MINOT, N.D. (KMOT) - Minot’s proposed city budget for next year is out.
Overall spending will drop 6.4%,
but homeowners could see a property tax increase that’s well over the state’s new cap of 3%.
A recent city council meeting prompted concern from one member about the rising tax burden and whether the city is breaking the law.
The Minot City Council adopted the preliminary budget and pay plan for 2026 at $211 million.
As it stands, that’s about $14 million less than this year.
But the proposal bumps the property tax levy up by $5.5 million, leaving council member Mike Blessum questioning finance director David Lakefield about how the city got to this number.
Blessum: “It’s your belief that it’s legal for us to levy $29.5 million on a base of $24 million last year?”
Lakefield: “Alderman Blessum, I think so. I’ve had conversations with the county auditor and others. Ultimately, that’s why when we started down this process, we wanted to have the state and everyone involved. Essentially, the directive we have been given is we need to consult our own attorneys or state attorneys to figure that out.”
For a home valued at $100,000, the city’s share of property taxes for the year would go up $83.25.
Blessum believes that if the budget is sent in, the city would be breaking the law.
“
I’m virtually positive we’re doing exactly what they didn’t want us to do then. If you watched the discussions, if you watched the debate at the legislature, to me it was very clear what they’re intent was. If this is the loophole they left, it’s going to be an ugly, ugly process going forward,” said Blessum.
Lakefield explains how tax amounts can increase every year as flood control debt goes up,
a loophole they are trying to avoid in the future by making this one-time increase.
I don't believe it. If they do it one time they will do it again.
“Instead of transferring sales tax into the general fund and then transferring from the general fund into the debt fund, the transfer is made to the general fund, and we levy for the debt in the debt fund,” said Lakefield.
The budget cannot be increased moving forward, but it can be lowered.
It’s important to note that, near the end of budget discussions last fall, the council voted to use reserve funds to offset property tax amounts.
Some council members who supported that move argued citizens were being overtaxed, while others shared concerns over using reserve funds for that purpose.
A public hearing will be held on Sept. 15 during the city council meeting.
The city would approve a final budget on Oct. 6.
The final version is due to Ward County by Oct. 10.
Obviously, state implemented laws mean nothing to the city of Minot.