Minot residents to get property tax break after overpaying for years

It’s not every day that elected officials acknowledge overcharging taxpayers, much less approve returning surplus funds to residents in the form of a property tax break. But that’s exactly what the Minot City Council intends to do at its next meeting on October 7.

The unusual turn of events was set in motion after the discovery the city had accumulated millions of dollars more than allowable by law in cash reserves, thanks to higher than projected property tax receipts for several years.

As a result, the Minot Daily News says city councilor Mike Blessum proposed giving property owners a $3.6 million break on their tax bill next year.

Blessum noted the city had $42 million in reserves at the end of 2023. The annual audit found the city out of compliance with state law in having on hand about $7.2 million more than legally allowed, he said.

“We’ve got revenue over the last six years in a row that’s come in higher than expected,” he said. “We consistently for six years in a row had spent less than we expected.

“Governments exist to provide services at a break even point. Folks, we’re not doing that. We’re not breaking even as a city and we haven’t for more than six years,” Blessum said. “What this does over time is it adds up to a big pile of dollars sitting in the general fund, available for other uses.”

There’s never a shortage of projects and possibilities for spending, rather than returning, funds already in hand. Sure enough, a laundry list of spending options came up in the discussion of the city’s 2025 budget.

Finance Director David Lakefield said some of the excess reserves have been spent in 2024. He also cited projects that don’t have a funding source and could benefit from reserve funds. Those items include rehabilitation of the legacy City Hall used by law enforcement, potential flood control uses and unfunded pension liability.

“While I want to have our taxes as low as possible for our residents, I also know that we need to be the stewards for our community,” council member Lisa Olson said.

“This money is the people’s money,” council member Rob Fuller said. “Let’s give it back to them. There’s no point in sitting here determining if we need to spend it on something else. It’s their money.”

In an all too rare victory, Minot property taxpayers came out on top. City councilors voted unanimously to preliminarily approve the amended budget and $3.6 million property tax levy reduction with final approval expected next week.

[Minot resident Travis] Zablotney congratulated the council on its work.

“I’m going to take five seconds and congratulate this body in starting the journey of making Minot a better place – a better place for its citizens and taxpayers. I think you did wonderful work tonight,” he said.