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North St. Paul workshop outlines 2026 CIP that would raise levy about 5.8% and add sustained charges for streets and facilities
Summary
City staff told the council the 2026–2035 capital improvement plan would require sustained levy increases (streets alone needs roughly $248,000) and a preliminary combined levy of about 5.84% for 2026; councilmembers asked for more detail on parks, sidewalks and the timing of large equipment purchases.
City staff presented the second workshop on the 2026–2035 capital improvement plan and told the North St. Paul City Council that paying for the plan would require higher property tax levies over the next decade.
Dan, the city's finance director, said the streets component alone would require about a $248,000 levy — roughly a 3.2% levy increase dedicated to street debt — sustained for at least seven years to support major reconstruction work. He added the parks plan in the CIP would need about $30,000 more in levy support and asset preservation would need about $142,000 annually. Together, those items are the primary drivers of the proposed levy increases, Dan said.
The finance director also said internal service funds (for equipment and building maintenance) likely need roughly a 5% annual funding increase, while the utilities (water, wastewater and surface water) would require modest enterprise increases. Dan said the CIP assumptions call for a 6% rate increase for the three water-related funds beginning in 2027 to help pay for water-driven projects tied to road reconstruction.
Dan presented a preliminary combined levy package for 2026 (city, HR and EDA) at about 5.84%. Using preliminary county-assessed values, staff estimated a median-valued homeowner would see an increase of about $37–$38 on their annual tax bill (roughly 2.8%), but stressed those figures are preliminary and the maximum levy certified in September can be lowered before final adoption in December.
Council members questioned details and asked staff to prioritize and refine specific CIP line items. On one sidewalk project — an east-side sidewalk on McNite Boulevard budgeted at about $200,000 — staff said Ramsey County right-of-way and grading concerns could make the project more expensive; the council agreed to refer that item to the Parks & Recreation Commission for a feasibility recommendation.
Dan and staff emphasized the city is largely residential with a limited commercial tax base, which raises the city's tax rate relative to other Ramsey County cities even when levy changes are similar. Dan showed the CIP's 10-year facility need total at roughly $17 million, with most costs for the community center and other major facilities.
The workshop continued the council's review; staff said the council will set the maximum levy at an upcoming meeting in September and the levy cannot be increased above that certified amount later this year.
