St. Paul mayor: No property tax hike in 2011

St. Paul Mayor Chris Coleman is proposing a budget for 2011 with no increase in the property tax levy -- the first time that's happened since he took office five years ago.

He's also proposing spending $1.2 million on various things, from new handguns for all 610 sworn police officers to developing youth workforce programs to expanding recreation programs.

And, he's also counting on $10 million in local aid from the state -- an assumption that hasn't worked well for local governments in recent years because of the state's own budget woes.

Still, Coleman was steadfast Wednesday when he laid out a ho-hum budget proposal at the city's newest fire station. His new budget didn't include any flashy new initiatives or projects, but he didn't mention any drastic cuts, either.

"I propose this because times are tough and we need to respect the challenges that face working families," Coleman said. "I propose this because too much of the cost of state government has been shifted onto the backs of local property taxpayers."

Coleman proposes no change next year to the 2010 levy amount of $94.6 million.

The city's portion of the property tax levy has increased annually by 9 percent, 15.1 percent, 8 percent and 6 percent in Coleman's first term in office. Fees, from business licenses to water service, also rose in that time.

No layoffs were proposed.

Matt Kramer, new president of the St. Paul Area Chamber of Commerce, said Coleman's commitment to public safety, education and not raising taxes was laudable. "This is not the time to be raising taxes on business owners," he said.

The proposed overall budget, before transfers and other accounting moves, is $531.6 million, about $1 million less than 2010. After accounting adjustments, the total budget would be $469.6 million, about $400,000 greater than 2010.

General fund spending would increase by about $5.6 million from 2010. Coleman wants to add to public safety, libraries and youth programs.

City officials began the 2011 budget cycle with an $8.8 million hole, mostly because of inflationary factors and revenue losses. But the Legislature had approved an additional $10 million more than city officials expected, leaving the $1.2 million extra Coleman wants for investments.

"There's so much uncertainty," Carter said. Local government aid was cut mid-year in 2008, 2009 and 2010, and the state faces a $6 billion gap.

The City Council must approve the mayor's budget and a final levy amount in December, and there will be public hearings before then.

To see the budget documents, go to www.stpaul.gov/taxes.