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Committee eases reporting for smallest cities receiving Prairie Dog infrastructure funds
Summary
Senate Bill 2074 received a due‑pass recommendation after testimony from the state treasurer that raising the reporting threshold to cities of 1,000 or more would reduce administrative burden on volunteer‑run small towns that received small distributions from the municipal infrastructure ("Operation Prairie Dog") fund.
Senate Bill 2074, which would exempt cities with populations under 1,000 from a biennial reporting requirement tied to the Municipal Infrastructure Fund (commonly called the Operation Prairie Dog distribution), earned a due‑pass recommendation from the Senate Finance and Tax Committee following testimony from the state treasurer and municipal representatives.
Thomas Beetle, the state treasurer, told the committee the municipal infrastructure program disbursed about $115 million to roughly 315 cities during the 2021–23 biennium and that many of the smallest recipients received only a few hundred to a few thousand dollars. He said the current reporting requirement placed a substantial staff burden on the treasurer’s office and on small cities whose finance functions are often volunteer or part‑time.
Why it matters: The bill would raise the reporting threshold so municipalities with fewer than 1,000 residents would not need to file the specific Prairie Dog report, bringing those cities in line with townships that have no reporting requirement for the same distribution. Treasurer Beetle said the change would not eliminate existing budget or auditing obligations—cities would still post receipts and expenditures through normal local‑government budgeting and audit processes and the treasurer’s office would continue publishing distributions on its website.
Testimony: The North Dakota League of Cities and several municipal advocates supported the bill, describing turnover in small‑town auditor positions and the time required to locate the appropriate contact as major hurdles to compliance. League deputy director Stephanie Dasinger Ingebretsen said many small cities lack a staffed city office and the person who accepted funds initially may no longer be in that position when the report is due.
Opposing concerns and safeguards: Some committee members, including Senator Michelle Powers, emphasized the need for accountability for public funds regardless of size and noted that annual reports to the state auditor also capture municipal receipts and bank balances. Treasurer Beetle and League representatives said those existing audits and the State Auditor’s reporting obligations provide additional oversight.
Formal action: Senator Whelan moved a due‑pass recommendation; the motion was seconded and the committee voted to advance the bill. Committee members asked the treasurer and League to continue outreach and noted the statute preserves a two‑year penalty for municipalities that fail to timely file required reports (the bill would not change the penalty provision).
