Minot finance director outlines how proposed state property-tax caps could affect 2026 budget; $940M unconstrained CIP shown

Minot — Finance Director Dave gave the City Council a year-end fiscal report on March 17 and presented scenarios for how proposed state property-tax cap legislation could affect the city’s 2026 budget, while staff also outlined a roughly $940 million unconstrained capital improvement program (CIP) that would carry a local share of just under $300 million.

Dave told the council the range of possible effects from the two leading bills being discussed at the state legislature would leave the city with between about $949,000 and about $5.5 million of additional property-tax capacity for the 2026 budget, depending on which formula is enacted. “We would be looking at a potential cap to increase the property tax somewhere between 949,000 and change to about 5 and a half million dollars,” Dave said during his presentation.

Why it matters: The presentation showed the general fund’s reliance on property tax has declined as other revenues changed, while police, fire and dispatch spending consumes much of the levy the city currently collects. The finance director warned council members that changes at the state level and lower projections for crude oil prices could reduce the city’s fiscal flexibility going into next year’s budget process.

What was presented - Year-to-date sales-tax performance and a longer-term view back to 2016, showing volatility and a strong 2024 and early 2025 start. - Estimates relating proposed state measures to the city’s levy: using last year’s levy dollars on the projected 2026 taxable valuation (about $256 million) would reduce the mill rate from roughly 97.11 to about 94 mills; a 3% levy-dollar cap or a 3% cap calculated using a highest-base-year option would produce different levy-dollar outcomes and different mill rates. - A five-year unconstrained CIP list totaling about $940 million, with a roughly $300 million local share. The finance director cautioned that the list is an “ask” and needs prioritization and constraint based on funding sources.

Council process and next steps Dave and Lance (staff) told the council department heads will rank near-term 2026–27 projects internally, with the full draft CIP assembled the week of March 31. Council members were told a workshop focused on near-term projects is tentatively planned for mid-April, after which staff will refine a final plan for public presentation, likely in May.

Council reaction and context Alderman Blessum pressed staff on legislative details and how the base-year language in one bill could affect flexibility; staff said provisions allowing use of a prior base year are among the major unknowns and that the estimates are “food for thought” rather than firm commitments. Council members emphasized the tension between limited levy capacity and a long list of infrastructure needs, particularly flood control projects that have dedicated revenue. Dave noted the city recently received the Government Finance Officers Association (GFOA) Certificate of Achievement for Excellence in Financial Reporting for the 45th consecutive year.

Ending Staff requested council guidance on evaluation criteria to prioritize the unconstrained CIP and said they will return with ranked projects and supporting materials ahead of the mid‑April workshop. The council did not take formal action on the CIP or on any funding commitment at the March 17 meeting.