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Council looks for tax levy cuts

By JILL SCHRAMM 5 min read

In attempt to whittle away at a large property tax hike in a proposed 2027 budget, Minot City Council members worked their way through a number of cuts and financial transfers in a marathon session Thursday, Sept. 3.

They trimmed spending across various departments, shifted sales tax money from economic development and made a $1.26 million reduction based on the assumption that 28 employees will participate in a new Voluntary Separation Incentive Program next year.

One cut the council rejected was eliminating its member pay for 2027, which would have saved $111,612.

"My intent with this item was to share in the pain," said council member Mike Blessem, who proposed the salary cut. "If we're asking for our team within the city organization to head down this path, we should be willing to do it with them."

Council member Stephan Podrygula said noted members get paid $14,280 a year. He estimated his hourly wage at $11.90 based on the time he spends on city business. That's an entry-level wage for the responsibility of looking out for the public's money and the community's welfare, he said.

"The only people who would be able to serve the city are those who are independently wealthy, or those who have taken vows of poverty and are part of a religious order. I don't see too many of those people around these days," Podrygula added.

Mayor Mark Jantzer said servants of the public should receive at least some modest compensation.

"It is a privilege to serve, but I think there's also the other side of it, where the laborer is worthy of his wage," he said.

Council member Scott Samuelson joined Blessum in voting to eliminate the salary line from the budget. The motion failed 2-5.

The proposed Voluntary Separation Incentive Program was approved 7-0 for employees funded through the city's general fund, or about 316 of the 480 total employees. Among them are police, fire, streets, engineering and finance employees. It assumes 14 positions would be eliminated and 14 refilled at a lower classification. It also assumes $490,000 in one-time separation payments, saving $1.26 million next year and about $1.75 million in subsequent years.

Jantzer highlighted the risk of including the savings in the budget and then not seeing 28 employees take the incentive.

"If that target isn't hit, we are on the hook for it somehow," he said.

"We've already used up a whole bunch of reserves. We don't have a lot of that to play with."

In other action, the council voted 4-3 to move $1.056 million in unspent sales tax dollars collected for economic development in 2026 into the 2027 budget for property tax relief. Jantzer, Blessum, Samuelson and Rob Fuller voted in support.

"I am concerned we are going against what voters approved," Podrygula said of relocating designated sales tax dollars.

"If it comes down to we have to take it for flood control, you know we're going to do it without asking the people," council member Rob Fuller said. "I don't think anybody in this community would say, 'You know what? I'm more worried about a year's worth of economic development than I am about my property taxes going up or being able to pay my bills."

Samuelson added the economic sales tax looks nothing like what he voted for.

"They changed it for what they wanted to use it for, and one of those things that they actually used it for was wayfinding signage," said Samuelson, who has opposed spending on signage. "I believe the best use of it is to give it back to the taxpayers."

The council also approved spending $1 million of the 2027 economic development sales tax allocation for property tax relief on the same 4-3 vote.

Blessum had submitted several other changes for council consideration but backed off, saying he was satisfied with what had passed already. The separation program and sales tax transfers cut in half the $6.7 million levy increase the city is facing, he said.

Although Blessum's other proposals to reduce staff in various areas didn't pass, the council adopted some of the cuts proposed by the Finance Department to bring certain expenses more in line with historical spending in various departments.

One of Blessum's defeated proposals was to reduce the Minot Police Department's authorized sworn staff from the current 85 - and the 82 in the city manager's proposed 2027 budget - to 75 sworn officers. The reduction failed 0-7.

The council added $200,000 in revenue to the budget from proposed pet licensing and pound fee reforms. Licensing fees would be $50 for an unaltered animal and $20 for a spayed or neutered animal.

Police Chief Michael Frye, said if the city gets 35% participation, the proposal could generate $233,000. Currently, the participation rate with pet licensing is much lower.

Capping contributions to $250,000 for community organizations, such as First District Health Unit, failed 3-4, with Blessum, Fuller and Samuelson in support.

The council also voted 4-3, with dissent from Blessum, Fuller and Samuelson, to approve Jantzer's recommendation to add $40,000 back into Minot Public Library's book budget.

"If we are going to have a public library, it should be a good one," Jantzer said. "The only way you can have a good library is if their collection is kept reasonably current. This wouldn't restore all of what is being reduced in the proposed budget, but it would give them back some money to be able to maintain the collection at a high quality level going forward."

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