Minot officials discuss state cash-management options to keep flood-protection projects on schedule

City and county staff told a Minot legislative tracking meeting on Feb. 4 that state and local discussions are underway about using new cash-management tools to keep the Mine flood-protection project on schedule amid inflation and contractor shortages.

The presenters said House members are examining whether the State Water Commission and the Department of Water Resources should be allowed to use a line of credit from the Bank of North Dakota instead of relying solely on bonding or cash. That option, they said, could let the state better manage allocated funds, reduce the need to hold large cash balances idle, and make longer-term contractor commitments more attractive.

Meeting participants said inflation — and especially structural workforce cost increases — is pushing up project costs. They listed examples of the analysis lawmakers have asked for, including the effect of 3%, 4% and 5% inflation scenarios on project budgets and how much cash commitments would be required in the next biennium to keep work moving. The presenters said some House members are exploring a combination of adjusting state commitment amounts in the biennium and pushing project timelines if necessary.

Officials also discussed workforce and contractor availability: longer-term state commitments could make projects more attractive to large contractors and reduce cost pressure caused by frequent crew mobilizations. ‘‘One of the issues is there’s a lot of federal dollars out there tying up big contractors,’’ a presenter said, noting that longer contracts may be needed to secure crews and limit price escalation.

The meeting record shows staff have met with committee members several times and are providing information to legislators leading the discussion. Participants said the state is committed to the Mine flood-protection project but is seeking ways to free up some cash in the Natural Resources Trust Fund to allow progress on other major statewide projects as well.

Officials asked the county and state committee contacts for additional financial detail and analysis and said they are responding to requests for information. No formal action or vote on any financing change was recorded at the meeting.

The discussion took place while the group reviewed the legislature’s schedule and several related bills that could affect state funding priorities. Presenters said the purpose of the ongoing conversations is to give lawmakers options that preserve project timelines while managing inflation-driven budget pressure.

Looking ahead, staff said they will continue to provide requested financial scenarios and work with the House members and the State Water Commission on whether a Bank of North Dakota line of credit or other tools should be adopted to improve state cash management for large infrastructure projects.