St. Paul will resurface, rebuild or redesign its “terrible 20” streets by the end of 2015, offer an expanded paid parental leave benefit to city employees and hire more building inspectors.

But keeping up with inflation, labor costs and demand for city services won’t be cheap. St. Paul Mayor Chris Coleman on Wednesday unveiled a 2015 budget proposal that calls for a 2.4 percent increase to the property tax levy, the total amount of taxes collected from all property owners.

The mayor said he did not take increasing property taxes lightly, but “there is simply little to no fat left on the bones of our budget.”

Homeowners with median-value homes — those valued about $145,000 — likely would see some sticker shock when their tax estimates arrive.

Even without a levy increase, homeowners would face a $112 hike in their city, county and school district property taxes due to an estimated 11 percent increase in taxable market value, according to Ramsey County officials. Home values are now growing faster than the city’s commercial properties, which showed no value increase.

The mayor’s proposed levy increase would add $15 or $16 for a total tax hike of about $127.

The mayor said his proposal matches ongoing revenue to ongoing expenses, and would eliminate a projected $9.6 million budget gap without reducing core services such as police, fire, parks and libraries.

City Council President Kathy Lantry said she was impressed with the mayor’s overall budget approach. “I think our priorities are very much in line,” Lantry said.

The budget proposal will be vetted by city council over several months before it is finalized in December, and changes are likely.

Coleman delivered his annual budget address at the newly remodeled Schmidt Artist Lofts on West Seventh Street, the former home of the century-old Schmidt Brewery. He pointed to the residential lofts as examples of growing real estate investment in the city of more than 296,500 residents, which gained an estimated 6,000 residents last year.

Keeping up with the corresponding demand for city services — from police and fire to property inspections — has been a tall order in light of inflationary increases and rising labor costs.

Coleman’s budget proposal maintains the sworn complement of city firefighters at current levels — 114 daily. It also keeps 615 sworn officers in the police department.

With an eye toward diversity, the city is working with the fire department to create four annual cadet openings targeted to graduates of the city’s EMS Academy, which is geared toward female recruits, low-income residents and ethnic minorities.

Coleman said St. Paul is the first city in the state to offer city employees paid parental leave benefits beyond what is required under the federal Family and Medical Leave Act. Beginning Jan. 1, new mothers would be eligible for four weeks of paid leave, in addition to two weeks for the other parent.

San Francisco and Austin, Texas, have similar benefits for their city employees.

BY THE NUMBERS

The city’s tax levy, or total amount of property taxes collected, was $101.2 million this year. Coleman’s proposal calls for a tax levy of $103.64 million in 2015, which would be a 2.4 percent increase.

General fund spending would increase 1.2 percent to reach $250.1 million. Total city spending would drop from $516.76 million in 2014 to $515.2 million next year, for a 0.3 percent decrease, as a result of outsourcing management of the Como and Phalen golf courses and reduced spending in a sewer program.

INSPECTIONS

Responding to a major backlog in fire inspections at residential properties, Coleman said he would hire three new fire inspectors and two specialists in the building trades, including an electrical inspector and a mechanical inspector. The costs would be offset by fee increases for building permits and fire certificates of occupancy.

The department would also add a transportation auditor to oversee services provided by transportation network companies such as Uber and Lyft.

WORKFORCE

The overall number of city employees, or full-time equivalents, would decrease by 10 to 2,919. Among them, police would suffer four staff reductions in records, the impound lot and general clerical support.

“We are still finalizing exactly what the loss of those positions will mean about how the work will be distributed,” said Howie Padilla, a St. Paul police spokesman.

The city plans to hire an information technology security specialist and buy the license to a series of Microsoft applications, Microsoft 365, which had been leased from the state. City budget officials said despite some up-front costs, they expected to save money in the long run while benefitting from an expanded suite of services.

The Planning and Economic Development Department would add a deputy director. Fees pertaining to right-of-way assessments would increase 2.4 percent, recycling services would go up 2.2 percent, and sewer utilities would go up 3.5 percent.

STREET REPAIRS

A $54 million street repair program would address the city’s most badly damaged roads. The effort includes $34 million in new spending, much of it an indirect result of the legislation that funded the new Vikings stadium in Minneapolis.

The Legislature freed up city funds by helping to pay off a series of bonds for St. Paul’s convention center, the RiverCentre. By the end of 2015, the city will resurface, rebuild or redesign 20 of St. Paul’s most heavily traveled and pothole-filled streets, including segments of Cretin and Hamline avenues and Johnson Parkway.

The city’s Residential Street Vitality Program has funded makeovers for residential streets for years. But a new mission comes with a new name — the St. Paul Street Vitality Program — and $10 million will be dedicated toward arterials, such as commercial avenues; and $4.5 million to continue work on residential streets.

In a budget discussion Wednesday with city council, St. Paul Finance Director Todd Hurley acknowledged the new focus on arterial streets will reduce spending on residential streets from two to four projects per year to one project.

“I don’t see that as very acceptable at all,” said city council member Dan Bostrom, echoing comments from other council members.

As for county roads, the city will contribute $3.4 million toward rebuilding Randolph Avenue, Raymond Avenue and Ford Parkway. Another $4 million in city funds will be put toward rebuilding the bridge structures under Kellogg Boulevard.

Coleman said he plans to launch a bipartisan coalition of Minnesota to lobby the Legislature for more funding for city roads.

VITALITY FUND

An additional $42.5 million will be dedicated to the 8-80 Vitality Fund, an effort inspired by famed urban planner Gil Penalosa’s challenge to make streets accessible to residents ages 8 or 80.

Of that money, $17.5 million will reconstruct Jackson Street and complete the first phase of a downtown bicycle loop. Another $13.2 million in one-time money will expand or reconstruct bike lanes on St. Paul’s incomplete Grand Rounds paths.

OTHER PROPOSALS

The city is working with Civic Consulting MN on an effort to partner with the private sector free of charge, “with the goal of applying private sector disciplines to public sector endeavors,” according to a city budget fact sheet. Private consultants will serve as advisers to the Public Works Department, reviewing procedures and efficiencies.

The mayor has proposed $2 million toward Dickerman Park, a long-stalled green space near University Avenue and the new Green Line, and $8 million toward the eventual redevelopment of the vacant Palace Theatre in downtown St. Paul.

Mara H. Gottfried contributed. Frederick Melo can be reached at 651-228-2172. Follow him at twitter.com/FrederickMelo.

AT A GLANCE

Highlights from St. Paul Mayor Chris Coleman’s 2015 budget plan:

— The tax levy would increase 2.4 percent after remaining unchanged in 2014.

— Taxes on a median value home of $145,000 would rise $15 to $16; market value increases would average another $112 to the tax bill.

— $54 million would go toward fixing 20 of the worst streets.

— Police keep 615 sworn officers, but must cut four support staff positions.