City Commission Approves Preliminary 2025 Budget
Aug. 6, 2024 – The Mandan City Commission preliminarily approved a 2025 budget proposal during its Aug. 6 meeting. The proposed budget maintains the current city mill rate. However, expenses for all funds combined are $2.4 million higher than the 2024 budget. Key factors driving this increase include rising costs for basic city services; employee salaries and benefits; a 10% increase in health insurance premiums; and a new allocation of 40% of the half-cent sales tax (approved by voters in June) going to public transportation.
“The 2025 budget sets forth a responsible plan not only to deal with our needs in the next year but setting the table for the future,” says Mayor James Froelich. “Needs in the public safety and planning areas are critical to the continued success of our community that past leadership has provided. All this is done by utilizing existing resources and without raising the number of mills levied.”
Mandan’s average residential property valuation increase was 5% in 2024. This coupled with the mill rate, equates to a $43 increase per $300,000 of true and full value for a residential property for the year. This excludes any special assessments.
Residents will notice a $5.41 per month increase for utility charges, totaling about $65 for the year. The majority of this, $4.75, is a water and waste water base charge increase for the Collins Ave Water Reservoir and Water Treatment Plant Phase III Optimization projects. The remainder is contractual increases with Eco Sanitation for residential garbage services and Waste Management for recycling services.
The City’s proposed budget totals $38 million. The contribution from property tax revenue is $7.1 million with the remainder covered through user fees, special assessments, sales and use tax revenue, funds received from other sources such as federal and state contributions, and existing reserve funds.
The preliminary budget counts on a transfer to the general fund of $2.7 million of the 1% city sales and use tax revenue for property tax reduction and revenue stabilization. Without the sales and use tax contribution, the average increase for a $300,000 residential property would be about $270 more.
To offset a portion of the cost for services in the general fund, the City will use $457,000 from the general fund reserves.
In 2025, the City will invest $2.6 million in machinery, equipment and projects. This includes the Porsborg lift station maintenance project, Terra Vallee sanitary sewer lift station, and more.
The draft budget includes a 5% salary adjustment, and approval of 11 new full-time positions from the General Fund:
- Police Officers (4) – funded through a federal COPS grant covering up to 75% of costs for three years.
- Firefighter/EMTs (2) – the City continues working to fully staff fire station #2 and preparing for a future station #3 in north Mandan
- Assistant City Administrator & Assistant City Planner– positions to help increase the capacity of the Administration and Planning Departments as the City continues to grow.
- Computer & Information Systems Manager – City-wide information technology (IT) duties currently fall under the realm of a full-time Police Captain (in addition to his Police responsibilities). IT responsibilities encompass more than enough for a full-time position.
- Equipment Operator – after the Memorial Highway reconstruction project is complete, the City of Mandan will be responsible for maintenance of the 2.4-mile roadway which currently falls under the North Dakota Department of Transportation. The City is seeking to prepare for the added responsibilities with this position in 2025.
- Administrative Assistant – this position will assist the Administration and Business Development & Communications departments.
“As a result of prior and current budget operations along with the availability of unreserved cash balances, the City is able to fund and sustain the recommendations proposed for the 2025 budget,” says Finance Director Greg Welch.
City services only a portion of local property tax bill. City services currently account for about 23% of the property taxes levied for Mandan property owners. This means the City receives $0.23 for every $1 of property taxes collected. The School District, Morton County and Park District services account for the remainder.
Public hearings. The Morton County treasurer, in accordance with state law, will mail letters by Aug. 31 to all property owners, notifying them of proposed changes in property taxes and public hearing dates for all taxing entities. The letters will provide estimated property taxes based on preliminary budgets. It will also include notice of the City Commission’s public hearing on the budget scheduled for Sept. 17 at 6 p.m. prior to final consideration and approval. The hearing will take place at Mandan City Hall, 205 Second Ave NW.
For more information about the 2025 budget, contact the Finance Department at 701-667-3213. The preliminary budget documents are posted at cityofmandan.com/budget.