City Commission Approves Preliminary 2026 Budget
Aug. 5, 2025 – The Mandan City Commission approved the 2026 preliminary budget during its Aug. 5 meeting. Before getting into the budget details Tuesday evening, the City’s Finance Department leadership took a moment to explain House Bill 1176 which was passed during the 2025 legislative session and provided insight into how it will impact the maximum property tax levy for the taxing district.
Property Tax Cap. House Bill 1176 limits a taxing district, such as the City of Mandan, to a maximum increase to the district’s total property tax levy on existing property at 3%. The bill has several exemptions, with the most prevalent being an exemption for new growth. Training was recently held by representatives from the State of North Dakota, North Dakota Association of Counties and North Dakota League of Cities, to help each taxing district understand the bill and how to properly compute the maximum allowable amounts. It is important to remember that the maximum cap is on the taxing district’s totalproperty tax levy –not on each individual property.
2026 Preliminary Budget. The City’s proposed 2026 budget totals $41 million. Expenses for all funds combined are $3 million higher than the 2025 budget. Key factors driving this increase include employee salaries and benefits; operations and maintenance; debt; 7 new positions; and given the way the calendar falls there will be a 27th payroll in 2026 – there are typically 26 payrolls in a year.
Mandan’s average residential property valuation increase was 3.5% in 2025, equating to an $8 increase per $300,000 of true and full value for a residential property for the year. This excludes any special assessments.
The contribution from property tax revenue is $7.3 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 funds.
The preliminary budget counts on a transfer to the general fund of $3.5 million, or 88%, of the 1% city sales and use tax revenue.
To offset a portion of the cost for services in the general fund, the City will use $202,000 from
the general fund balance.
In 2026, the City will invest $2.1 million in machinery, equipment and projects. This includes three police vehicles, a new pumper replacement apparatus for the Fire Department, and other pieces of machinery and equipment to help the City maintain its equipment replacement fleet.
The draft budget includes a 3% salary adjustment, and approval of seven new full-time positions including:
- Firefighter/EMT (3)
- IT Specialist
- Real Property Appraiser
- Street Equipment Operator
- Domestic Violence Detective- the City is anticipating needing to fund the position should the federal grant money for it go away.
Fire and Police Department positions in the 2026 preliminary budget are coming from the 2024 voter approved half-cent sales tax. A portion of the half-cent sales tax is specifically designated for public safety equipment (police and fire), vehicles and City Hall accessibility improvements. It was recently amended to authorize the sales tax to include staffing costs related to new sworn police officer and career fire positions created on or after Jan. 1, 2025.
City staff and officials are currently analyzing utility charges for 2026 and beyond. The impact utility users will see in 2026 is unknown at this time, however, an update will be provided by the end of the year.
Is the City using the full 3%? As a reminder, House Bill 1176 limits the City of Mandan to a maximum increase to the district’s total property tax levy on existing property at 3% (not on each individual property). In looking at the preliminary budget, the City is using 2.3% of that 3% in 2026.
“We’ve worked hard since January in creating a long-term financial plan that covers the City’s anticipated needs over the next five years,” says Mayor Jim Froelich. “The preliminary budget reflects our commitment to responsible fiscal management while continuing to invest in the services and infrastructure that keep Mandan strong and growing. We’re working within the new state property tax cap, and I’m proud of the thoughtful approach our team has taken to balance rising costs with the needs of our community.”
City services account for only a portion of the local property tax bill. City services remain at 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 public hearing dates for all taxing entities. The City Commission’s public hearing on the budget is scheduled for Sept. 16 at 6 p.m. Then on Oct. 7 at 5:30 p.m., the preliminary budget will be taken to City Commission for final consideration and approval. Both meetings will take place at Mandan City Hall, 205 Second Ave NW.
For more information about the 2026 budget, contact the Finance Department at 701-667-3213. The preliminary budget documents are available at cityofmandan.com/budget.