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Committee raises reporting threshold for municipal 'Prairie Dog' grants for small cities; bill advances
Summary
Senate Bill 2074 would exempt cities with population under 1,000 from the Municipal Infrastructure Fund reporting requirement. The Senate Finance and Tax Committee gave the bill a 'do pass' recommendation after testimony from the state treasurer and the League of Cities about compliance burdens for very small municipalities.
Senate Bill 2074, which would raise the population threshold for municipal reporting on the Municipal Infrastructure Fund (commonly called Operation Prairie Dog) to cities with at least 1,000 residents, advanced from the Senate Finance and Tax Committee on Jan. 8, 2025.
North Dakota State Treasurer Thomas Beadle told the committee the historic Operation Prairie Dog distribution sent $115 million to 315 cities in the 2021–23 biennium. He described the administrative burden his office encountered tracking compliance for many very small cities, some of which received only a few hundred dollars. Beadle said 12 cities failed to timely file required reports and therefore would be barred from the next distribution under current statute.
Beadle and League of Cities Deputy Director Stephanie Dasinger Ingebretsen said many of the smallest cities rely on volunteer or part‑time officials and experience high turnover; that turnover, they said, frequently makes it difficult to locate the correct city contact two years after funds were distributed. Supporters told the committee that the proposed threshold — exempting cities under 1,000 population from the report requirement — would align cities with townships (which currently do not report) and reduce the treasurer’s staff time spent tracking down reports, while statutory auditing and publication requirements would still provide fiscal guardrails.
Opponents were not recorded in committee testimony. Senator Michelle Powers expressed concern about accountability and said she prefers reporting for all recipients, noting small entities still need to account for taxpayer funds. Treasurer Beadle and League witnesses said the State Auditor’s annual reporting and audit requirements still apply to cities and provide additional oversight.
Senator Whelan moved a 'do pass' recommendation; the motion was seconded and the committee recorded a majority 'aye' vote. The committee assigned a floor carrier for the bill. The bill, as drafted, would keep statutory penalties: a city failing to timely file a required report would be barred from the next distribution for two years.
