Coleman's proposed 2017 budget of $561M for St. Paul focuses on job growth

St. Paul will spend money to put more people to work, Mayor Chris Coleman announced Tuesday as he outlined the city's 2017 budget. He committed to increasing the number of jobs in the city by 3,000 over the next three years.

A new $2 million Job Opportunity Fund would offer a mix of public loans and grants to businesses that plan to create jobs that pay well, Coleman said. He emphasized job creation for people of color and low-income residents, and he wants to increase funding for hiring and retaining employees of color in city government.

St. Paul is vibrant and diverse, with a strong cultural scene and city services, Coleman said. Its motto, plastered across the city's website and documents: "The most livable city in America."

"We must seize the momentum that we have created and do for business what we have done for residents," Coleman said, adding that now they must become "the most workable city."

Other significant investments in Coleman's proposed budget included $1.7 million to replace trees killed by emerald ash borer; $500,000 for enhancements to the Rondo Community Outreach Library, and $200,000 for a firefighter health and wellness program.

Coleman laid out a plan Tuesday for total budget of $561.6 million, up $13.4 million from last year.

Facing an $11 million budget deficit, fed by inflation, Coleman suggested increasing the property tax levy in the city by 4 percent — with the assumption that the Legislature would approve a $3 million increase in local government aid in a special session.

The owner of a typical home in St. Paul — the value of which is estimated to jump from $151,500 this year to $161,200 in 2017 — would end up paying $22 more to the city next year in property taxes. Other city fees and assessments for a typical home are expected to increase by a total of $61, according to St. Paul estimates.

This was Coleman's 11th annual budget speech, and he used it to address political and community divisions.

"We have so much more that unites us than divides us," Coleman said, announcing funding aimed at building relationships between the community and police.

Coleman plans to put $150,000 in ongoing annual funding toward community ambassadors who work with young people. The Police Department also will add three full-time community engagement staff members, he said.

Police Chief Todd Axtell said those three community members will help with "recruiting, building relationships and building trust, which is so incredibly important right now."

Tuesday's event, held at Metropolitan State University, also touched on looming demographic challenges.

"We're emerging from a recession and in the midst of our biggest population growth spurt in decades," City Council President Russ Stark said as he introduced Coleman. The city will have to balance investments in aging infrastructure with new construction and respond to changing demographics, Stark said.

The state demographer has warned local leaders that the labor force will shrink as baby boomers retire over the next decade.

Communities need to ensure that young people are well-educated and can get job training to create the future workforce Minnesota will need, Coleman said. That will help prevent the middle class from shrinking further, he said.

The mayor's proposed budget now will go to the City Council, which will meet with department staffers and hold public hearings on the budget and property taxes over the next several months. The council will approve the final budget and tax levy in December.

Coleman has line-item veto power over the council's adopted budget. In recent years, the council's decisions, for the most part, have aligned closely with what the mayor proposed.

Jessie Van Berkel • 612-673-4649