The St. Paul Public Works department projects a deficit of up to $3.2 million this year in the fund used for maintaining streets and sidewalks and to plow and salt streets.
Bruce Beese, department director, asked the City Council on Wednesday to approve use of reserve funds to cover the difference.
"It's a pretty serious problem," Council Member Pat Harris said. "It's unacceptable."
The council approved use of the reserves, but Beese and his staff must come up with a plan so the problem doesn't repeat in 2008.
Beese assured the council there is enough in reserve to pay for snow plowing this winter.
He said unanticipated costs, such as settlement of workers' compensation claims and the cost to clean up a site where the city used to dump street sweepings, hit the budget hard. Oil price increases also hurt, he said. Those effects weren't clear until November, he said.
"Next year we'll begin to reshape our program to live within our means," Beese said.
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