On Budgets, Inflation, and Opting Out Locally

The Minot City Council is attempting to either hold the line on or reduce property taxes here in the Magic City. That is an admirable and difficult goal. According to the Wall Street Journal, inflation is currently at 2.9 percent. There is a 3 percent cap on property tax increases. The city is competing with the private sector for employees in a market where the employable are in high demand. The cost of vehicles—e.g., cop cars, snow removal equipment, firetrucks, etc.—and their maintenance will probably continue to escalate. The price of steel and aluminum is rising. There are quite a few public buildings which will need to be maintained. Deferred maintenance is a common sin of state and local governments. Pay now or pay dearly later.

The city has just hired a new police chief. He seems like a man of substance and experience. He appears to have a shortage of officers on the beat. The beat is where cops are most effective. Minot is apparently down fifteen police officers, and around a half dozen will eventually retire or transfer. Is Minot’s police department going to be used as a stepping stone to higher-paying departments, or will it be able to maintain a stable force? Is crime not a problem?

If Minot does not continue to fund economic development, would that not be the effect of unilateral disarmament? Minot has no interstate highway. It is not the state capital. It does not have one of the two flagship universities. Fargo, Grand Forks, and Bismarck are stiff competition. They will continue to fund their economic development wings. Flood control is still an unresolved issue. Eventually the city landfill will need expansion.

At this time, we are blessed with being on the edge of the energy economy. Due to global economics, however, the price of oil is less than awesome. Since the energy industry is paying a lot of our state taxes and obviously impacts the Minot economy, Minot’s sales tax revenues could be affected. Because of export uncertainty, our primary industry—agriculture—could be getting squeezed, which also could impact Minot’s sales tax revenues. Fewer sales tax revenues can obviously affect real estate tax demands.

I applaud the members of Minot’s city council for taking on the important task of attempting to maintain a functional government. It is not a glamorous task.

On a final note, I hope the city council reconsiders its vote to withdraw from the North Dakota League of Cities. If the three percent cap on property taxes needs to be reconsidered, a debate within the tent has historically been more effective than whining outside the tent. Withdrawal from the League of Cities makes Minot seem small. Small towns need big people to grow. We are bigger than this.