The primary focus of the meeting was the deliberation over the proposed budget and levy for 2026, led by Finance Director Dan Winnick. The council was presented with a proposed combined city and Economic Development Authority (EDA) levy increase of 5.84%. This increase was mainly attributed to necessary financial adjustments including $54,000 for street maintenance, $46,000 for parks, and a $194,000 increase in debt service related to newly issued bonds for street and utility projects. A notable aspect of the discussion was the comparative analysis of North St. Paul’s proposed levy increases against those of neighboring cities in Ramsey County. Winnick highlighted that North St. Paul’s proposed increase is on the lower end at 5.84%, compared to Arden Hills’ nearly 17% increase and a county median of approximately 9.1%.

A significant portion of the budget discussion centered on asset preservation costs, which are expected to continue rising. Winnick emphasized the city’s ten-year financial plans, noting the eventual cessation of street maintenance levy increases in about eight years. This led to a broader conversation about the city’s infrastructure needs and historical underfunding of maintenance and upgrades. The city’s debt levels were contrasted with those of other cities, pointing out North St. Paul’s position as having the second highest tax rate in Ramsey County due to its high debt burden, resulting in elevated utility rates for residents.

The council was also informed about the fiscal disparities pool and the city’s heavy reliance on residential property taxes due to limited commercial growth. Over 90% of the tax burden falls on residents, and approximately 57% of the city budget is funded by property taxes, with intergovernmental aid making up over 21%. This dependency exposes the city to potential vulnerabilities should there be reductions in local government aid.

The budget discussion transitioned to expenditure allocations, noting that personnel costs comprise 69% of the general fund budget. Public safety expenditures, which include police and fire departments, account for 63% of the budget, a figure higher than the typical range for cities of similar size due to the absence of a dedicated recreation department in North St. Paul.

In addition to budgetary concerns, the council engaged in a discussion about the future of a $4.5 million grant initially intended for a community center. The meeting explored alternative projects such as road reconstruction and park enhancements. Confusion arose about whether the grant funds had been declined, but it was confirmed they had not. A strong sentiment was expressed by some participants to find a project that aligns with the original intent of the grant. Suggestions included the McNite complex, which could integrate arts, culture, parks, and recreation, fostering community engagement.

The community center’s future was further debated, with discussions on potential demolition and reconstruction costs, estimated at approximately $2.5 million. Some participants emphasized the importance of retaining the library within the community center, citing its value to residents. The possibility of involving the historical society in discussions about converting the library space into a multipurpose facility was also considered.

Concerns about selling the community center were raised, with questions about potential buyers’ commitments to maintaining the library. The idea of selling the facility while retaining ownership of the land was proposed, allowing for repairs and ensuring city control. This sparked contemplation on the terms and potential impact of such an arrangement on the property’s value.