Continued: St. Paul Public Works fund short by $2.3 million

The St. Paul Public Works Department fund that pays to maintain street lights, signs and pavement markings has gone into the red by $2.3 million this year.

The City Council on Wednesday unanimously approved a plan to close that gap.

Revenue was $1.5 million short in 2007, surpassing an already expected (and budgeted) loss by $850,000. Lower permit fees, less money from the county and state, and increased retiree benefit costs combined for the additional loss of revenue, said Bruce Beese, Public Works director.

To get spending back in line, streetscape projects on Selby and Payne avenues will be delayed and salary costs will be trimmed by leaving vacant jobs open and not hiring temporary workers.

Residents can expect to wait a bit longer for answers to traffic inquiries and for non-critical maintenance. Still, said city traffic engineer Paul St. Martin, things shouldn't be significantly slowed.

It's the second Public Works fund that has been overspent. The right-of-way fund, which maintains streets and sidewalks, had a $4.2 million shortfall, and council members last winter approved the use of reserves to cover the gap.

But there were no reserves to help the traffic fund. Public Works officials thought there were about $450,000 of reserves to cover costs. But that money didn't exist, Beese said, and ended up being piled on to the $1.9 million shortfall this year. He predicted that it could take up to five years to get the traffic fund back into shape.

Also Wednesday, the council voted 7-0 to approve an agreement with the U.S. Department of Justice that provides a $50 million grant to cover security spending during the Republican National Convention.

Council members requested detailed accounting of reimbursements to make sure they know when extra money is funneled into city coffers.

About $34 million will be spent on overtime costs for out-of-town officers and other contracts, and about $5 million for city personnel. About $4.6 million will be spent on equipment and $5 million on supplies.

Assistant Police Chief Matt Bostrom, who is planning convention security, told council members that the department focused its spending on people and on things that officers would need to stay safe and keep the public safe. No "gadgets" or "fancy equipment" will be purchased.

After the meeting, Bostrom gave limited details about where any lawbreakers would be jailed during the convention. Detainees would be held in a city- or county-owned building, indoors with air conditioning and toilet facilities, in the east metro.

Chris Havens • 651-298-1542

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