Minot council deadlocks on revised fund-balance policy after hours of debate

The Minot City Council failed to adopt a revised fund-balance policy at its June 2 meeting after divided votes on an amendment and the main motion.

The council debated a proposed policy that would set a target range for the general fund's unrestricted fund balance and instruct staff to incorporate that range into multi-year budgeting. Finance staff described the proposal as replacing the current practice (described in the meeting as a 1/12 ordinance minimum and a previously adopted practice of 3/12) with a minimum and maximum percentage range for the general fund and guidance for other funds.

The proposal drew extended discussion on how reserves should be sized, how the policy would apply across different funds, and the effect on future budgets. Dave, the city's finance director, said the draft was intended to give the city leeway to plan for large capital projects and to align with professional guidance. He gave the police department remodel as an example of a known large future expenditure and said that reserve levels would rise while money was…