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Minot City Council stays course in first budget reading

Council rejects spending changes on first budget reading

Submitted Photo A closure structure is under construction in the Napa/Forest Road portion of the Mouse River Enhanced Flood Protection Project. Funding for expected construction on the project in 2020 has resulted in a large spending increase in the city's proposed 2020 budget.

Minot City Council members turned back efforts to redirect economic development dollars Monday in approving a $275 million budget for 2020 on first reading.

Council member Josh Wolsky sought to include $200,000 for the Minot Downtown Business & Professional Association in the budget. The money would have come from a share of sales tax collections that this year are accumulating to fund a new city economic development director. The city is in the process of seeking someone to fill the position.

Wolsky said the $250,000 to be gained from sales tax for economic development at the end of this year should fund an economic developer for three years. He said the city can afford to look at its other economic development needs.

“I think we have an identified need in downtown,” Wolsky said. “With the considerable amount of money we are spending on (downtown) infrastructure, I think we also would be prudent to support that area of town with some professional staff. I think the Downtown Business & Professional Association is the right vehicle to deliver that.”

THe DBPA has asked the city for funding over three years to help with its administrative and operational expenses. Wolsky said his proposal is to earmark the money in 2020 but spend it over a period of years as needed by DBPA.

“I am not convinced this is a prudent expenditure,” Council President Mark Jantzer said of Wolsky’s proposal. He explained he’s not seen enough of a plan to know that spending $200,000 will produce the results sought.

Mayor Shaun Sipma voiced concern about appropriating money without having a contract that spells out deliverables from DBPA, although Wolsky said no money needs to go out until that contract is in place.

“I look at this, at this point, as premature,” Sipma said. “There are many different ways to address this in even the near term, but I think we need to have a deeper discussion with the downtown businesses and professionals prior to allocating a significant amount of money.”

Wolsky’s motion failed 2-5. Voting for it were Wolsky and Shannon Straight. Voting against were Sipma, Jantzer, Lisa Olson, Paul Pitner and Stephan Podrygula.

Wolsky also sought to designate a portion of economic development money for marketing of the Renaissance Zone. Marketing is mandated in the Renaissance program but it has been unfunded. The council voted along the same 2-5 lines against the motion after City Manager Tom Barry said the spending authority is available without making a specific budget designation.

Wolsky also sought unsuccessfully to remove money in the budget for a retaining wall at City Hall. Wolsky has been opposed to the direction the council decided to take to fix issues with the existing slope protection. He noted Monday that costs have soared from an estimated $2.7 million to now $4.7 million, and he would like the alternatives re-evaluated and new options considered, such as less expensive slope stabilization methods.

“I think it’s appropriate to stop this project and look at the alternatives,” he said. “I am just concerned that this particular project does not have a sound foundation of process underneath it and I would like to slow it down.”

Straight agreed the project can be slowed down.

“It’s critical that we do these projects right and that we have a little more trust from the public that we are spending their dollars correctly,” he said. “We are getting a very aesthetic, very expensive wall, that we can pare way back and have something far less.”

Sipma and Pitner disagreed. Sipma said the slope is in a condition that can’t wait.

“This is the cost of doing business,” Pitner said. “This is maintenance, the same as we as citizens do on our homes. The longer we wait, the more expensive it becomes.”

The amendment failed 2-5. The council then voted 6-1, with Wolsky opposed, to approve the budget on first reading. A second reading will take place Sept. 23. Wolsky said after the meeting that additional discussion on some level of funding for DBPA is possible during second reading.

Only two people spoke at the public budget hearing. Aaron Moss with the Minot Police Department, representing the police officers organization, offered the group’s support for the budget and the pay plan.

Resident Mike Enslin raised concern over taxes.

“My taxes in the last two years went up approximately 48%,” he said. “A lot of people in town – the vast majority I talk to – think that Minot should tighten their belts, see where you can find places to cut spending and not increase spending by buying things that you don’t necessarily need but you want.”

The proposed budget calls for about $275 million in spending, much of it for flood protection and the Northwest Area Water Supply Project. The budget is a 52% increase over 2019, but the extra money is coming from outside sources, leaving property owners with no tax increase.

The proposed mill levy will go down from 129.23 mills to 121.29 mills. However, the 7.94 mills that the proposed Minot city 2020 budget is down will be paid by taxpayers to the Minot Park District because the city’s recreation department has shifted to that entity.

A Minot home at the median value of $179,000 would pay $977 in city taxes. A Minot home at the median value of $178,000 in 2019 paid $1,035.

There also are no rate increases planned in water, sewer and storm sewer. Small adjustments are being made in airport fees and city bus rates.

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