Public Works presents 2026 budget with mill‑and‑overlay cuts, proposed 14% sewer rate rise and one‑time road‑marking investment

Sean Kershaw, director of the Saint Paul Public Works Department, presented the department’s proposed 2026 budget to the Saint Paul City Council Finance and Budget Committee and outlined capital and operating tradeoffs the city faces as it ramps up a large construction program. Kershaw said the department will oversee roughly $94 million in capital projects next year, but maintenance funding remains constrained.

Why it matters: the city’s ability to maintain streets, sewers and pedestrian infrastructure depends on recurring maintenance funding that currently comes primarily from the general fund. Kershaw cautioned that a proposed $1.2 million ongoing reduction in mill‑and‑overlay support would not materially affect the 2026 work program but would increase pressure in future years unless replaced.

Key points from the presentation - Mill‑and‑overlay reduction: The proposal reduces general‑fund support for mill‑and‑overlay projects by $1.2 million on an ongoing basis. Kershaw described the cut as necessary to meet near‑term budget targets while preserving staff; he warned that skipped maintenance compounds over time and requires renewal of funding in subsequent budgets to avoid accelerated degradation.

- Sewer rates and Met Council charges: The…