North St. Paul City Council — Transcript
Tuesday, July 15, 2025
2026 Budget Kickoff and Comprehensive Review
Fiscal Health and Future Financial Challenges
Impact of Levy and Fiscal Disparity on Residents
Votes (1)
2026 Budget Kickoff and Comprehensive Financial Review
The Finance Director presented the proposed 2026 budget, emphasizing the achievement of a 6% levy increase and stable utility rates. The presentation detailed revenue and expenditure breakdowns across all funds, highlighting the impact of the 10-year Capital Improvement Plan. Key financial challenges discussed included the negative fund balance of the fiber optic network, unfunded community center needs, and the city's dependence on property taxes and intergovernmental aid, especially given potential future state budget deficits.
Notable Quotes (8)
Our CIP is what drives so much of it. In the past years we've really done an excellent job as far as planning, identifying needs that the city has from streets to facilities to parks and so forth. When we look at that right there to fund what we're going to see in the CIP, that's a 6% levy increase right there.
What I'm showing you tonight achieves that [6% levy increase and no utility rate increases].
What you can see on our revenue side is that we have a heavy heavy dependence on property taxes and intergovernmental you know to the tune of what is that 78 79% that's huge. So we need to be aware of that.
If you recall, we got a $2 million negative fund balance. So with a $29,000 reduction in our revenue side to it, I think we pretty much have guaranteed ourselves we'll never pay off that $2 million that negative.
There are some unknowns coming our way that Dan kind of touched on of, you know, we don't know what's going to happen with the state fiscal budget, you know, come 2029. You know, we don't know what's going to happen with the community center for sure just yet. But these are some large expenses that could really hit us hard, especially even with the LGA and other costs. So, trying to tighten our belt up a bit now to in a little bit of anticipation of some of these things that be coming our way.
The reason I'm asking this question is I'm trying to figure out how much benefit there is for our residents. If instead of transferring the penalties to the general fund, if we levied for the same amount of the penalties, but then refunded those penalties to our residents because right now we're going to transfer $131,000 of penalties people paid into our general fund. But the more we levy, the bigger amount we get as a city for fiscal disparity. So if it's a $50,000, and I'm calling him to the carpet here a little bit on information he doesn't have. It's a if it's a $50,000 bonus to the fiscal disparity, it's actually a $50,000 net income by raising the levy this amount but refunding that to the residents. Something to think about.
Our main thing here as a as a city is infrastructure, you know, roads and public safety. Once we get those three right and good, then we can work our way out to other things.
Your decisions today will define your tomorrow.
Ordinances & Resolutions (15)
The main financial plan presented for the upcoming fiscal year.
The Capital Improvement Plan, a 10-year outlook for city infrastructure projects, identified as a primary budget driver.
The primary governmental fund accounting for most financial resources.
Housing and Redevelopment Authority fund.
Economic Development Authority fund.
Funds for self-supporting services like water, wastewater, electric, surface water, solid waste, and fiber optic.
Funds for services provided to other city departments, such as IT, insurance, equipment, city mechanic, and building maintenance.
Other dedicated funds including Community Center, Community Event, Fire Relief, Park, Street Maintenance, and Asset Preservation funds.
Agreements impacting personnel costs, specifically a 4% cost of living increase.
A program for which funding is being shifted from the general fund levy to the asset preservation fund.
A new EDA program potentially impacting its fund balance.
Request for Proposal, to be issued for solid waste services.
Various debt issuances contributing to the city's debt service.
Municipal State Aid for Streets program, from which the city will start receiving annual funds.
American Rescue Plan Act funds ($1.3 million) that were earmarked for public safety and currently 'parked' in the street maintenance fund, with a proposed transfer to asset preservation.