St. Paul City Council passes property tax increase, makes cuts to mayor's spending plan
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The St. Paul City Council approved a property tax levy increase of nearly 6 percent at its meeting Wednesday evening. Like municipalities and counties across Minnesota, the capital city is facing increased costs and turning to taxpayers to pay more.
The increase was less than Mayor Melvin Carter wanted. He said in a statement his administration “will determine next steps in the coming days.”
In August, Carter proposed a 7.9 percent increase in the property tax levy — the total amount that the city collects. For the owner of a home valued at $275,000, it would have meant another $133 in the city portion of their property tax bill.
Council members wanted to limit the increase to 5.9 percent, and Carter proposed meeting them halfway. Flanked by supporters from community and social service groups ahead of the Wednesday vote, the mayor urged the council to approve a 6.9 percent increase. He said the council’s plan would mean cuts for police overtime and other priorities while saving homeowners very little.
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“Those two budgets aren’t that far apart. In fact, they amount to just about a $19 a year difference in terms of the tax impact on a median-value home,” Carter said. “But let me tell you, they amount to a whole lot in terms of the city services we experience in our community.”
Council members turned aside the measure supported by Carter, voting 5 to 1 to hold the levy hike to 5.9 percent. Among those supporting the lower increase was council member Anika Bowie.
“My constituents sent me here to this seat to be their voice and to ensure the people who voted for me requested the levy to go down,” Bowie said.
The levy and accompanying budget that the council approved would spend around $2.3 million less than what Carter proposed. The council made major cuts to non-emergency police overtime, but kept three new firefighter positions.
Council members were reacting to the frustration many residents voiced about continued property tax hikes. At a public hearing last week, Highland Park neighborhood resident Brian Dobie said he’s facing a double-digit increase next year.
“You’ve raised my tax by 16.7 percent to $11,324. That is insane. I have seven children. I’m trying to raise a family,” Dobie said. “I’ve lived here all my life. I believe in paying my fair share. This doesn’t work for families.”
About one-third of Dobie’s taxes go to the city. A slightly smaller portion goes to Ramsey County, which is proposing a 4.75 percent increase in its total property tax collections.
At a separate county board hearing Wednesday, residents raised similar concerns. Sandy’Ci Moua owns rental properties in St. Paul and says she’s struggling to keep up with the expense of managing the apartments and her own cost of living.
“If you want us to build wealth, this is not how we do it. I know that government can work better to work with the budget that we have.”
The Ramsey County Board is expected to vote on the new budget on Tuesday.