The meeting dedicated significant time to discussing St. Paul’s vacant building program, an initiative managed by the Department of Safety Inspections. Deputy Director David Hogan outlined the program’s scope, which targets buildings that pose potential risks due to being unsecured, condemned, or riddled with code violations. The program’s primary goals include safeguarding public safety, preventing crime, preserving property values, and fostering community redevelopment.

Hogan shared historical data, noting that the city had over 2,000 vacant buildings during the Great Recession. Through concerted efforts, over 1,300 properties were reoccupied, and the current number of vacant buildings stands at approximately 400. This reduction is seen as progress, though the persistence of vacancies highlights ongoing systemic issues.

The program categorizes vacant buildings into three types: Category 1, which are unoccupied but suitable for occupancy; Category 2, which have maintenance violations; and Category 3, considered severely problematic. Fees associated with each category fund the year-round monitoring of these properties. Despite these challenges, the program is seen as a model for other municipalities, credited with maintaining neighborhood integrity and setting standards for property rehabilitation.

Councilmembers expressed concern over the disproportionate concentration of vacant buildings in lower-income areas, which Hogan linked to socio-economic factors impacting property maintenance. He emphasized the correlation between lower median household incomes and the prevalence of vacant buildings.

The discussion also touched upon the legislative framework governing the vacant building program. Ordinances mandate registration, nuisance abatement, and minimum maintenance standards. These regulations help the city manage costs associated with the program, particularly when property owners fail to comply.

Another central theme of the meeting was the recent audit findings concerning the city’s financial operations. The audit, which received an unmodified opinion—a clean audit—highlighted a significant deficiency related to the federal COVID-19 funding program. Specifically, the city failed to verify some vendors and sub-grantees, a critical requirement to ensure parties aren’t barred from federal business. This oversight reflects broader challenges faced by local governments in managing COVID-19 funds.

The auditors emphasized that while audit findings can identify risks, they are not solutions. Effective internal controls and timely financial reconciliations are important for accurate financial reporting. The audit’s findings underscored the importance of meeting deadlines, with the city aiming to submit audits by June 30th to qualify for the Government Finance Officers Association’s Certificate of Achievement for Excellence in Financial Reporting, although extensions are common due to factors like staff turnover.

The meeting also addressed workforce shortages in public finance, an issue complicating timely audits and financial reporting. With many finance staff nearing retirement, municipalities face challenges in maintaining experienced teams.

Participants discussed potential solutions, such as developing support structures for new employees and ensuring a transfer of institutional knowledge as experienced staff retire. The need for additional technical assistance to navigate the complexities of federal programs was also highlighted.

The session concluded with discussions on the process and implications of abating unsafe buildings. The lengthy due process required for abatement, particularly in historic preservation districts, was noted as a challenge. The committee acknowledged the balance needed between property rights and public safety, emphasizing the importance of maintaining due process while striving for efficiency.