The council will hold a public budget hearing Sept. 15 and has until Oct. 6 to finalize the budget. The $211 million preliminary budget total can be reduced but cannot be increased going forward.

The overall proposed spending for 2026 is down 6.43% from the 2025 budget, but it calls for a $29.5 million tax levy, up from $24 million. The tax increase per $100,000 of residential property is $83.25.

Council member Mike Blessum said the amount of increase breaks state law, in his mind.

Finance Director David Lakefield explained the calculation relates to how payment of obligated debt is handled, and it has been approved by the county auditor and others.

“I’m virtually positive we’re doing exactly what they didn’t want us to do. If you watch the discussion, you watch the debate, at the Legislature, to me, it was very clear what their intent was,” Blessum said. “If this is the loophole they left, it’s going to be an ugly, ugly process going forward.”

Lakefield said making the one-time calculation this year will prevent the continuation of property tax increases above 3% for flood project debt into the future.

“I don’t know where that leaves us,” Blessum said. “I watched a (budget) presentation where I just wanted to stand up and applaud. I’m getting texts during the presentation saying they’ve never seen a presentation of a city budget or any budget of a public entity that literally said we did everything we could to provide value for the public, and that’s what we saw tonight. But when we get back to this number, we’re still going up.”

The preliminary budget includes spending just over $2 million from general fund reserves to cover operational costs, which is less than in recent years.

The budget includes an extra $35 million in wage increases and $7 million in health care costs, which is only about a 1% increase in overall spending on wages and benefits. Employees may see step increases in the pay plan of more than that amount. Overall figures reflect more employees in entry level positions and elimination of some positions.

The police budget increased the number of unfunded, authorized positions from seven to 11 due to difficulty filling them. There currently are 15 vacancies.

However, the department argued for retaining a lieutenant position and executive assistant, originally proposed to be cut. Police Chief Michael Frye said eliminating the lieutenant would place significant stress on police sergeants.

“They’re already over stressed, and their plates are already full,” he said. “It’s amazing just to see how much one individual is taking on, and those people are getting to their breaking points. We can only do so much, and eliminating a position like this, I think, would be catastrophic to what we’re trying to achieve and how we’re trying to move this department forward.”

He added the executive assistant position is necessary for organization and is a force multiplier.

“That position is so critical and we know that it can be used in a much more vital way,” he said.

The budget also funds nine extra firefighters. Six would be paid for through overall city budget savings, and the department would trim internal spending to come up with the money for the other three. Fire Chief Kelli Kronschnabel said the department will be looking harder for grants and other outside funds.

The preliminary budget includes $12 million for street maintenance, which is up $1 million from 2025 but also is $1 million less than the $13 million the city originally was hoping to budget.

Not in the budget are relocation of the fire station headquarters to a location farther to the southwest, remodeling of the police building or local funds to address cast iron and lead pipes, Third Street Bridge replacement and space for municipal court.

The 2026 budget projects $13.1 million per penny in sales tax, up from $12.25 million budgeted for 2025, although Stewart noted collections have slowed a bit recently.

City manager announces resignation

Harold Stewart announced his resignation as Minot city manager, effective Sept. 19. He has accepted a similar position in Pasco, Washington.

“It is not an easy decision for my family and I, as we have really grown to love Minot’s quality of life, its people and its community,” he said.

“Together with the council, staff, community partners and citizens, we accomplished significant and positive steps forward for the community and the organization. I am proud of what we have achieved together, and while we have experienced some significant challenges over the years, I firmly believe Minot has become better and stronger,” he said. “I will always be proud of my time here and what we have accomplished together. Given what I know of the quality of the staff, current leadership and some of the developments in the works, I am confident Minot as a community and organization has a very bright future ahead of it and will overcome the challenges and difficulties ahead.”

Stewart has served as Minot’s city manager since December 2020. He previously held city manager positions with the City of Ogallala, Nebraska; Knoxville, Iowa; and Warrensburg, Missouri.