How Property Taxes Cover City Services

Sept. 25, 2024 – The Nov. 5 General Election ballot includes Initiated Constitutional Measure No. 4 to eliminate property taxes. There are a few important things to remember when considering how to vote:

Residents recently received an estimated tax statement which included a breakdown of property taxes for each public entity. The City’s portion of the total tax bill, based on the 2023 tax statement, is 23%. That means the City of Mandan receives $0.23 from every dollar collected. The remainder is split between Mandan Park District 10%, Mandan Public Schools 45%, Morton County and State of North Dakota 20%, and Lower Heart Water Resource District 2%.

In 2025, the City’s projected portion it will receive from property taxes is approximately $8.8 million.

The $8.8 million goes to the City’s General Fund, public transportation, Morton Mandan Public Library, Mandan Airport, the City’s portion of Special Assessments and general obligation bonds. It’s important to note, property taxes levied for bonded indebtedness (City’s share of special assessments and obligation bonds) will remain in effect until those debts are paid in full, if Measure 4 passes.

Approximately $7 million (of the $8.8 million) goes to the general fund for police, fire and street maintenance. The $7 million covers 59% of the budget for these three City services. The total budget for police, fire and street maintenance is $11.8 million. The $4.8 million deficit for police, fire, and street maintenance comes from other sources such as sales tax collections, motor fuels and state aid distribution. These other sources are all variable, so there’s no guarantee on the amount the City will receive or if it will grow at the same rate as Mandan’s population and needs grow.

“The City strives to keep the burden as low as possible and that is why the City’s budget utilizes other revenue sources in order to provide for these general fund services,” says City Administrator Jim Neubauer.

Water, sewer, garbage, recycling, and street light services are paid through user fees via the City’s utility bill.

Initiated Measure 4 will keep the levy at its current rate and as it is written, does not allow for an increase as the City grows and service needs expand.

The estimated fiscal impact of this measure is a $3.15 billion increase in biennial expenditures to the state beginning in the 2025-2027 biennium.

Additional information on the City’s 2025 budget is available at cityofmandan.com/budget.