Local government officials across the state are working to come to grips with the three percent property tax increase caps the Legislature passed as part of a property tax relief and reform bill.
Mandan City Administrator Jim Neubauer said the Mandan city commission has been working since the first of the year on some long-range financial planning.
"In that vein, three percent caps are going to cause us some issues, as we continue to grow, and how we provide the services citizens expect, such as policed protection, fire protection, things like that," Neubauer said. "So, it's going to be a challenge, for sure."
Neubauer said Mandan has a local sales tax, of which part is already used to buy down property taxes, and there are some other options to raise some money.
"Then again, you're just playing a shell game," Neubauer said. "You're moving money from one to the other."
Neubauer said there will also likely be the challenge of explaining the three percent cap to the public.
"I do believe that folks think it's a three percent valuation cap, so the property value won't go up more than three percent," Neubauer said. "Property valuations will continue to be whatever the market dictates they would be."
The new law does give a local political subdivision the option to suspend the three percent cap, if voters in a general election agree.
