Reese Proposes Sales Tax Increase for Hillsboro

It was fitting on Tax Day that the Hillsboro City Commission discussed changes to its own taxation. A proposed 1% sales tax increase was just one of several topics of interest during Monday night’s regular meeting. 

While no formal action was taken as a result of the discussions, Commission President, Levi Reese, says the increase could be a means to generate funds for future projects.

Hillsboro currently has a 7.5% total sales tax, of which 2.5% is local. The last increase was half a percent in 2021. In the past year the city generated approximately $790,000 from sales tax. There are only seven communities in North Dakota with a higher local tax percentage than Hillsboro. If a 1% tax increased were implemented/passed by voters, it would be the highest local tax percentage in the state.

The commission did agree to an increase in hourly wage for the city’s lineman opening from $40/hour to $55/hour. Reese says that price might be worth it in the long run.

At this time the city has received no applications for the open lineman and Public Works Superintendent positions. In another related discussion, the commission decided not to raise hourly wages for seasonal public works laborers beyond what was previously agreed upon.

Also on the public works front, Commissioner Paul Geray updated the commission on improvements needs to city street lights. Geray mentioned that nine needed to be rewired and 38 needed to be repainted. The commission approved the funds to make those repairs/updates.

The commission also approved, by a 3-2 vote, a vacuum excavator purchase for $86,500. Geray, Reese, and Nicole Evans voted in favor of the purchase, while Jason Pohlkamp and Dave Sather voted against the purchase. This purchase would take the place of what was budgeted for a new snow plow and truck for the department. Geray and Evans felt that, as long as the department would rather have the excavator than the snow plow, then that was worth honoring. Sather felt that the snow plow was still vital to update, as despite the mild winter this past season, not every winter will be this mild.

Pohlkamp also updated the commission on multiple topics, including an increase in stray dogs in the city and county. Pohlkamp mentioned that the Traill County Sheriff’s Office receives 2-3 calls per day regarding stray dogs. Currently, there is no pound, kennel, or central facility outside the sheriff’s office to house the dogs long term. The county previously had contracts set up with a third party, but those contracts are no longer being honored. There was no formal action on that front.

In other comments in his updates, Reese mentioned that the Planning and Zoning Committee is still working on an ordinance for storage containers.