City of St. Paul facing historic $26 million budget deficit in coming year
The City of St. Paul is facing an estimated $26 million budget deficit in the coming year.
First-term Mayor Kaohly Her says she inherited a historic budget deficit, with systemic issues as rising costs add pressure.
"We all are feeling the pinch at home, so what everybody is experiencing and feeling increased costs the city feels those exact same pinch points," Her said. "We have to put fuel in our police vehicles, in our EMS vehicles, we have to buy asphalt"
Her held several community meetings over the last month to talk through the budget issues with residents and also ask for their feedback.
On Wednesday, at a session inside the Neighborhood House on Robie Street East, residents in St. Paul shared their concerns. Many highlighted the impacts of rising property taxes.
"The increases have been substantial over the last number of years," said Bob Muschewske, who is a homeowner and part of Insight St. Paul.
The group describes itself as a nonpartisan fiscal watchdog.
"The costs are unsustainable and the city needs to give a very hard look at what do we really want to accomplish, what outcomes are important," Muschewske said
Her told WCCO it's likely property taxes will rise, as the city tries to increase all streams of revenue.
"I haven't been particularly concerned about my level of taxes, but continuing to raise property taxes to continue to fill the gap is not a long-term solution," said Kathy Quick, who lives in St. Paul and attended the meeting.
The mayor said one of her priorities is preserving industrial zoned properties and expanding the city's tax base to help shoulder the burden.
Her said the city is tracking responses and input from residents as they try to close the gap. She is expected to present a budget proposal later this summer. She said it's likely city services will be impacted, but did not specify which ones will face cutbacks, though she did say the majority of the city's budget covers employee wages and benefits.
"How do we build a city that puts us in a place where we can deliver services in a way that really honors people's tax dollars and to plan that far into the future?" Her said.
