide ranging approach to ensuring our city’s public safety needs are being met,” said Leggett in a statement.
The St. Paul City Council will host its annual “Truth in Taxation” hearing on proposed 2019 property taxes at approximately 6:30 p.m. Wednesday in the third floor council chambers, 15 W. Kellogg Blvd.
Mara H. Gottfried contributed to this report.