The Mandan City Commission has approved the preliminary budget for 2026, following a presentation from the Finance Department that included an explanation of House Bill 1176. This legislation, passed during the 2025 legislative session, limits the increase in property tax levies on existing properties to 3% for taxing districts like Mandan. Exemptions are allowed, most notably for new growth. State and local organizations have provided training to help districts understand and implement these changes.
The proposed budget for 2026 totals $41 million, representing a $3 million increase over the previous year. The main factors behind this rise include higher employee salaries and benefits, increased operations and maintenance costs, debt obligations, seven new positions, and an extra payroll due to the way the calendar falls in 2026.
For residential property owners in Mandan, average valuations rose by 3.5% in 2025. This results in an estimated $8 increase per $300,000 of true and full value for a residential property over the year, not including special assessments.
Property tax revenue is expected to contribute $7.3 million to the budget. Other sources of funding include user fees, special assessments, sales and use tax revenue, federal and state contributions, and existing funds. The budget anticipates transferring $3.5 million—88%—of the city’s 1% sales and use tax revenue into the general fund.
To help cover service costs within the general fund, $202,000 will be used from the general fund balance.
Planned investments in machinery and equipment total $2.1 million for 2026. This includes three police vehicles and a new pumper replacement apparatus for the Fire Department as part of efforts to maintain city infrastructure.
A salary adjustment of 3% is included in the draft budget along with approval for seven new full-time positions. Funding for new fire and police department roles comes from a half-cent sales tax approved by voters in 2024; this tax was recently amended to allow spending on staffing costs related to newly created sworn police officer and career fire positions after January 1, 2025.
City officials are currently reviewing utility charges for next year; updates are expected before year-end.
Regarding compliance with House Bill 1176’s property tax cap, Mandan is planning a levy increase of only 2.3%, below the maximum allowed limit.
“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 make up about 23% of local property taxes collected from Mandan residents; other portions go toward schools, Morton County government services, and parks.
In accordance with state law, all property owners will receive notification letters about upcoming public hearings by August 31 from Morton County’s treasurer. The City Commission will hold its public hearing on September 16 at Mandan City Hall at 6 p.m., followed by final consideration of the preliminary budget on October 7 at 5:30 p.m., also at City Hall (205 Second Ave NW).
Budget documents can be accessed at cityofmandan.com/budget or by contacting Mandan’s Finance Department at (701) 667-3213.
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