Cutting back on road maintenance and shifting some sales tax dollars from economic development to property tax relief are among suggestions for reducing the property tax bill in the City of Minot’s 2026 preliminary budget.

Mayor Mark Jantzer, formerly the council president, worked with council vice president Lisa Olson in crafting the council president’s budget message, presented at the Minot City Council meeting Monday, Aug. 18. Their recommendations reduce the property tax request by just over $2 million, from $29.57 million to $27.22 million.

“This budget at $27.2 million still represents a 13% increase over the levy from last year. That number does not meet the legislative intent,” said council member Mike Blessum, referring to the state’s 3% cap on property tax increases. “I realize legally, we can do it. We can go back to a different baseline. We can use all kinds of numbers.”

The council took no action, but Jantzer suggested a special meeting on the budget before the public budget hearing on Sept. 15. Additional budget adjustments could be proposed before or following the hearing.

The president’s budget recommendations included:

– Retain a full-time lieutenant and create a full-time advanced analytical administrator position in the police department for a total of $176,680, and increase the number of unfunded patrol positions from 11 to 12.

– Retain an executive secretary in the city manager’s and mayor’s office.

– Decrease the street maintenance budget from $12 million to $11 million.

– Reduce the percentage of sales tax dollars for economic development from 15% to 10% and increase the percentage of sales tax dollars by 5% for property tax.

– Eliminate $500,000 for economic development projects and decrease funding for the Facade Improvement Program from $300,000 to $200,000, along with adding caps and lowering the percentage of the loan amounts.

– Adopt a sales tax ordinance that allows for flexibility in the distribution of funds to meet needs that change on an annual basis.

Jantzer and Olson also suggested making a financial commitment to the remodeling of the current police station by taking $5 million from the city’s cash reserves annually in 2026, 2027 and 2028.

Jantzer explained the budget’s debt handling and use of 2024, rather than 2025, as the city’s base year for calculating a 3% tax increase are within the state’s rules. However, Minot property taxpayers will see an increase of more than 3% from last year’s bills as a result.

“It is important for all of us to note that as a state and a city, we are in a transitional period on a track to reducing property tax burdens,” Jantzer said. “This proposed budget shows progress. This budget sets the baseline for future budgets in a capped environment. We are all elected to approve a budget that provides necessary municipal services to our residents while adhering to the law passed by our state legislators.”

Blessum supported the use of reserves for police station remodeling, noting the salary savings from staff shortages in the police department have contributed to those reserves. He also supported the reduction in street maintenance funds.

“We’re seeing this year just how disruptive around the community it is to go up to these higher numbers,” he said. “We’re about to start school with the main artery to get to Magic City closed, and so we’re seeing what these higher numbers do. I think it is a good time to pull back.”

Council member Rob Fuller sought to schedule a public hearing to gather citizen input regarding use of the local sales tax for first responder funding.

“What we’d like the public to be able to come in and talk to us about is roughly three questions,” he said. “One, do we believe that we should still be funding economic development through sales tax in the current budget situation and everything that’s going on? Two, if they don’t want to continue the economic development through the sales tax, are they opposed to us reallocating it for first responders? If they do want to continue economic development through the sales tax, do they want to do Paul’s suggestion of another half cent sales tax next year?”

Council member Paul Pitner has asked city staff to develop a proposed ordinance for a new half cent sales tax for first responders, to be considered at the Oct. 6 council meeting. He recommended holding off on a public hearing until Oct. 6 so people have more information before providing input.

“So, you’d rather have city staff chasing their tails if the public comes in here and tells us that they don’t want to increase sales tax?” Fuller responded.

Fuller sought to hold a public hearing on Sept. 15 to potentially provide guidance for using sales tax to reduce property taxes in the 2026 budget.

Pitner raised concern that the issue is being politicized.

“As the only individual up here who has successfully run a business in the city of Minot for over a decade, undercapitalization of this organization will run it into the ground. We cannot lie to ourselves about what it costs to run our government. We cannot lie to ourselves about what it costs to support our first responders. I’m not willing to take the shortcuts to do that. I want to have the conversations. I don’t want to try to blackball these conversations and stop them from happening with Facebook comments and inciting panic. I just want input. I want to have all the facts from our city staff so we can move those conversations forward,” Pitner said. “Absolutely, let’s have a public hearing when we have that information.”

Council member Lisa Olson added it’s important the public understands the ramifications that could come from sales tax changes.

“Everyone’s going to say, ‘Yes, they support police and fire,’ but when they realize all of the intricacies that come with that, then I think they might reconsider. I don’t know. But until we can give that information to them, I don’t think that it’s healthy or useful to get an answer that is an uninformed answer,” she said.

Fuller replied the residents understand already.

“They’ve been living under this for 15 years. High tax – that’s what we’ve been doing in the City of Minot. The people know, and I think they want to come in here and talk to us about it,” he said.

“All we’re really quibbling about here is when do we get the feedback,” Blessum said. He said both dates work, but he prefers Sept. 15 over Oct. 6 because the public already is coming for the budget hearing.

Fuller’s motion for a Sept. 15 sales tax hearing failed on a 3-3 vote, with Jantzer, Pitner and Olson opposed and Blessum and Scott Samuelson in favor.

Fuller also sought to direct the police department to request proposals from local contractors on station remodeling in an effort to determine costs.

Police Chief Michael Frye said the department is working with an architect and has asked for costs to bring to the council. A report could be available in a week or two. Frye said a project would start on the second floor and move to the first floor, and it should take nine to 10 months to complete each phase.

The council voted 6-0 to table the station remodel discussion until Sept. 2.