Saint Paul Budget Committee Reviews Department of Public Works 2027 Budget on September 23, 2026

The Saint Paul Budget Committee, chaired by Councilmember Cheniqua Johnson, met on September 23, 2026, in Council Chambers at City Hall to review the Department of Public Works proposed 2027 budget and initiative updates. Public Works Director Barber presented the budget, answered council questions, and committed to follow-up information. The committee took no formal votes. The transcript roll call is inconsistent: it states six members present with Councilmember Bowie absent, though Councilmember Bowie appears to participate later in the discussion.

Discussion Items

• General fund and special funds: Director Barber said the Public Works general fund is about 17% of the Public Works budget and special funds about 83%. The proposed 2027 Public Works general fund increase is 1.6%, below 3.4% inflation, reducing real purchasing power and compounding deferred maintenance. The overall special funds change is about 4%, with enterprise funds able to raise rates while non-revenue funds face cost pressure. The adopted spending summary shows a 3.68% change from 2026 to 2027; the recycling and solid waste fund was reorganized from fund 241 to enterprise fund 645, making some comparisons misleading. Director Barber gave two slightly different winter/summer street maintenance splits: $4.9 million/$5.3 million and later $4.8 million/$5.3 million. She also explained that a 2022 court decision affected property assessments and moved street maintenance expenses to the general fund, totaling $14.1 million.
• Grants and outside funding: Public Works has applied for 18 regional solicitation grants. Recent awards include about $2 million in three grants for the Sycamore Building decarbonation plan, a $15.1 million Safe Streets for All grant, and an additional $25 million in grants awarded and programmed for 2027. Decreases in city grants and general government special projects reflect ARPA timing rather than reduced grant success. About $5.4 million in ARPA funds received by Public Works are expected to be fully expended by the end of 2026.
• Proposed general fund changes: The 2027 proposal eliminates the $300,000 alley improvement program, reduces sidewalk support by $500,000 to $985,000, adds $300,000 in one-time support for EAMS billing and revenue collection, shifts two Gopher State One Call FTEs from fund 230 to the general fund, makes a $600,000 one-time municipal state aid shift to street maintenance, and updates a county maintenance agreement that has not been updated since 1991. The mill and overlay proposal restores a $318,000 one-time cut and includes no additional cut; the general fund covers 75-90% of mill and overlay costs.
• Sidewalk program: The sidewalk program previously received $1.485 million annually. Less than 7% of streets or sidewalks are ADA compliant, with a 60-year compliance horizon, and the city is expected to reach only 50% compliance at current funding. Director Barber said a sidewalk improvement district modeled on Rochester is being studied for a possible pilot next year, but revenue and timing are not yet known. Councilmember Coleman asked how many fewer repairs the cut would mean; Council President Noecker questioned cutting sidewalk funds before the district plan is in place. Director Barber said the cut was paired with the district proposal but revenue is not yet reflected in the budget.
• Alley program: The alley improvement program was $400,000 in 2024, reduced to $300,000 in 2025, with more than 2,600 alleys and about 330 miles of alleys. Three alley projects were completed in 2025 and 2026. The 2027 proposal eliminates the program. Councilmember Yang said she supports the cut but asked for public-facing communication; Director Barber said street maintenance will still respond to pothole patch and grading needs and that assessments have not been discussed as a replacement.
• Street lighting and copper wire theft: No new street lighting funding is proposed for 2027. A $750,000 Shepherd lighting program is to be installed in 2027. Director Barber described overtime efforts to fix lights, coordination with Saint Paul Police on anti-theft patrols, and possible legislative changes or district financing. Councilmember Bowie asked whether the county and state should share more of the cost; Director Barber agreed and said the issue was raised with government relations. Other year-end priorities mentioned included a scaffolding solution to reopen the Bruce Vento regional trail tunnels, Wabasha gabion wall repairs, and asphalt plant burner replacement.
• FTEs and vacancies: Public Works retention is 91.84%. Vacancies are concentrated in highly specialized and seasonal positions; some service-worker jobs are intentionally kept open because they turn over frequently. Director Barber said positions and people are needed along with materials and equipment. Chair Johnson requested a complete vacancy list, including positions open before January 2026, and Director Barber pointed to appendix vacancy reports.
• Technology and billing: The budget shifts three GIS analyst positions from Public Works to OTC in a budget-neutral move. Residential parking permit enrollment in the poly system was taking 30-40 minutes per resident, so staff prioritized billing and paused enforcement until catch-up is complete. Public Works is trying to catch up on billing tied to the enterprise asset management system by the first quarter of next year. Councilmember Coleman asked for parking permit revenue and cost estimates; staff said they would provide follow-up.

Public Works Initiative Updates

• Common Scent program: The program started in 2023; first projects were completed in 2025 on Grand Avenue, Fairview to Snelling, and Jackson Street, with University and Earl planned in 2026. Director Barber said a known funding source allows better planning.
• Transportation Safety Action Plan: The plan is being updated, and the $15.1 million Safe Streets for All grant is tied to the high-injury network. Councilmember Kim noted eight pedestrian or bicyclist deaths in 2026, the most in 10 years, and asked whether a position or direct funding exists for traffic safety. Director Barber said there is no direct general fund line and safety work currently comes out of the street maintenance fund; the updated plan and grant implementation will come back for council discussion.
• West 7th corridor: Public Works reconvened with MnDOT, Ramsey County, and Metro Transit and secured $13 million in state bonding for sewer utility work. MnDOT has done mill and overlay and temporary fixes, and the corridor remains a priority.
• Snow operations and route optimization: The alternate-side parking research pilot report is expected by the end of 2026. The VRS snow route optimization software integration did not work as intended, but the GIS platform created for it may be used for an enterprise routing solution. Councilmember Bowie asked about technology challenges; Director Barber said the consultant is phasing out and OTC is helping vet software.

Utility Rates and Enterprise Funds

• Sewer utility: Proposed sewer rate changes would raise the annual bill by roughly $57 per year, though the transcript also contains the phrase "$457 dollars a year," creating a discrepancy. Council President Noecker questioned the roughly 10% increase and asked for a summary memo explaining the calculation; Director Barber said a sewer rate study and expert analysis produced the numbers. Met Council environmental services costs are a smaller factor than last year.
• Solid waste and recycling: Proposed changes include new assessment fees for buildings with 5-11 units and 12 or more units. Collection costs are capped by contract at 3.5%, and Ramsey County disposal costs are proposed to rise 12%. Staff member Haas said the disposal increase is largely related to anaerobic digestion capacity at the RE facility, rates are approved through the Ramsey-Washington joint powers board, further increases are expected in 2028, and Minneapolis tipping fees are lower partly because Hennepin County gives haulers a discount. There is no change in the city's billing administration fee. The 645 fund would add FTEs for customer support, additional solid waste workers, and a public information officer.

Key Outcomes

• The committee received the Public Works 2027 budget presentation and initiative updates; no formal vote was taken.
• Director Barber committed to follow-up emails covering council questions and to providing histories and analyses on Gopher State One Call funding, parking permit revenue and costs, sidewalk district feasibility, grant spending and underspending, vacancy details, and rate trend projections.
• Council will receive future briefings on the Transportation Safety Action Plan, sewer rate changes, and solid waste and recycling rates.
• The meeting adjourned after the presentation and discussion.