St. Paul Mayor's Surprise Announcement Sparks Tensions with City Council

Strategic Insights -

St. Paul Mayor Chris Coleman surprised City Hall on Monday by unveiling an additional $2 million in revenue, which could lead to a smaller property tax increase for taxpayers. The mayor's announcement, made through a news release, has sparked tensions with the City Council, particularly President Kathy Lantry, who emphasized that only the council can change the budget. The council had been working to lower the mayor's proposed 6.5 percent levy increase and avoid his suggested $1 million cut to the fire department.

Key Takeaways:

  • The mayor's surprise announcement revealed an additional $2 million in revenue, which could reduce the property tax increase from 6.5 percent to 5.5 percent.
  • The $2 million includes $1.4 million from tax-increment financing districts and $598,000 from refinancing bonds and the school district's hiring of three full-time police officers.
  • The mayor plans to use $298,000 to fill three vacant police positions, restore $184,000 in personnel money to the fire budget, and add $55,000 to hire an additional inspector for the Department of Safety and Inspections.
  • He also plans to use $376,000 to avoid cutting 6.8 full-time positions in the library system.
  • The mayor's proposal includes decommissioning Rescue Squad 2 from the new fire station at W. 7th Street and Randolph Avenue, which is opposed by the firefighters union.
  • Council members are considering "springboarding" off the mayor's proposal and "enhancing" it, although the details of their plans are unknown.

Statistics:

  • Property tax increase reduction: from 6.5 percent to 5.5 percent
  • Levy reduction: $7 on a median-valued $149,000 home (reducing the proposed increase from $44 to $37)
  • Excess collections from tax-increment financing districts: $1.4 million
  • Refinancing of bonds and school district's hiring of three full-time police officers: $598,000
  • Number of vacant police positions to be filled: 3
  • Personnel money to be restored to the fire budget: $184,000
  • Number of inspector positions to be added: 1
  • Amount to be used to avoid cutting library positions: $376,000
  • Number of library positions to be cut: 6.8 full-time

Sources:

  • "Mayor Scores Tax Break for St. Paul." Star Tribune. 12 Nov. 2011, p. B01.
  • "City Officials Call off Budget Talks." City Pages. 3 Nov. 2011.
  • "St. Paul Budget Would Cut Fire Department, Increase Taxes." Pioneer Press. 23 Aug. 2011.