City takes next step with park sales tax
Voters could see two tax proposals
Minot voters may get a chance to vote on one, and possibly two, sales tax measures.
The Minot Park Board brought its ordinance for a half percent sales tax to the Minot City Council Tuesday, advocating that the council place the ordinance on a special election ballot.
“We are looking at a half cent sales tax for the Minot Park District in order to not only provide property tax relief for citizens but also to build a turf facility and continued maintenance of our park district facilities,” said Elly DesLauriers, executive director at Minot Park District.
The council directed staff to prepare a resolution for a special election for consideration at the council’s regular meeting Monday. A special council meeting is planned for this Thursday, at which a half percent city sales tax for public safety is expected to be discussed, City Manager Harold Stewart said.
Potentially, voters could be asked to vote on the two sales tax measures, although the city has the option to combine the two taxes into one measure for a 1 percent sales tax. The council also has authority to pass a sales tax ordinance on two readings, but it has always placed those types of matters before voters in the past.
The cost of a special election is roughly estimated at $11,000, and the city and park district will need to determine which entity pays that expense or how the expense will be shared.
The park district cannot levy a sales tax except through the city, which is why it is asking the city to place its ordinance on the ballot.
DesLauriers explained the work that went into collecting public input to determine the top items on residents’ minds when it comes to parks.
A turf facility was their top priority, she said. Early estimates place the cost of a fieldhouse with turf at around $17 million.
“We really took a look at where we want to go with that turf facility, and kind of how we believe that we can get there is that half cent sales tax,” DesLauriers said. “It’s the most feasible and the most fiscally responsible way that we think we can get there.”
The park board is estimating it can initially collect $6 million annually from a half percent tax. That would lower the park district’s mill levy by 12-14 mills, or about $3.5 million, which is a 40% reduction, DesLauriers said. On a $250,000 home, it is about $170 a year.
The park district, which currently has a legal cap of 38 mills for its general fund, would voluntarily be capped at the lower amount in the proposed ordinance for five years. The district currently levies about 36 mills for general fund and 5 mills for a building fund.
After the five years, the park board plans to reevaluate and hopes to be able to lower the property tax more, DesLaurers said.
“It certainly has a risk involvement in it,” she responded regarding the potential for sales taxes to fall. “We know we’re taking a calculated risk, and we want to make sure that we’re moving in the right direction. We will know that after five years where it’s trending.”
“We don’t want to tax more than we need to,” Park Board President Perry Olson added. “Finding that happy spot – that’s kind of where we came down at. It definitely changes what we’re looking at doing, but we’re also trying to listen to what we’re hearing from people.
“I feel like we’ve listened to them, and now we’re going to, hopefully, listen to them at the ballot box and go the route that they want,” he said.