Minot – A proposal to reallocate a portion of Minot’s sales tax revenue to fund public safety failed Monday night after a split vote in the City Council.
The council deadlocked 3–3 on a motion to shift a half-cent of the city’s first penny sales tax, which is currently dedicated to Property Tax Relief (10%), Economic Development (15%), and Infrastructure Improvements (25%), toward public safety expenses, including police, fire, dispatch, and animal control.
The idea was first presented at the July 21 City Council Meeting when Alderman Rob Fuller presented a motion to direct city staff to draft an ordinance which combines the first penny allocations and redirects them to public safety.
At Monday’s meeting, city staff presented three potential options to accomplish this. Alderman Mike Blessum moved to adopt Option 2, which would specifically dedicate the second half of the first penny sales tax to public safety.
“One of the reasons why I think number two is the optimal way to go about this is we had some recommendations from staff about how GASB looks at this,” said Blessum, referencing the Governmental Accounting Standards Board. “If you read the definitions in the GASB standards, this fits quite well with the intent of the motion to fund police, fire, dispatch, and even animal control, which in our case is part of the police department.”
The most contentious part of the proposed reallocation was the removal of funding for economic development. Both Alderwoman Lisa Olson and Alderman Paul Pitner expressed strong concerns.
Olson emphasized the historical precedent of voter approval for using sales tax revenue for economic development.
“Looking back at some of the history related to the sales tax pennies, they've been approved by the voters, and each time they have been approved to support economic development in some form or fashion,” Olson said. “ I feel very uncomfortable now, one meeting after this was introduced to make that dramatic of a change, we haven't given the public much of an opportunity to hear about this or to give us their feedback, and while I remain a staunch supporter of our public services, I feel that completely cutting out economic development is not the right decision at this point, because I just feel that it is so important to hear from those that are impacted by that, and so tonight, I could not support that.”
Olson made a motion to table the item for more public input, but the motion failed.
Pitner also opposed the change, stating it was an attempt to eliminate the city’s role in economic development entirely.
“This is an effort to get the city out of economic development,” Pitner said. “These programs drive traffic to Minot. When we get rid of economic development, it’s like buying a brand-new sports car but not being able to pay for the gas to drive it.”
Instead of reallocating existing funds, Pitner proposed giving voters the chance to approve a new half-cent sales tax dedicated to public safety, with a sunset clause after five years.
“Let’s draft a resolution for a half-cent sales tax that sunsets in five years,” Pitner said. “It will align somewhat post-NAWS, when we can reallocate some of those funds.”
The Northwest Area Water Supply (NAWS) project, long funded by a separate one-cent sales tax, is expected to be completed near the end of the decade.
Pitner added that his proposed tax would shift approximately $3.4 million in non-salary public safety expenses away from the property tax levy, providing room for infrastructure investments like a new police station or a relocation of Fire Station 1, without raising property taxes or cutting economic development funds.
Pitner’s plan never made it to a vote due to Blessum’s earlier motion on Option 2. When that motion failed on a 3–3 tie, no further action was taken on the proposal.
Before adjournment, Pitner directed city staff to draft language for a new half-cent Public Safety Sales Tax for future voter consideration. That proposal is expected to come before the council at its first meeting in October.
