Council presidents present recommended changes to 2026 budget; debate centers on sales tax, police remodel and staffing

Council President message and a joint presentation from council leadership on Aug. 18 set out recommended changes to the City Manager’s proposed 2026 budget and prompted extended council debate.

Council leaders proposed adopting the manager’s budget with specified adjustments and identified a set of recommended changes: reduce the street‑maintenance budget from $12 million to $11 million; reduce the portion of sales‑tax revenue dedicated to economic development from 15% to 10% and reallocate 5% to property‑tax relief; eliminate $500,000 for economic development projects; reduce the facade improvement program from $300,000 to $200,000 with program caps; retain specific public‑safety and administrative positions (one full‑time lieutenant at the police department, a full‑time advanced analytics administrator, retain PPE funding for the fire department and a full‑time executive secretary in the mayor/city manager’s office); increase unfunded patrol positions from 11 to 12; and create one heavy‑equipment operator funded by enterprise funds.

The presidents’ message also proposed setting aside money for a major remodel of the Minot Police Department. While a final cost estimate was not completed, council leadership proposed earmarking $5 million from reserves annually in 2026, 2027 and 2028 to help fund a projected project cost the message described as likely “in excess of $15,000,000.” Finance Director David Lakefield described the budget trajectory and said earmarking three years of reserve contributions reduces available uncommitted reserves.

Council members debated whether to hold a separate public hearing focused on reallocating sales tax for first‑responder funding, or to include that topic within the budget public hearing already scheduled for Sept. 15. Alderpersons split on timing and process: a motion to schedule a separate public hearing on Sept. 15 specifically for sales‑tax use failed in a 3–3 vote, with dissent recorded by Mayor Mark Janser, Alderman Olsen and Alderman Pitner. Council members emphasized the need for staff to prepare detailed analyses if the council considers an additional half‑cent sales tax or a reallocation of existing sales tax revenue.

Separately, Alderman Fuller moved that the police department solicit contractor bids to firm up renovation costs; Chief Fry reported an architect is preparing detailed drawings and fee estimates and said initial phasing would start with the second floor to allow ongoing operations, with design and construction phases estimated at roughly 9–10 months per phase. Finance staff noted state procurement law generally requires stamped drawings prior to advertisement for bids for projects over $250,000; members agreed to table the contractor‑solicitation motion to Sept. 2 to allow staff time to reconcile procurement and design paths.

Council members and finance staff also reiterated that the proposed combined changes and restorations still produced a levy level higher than the 3% cap discussed at the state legislative level, and members pressed staff for clearer fiscal impacts to present to the public ahead of the final budget decisions.