Minot council adopts 2026 budget, lowers levy and directs economic-development sales tax to property-tax relief

The Minot City Council adopted the 2026 budget on second reading Tuesday, approving a plan staff described as “just under $217,000,000” while directing that remaining economic-development sales-tax dollars be transferred to the general fund to reduce the city property tax levy.

Councilors passed the ordinance on a 6-1 vote after a lengthy public and council debate and a series of amendments and procedural motions over two evenings of discussion.

Why it matters: Finance Director Lakefield told the council the budget as presented would levy “just over $22,000,000” and, as drafted at first reading, would translate to a city property tax burden of roughly $968 annually for a home at the $249,000 median sale price cited in the assessor’s report. Councilors said the final package balances near-term property tax relief with one-time uses of reserves for capital needs and enterprise equipment purchases.

Major actions and amendments - Sales-tax ordinance (first-penny economic-development change, item 7.1): The council debated competing motions and approved the ordinance as presented, 4-3. (Several council members warned the language requires follow-up budget work because of how funds are allocated.) - Enterprise vehicle and equipment replacements: Council approved an amendment to fund enterprise-fund vehicle and equipment replacements in the amount of $1,171,000 (vote 6-1). Fleet manager Chuck Schmidt and utilities staff described the list as sanitation-, water/sewer- and cemetery-focused; each purchase will return to council for contract approval. - Staffing: Council approved restoring one heavy-equipment operator position funded from enterprise funds (motion carried 4-3); the position was described by utilities staff as needed to avoid recurring service gaps. - Pension deposit proposed amendment: A motion to convert $2,000,000 that had been identified for a taxpayer refund into the city’s pension trust fund failed 2-5. - Facade improvement program: Council earmarked $200,000 from the economic-development portion of the sales tax to continue the downtown facade program (vote 5-2); staff said existing fund balance plus the allocation would cover applicants currently working with architects. - Transfer of economic-development balance to general fund: The council directed finance staff to transfer remaining first-penny economic-development dollars (except for $665,900 for MACEDC and the $200,000 facade allocation, and to retain funds needed for agreed-upon-procedure expenses) to the general fund for property-tax relief (vote 5-2). - Additional property-tax reduction: Council voted to apply $1,634,276 in identified funds to reduce the mill levy (unanimous). - Final passage: After amendments and motions, the budget ordinance on second reading passed 6-1 (Alderman Pittner dissenting).

Council discussion and context Finance Director Lakefield repeatedly warned the council about revenue risks: year-to-date sales-tax collections were running behind prior-year levels and delinquent property-tax collections have risen toward 9 percent. Lakefield said bond-financing and the ongoing cast-iron water-main replacement program will require attention to debt-service reserves.

Councilors who supported the budget said the package prioritized projects such as the police facility, water infrastructure and continued flood-control work while returning excess sales-tax dollars to taxpayers. Councilors in opposition said the package relied on reserves and threatened long-term sustainability. “I will vote no on this budget,” Alderman Pitner said during the final discussion.

What comes next Staff will execute the transfers and bring the specific capital and enterprise purchases back to the council for contract approval. Council direction also created a clearer path for how the city will apply the first-penny economic-development sales tax going forward.

Ending note Councilors repeatedly warned voters and service customers about uncertainties tied to revenue performance and rising long-term maintenance and debt-service obligations; staff said the city will continue to present updates and potential midyear amendments if collections materially differ from projections.