Parks budget reflects shift to sales tax
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A voter-approved sales tax is enabling the Minot Park Board to propose a significantly lower property tax levy in its 2027 budget.
The board approved the budget on first reading on Tuesday, Sept. 15, after a budget hearing drew no members of the public.
The proposed property tax levy of $8.1 million is down more than $3.8 million from the current year.
The current general fund levy of $8.6 million would drop to $4.95 million, a 42.4% decrease.
"That's what we said we would do," park board member Cliff Hovda said of the decline. "This is what we anticipated. It's slightly better."
The half percent sales tax measure approved by voters in June had projected a 40% reduction in the general fund property tax. The measure also lowered the general fund mill levy cap from 38 mills to 26 mills.
The parks budget includes $1.26 million in building levy and $1.88 million in debt levy, which are separate from the general fund levy.
The sales tax collection estimate for 2027 is $6.5 million, of which about $3.6 million will go to property tax reduction and $2.85 million to maintenance and capital improvement projects.
The 2027 budget estimates expenses at $19.1 million, which includes $4.22 million in capital improvements and maintenance projects.
Capital improvement and maintenance projects proposed in 2027 include $578,405 at Corbett Field for third base restroom/concessions and infield turf; $591,113 for general maintenance, including Green Valley, Leach Park and Woodland Trail improvements; $370,000 for Maysa Arena equipment; and nearly $1.33 million for softball field updates and restrooms/concessions.
Other equipment, maintenance and improvements are planned for the municipal auditorium, Hoeven Field, tennis facility, horticulture department, Souris Valley Golf Course, Roosevelt Park Zoo and soccer.
Excluding capital expenses, the overall operating expenses increased about $70,000. The budget includes operating revenue of $4.23 million, an increase of $258,403. Operating revenue includes fee, rentals, admissions, sponsorships and interest.
Finance Director Calyn Beckman explained the district will set up a fund for the sales tax dollars collected. Amounts budgeted for property tax relief will be transferred to the general fund each year, and amounts budgeted for maintenance and improvements will be withdrawn from that fund for capital projects.
Any funds that remain will be available for spending at the board's discretion or carried over to the next year, Beckman said.
The new half percent sales tax takes effect Oct. 1. Beckman said the last quarter of 2026 collection will enable the district's sales tax fund to begin 2027 with a balance.
The park board plans to meet Monday, Sept. 21, at 3:30 p.m. to act on final passage of the 2027 budget.