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Posted on: July 1, 2019

Hub city formula changes benefit Minot

Minot is projected to collect approximately $4 million more in hub city funding under a new formula approved by the North Dakota Legislature.

Shane Goettle, hired by the City of Minot as a special counsel, presented a roundup of the 2019 Legislature to the City Council on June 17.

Goettle said the new conservative estimate for Minot’s hub city funding is $12.56 million for the 2020-21 biennium, compared to $8.036 million that Minot received for the 2017-2019 biennium.

The new method, which was approved as part of House Bill 1066, also known as the Prairie Dog Bill, is far more permanent than it was before. The new production tax distribution rules take effect July 1.

A pool of $44 million per biennium will be split between the designated hub cities of Williston, Dickinson, Minot. The funding amount could rise depending on a new impact scoring method.

The impact scoring method approved by the Legislature includes:

-Hub city’s percentage of mining, quarrying, oil and gas employment.

-Average of mining, quarrying, oil and gas employment relative to total employment of all industries in each county for all the counties in the human service region in which the hub city is located.

-Percentage of establishments engaged in mining, quarrying, oil and gas relative to total establishments of all industries in the county in which the hub city is located.

-Percentage of oil production in the human services region in which the hub city is located.

-Percentage change in population in last five years.

-Percentage change in population in last five years for the county in which hub city is located.

Goettle said the Legislature based the new tax distributions on estimates of 1.4 million barrels per day at $48.50 per barrel for 2020, and 1.44 million barrels per day at $48 per barrel for 2021.

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