Bismarck road project funding

Bismarck's two-year initiative to remove road special assessments was hamstrung when it ran into a relatively new state law.

In 2017, a bill was passed that stops cities from creating new funding mechanisms, which Bismarck officials are working to fix. A new bill would grant the city permission to vote on a new road utility tax to take the place of current special assessments.

Road maintenance is a necessity in North Dakota, and in Bismarck it's often paid for with special assessments, which can be problematic for home owners.

"They work and they develop their budgets, and have a mortgage based on the cost of the home, and within a year or two, or whenever it happens, we come through the neighborhood and do a street maintenance project, and then they're hit with special assessments that they haven't factored into their budget," said Keith Hunke, city administrator.

The city started to come up with a replacement plan two years ago and think a street utility tax is the solution, but they hit a road bump.

"The passage of Senate bill 2326 essentially prevented us from seeking new funding mechanisms, or seeking voter approval for a new funding mechanism," said Brian Ritter, BisMan Chamber of Commerce president.

The BisMan Chamber of Commerce has been working with the city and legislators on a bill that would allow Bismarck to put this new tax up for vote by Bismarck residents.

"If approved, that street utility tax would appear as a charge on your monthly water bill, so for Bismarck voters and Bismarck residents, that's that yellow or blue bill that you get every single month. That street utility tax would simply appear as another charge on that bill," said Ritter.

It was estimated that the tax would be about $20 per residence per month, and would take the place of street special assessments going forward.

The city estimates a budget in the ballpark of $19 million to cover road projects in place of special assessments.