Bismarck City Commission Meeting - August 26, 2025

The Bismarck Board of City Commissioners met on August 26, 2025, in the Tom Baker Room. The meeting included a presentation on House Bill 1176 (property tax reform), a petition from former mayor Marlon Hawkinson to rollback taxes and water rates, a public hearing on liquor license ordinance amendments, and discussions on ETA (Extraterritorial Area) issues and joint county meetings. Several votes were taken.

Consent Calendar

• Item D3 and D4 (liquor license transfers) were pulled at the applicants' request.
• Item F2 (public health grant application for $30,000 for vaccine education) was pulled by Commissioner Connolly. The motion to approve the consent agenda excluding pulled items passed 4-1, with Commissioner Connolly voting no on F2, stating he was uncomfortable with vaccine education. The rest of the consent agenda was approved.

Public Comments & Testimony

• David Stout (resident) questioned whether Bismarck is a real city. The mayor clarified public comment is limited to agenda items.
• Robert Field (ETA resident) expressed concern that proposed 2026 fee increases for building permits would disproportionately affect larger acreage lots in the ETA, not within city limits. He called for transparency.
• Travis Jensen (ETA resident) echoed Field's concerns, stating ETA residents are forced to follow city rules without representation. He criticized the fee increases as hidden in the consent agenda and said the city only wants the ETA when it profits.

Discussion Items

Presentation on House Bill 1176 (Property Tax Reform)

• Joe Morriset (ND Director of OMB) presented HB 1176, which increases the primary residence credit from $500 to $1,600, funded by legacy fund earnings. The three percent cap applies to the city's property tax levy on existing property, not individual taxpayer bills. Examples showed that while mill rates may decrease, individual tax bills vary based on property value changes. The credit significantly reduces bills for eligible homeowners (38-45% decrease in the example).
• Commissioner Zenker noted the public was misled into thinking the 3% cap applied individually. Commissioner Connolly asked about county-level impacts. Commissioner Risch highlighted that despite variations, the credit leads to overall tax reduction for primary residences. Commissioner Zenker requested data on how many properties see value increases over 3%.

Former Mayor Marlon Hawkinson's Petition to Rollback Taxes and Water Rates

• Marlon Hawkinson presented an initiated ordinance to cap property taxes and water bills at 2018 dollar amounts, with exceptions for new development. He argued the city must accept the petition under the Home Rule Charter and threatened to publish in the Bismarck Tribune and seek ACLU involvement if not acted upon.
• Commissioners expressed concerns: Connolly estimated the rollback would require cutting 35-40% of police, fire, and street department personnel (up to 74 police, 43 fire, 15-19 street workers). Zenker cited increased costs since 2018 (COVID, EPA rules, water plant upgrades). Risch noted the petition would devastate public safety.
• City Attorney Julie Meese clarified that an Attorney General opinion requires petitions to be gathered within one year, which this petition did not meet, and the AG opinion has the force of law until challenged in court. Commissioner Risch suggested amending the Home Rule Charter to include time limits.

Public Hearing on Ordinance 66323 – Liquor License Amendments

• Doug (staff) presented amendments to align with state code, clarify special event permits, and streamline renewals. A missing reference to domestic distilleries (NDCC 5-01-19) was added. A duplicate Class G license section on page four was removed.
• Rick Becker (Class D license holder) suggested clarifying that the host of a special event be separate from the liquor licensee to prevent abuse. He also raised concerns about potential separation of alcohol and mixer costs to circumvent food percentage requirements.
• David Withham (resident) asked for clarity on the definition of “host” and urged not to over-regulate venues that rent space to multiple license holders.
• Michelle Kaufman (business owner) stated she was the reason for the changes due to her pop-up bar. She argued the problem is the Class D license monopoly, not the event permit. She opposed overly restrictive host definitions and urged the city to reevaluate the entire licensing system.
• Commissioners Cleary and Connolly favored not defining “host” to avoid limiting small business creativity. The ordinance passed unanimously with the noted amendments.

Public Hearing on Annexation (Ordinance 66335)

• The applicant requested a continuance to the September 9 meeting. The commission voted unanimously to continue.

Public Hearing on Zoning Map Amendment (Ordinance 66337) – Elk Ridge Fourth

• Approved unanimously for a zoning change from A to R-10 residential and final plat.

Improvement Districts for Vermont Avenue Extension

• Bids opened: low bidder Northern Improvement at $764,179. Awarded unanimously.

Discussion on ETA and Joint County Meeting

• Staff (Ben) outlined plans for a September 2 joint committee meeting, focusing on classifying ETA areas for future growth. Commissioner Risch raised inequities: county residents use city services (parks, airport, library, street lights) without paying city property taxes. He wants to discuss fair share contributions. Commissioner Connolly emphasized better representation for ETA residents at planning and zoning. The next full joint commission meeting date will be coordinated via email.

Key Outcomes

• Consent agenda approved 4-1 (Connolly no on F2).
• Ordinance 66323 (liquor licenses) passed unanimously with amendments to include domestic distillery and remove duplicate G section.
• Public hearing on annexation (Ordinance 66335) continued to September 9, 2025.
• Ordinance 66337 (zoning map amendment and final plat) approved unanimously.
• Improvement district contracts awarded to Northern Improvement unanimously.
• Executive session approved unanimously under NDCC 44-04-19.19 for contract negotiation strategy.
• Next joint committee meeting: September 2, 2025, at 5:00 p.m. Full joint commission meeting date to be determined.