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 department said the storm and sanitary utilities face proposed rate increases of about 14% driven in part by Metropolitan Council Environmental Services’ (MCES) apportionment of treatment costs. Kershaw and operations staff said the MCES increase appears tied partly to last year’s flooding and higher flow; the department is investigating infiltration and other causes and will pursue mitigation steps and further discussion with MCES.

- West Seventh collapse and sewer repairs: Public Works described an emergency repair of a collapsed sewer segment on West Seventh Street. Kershaw estimated the total repair bills will be substantial (more than $1 million is possible) and said the sewer utility has cash available to cover immediate costs; final invoicing and the funding mix will be confirmed.

- Copper wire theft and streetlights: Kershaw reported a roughly 30% year‑over‑year decline in public calls about copper wire theft following new licensing (effective Jan. 1) and criminal definitions that added damage to streetlights as a felony (effective Aug. 1). He said some locations remain hard to protect — notably a long stretch of Shepherd Road where the lantern‑style fixtures are particularly easy to strip — and estimated replacement of that corridor’s lights at about $750,000.

- Road‑marking technology and worker safety: Public Works proposed one‑time funding of $450,000 for a robotic “roadprints” machine that automates pavement markings. Kershaw said the device would reduce staff exposure to traffic, improve marking accuracy (including bicycle green lanes and continental crosswalks), upload markings into asset management and "pay for itself about 7 years." The department emphasized the current manual method is time‑consuming and exposes workers to traffic risks.

- Solid waste and recycling: The city’s new municipal collection model reached roughly 7,400 households (out of about 74,000 total) in the initial phase; the department said new downtown solar‑powered, larger receptacles (about 150‑gallon capacity compared with prior 50‑gallon cans) will be rolled out and that the program moves some previously general‑funded functions into a fee‑supported enterprise model. The solid‑waste team also added operational staff paid from the enterprise fund; Kershaw said those costs were built into the proposed rate structure rather than the general fund.

- Vegetation management and right‑of‑way work: The department highlighted recent gains in median and tree maintenance funded through right‑of‑way revenues and partnerships with Parks and Public Safety, and noted it applies about 4,200 gallons of paint in striping work annually.

Committee questions and next steps Council members sought more detail on the expected cost of the West Seventh repair and how the city would finance it; Kershaw said the sewer utility likely can cover immediate costs but final accounting remains. Members pressed for a public briefing on copper wire theft statistics and enforcement outcomes; Kershaw said reported calls were down roughly 30% year‑over‑year but acknowledged continued hotspots.

The department will present formal rate hearings this fall for solid waste and recycling and for sewer rates. Council members asked for a breakdown of the $1.2 million mill‑and‑overlay reduction’s multi‑year impact; Kershaw said the department expects to minimize program effects in 2026 but the cut increases risk in future years unless funds are restored.

Ending Kershaw said the department aimed to protect frontline services while making targeted reductions and one‑time investments that improve safety and efficiency. He invited follow‑up questions and committed to providing more detailed cost accounting for the West Seventh repair, the Met Council charge breakdown and options to restore mill‑and‑overlay funding.