MINOT, N.D. (KMOT) – Minot city leaders approved a plan that would use cash reserve funds to lower tax levies in the coming years, amid a series of 2025 budget cuts and changes at Monday night’s first reading of the budget.
Council member Mike Blessum proposed a plan that would use roughly $3.6 million of the city’s general fund to alleviate tax levies next year, and another roughly $3.6 million spread out over the next three years after that.
He said the move would save just under $200 for a home valued at $300,000.
If you remember, Blessum campaigned jointly with fellow council members Rob Fuller and Scott Samuelson on cutting property taxes.
He referenced a $42 million cash reserve the city was left with at the end of last year, following results of an audit.
Blessum pointed to the fact that the city has spent less money than revenue that’s come in over the past six years.
“Governments are not in business to make profits. That’s not how that should work. Governments exist to provide services at a break even point. Folks, we’re not doing that. We are not breaking even as a city, and we haven’t for more than six years,” said Blessum.
Finance Director David Lakefield pointed out that there were issues to keep in mind, such as the local share of legacy infrastructure and flood protection, as well as remodels to the old city hall building.
City manager Harold Stewart said Blessum’s plan was feasible.
“Do you use the money you have on hand now to do that, or do you give it back in relief and then figure out another way to pay for that later on down the road? I think that’s really the crux of the conversation. But what Alderman Blessum has on the table today is doable,” said Stewart.
Fuller agreed with Blessum that the council owed it to taxpayers to return unused money.
“This money is the people’s money. It was taxed by them, or from us, or by us to them. They gave it in we haven’t spent it. 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,” said Fuller.
The council unanimously approved Blessum’s plan, specifically for next year, but not for the three years after that, yet.
The council members will hold a second reading on the budget Oct. 7.
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