In a recent government meeting, city officials discussed significant changes to the budget and property tax levies for the upcoming fiscal year. The proposed maximum levy increase is estimated at 9.88%, driven primarily by rising personnel costs and a new street maintenance budget that has increased funding for pavement rehabilitation.

City Manager Brian and other officials expressed concerns about the potential impact of ongoing union negotiations, which may result in costs exceeding the current budget. They emphasized the need for caution in setting the maximum levy, as it cannot be increased once established.

Comparative data from neighboring cities in Ramsey County revealed a range of levy increases, from a low of 4.65% in St. Anthony to a high of 15.7% in White Bear Lake, with the median increase at 10.38%. The city’s personnel costs alone account for a 4.6% increase in the levy, while other budget line items have seen minimal increases.

The meeting also highlighted a legislative change affecting the homestead market value exclusion, which is expected to significantly alter tax calculations. The median value of residential homes in the area has only increased by 1.5%, contrasting sharply with the double-digit increases seen in previous years. This flattening market could shift the tax burden more heavily onto residents, particularly as the city has limited commercial properties to absorb potential tax increases.

Officials noted that, despite the proposed levy increase, the overall tax burden for a median-value home in North Saint Paul would rise by approximately $110 annually, translating to an 8.56% increase. This figure reflects the complexities of property tax calculations, which are influenced by market values, legislative changes, and the city’s fiscal strategies.

The city is also benefiting from an increase in fiscal disparities funding, which has risen by 18% from the previous year, providing additional financial support. However, officials cautioned that the final property tax rates will depend on the outcomes of ongoing assessments and potential appeals that could affect property values.

As the city prepares for the final budget decisions, officials are urging careful consideration of the proposed levy to balance the needs of the community with fiscal responsibility.