St. Paul City Council approves budget

The St. Paul City Council has approved an $883 million budget for 2026.

Homeowners will see a hike on property taxes. The council approved a 5.3 percent increase, or about $107 per year for a median-valued home. 

Council member Nelsie Yang voted in support of the tax hike, but said she wants to work harder to lower that next time around.

“I know that there wasn't an appetite from the majority of the council here to bring the levy down even more, but I hope that for next year we will really commit to that, knowing that the cost of living for many people in our city and also for businesses is only going to increase,” Yang said.

St. Paul property owners will also likely see tax increases from Ramsey County and from a school budget levy approved by voters in November. 

The total budget amount was lowered slightly from the $887 million budget Mayor Melvin Carter proposed earlier this year, according to a spokesperson for the mayor. The council also shifted some spending.

Carter had proposed cutting three firefighter positions; the council voted to keep funding those. The council also restored funding to avoid proposed cuts to hours at some recreation centers and libraries. 

The council’s budget added funding for those with an increase on ambulance fees to be charged to insurance. They also voted to eliminate two vacant positions in the police department and two in the city attorney’s office.

The new budget puts $13.9 million towards housing and economic development. That includes efforts to revitalize downtown, like converting office space to housing. 

The city is also investing $1 million in cybersecurity upgrades after a cyberattack in August shut down some city systems and networks for several weeks.

The City Council’s office space will also get a $1.7 million renovation. 

Following recent ICE operations in the city, the council allocated $300,000 to immigration assistance. Just over half of that money will go towards the city’s immigration defense fund, a legal defense program for low-income residents faced with deportation who need legal representation. The rest of the funding will go towards naturalization support.

Aside from the budget, council members said they’re also working on a resolution calling for an investigation of the St. Paul Police Department’s response during an ICE operation and protest last week.

St. Paul police confirmed they used chemical irritants against protesters, who gathered in the city's Payne-Phalen neighborhood as federal agents made arrests at a home.

“We are finalizing the language of that resolution, and really want to make sure that we get it right,” City Council President Rebecca Noecker said.

In a statement after the council’s budget vote, Carter praised the work that went into it.

“Our shared goal has always been delivering a sustainable budget for our residents, and I’m proud of the partnership with our City Council to make this possible,” Carter said.

The budget now goes to the mayor’s desk for a final signature.

Correction (Dec. 5, 2025): A previous version of this story incorrectly stated the total amount of the 2026 city budget. The story has been updated.