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St. Paul Mayor Melvin Carter laid out his proposals Tuesday for next year’s $855 million budget.

 includes a general fund budget increase of $24.5 million and a property tax levy increase of 7.9 percent, which Carter said would come to around $11 more per month on a median-value home. 

Carter addressed what he called the city’s “raging housing crisis,” which he said is affected by aging housing stock and the slowdown of new housing production. He said the 

, which caps residential rent increases at 3 percent in a 12-month period, is directly linked to the slowdown of new construction after developers paused or canceled projects due to economic restraints.  

He proposed amending the ordinance to exclude properties built after 2004.

“This simple change would advance our values by maintaining the overwhelming majority of St. Paul rental properties as rent stabilized while unlocking the critical release valve that only new housing construction can offer us,” Carter said. He encouraged council members to take up his proposed housing policies before the end of the year.

Mayor Carter’s proposed budget also includes an increase in funding for the city’s fire department. He said St. Paul’s east side has experienced more fire fatalities than any other neighborhood in recent years.  

If the budget is approved, six new firefighters will be hired to serve the east side along with a new fully electric firetruck, which Carter said would be the first in Minnesota, and a new fire station.  

The Xcel Energy Center downtown will also see renovations as it turns 25 next year. Carter says the arena complex, which includes the St. Paul River Center, generates $383 million in annual statewide spending.  

“It is an economic engine for our community, especially as we expand our reach and seek out more opportunities to host big events in our city,” he said.

The renovation project would create up to 2,300 new jobs.  

Following the budget address, the City Council will now begin the process of reviewing the proposed budget. It will set the maximum property tax levy in September, and the budget cannot exceed the levy.

Before the end of the year, the City Council will hold public hearings to discuss the budget before making any final votes to approve.  

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Chandra Colvin

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Carter addressed what he called the city’s “raging housing crisis,” including aging housing stock, residents experiencing homelessness and the slowdown of new housing production.

St. Paul Mayor Melvin Carter lays out 2025 proposed $855 million budget

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