Minot council adopts 2026 budget first reading, shifts some sales-tax economic funds to property-tax relief and approves multiple actions

The Minot City Council approved the 2026 budget on first reading and agreed to several related measures after an extended public hearing and multiple amendments on Monday, Sept. 15.

With the council's action, the city advanced the budget ordinance to a second reading while also directing staff to prepare changes to the city's sales-tax ordinance that will let the council annually reallocate the portion now dedicated to economic development. Under the council's Sept. 15 direction, the Minot Area Chamber/EDC's contracted funding will remain funded from the sales tax; the remainder of the economic-development allocation will be moved to the general fund this year to offset property-tax pressure. The council also voted to return $2 million to taxpayers this year based on the city auditor's finding of an over-collection in a prior year.

Why it matters: The budget vote followed a lengthy public hearing at which business leaders, educators and dozens of residents urged the council to protect economic-development spending that they say helps the local job base and workforce training. Council members said they balanced that input with concerns about rising property taxes and emergency-service needs, producing a package of changes intended to preserve key economic-development functions while freeing funds this year to reduce property-tax pressure.

What the council decided and why - Budget first reading: After public testimony from a dozen civic and business leaders and more than two hours of staff and council discussion, the council approved the 2026 budget on first reading. Finance Director Dave Lakefield told the council that, if property valuations stay the same, typical owners would see about a 2 percent decrease in tax liability because the proposed mill rate is lower even though total levy dollars are slightly higher. Lakefield said the recommended budget still needed a few targeted adjustments and that the first-reading vote lets the council continue to amend the ordinance before final adoption.

- Sales tax/economic-development allocation: The council directed staff to prepare an ordinance that adds flexibility to the 15 percent economic-development portion of the city's 1-cent sales tax. That language will permit the council to allocate those funds among primary-sector development, flood-control and property-tax relief on an annual basis. For the 2026 budget year the council voted to keep the contracted Minot Area Chamber/EDC funding intact and to move the remaining economic-development portion into the general fund this year for property-tax relief. Supporters said the change preserves the chamber's work while giving the council tools to address the council's near-term priorities and tax relief; opponents said it risks starving long-term economic development.

- Return to taxpayers: The council voted to return an additional $2 million to property taxpayers in 2026. That action follows an auditor's reported material noncompliance about prior-year over-collections; council members said returning funds explicitly tied to the audit finding honored the auditors'recommendation and public expectation. The motion passed 5-2.

- Vehicle and equipment funding: Council members agreed to fund a prioritized list of vehicle and equipment replacements. For general-fund fleet replacements the council approved using reserves to buy selected items identified by staff and the fleet working group; enterprise-fund vehicle purchases were also approved as a separate list. Several council members asked staff to re-run and refine the fleet prioritization before future decisions.

- Recycling policy: The council voted to remove the city's mandate that all utility customers participate in curbside recycling. Instead, recycling will be offered as a voluntary service with an annual opt-out period (council set the first open enrollment period for April). Staff will maintain regular ad-hoc handling for container swaps and will collect opt-outs in scheduled windows so the program can be administered efficiently.

- Other actions: The council approved, among other items, the preliminary plat for Abel Acres (planning commission recommendation adopted), settlement of a legal claim with Parkview LLC, and the list of three finalists for the city-manager search to be interviewed further by council (Tom Joyce, David Keyes and David Lakefield). The council also approved acquisition of a refurbished transit bus, final details of selected consent items and several budget-related personnel amendments after public and staff discussion.

Quotes from the hearing and council - "If that valuation stayed consistent to 2026, you would see about a 2% decrease in taxes," Finance Director Dave Lakefield said as he summarized how the proposed levy and rate changes affect typical homeowners. - "We are not contracted by the city to provide services in something like the food service or the hospitality sectors," Ryan Ackerman, board chair of the Minot Area Chamber/EDC, told the council while urging continued sales-tax funding for the Chamber/EDC's primary-sector work.

What comes next The council passed the budget on first reading, so the ordinance returns for a second reading and final adoption after staff posts revised ordinance language (including the sales-tax flexibility language) and prepares the formal budget ordinance for final vote. Council members said they will continue to work with staff to refine the fleet list and to track the one-time transfers made from the economic-development allocation into the general fund for 2026.

Votes at a glance (formal actions recorded at the Sept. 15 meeting) - Preliminary plat, Abel Acres (public hearing): Approved unanimously (motion to close public hearing and approve sent by Planning Commission recommendation; standard roll call recorded as unanimous). - Consent items (group approval, item 6.13 pulled and discussed): Consent agenda approved; item 6.13 (small streetlight project, discussion of special-assessment policy change) approved unanimously. - Item 7.1, purchase of refurbished transit bus for transit system: Passed 6-1 (dissent: Alderman Blessum). - Item 7.2, local-preference bidding policy: Amendment to raise preference from 5% to 7% failed 3-4; the council discussed definitions and implementation and ultimately tabled the resolution for staff revisions (motion to table passed 6-1; dissent Alderman Olsen). - Item 7.4, 2026 budget (first reading): Passed on first reading 6-1 (dissent: Alderman Olsen). Multiple budget amendments were adopted during the discussion (see text above). - Sales-tax ordinance amendment direction (allow annual allocation among economic development, flood control and property-tax relief): Council directed staff to prepare ordinance language and moved, for 2026 only, to keep the Chamber/EDC allocation and transfer the remainder of the economic-development portion to the general fund for property-tax relief. Motion to adopt that approach passed 5-2 (dissent Alderman Olsen, Alderman Pittner). - Return of $2,000,000 to taxpayers (audit-related over-collections): Passed 5-2 (dissent Alderman Olsen, Alderman Pittner). - Item 7.5, city-manager finalists: Council approved advancing three finalists (Tom Joyce, David Keyes, David Lakefield) for interview; vote unanimous. - Item 7.6, settlement agreement with Parkview LLC: Approved unanimously. - Item 7.7, curbside recycling policy (voluntary/opt-out approach): Council removed the mandate and established an annual opt-out window (first enrollment in April); motion passed 5-2 (dissent Alderman Janser and Alderman Olsen). - Other budget amendments and personnel items discussed and voted across several motions; individual votes recorded in meeting minutes.

Key documents and next steps for residents The council asked staff to publish the revised draft budget ordinance, the proposed sales-tax ordinance language, and the refined fleet-equipment list before the next meeting so the public can review the exact changes proposed for final adoption. The council set a follow-up calendar entry to receive the revised sales-tax ordinance and final budget ordinance language before final vote.

Ending note: The meeting included an extended public hearing with more than two hours of in-person testimony from business and education leaders, community groups and many residents. Council members repeatedly said they intended to preserve core economic-development functions while addressing near-term property-tax concerns and public-safety needs. The council will return for a final vote on the budget after staff posts final ordinance language and any additional adjustments requested by the council.