going to get our Budget Committee meeting started. I want to first give a shout out to my struck him who has been chairing our Budget committee as well. I'm on a maternity leave. She's out today. So that's why you here cheering again. Also thanks to her legislative aide up. You have me, too, has been doing wonderful job prepping all of the budget committees. And want to see things to all of council point view and also chief budget officer committed have been doing a really fantastic job just leading us along the way. So have 2 presentations today. The first one from our talent and equity resources department. And then the second one is we have county tax valuation trends. So I director newborn, I'm really excited to have you here today. I woke up the floor and then we'll take questions along the way. And I
just want to cause to have a couple of council members who will be joining us in a bit. thank you so much and council. Thank you for the opportunity to present everyone. Tony new going on. And she her and the director of talent and Equity Resources, formerly known h r We MAY use both technologies in this space. I'm happy to present her budget presentation just want to that we did at a did not related to the budget. But related to hero process. We were asked by Councilmember Johnson vice PRESIDENT Can. To present some information related t the hiring process to help us be prepared for next year. So you will see that addition has nothing to do with the budget presentation, bt only for it to take the opportunity for us check today. Our agenda within go through the executive summary budget re-cap updates and
recent initiatives all spent a lot of time in that space because I want to talk about the amazing work that our team is done. 2026 proposed changes budget history. Spending summary ft summary unfilled positions which is just one for currently projects update, revenue changes and outlooks and then question and answers. You'll some us sites that are in the appendix. I 3 of those lives highlighting the vacancy not vacancy report, but the vacancy process because at end conversation and questions have come up quite a bit from the council and just overall between working and tr and the Council wanted to just have a couple of information lies for you for your review. And if you have any questions about
that, please let us know. Basically the size, the executive summary authorities telling equity resources are her attending learning and development, processes and systems. You know, the feedback that we hear oftentimes because where Internet service provider is you know, all around process improvement. So that's always going to be a priority for us. And because we know that we need to and do things quicker and more efficiently and have the right people in the right staff doing the work. So that's always a priority of ours, strengthening our recruitment and retention efforts. As you all MAY have heard from Mayor Carter that really focusing on recruiting and hiring residents into the city. And so that is a top
priority of it. You are and we have staffing that given invested into 2 years and years ago, a couple of years ago. And we'll talk a little bit later on about think, though, that, Carol, why the return on that investment in the work that we're doing in that space? And culture in our department as well as the case. The city time equity resources being I see then ceo says the nucleus of the organization touch almost everything as a part this city and city operations. And we change our culture. That means that we're impacting and influencing the culture to say as well. And then finally implementing the she a of a strategy. Our deputy director Jason is leading that effort.
We're in negotiation season so young and saying some things from lots of different people, including About what that strategy is and how we're getting to. Yes on those contracts. Over the next from plus months. But changes that you'll for 2025 some spending reductions. And supplies reductions that we and the wind. And I would action in overtime and we one of strategies for tsa knowing that were intended take edge of space if we can and taking the opportunity today to hire at a certain stat. And then instead of the for the high salary and wages been a strategy for us to to help the city Chiba is budget bills.
2025 budget we again saving strategies based around back filling open positions at more steps. As I mentioned before. Some unplanned caused of for this year's us we. We I think the city 100 realize when we think about operations and impact that the cyber attack is going to head. We have people I a different man in soap able t I significantly impacted by that cyber attack. What we were able to access networks and drives and all sorts of things related to time keeping. And - so that resulted in a part icing up a or staff city staff getting paid, of course, to be able do the work and we needed to our staff people. Staff spent a lot in the e e o c and overtime during that that and those 2 months and we're still in the recovery stage as well.
Coming out of that Poe says Cosby the million-year face to So that was a cause that was stepped up and very expensive. So that was a pass that was unplanned in the payroll team in as well as remaining. Some of remaining staff wear something but that effort as well. Last but not least we did hire some temporary payroll staff to help to respond to U.S. Every day. This morning breaking my team and I have some my teammates here and colleagues here in the space 2 years ago. I think MAY be 3. There was a huge investment that was you given granted by this council to it and we would greatly appreciate the appreciative of that investment. One engage. haven't received impact to lead. Jason has been our deputy directors been at the city for 30 years. 20 saying
hi 27 years and he's yet to this is the first significant that head of the season. We're really excited about in here that this is that and I won't go through each one of these, but just want to lift up and our training development. We have a deputy directed Abigail, the d a he's been leading the work. And so all of amazing e-mails that you're seeing of all referee to coach on workplace kind in training data practices training. All of those things are coming out of that division in telling an equity resources if 964 employees train the also the little handles and new employee orientation as well. And so seeing a lot interest as well as positive
feedback related to those open sesame users. If you haven't joined open Sesame platform for training as well for city employees. So if you haven't joined, do so. And we're seeing a 23% increase users for that. Want to start referee to coach and I just if a graduation ceremony on Monday and I can't remember the number folks who graduated from the program, but it's kind of a professional development effort. 2 for folks who are ready to advance from being that individual contributor manager or supervisor or they're already in that role. And so this is a resource and a training to assist them with that. Or pay will And one of those investors that we received 2 years ago was an additional ft on our payroll team, which is helpful to
focus tax abatement, a payment from the perspective. It's very complicated because their staffing and model is dynamic. Very new And it's a complex matrix. So we have to pay everyone within that complex natures. And so having someone dedicated to help really some of those administrative bodies around payrolls of Texas been really helpful. Continue to collaborate with atc boarding passes. We've heard from staff. That is to right. And there's some some some hiccups case in that process that both t I o t c need to work through to ensure that as we bring people into the space there. And doubles because we take hour-long to give him a username password access to the systems. So we have dedicated staff and partnership with tc home and working case and those issues, equity and inclusion work
welcome custom made for Johnson, equity inclusion work. We've tea and infusions speaker series. We've updated at dashboard was just been amazing. And such a great tool use for our department directors and our and our staff as I mentioned the resident recruitment word. Hiding the leads that division in talent and equity resources and that division is focusing on increasing the number and percentage percentages of residents a city workforce been one of the paddies of the mayor. So we're establishing more partnership is kind of our community are into tier interest working for the city, keeping people in those roles and building those pipelines into the city. As a starting point, maybe a bit entry level, but also
doing some folks are saying I'm tired of working in t I want to go and work in x Department account, whatever was the pathway for them to get there. And Heidi and her and leading that effort as well. Outsourcing fmla was a budget a couple of years ago, we decided that it would be best to utilize repurpose staff to provide expand our benefits offerings, expand our our reach to our employees as it relates to our benefits. We have amazing benefits. And and I some of you all have tapped into them. You MAY have heard me say this. I now have 2 children and my goal was always to have m babies for 3. And think to do that at the and I will say as a funny
note, my for my second baby who she knew now, year 13 months tomorrow we got a bill for $40 after his hope your day. Sunny for dollar my house was saying to you had a per season because I had a c section and s $40, I think we weaken into it. But so we have amazing insurance and we want to make sure tat employees know that as well. So we now have standard as family provided. And then again, as we we are working improve our efforts and outreach to our staff and talking to better benefits. He also has had a public information specialists. Tra we didn't have a tv and a communications person. You know, the 5 men and Do a lot of tell you all a
lot of things. And and it would. Important for us to have students killed in that space to be able send information to that employees known improve communications that are coming out of our team. So that has been a welcome mat to our our team as well and last but not least having consulting services and which Inclues Hering team as well as class income. And so the investments within ft there have works, have been helpful to improve at processing time for how does it take us to hire someone new to the city and starting from a to z of that rquisition to like the initial start date. And so those investments have helpful so that we can reduce
those time lines there. Any questions? 2026 proposed for us. You know where small dpartment we have. 47 a recent change to ease. So when asked to reduce spending reduce kind of our budget line items, we have to be very creative about that so that we don't get to because and I think we have fairly creative around this eliminating labor's office, a software that we use later relations team and also I think, maybe with workplace conduct this well, it's a system that we weren't good just didn't fit our needs. We that the licensing fee for that is $30,000. We no longer need assistance eliminating. That's a that's a cost savings for us. Reducing our general professional services budget. So, you know that mean conference being reduced or is
for sure at a state conferences that and being reduced for for staff and really focusing on more local and first and professional development. Also, I think that's included in general service of professional service budget. I MAY be wrong about this, but I think it's it's included. It is even renting space because we felt a space where in the second and 3rd floor of the annex and we have 10 additional employees that and our team that height of the last 3 to 4 years. And we've our space and we rented the first floor in the city Hall annex we had a relationship partnership with Ramsey County to share that space. And because of the needs and the budget, we're now going to give up that
space and then everybody's going snuggle in on the second and 3rd floor and work you know, a schedule for people coming in into the office there. So you'll see that change as well. I talked reducing. Repurposing some of our positions, some of that. We've had a high-level position that we've said, hey, we don't need that as a part of the budget cut. We're going to hire instead of finding it. Hr consultant for with higher nature consultant to just provide eample. So there's going to be some cost savings that are ongoing for for this budget and then home. Reduced budgets for of reserve for promotions as well. So we have and they can position adjustment. That's important all of these things are. It's going to be, too cost savings that asked to achieve from the mayor.
This for you with this. I think it's helpful see, you know, our history from 2021 up until this moment in 2025. What our budget has been, the changes that are happening in our budget. I think it was 2020 for that budget where we saw you know, the significant increase in it. It has been helpful for operations. We've been pretty steady usually on sale brightness. We usually give up some money at the end of the year that goes into helping to fill the fill, whatever, get that needs to filled a citywide level. And this just as the summary of the spending as well. You see the central service find. You'll see general fund for the total amount here spend a lot of time here. But you'll
see some of those changes more detail questions, of course, as all of us. But if there are things that we can be helpful in answering happy help you to do so. Historical spending again seems to me that I MAY before around. We've been pretty swear that the over a span in MAY get to that for this year just because of a cyberattack. But I think you need to They so far calculations and by, you know, we a team and working with best to make sure that we're on on board with with spending. So I think we'll still have a little bit extra, but we've historically have all always given money and have not overspend our budget, but have to it. fd summary, as I mentioned before and of welcome can As I
mentioned before about the ft summary, we have little bit under 50 ft as we head a little bit more closer to that 50 number during the covid. The pandemic where we had air the funding there. Those rolled off of that funding. And so we have 47 50's and into Unfilled positions as of today's date, which we actively working on feeling and probably within the next couple of weeks. We now have we've had to transition and I-19 Chrissie how he now committed to serving as our testing consulting services manager in t We have position. And as I mentioned to you before strategy is, will we realize we don't need a hr consultant for to fill that
position? Isn't a part of the pass to the strategy. We're going to hire at a lower level and a step too. That is process. And I think probably I don't know if I can promise by the end of this mind. But probably the end of NOVEMBER. We'll have position filled. So this the end of my presentation, as I mentioned to you before, as an appendix to this presentation, we did at a couple of sites about vacancy and I could go through that. Or if you have questions all of the things that we presented particular, the vacancy, happy to do that, through the action can move to chatting about hero director as So we do have a slide. Thank you for that. Happened to direct a new grant. Can you go through the hero position? Just because I know that that was a specific question that came from.
Absolutely. Mean, eating. as the council MAY we under the ordinance w have to the mayor has to say to let the council know when there's vacancy in did the human rights and economic Opportunity Department and all that. That process is that so weird. We follow that pretty closely. So have to let you know of the the vacancy in that department and that jump start the ordinance also impacts us. Hearings. Process is different from all the other directors. And the reason for that is because it specifically outlining the ordinance and there's only 2 other departments that has hiring process at the director or chief level. Outline via
ordinance. And so that's hero as well as fire and police. And they have turned. So I think police is 6 years. I think 5, maybe 6 as well. Don't don't quote me on that But for sure, I know police to and then heroes term 3. So those only 3 departments to have contracted. That outlined by the ordinance. So for all 3 of those departments, we have to notify you. The mayor's office is to notify you, hey, there's a vacancy. And then that start the presses. Where the counties where your role is, is that you a higher you select. The selection committee was going to provide recommendations to the mayor as to who should be the next human rights. And she wrote director. In the past. It's been a partnership and I think the ordinance MAY make some
mention of a charge rule in this. But very slight. You are the ones this body's the one that starts off the presses. Work with you in the past. We work with you online, the selection process. You should talk about how you want to do the selection process. There's all beatings. That council. As compare me through those folks are going to be on the selection committee. We also assist you with the job description as well. And the council ordinance by ordinance, the council is responsible for identify what those qualifications are for this particular position. So in the past has been a partnership between at t atr hr and the Council to assist with that. And we would want to talk with you about what that looks like in rsponse to some. The mayor's office has already sent that letter over to council PRESIDENT Saying
there's a vacancy and the council's response was that he wanted to wait until 2026 to think process as in as a part of planning for that, we would like to connect with you all just kind of sketch out a timeline plan. And so that we're not starting in JANUARY of 2026. This. And the reason for that is that this passes can take some time. So there's a couple of readings that council once you get. There's a 30 day posting the position. There's a couple of readings, the council to confound the selection committee's so just with those 2 point in part of the passes, that's 2 months already. And then depending on how the selection process games and interviewing and all of that, it could easily 3 to
4 to 6 months to the passes. So it's important have the planning meeting hopefully in 2025. To pepare us for and 2026. With the possibility JUNE of 2026. Have a hero director. So what outlined here is a sketch. Timeline this is not confirmed because y'all have been confirmed as of yet. This is something that we are proposing. That could take place, but we can move it. Depending on what you all want to do and how you want to fly with us. So JANUARY starting we've already did the notice of notification. A vacancy, of course, is outlined here. We're anticipating 6 to 8 weeks again. Ordinance with selection panel takes effect for hero. Around MARCH the positions publicly post 8. And the open recruitment
passes stairs. I do want to note in the past they've gone back and forth around Herring. Executive recruiters. What I will say and has some sort like and solicited, you know, advice of and this one we have to pay the executive recruiters. They take a ball get the percentage that usually is around 30,030 to $40,000 that that's that what they're fuse for providing the service. So the question is, is this worth? Worth the money worth the investment for this particular position. The other thing that I will note is given the environment, job market. We have a lot of people which essentially we have a lot of people looking for jobs for all of They can't director level positions, including this We anticipate
receiving quite a few applications. And I would I would estimate 408 plus. And so I we need to be prepared for that. And that also factors into the timeline as well. Thank you us for just something Charing. I'm directing weren't just kind of. I'm thinking about what you're saying and talking about executive recruiter. They have a fee. You know, you're talking about, you know, 400 plus applications, I guess in your opinion, do you think that the recruiter services are? You know, worth that cost to us given just the the volume we might expect having to sift through those or looking for really top talent for this I'm going to give you the kind typical lawyer to And I we just actually had a conversation with an executive recruiter yesterday, not for this
position, but fact vacancies. It depends on a lot of these and what we want them to do now. I have a team of about 6 or 7 in our testing having who could assist with But they got also do the other rate. And so 4500 applications coming in. And again, that's what we're guessing. It is going to happen. That's going to be a lot of work for them to help with just the minimum qualifications and executive recruiter could be helpful with that. But our process most executive recruiters are not used great and I use okay. We're gonna bring all these people in get all ordinance safe in this back and forth. Whatever So we need somebody who can kind of flow of and recognize like here's what we
did, what we have to do. And here's what we're going to need your help. Maybe we want them to focus on position description, which could be helpful to team. I would argue that it would be more helpful loosely helping to source those candidates because I anticipate that. The 400 plus, I probably going to be highly qualified. People apply for this because that's probably who's in the market now. There's a lt of making a lot of assumptions going say, you know, we're tracking what's happening in the market as well. So I don't think it's going be in the past with you. Been hit. Oh, gosh, no reason the findings going to be the right person for this job. And you get actually didn't have a lot of people in decision is going to be a little bit more difficult now. Want to move to Minnesota if they are you know, the estate of whatever ills. But my answer still stands
and I would love to give you much more from answer. It depends. It could be helpful if he had the right from the right person that flow with us. But also we are signing him to do the things that that our capacity in the selection committee's capacity is going to be limited. Bringing in community people, community folks. To come in and say she 400 patients to pay you know, whatever ills that that is going to be difficult to do. We've also if I'm not mistaken. We've all for stipends the community members who are served on the on this panel. So that becomes like a budget pieces will and then You if we had that many applications, you're going to be spending more time and needing to spend more time reviewing
And there's some technology that we could use where they could do it on their own, have some secure site and all those things that we could talk about getting to those nitty-gritty details later. But it's a heavy. It's going to be a heavy live. So the question is, you want to have a recruiter who can assist with that and take some of that the at least at the front 3rd in the brunt of that work bringing in their expertise. Do you want the selection committee working with t are to be able to do that? And of course, our team is that the abilities to be able do it. But we also have responsibilities with other work well. So I's going to be tricky to to do that. So. You know, I would love to be was case of but this process. And
I think a few council members were a part of the this council when we did the police chief, passes ad that was a huge lift many different levels. And I have tons of things advice about do's and don'ts and kind of recommendations of how we can change. Said. But there was a heavy live in the nba 40 people. As the selection committee to do that and I will say this, I reckon I don't think you should do for the people to get But you know, that's not that's not my decision point. That's just a recommendation that I'm making. It was very difficult to do that. So. Going back to question, it depends if we if we work, created that strategy. I think it can work with Internet recruited. It also can work without that. We just really need to be aligned, I think, between
tr and the council and the services tat we're providing to want to help, but also that responsibility of the selection committee. Thank you. I Johnson. I think you. Yeah, I appreciate the time line. Just to kind of put things into perspective, especially around, you know what, we're what looking for. And even just how long, you know, probably on. I'm sure this is probably on the. More modest Lanza. But the timing MAY actually be like I think it's at this with you, too. Then the pre meeting. But I think it it's just it would be helpful. For for our office somewhere, we're really interested. Ad, you know, and being a part of the kind of shaping of it, noting that we're entering into mid OCTOBER and into the budget is
I think that's a part of why the the kind leadership teams like that too, essentially. Be able to take this up and JANUARY, just because we knew that the budget cycle, what really pursued us from being able to probably to the average you would normally around the selection committee, etcetera. I think my follow up and just something that I really would welcome. I hear you the fact that the staff or a little less involved in the process itself. And I think that's, you know, obviously we're talking about a position that was designed by council. And so being able to have that influence is really important. However, there's a lot of historical context that I you know, that we're walking into as a new council. And I think it be really helpful, especially as someone who served in that role and to hear feedback on how you felt the previous descriptions have either captured or not captured because I think about 400 the requirements for
should I think about 400 applicant think about all things that would be looking And then I also think about just amount of time to this position has been vacant the average time that someone has filled the position and stay in the position. And I think about like, you know, not much making sure that we're not losing something that should be important in transition and just with new faces and new people that don't necessarily have the full back story of this position. The space. And so thinking about selecting a new person. You know, I would love to out of those 100 per people find the person that's going to stay and be enough to stand over time think turnover has been quite challenging the And I think jst being able to
have, you know, kind of go in and make some adjustments. I it's a perfect time. Even that takes a little bit longer. So I you know, I just want to echo that and just say, like and welcome both your feedback. But also just like if there's certain things of a previous best job descriptions that were posted for the position that we felt like we didn't capture. And previous councils that put up description. You know, I'm happy put over, put on whatever age or have I have, but I think it would be really helpful to also hear from folks that if there's some things that we should make sure are included. So and that's that is where actually look for the jury. Assess put from change Councilmember Johnson. Absolutely. We should. You know. Open the door way to in our mind. What what that what those qualifications should be
with that position, descriptions of what go back to council member Joseph. Question around. Should be hire an executive recruiter or not, that person could help with that as well. So have some sort of year to the ground in a way that my staff and our team want can you know, just because of the work that we do. And I think that that would be helpful, too. Had that person come in provide some feedback and advice to you all and how to do that. As a council member, Johnson stated that historical piece and get too deep into that, you all MAY know that I was director for this to fight for hero for about a year because of the transitions
that were taking place in my experience working in the other city. The city of Minneapolis and their civil rights department. I have and say to kind maybe why the transitions, but how difficult the job pays. And this is sometimes folks think we just need to hire an attorney and I have a legal background. No, is not just attorneys that are going to be good at this role. This person is a bureaucrat. This person is an administrator and their leader, people and often time that I make a directory comment about my my people, my attorney friends. But when you have to turn to be manages in a city attorney, Lindsay missiles in the service, it is Washington, a good managers. And so we can't just looking for attorneys and on this. We need
folks who then be leaders who have applied. Extensive experience around leader in management, core experience to help drive the work because this person is going to be a partner to the council is and course, is going to be a person partner to the mayor's office ad the divisions within hero are. So you complaints, the folks who have the labor peas. You have pcm Inc. You have the committee's the the board to commissions that are assigned to that work if contract in place to park yur money. Those are drastically different divisions and scopes of work. So you're not going to high tides and body even with me. Didn't put your in in my background. And so I didn't even know room that doing
until I got that will think, oh, this is a big deal. So you're not gonna find the person that's like done all of the rate. So we're not looking for uniform anymore. But what the council will be helping with the council in partnership with as well as if we decide to move forward with an executive recruiter is feeding spending that time with what are we actually looking for? What's going to be helpful and I that longevity that Councilmember Johnson is talking about Woods. Who do we need this guy? What are we looking forward in a person is going to stay here for a while and bring stability to that department. And it and I will note that, you know, even though the position has been vacant for long. Andrew Ledger a stand of time, that's commerce have pulled me down.
Graded been able to bring that stability into the team and which you know, from my understanding, welcome. And but now it's time to fill the role and find someone who's going to continue that that effort that stability in that apartment. Just yeah. I just had a follow-up slash. If it's question a comment regarding the finance budgeting for the position. For next year, it's recommended again full amount, correct. And I think the full not for the position is if I remember correctly somewhere in the Mid 200,006. Chairing counselor Johnson, I want to get back to you and what the amount I don't have the time I had. Is budgeted. assume that we wouldn't be using the full amount for this position if it's billed in JUNE at the earliest that's I guess my question is more of like in that role and that budget line item. But there be anything that we would have to do as far as
council action or something that would allow us to be able to utilize that for any sort recruitment dollars for any sort of filling up a position knowing that the money will be there but not being expended has actually known for position because of the position it's vacant. Cherry and council member at the best way to do that would be through an administrative order to move that money out of like the salary line item into services line item. Cuncil to comment. Thank you, chair thank you, director for Spice say that this presentation is incredibly helpful and it. As we this after budget presentations and thinking about how much of the work of the city is. Just the people who work for the really having chance to dive into. Are hearing and how we are hiring retaining and supporting and for their leadership development is it's been
incredibly helpful for Really excited about all this just on upcoming peace and comfort zones and started to get here. Both for the hero director in terms of this question. But will bring it's a part their permit, but also for other director talent searches, which I anticipate we'll have some in the 2026 budget year. Is there so many allocated for that currently 4 other director Abul rules and would we be need to make it just a just means? Don't think there's the administrative action possibility of for this role specifically. Is that something that we would be doing? Another consensus? Chairing Councilmember Coleman, great questions. I's different. So for the day position is outlined ordinance. There's a process
that we have to follow for the 10 to 12 positions, director level positions. The mayor's office and in nation with tr handles those you all MAY remember and have been a part of mayor's goal has been all of his director level positions to what's called a community-based hiring process. We some version of what we're doing with hero. Any way of having community members who residents of Saint Paul are connected to Saint Paul, a part of the hiring committee or selection committee for department directors. So we're still doing that. I have some version of it is only remember, you and try to start. It huge lift where it was like 300 people or so involved in that process. We not it It's it's more controlled and a little bit smaller footprint. But we do
some version of that for each of those directors and we will be doing some version of that process for those current vacancies. What I will say is, as I mentioned before, we were talking to an executive recruiter. Think about as well should have because of we're also anticipating 400 plus applicants apply for those jobs to the same things that I said to you about for the hero position, which be a contributing factor is why we hired executive recruiter. I would say the same thing for those those open positions. So to your question about should we be allocating dollars? And I mena get too deep into on I know enough to be dangerous. But what what I do understand is that each department pays for executive recruiter so they can for the hero budget as Councilmember Johnson was talking about that the money
for that executive recruiter will come from heroes budget the same for be the same us. So I don't you know, again night, don't know specifically, but I do anticipate like meeting a a budget amendment necessarily or allocation necessarily out of that. But Madeleine stated, we MAY need to amend the budget to move those callers from salary savings over to the professional services or whatever else budget line item to pay for that executive, including. Thank you Case she didn't make Look at me something good. started going to get back to come Johnson's question, the budget for the year. A director in 2026. Is and 136,000 for salary. 44,000 for benefits for a total of just
under 181,000. Thank you. All. I will run through my notes here on the slide. 4 where you talked about the payroll employees and having to send out mail for all those pieces. Me I just want to say this really exemplifies that our I skilled so top notch only to be flexible and say just really commend you and all of our talent and equity. The sources staff. The next thing is I just want to go to line. like 9. The change from 2025. To 2026. Is it's about $730,000. I know I can see where. 300 talk about the age of 20 $8,000 comes from the light on 2026. Proposed changes, but I'm not sure where about 400,000 is coming
from. Would you be able to? Culture that at us. And we need to seek counsel and that we can. It's impossible for us back to you and that piece. So you're asking for. I jst want to break down of the change from 2025 to 2026. So some of the $130,000. That would be the budget difference. I don't know what the full breakdown us. the central Service know it. Is to that yet. So 3, 327,000 of that is that growth in general fund that I believe there was slide detailing all those changes. And then the 400,000 in growth in the central service the 2 things that are there are a property insurance and our work comp fund.
So all departments pay into those funds and that that is what's budget. There are so high or higher expected costs for Rick Hahn from property insurance that's charge shout to departments. Okay. Great. Thanks for explaining I do have a few notes questions about the hear director It's to but I won't go through that just for the sake of time. I will be sure to follow if you directly about that. The really quickly I want to say is that I do think that the council here should revisit that ordinance and determine if we want to continue having selection committee for it. I see that because I think you and I during my 5 years on the council here. I don't recall what positions have had a nice
chance actions, whether it's all directors are But I do remember there being some sort selection committees that happened. I just think that, you know, for especially for positions that are really high profile where sometimes we see a lot of Comey, tensions and questions arise around Dudley police chief, for example, it makes snse for us to have a really intensive process around that. But what I hear. About, would say not even my own personal vows to for the hero. The director position is that it's nt a matter of, hey, you know, to a part of this, but it's to get his position filled asap so that we can really be supporting workers and our city and in in our not only in the cty of Saint Paul, thank you. Note in our city overall, that would be feel that urgency aside. You will be interested visit
that. My last question is just on slide 11. It's about the time employees summary. I know I'm really grateful to you all for being really intentional. Injust. Being critical thinkers about how we can know where we can make reductions. And and where does it make sense to do that? That's something that I am really supportive of. I've always talked how important is for us to have a modest increase in Levy rather than having skyrocketing increases and really keeping at a minimum. And so I'm wondering, I know that the the number from 2025 to 2026 4 full-time staff, it's going to be the same. But can you talk a bit about folk, what full capacity for the department actually looks like that. Just have a idea of what that is. Cheering great question. I
think that, you know, we can always the minute you some of employees where The Axe 4 additional staff would be always in pyroll That's one where we realize and with the cyber attack is what do we We need some additional support. And with payrolls, not just like the processing payroll, is because we get audited? Peril has very unforgiving timelines. So where some of the aspects of my team in and work, you know, we can be a little bit flexible somewhat. The payments like Iris tax is the port funds rate. That's if we don't do what we're supposed to do, that those are the outcomes. So that's always going to be an ask in connect has space. I would say, you know, with
their hiring team place and canteen is depending on the market rate we're seeing been talking with his 400 plus applications. Getting those that's not even for higher level positions that is for office assistant. Y'all you know, some of the positions that you all the counties that open, we had whole bunch of applications coming in and that takes the work that the consulting services seem to be able to do that. Passes those in a timely manner. And you communicate out whether made the list who didn't. So those 2 teams and I'm always asking for ad I will always ask for additional resources there. I think that one of the kind of and I dream list teases of this is a heavily at their position that I would ask for
is within Labor relations team we have the other ngotiation with their deputy director and his 2 individuals who are helping with businesses as well as negotiation strategies and negotiation work. It would be helpful to have aliaison between the departments tr. To help deal with like that day to day work grievances and ensuring that we have our departments know Haitian do this or you should do that. So helping assisting with some process improvement space. That's another position asked for. And then the And would be around and learning training and development. And it's I would ask for an additional staffing resource as well as resources to expand our training as we we don't want to be an
organization, a stagnant. Meaning that, you know, we've done some great work around professional development with the team of 3 that we have. in the learning development team. But we want people are asking for more they want. We need a learning management system to track the trainings. We want to see how people growing. If folks want to move from council to tr was the pathway there and like, what are the skills that you need to be able to do that having a lot of organizations we're talking more in the private sector side. You know, if you're ready to advance what is a pathway to do that? And actually it happens versus like we just provided training like. Good There's a pathway that gets you to that next level in. And there's a guarantee that job a
position that's going to take resources that's going take training and we need to have that learning management system to be able to to do that in the position. I would ask for Reese's that has 4 would be around and ministration right now. We have some staff working in a temporary space and whose And serving as office manager and filling in some gaps. But is he work expansive? We have worked and which were all of our department. That administrative support is going to be key to making sure that we function well as as a team. And so being that new pleas to the our organization now want to be clear. I'm asking for those positions. Now yu asked the question wether what would what would be to
get us to full capacity? I think that we want to be partners with the mayor's office and with the council and making sure that we we understand the constraints that we're in right now. And so we understand that we need to be contributing contributors to reaching those goals, a feeling get understanding just like the fate of the world. You know, the state of the world and just everybody, budget estate and start even federal level what's happening and how that's impacting us. So in no way, am being for for for that in this space? Because I understand the realities of our situation. But if I'm dreaming, that's my dream. And hopefully, you know, with our strategic you know, when we get into a better place with our budget, we can get there with those additional 5 to 6 staffing, those additional resources. That is part of our
strategic plan. But for this budget for 2026, we want to make sure that we're in alignment with the mayor's office and that we contributing members to achieving the goals. But it gets thank you for those insights starter. New flooring. Well, thank you for your Considerably. will take questions and comments to you last transition have to kind of a comment. Just do the Times saying my questions, particularly for director, you want thank you so much for the overview and I really appreciate level detail. You went off about the process sometimes we talk about budget we actually the implementation design plan. For a more sustainable. Leadership organization. So i do appreciate you. Using the time to talk
about no desire to expand training. We see that across every single department. I think even and I owned pregnant, especially and fields where it and cost the and they're shifting. And technology also is is changing at at a fast pace. So I appreciate that. I do want to just now has a word weighing on councilmember, give some context, particularly around it. That the background on the hiring decision in the process play. The human rights director director. From my experience, especially I saw that this ordinance came out of this period of a process keeping Council accountable, particularly to community stakeholders. grew up and build the confidence. This position to ensure they're protecting the
rights. In divisions, particularly on some of the state orders that I recall, I was at the table really pushing for council to have this position was that meant for the same pasc is being. The Saint Paul, said Minneapolis, Saint Paul and of acp aclu having no the African-American Leadership Council was really pivotal, particularly around accountability. And whoever is hired in that position. How can residents who residents hold accountable to that process? So that give you some context. I do think it is a word. Exploring in revisiting. But I just want to just like, say on record that I will be ensuring accountability to community is still strong present. Now, Holly, go about could be
different things. But it's really important that ensure and protect the collective. You know, I'm action around. And also revisiting the scope of that work. A hero director from 5 years ago. It's very different to the needs and demands that our city he's faced with. So I I also wanted to say, I courage no to look at now. Ordinance, also making sure that this position is beating like the demand for the city. Okay. Well, for the sake of time, we're going to transition over the county. Thank you, director new plan for your presentation today for Thank you. Good day. All right. So I'd like We have the county assessor, Pat Chapman and I coming out of Chiefs U.S.. Thank you both for being here with us today. And the floor
is yours. Good morning, Terry and council members, distinguished members in the audience. Residents watching at home on tv. My name is Director Pat Chapman and the Ramsey County Assessor today with me is Tracy West director and the county auditor. We're going to go over trends that we saw for 2002, that 2025 values, which is taxable txes payable 2026. A high-level agenda. We'll talk about tax capacity estimated market value little bit on fiscal disparity. Change in estimated taxes, tax relief programs and key dates for residents and for councilmembers. So here's the Ramsey County tax capacity. As you can we are at all-time
high of about 880 million in tax capacity. And test capacity is the county's ability to generate tax. Here's some of the tax capacity shifts as you can see, agriculture doesn't make up a ton of our county as you MAY. Well, gas. And so little impacts and there are big changes so that 20 to 23% number. Is not a very big change, even though it's to agriculture market apartment and commercial markets decreased slightly and industrial residential markets have increased slightly. And so any shifting burdens would would shift on to the industrial residential properties over the apartment and commercial properties. But
even with the tax capacity, those shifts will be smaller than MAY be expected because commercial as a 2 to one rate on tax passed. So for every $2, a commercial it's one dollar of residential. So when the shifts happen, they're they're Slater when they're in this area. Thank you. I want to pass the for Welcome to special guests from from Saint Paul. Public Schools. Thank you for joining us today. And Cynthia, thank you for reaching out and scheduling to be sure that our committee. All Kristen, thank You bet. So here's Ramsey County Market value and tax capacity a graphic that we show left there. We see estimated market value for 2025, which is the base for the tax for 2026. You can see that residential makes up about 60% on both sides of the equation. You can see that commercial
is about 9% of the estimated market value that makes up 17% of the tax capacity. And that is because of the classification. Commercial has a higher classifications. So even though they're only 9% of the value of the responsible for 17% of the tax burden. The one big one in the middle there is the exempt. We have a lot of exempt property and our county and Saint Paul has really high. Out of that as well. 14% and you see exempt properties to not create tax capacity because they're So let's talk about Saint Paul. Here is some of the text charts that we talked about for the whole county. This is what Saint Paul's looking again. You can not much there, but significant change agriculture and simple. Apartments down about 5%
commercial down about 4%. And then you see it just real up about 2 residential up about 5. So the total change is a positive 1.6, 3. So they're going to be minor shifts inside your city from apartment and commercial to industrial and residential properties. Here's the market value and test capacity chart for city of Saint Paul. You can see that residential make saw about 55% and text messages about 59% of the total. And you can see there to commercial made up 8% of the estimated market value but carries 16% of the tax capacity. Bird. Again, that's 2 to the classification. Again, you can see the exact piece, 18% exempt in that export market
for an estimated market value. But obviously exempt curious, contact us. So I'm going to transfer it over to Tracy and we'll talk a little bit of a fiscal despair. Thank you, Assessor Chapman. My name is Tracy West Brunswick County Auditor. So as assessor to Chapman just reviewed market values and tax past year. One of the factors that impact taxes. So so its fiscal disparities, small talk briefly about the fiscal disparity program. So fiscal disparities is a tax sharing program designed to reduce large differences and commercial industrial tax capacity between community us. It mainly affects property tax revenue is distributed among cities and counties in the
Twin Cities. Metro area. The fiscal disparity program aims to share the benefit of regional economic growth. Reduce inequalities between commercial Richmond, commercial port tax. This community is and encourage communities to cooperate regionally rather than compete for development solely to boost their own tax basis. Each share 40% of growth in commercial industrial property value within the region is placed in a shared pool. This is called the area white space. This school is then distributed among all taxing jurisdictions in the region. The shared pool is distributed based population and market value per capita. So communities with lower market value per person receive more
of the pool. Those with higher market value per person contribute more. Donor community is. Contribute more to the shared all than they receive. So their local commercial tax capacity is reduced where recipient communities receive more from the pool, their local commercial tax Hess, the increases. So fiscal disparity changes where tax dollars go. Not how much an individual property owner pays overall. However, it can affect local tax rate. So donor cities MAY have slightly higher local tax rate because part of their bases share recipients, cties MAY have lower local tax rate
student increase, shared U.S.. So this is the tax capacity. Contribution by county. So overall, the pool is that a slight increase, adding about a million dollars over 2025. So you can see Ramsey County and Hennepin County are the only counties are contributing less than they did last year. This is due to the decline in commercial properties, specifically in the downtown area. Us. Next is the distribution dollars received by the county's city of Saint Paul and Saint Paul School District? So the slide before we're looking at the tax capacities. So this is love you dollars receive from this program. 3 jurisdictions are receiving more than they did last year. City of Saint Paul will receive 44.3 million,
which is up from last year by 9.3%. Writes, we know market value and fiscal disparities are impacting property taxes. Also, the levees proposed by each of the jurisdictions impact property taxes. So let's look at how these factors are impacting property taxes. So this is the change in tax and the median value residential property by Saint Paul Planning District. So this example does not include the shool referendum. It is sort by highest to lowest percent change. So that first line in the Thomas Tail area, taxes are projected to increase by $267 or 8 point 5% over last year. And the very last row is the downtown area will see the lowest increase,
which is $8 increase or 0.3% over last year. Now, this is the same sharp. But the only difference is we're including that school referendum, assuming it does pass. So in the Thomas tail area, taxes are protected to increase $513 or 16.3% over last year. And if you look at the very bottom row. This referendum would increase the overall taxes by $201 in the downtown area or about 8% over last year. So there are many factors that impact taxes is we've briefly discuss fiscal disparity led the changes in market value and then we also have what we call tax an example of tack ships are when we see changes
in market value between the classifications. So overall, we're seeing a decline in the market value commercial property in increases in residential. So when this happens, some of that tax burden will chef from what the commercial properties for paying. And I'll shift over to the residential property. So this slide will break down these factors affecting 26 taxes. Again, it's on a Saint Paul median value property. And this example excludes the school referendum. So if you look to the way for question, because think you so much chair a meeting. Want to go back slide 10. I'm trying to understand and I remember we were talking about this last year. What
the the if you can explain the different in percentages because particularly we see Thomas still has the highest percentage. 6.4% change. You know, for the people you know are seen know these these percentages and seen these levees. How are we coming up with these percentages numbers? Because one probably think say, for example, that the city has a 5 point. 3 levy increase that that would apply to their house right. But that's not the case. How are we coming up with this percent? How? Chair council members, thank you. That's a great question. It's also very complicated and layered, but there are many factors that impact txes. So like, for example, city of Saint Paul's
Levy is increasing by think it's 5.3%. So that's not the only factor that impacts taxes. Ramsey County also is increasing their they I guess I'm trying to get to this is neighborhood specific. So how are we? So why is Thomas Dale having a change at 6.4% while downtown has a negative 0.3. Yes. So this it's the valuation of the home. So each home is going to have a different valuations. So in the Thomas still area the median value home is for. 2026. Taxes payable $231,100 last year was $217,300. So the value of the home is
increasing by 6.4%. But then the tax change year over year is increasing by 8.5%. So is it you're seeing in other neighborhoods say, for example, in Union Park, there is a slight increase in value. Therefore, there's a slight increase in the percentage, correct? Sometimes there's a correlation with the market value. But there's also other factors that will drive the taxes. What's not solely related to market value. But that is one of the factors think in when plane so awesome. Ramsey County. Is the entity regulates our guests gives the all right. Just market value for that home right? I was just going t get a comment. I appreciate your
question and the clarification And these are median values, which means that half of that half of the homes have a value above the number has had one below that. The average so there. It would be also interesting to see. I know this is from this year. Compared to last year, but even in the last decade, how have some of the trends spend show in the increases median value. You know, across the neighborhood, over time. Chair council members. Yes, we can pull that information and I can provide the Thank Yes. All right. So we're going to break down some of these factors so we can understand overall. You know, we see in this example to $280 increase. So that column all the way to the right. So that's what residents will see on their
tnt. Their proposed tax statement. And the way we break it down on the proposed tx statement as by the taxing jurisdiction. So in this example, $151 is related to the county. $107 is related to the vote. $6 is related out their special taxing districts which are watersheds and my counsel are 2 examples. So we know there's a lot behind the scene that goes on with fiscal disparity tax shift. Some other? Homestead exclusions, an example. So let's break that $280 changed on a little further so we can see how all these factors are impacting taxes. So if we go to that Middle column, you see the $4,158. So that is the taxes paid
in 2025. On a median value home in the city of Saint Paul. So that values 275,000. So all these factors are can be either at the taxes from last year are subtracted from it. Tickets for new 2026. Total. So that first number is a reduction of $88. And that's related to fiscal disparity. Us. And then we have a change in the Homestead exclusion benefit. So that's adding $18 to the property taxes. So said that exclusion benefit is based on the value of the home. So since this home is increasing in value, they're losing a little bit of that benefit having to pay $18 more in taxes. And then there's other chefs include $121 about
examples of that would be. Property tax ships from other classifications such as commercial residential and also increase in the value of the home. And then we move on to the Ramsey County increase. Will $133 that's strictly related to the increase in the county Levy. And then the $3 is due to the increase in the regional rail Levy $90 as the city Levy. And then $3 is the special taxing districts so that $229. Plus the $51 equals that to 80's. So that's the breakdown of that change in tax year. Over year, councilmember jokes. Thank you, chair I I'm looking at it that the slide also the kind of same time. But the question. For you you know the answer this, but with Minnesota property tax. And I know there's like a special
property tax refund of your taxes increase by a certain amount year-over-year. Do you know like off the top your head when looking at? Pairs exchanges with or without the referendum. Will some of the neighborhoods with their median? For some of the neighborhood that potentially eligible for that special refund? You know, with or without the referendum and at the top what is it like? It's like But, you know, to know. Chair commissioner says the 10 or 12 I It's 12%. So yes, I do have a slide. And all o our different programs to help relieve property taxes and then also in the property tax statement that residents
receive. There's information on all those programs. This us. All right. So this is the same slide. But we are including the school referendum. So again, the column all the way to the right is properties taxpayer will see U.S. Lets the increase of $587 broken out by the different tax injures sections. And then if break that change down a step further, you can see the fiscal disparity is going to stay the same at a reduction of $88. Homestead. It inclusion benefit will be a increase of 18 that stayed the same tax shift. Stay the same at $121. And then we look at
the different like the You can see that the school district Laffey is increasing overall tax bill by $307. So bringing us that changeup 587 dollars or 14% year-over-year change. All right. So property taxes are often considered regressive because lower-income households pay a higher share of their income and property taxes than higher income households to. In this example, 3 households live in homes, similar value. They each paid $2000 in property taxes, but earns much less income than others. Property taxes based on the value of property, not how much the owner this. So if all 3 homes are taxed at $2000 per year,
but one household earns 10,000 and the other is 100,000. That first his $10,000. Pays 20% of their income and property taxes where the last example. He's only paying 2% of their income to property taxes. So that's free press of in a fact. Landlords also include property taxes and the rent they charge because lower-income households are more likely to rent. They still bear part of the property tax burden, but with less ability to absorb it compared to wealthier homeowners, property taxes don't automatically decrease. When someone loses a job or retires. That means people on fixed or lower incomes can
feel disproportionate strain even if their property value doesn't change. So Minnesota has programs to make property taxes less repressive, such as the property tax refund. Holmes said market value exclusion and senior deferral programs is don't eliminate regress to be able to help soften it. Information on these programs can be found on the Ramsey County website or the state website which is listed below on the slide. And some key day. It's so jurisdictions certified Max lobbyists, the county auditor and SEPTEMBER 30th. We are in the process now calculating the proposed tax statements and those will be sent between NOVEMBER. 11th and NOVEMBER 24th. So be is states are determined by statute. I believe city of Saint Paul.
Truth in taxation meeting is being held on NOVEMBER 25th. So just something to there could be situations where residents MAY receive their statements a day or 2 in advance. Of the meeting we always aim for the to get them out. But once we send them off to the post office is out of our control a little Ramsey County will hold the truth in taxation meeting for the county and DECEMBER. 11th. The meeting actually starts at 6 o'clock. But the public hearing portion will begin after a brief presentation at And then the county board will approve the final 2026 Levy
and DECEMBER 16. Specht Foods. My presentation, I'll stand for additional questions that customer Johnson. Thank you. Thank you both for being today. Really appreciate that. We're able to fit this I to the budget conversation because I think it is really important. You know, I'm looking at some of these numbers and honestly, it's one of the most talked about things that I I definitely heard at the budget event that we did as council, but also individual budgets. You know, I appreciate the further explanation on slide 11 12 for initial feedback slash probably think for additional contacts. I can see how someone who's looking at this and just wondering will be like, well, I live in pain feeling are live on the north in and I are Thomas and Deion. So I'm paying the most in taxes but actually being like a piece of response t this,
even though there's like a lot of different numbers of market value of peace is the percentage is that we into it. And then if you look at the overall like property taxes are median estimated home value and then the percentage in the actual dollar amount that they pay in property taxes. Probably not here, but I still think that information is really helpful. That's what I'm looking at this. And I MAY not always understand the full. The photograph itself. I could make inferences that aren't necessarily 100% accurate. So that would be like initial piece of it. I don't think this this this slide tells the full story and it so I do appreciate the breakdown for the like this, actually how it works. And for folks to see kind of the increases for that to be in value home. Separately, I think I remember correctly from last year's presentations, there was there's a there was a slider, some mentions of just how much money.
Folks, the car, even on the table for state reimbursements I was wondering as a follow-up to that, has the county seeing a decrease in county residents having that same experience? Has there been any sort of efforts and and the county side around how to ensure that if there's opportunities for residents, especially here in Saint Paul to see some sort you know, see their full reimbursements to their homes, to their property, be able to get some sort of relief at the end of the year that they're able to take advantage of that. And I remember that that number last year being little bit more higher than I had recalled initially. And I'm just fine. If you see improvement in that and chair council members. Yeah, that's a great point. The money left on the table that we've talked about past years as related to the state programs. So that was about
25 million that was left on the table within Ramsey County is that would include Saint Paul residents. What we do is every opportunity we get. We try to advertise that these programs are out there because lot of people are not aware of Which like speak to the Homestead. That Homestead piece? Well, Councilmember Johnson the homestead pieces has They just changed in the legislature couple years ago moved the bracket up. So that gave a lot more benefit to areas of Saint Paul that really needed it. So the lower area of the lower valued areas of Saint Paul saw an increase in the amount of exclusion that was their so when that
chart shows an $18. I think it was the homestead market value exclusion reduction. If we compare that to 3 years ago, it would actually be less than what they had then because of the cange up. So that's very confusing. Way to say that the homes at market value exclusions, a very valuable thing to the city of Paul, especially I areas where values are a little lower. And so even though it's a diminishing return, is your property grows since they move the bracket up, more people in Saint are benefiting from it in lower value communities. And as a follow-up to that, the best-selling to the Homestead Properties, Peace. But to the 25 million your state programming. Cn we get a follow-up just again on the programs at that, the programs and information. And I think just as it relates to that,
too, once again, also share with Giants and people that are coming to us to that MAY or MAY not know about it. Honestly, I probably will have to review some of it see if I'm one of the folks contributing to the 25 million admitted I know, you know, the first-time homeowner. I had to learn all the things around. Homestead hopes my property that never heard of that before because I was a renter. And so just coming into space, is it does change it. But i still think there's like a education piece that I would love to see are just opportunity step of the see the the county work work with us on. MADAM Chair, commissioner and I just like to make a quick announcement here. This off the presses. So I'm vry excited about this. And then with assessor's office time and and today is is tax right? So appropriate that we are
making Homestead for the first time as online starting today. So the Homestead application for residents in Homestead is a very important exclusion for residents because it it really helps mitigate some of the redress of money. So said market value exclusion can be applied for online. Also for the property tax refund. If residents go to ptr space and then just take that into a search engine, it should take you right to all the information. For the property tax refund, which is a state program that we talk about constantly because it's a very valuable thing. There are a lot of professional organizations trying to make this become more of an automatic thing. But there is some heavy lifting behind the scenes. So as you talk to your
fellow elect its and you talk about property tax refund. Pr just ask questions about how it could be automatic t your other elected colleagues. Just keep the conversation going all that I would but ask because there is probably a weighted on this. It MAY take a couple of years, but it could be an automatic thing where we don't have to have the resident applying and some of the barriers that that creates. frank, what he has for just just whining that we are at times. So if any of the council members have questions comments, please send them to commute so tat we can get them over county guests. Thank you, chair. I make my comments questions. So think I really appreciate Councilmember Johnson's comments about the
these charts and 11 12. I think they're really, really helpful. And someone who really likes to eat it just makes you want a lot more information. So I think that things you guys probably can't provide all this to you. But I'll just share the things I'm really curious about. 2 are the median home values and then also the median incomes in these neighborhoods. I know I don't The most recent data we have and then also, you know, these tax changes are percentage changes from year to year, but they don't necessarily tell you what is that total over a levee that each of these neighborhoods is carrying. You know, even though downtown is a really low. Didn't tell you what percentage change in the dozen. That doesn't necessarily mean they're not carrying a large part of some
of the taxes is so that those are the types of things that I'm interested. And I also just want to uplift the importance of the homestead process. You know, if you MISS Out that process like that you're missing out on the significant amount of money in anyway that we excited about the online application. But just any way that even we can help. Around that awareness for 4 weeks because I had the same situation when I transition from renter to homeowner making sure that that process. And then are renters. Do also have a rnt refund to was. Well, is that information in the resources that? Chair council members that program is automated now within your income taxes look that. Council members. Thank you for your comments. Your feedback. And I do have a lot of that information. I'm happy to provide a actually have a
slide that will show. Median income to bring and to the tax lights. We can pair median income to tax dollars spent the thank you both. Get Listening to us today and with that, I will adjourn our meeting. Thank