At the March 28 Bismarck City Commission meeting, Mayor Mike Schmitz encouraged fellow commissioners to take a long-term view of the City’s funding needs as they work with their assigned portfolios and departmental directors in creating the 2024 budget. He outlined several foundational expectations as they move forward with the process.
First there will be no increase to the city’s real estate effective tax rate. Secondly, he is seeking a change in policy to decrease the City’s reserve fund from 60 percent to 30 percent, releasing approximately $15 million to be used for utility bill relief and to help fund new fire and police stations. Thirdly, there are to be no staff increases unless it is needed to protect the property and safety of citizens.
“I know many will be disappointed that I’m not recommending a large tax cut. The reality is that the budget will be very tight in 2024, potentially running a deficit because expenses are increasing due to inflation,” said Schmitz. “We need to fund 2024 priorities and prepare for some high dollar expenses that will be realized over the next 10 years. These include a new fire station, a new police station, and updates to our water treatment plant and wastewater treatment plant. It is my goal that we will be fiscally responsible and limit the need to borrow money.”
The Commission is currently reviewing utility rates. In addition to the proposal set forth by the consultants, Schmitz suggested that a portion of funds taken from the City’s reserve fund be used to provide relief in the water rates. For every million dollars invested from the reserve funds into water needs, a monthly utility bill could provide relief of 30 cents.
Schmitz reinforced the need for a long-range vision when planning the budget. “While providing a tax cut is always popular with voters, if that needs to be rescinded a year or two later, it means the Commission has failed to plan for the City’s needs,” stated Schmitz. “Strong financial management means we plan for today and tomorrow.”
Bismarck’s financials run on a calendar year, and the new budget goes into effect on January 1 of each year. The City’s preliminary budgets are required to be approved in August and later finalized in October, per state statute. For more information about the City of Bismarck’s finances, including past budgets and financial reports, visit https://bismarcknd.gov/25/Finance.