It’s Time to be Laser Focused on Growing Our Tax Base

September 2025
Dave Hengel,
Executive Director

Let’s talk about something that might not sound super exciting at first, but is actually pretty important for our community: growing our tax base. Now, before you roll your eyes and turn the page, hear me out. This topic is at the core of making our region thrive.

Why am I bringing this up now? Over the past few weeks I have heard budget presentations to our City Council, School Board and County Board.  Our public officials are facing difficult decisions on how to maintain public services in very trying financial times.  Difficult choices are having to be made – ones that affect our family and community. And from the looks of it, these are just the beginning.

To be clear, this in not the fault of our public leaders. They are faced with challenges outside of their control that affect each and every one of us – the most significant of which is unfunded mandates from our state and federal government.

Simply put, unfunded mandates are when the state or federal government have a “great” idea, and mandate that our local taxpayers both implement and pay for it. Unfunded mandates can range from additional permit requirements to additional school or social services. These unfunded mandates are costing our City, School District and County – and therefor us as property taxpayers – millions of dollars every year.

A second factor outside our local control is simply how we have developed in our region.  A vast majority of the region is not subject to property taxes. The result is the burden of funding our public services rests on less than half of our region – while other regions are able to spread the burden out to their entire areas.

While these our out of our control, what is in our control is our response.  I believe we need to tackle one of our biggest challenges head-on—growing our property tax base. This isn’t just about collecting more money; it’s about building a stronger, more vibrant community where everyone benefits and we distribute the costs of public services. And the best way to do that? Encouraging smart, private development.

Think about it. When we support new homes, businesses, and mixed-use projects, we’re not just adding buildings—we’re creating jobs, attracting new residents, and boosting opportunities for everyone. More development means more property value, which translates into more resources for schools, emergency services, parks, and the amenities that make life here so great. It’s a win-win.

Of course, this growth doesn’t happen on its own. We need to make it easier for folks who want to invest in Bemidji—by streamlining regulations, improving infrastructure, and making sure our local government is a true partner in progress. If we show that we’re open for business, the word will spread. We’ll start seeing not just new buildings, but renewed energy and optimism everywhere we look.

So what do we need to do?  I believe we have to lay the foundation for private development to flourish.  We need ensure the infrastructure for growth is in place. We need to take action on both housing and workforce development. Most of all, we need to create a business and development-friendly environment that attracts investment.  That is why taking a critical look at our permit requirements and ordinances matter. They serve as a welcome mat (or a warning sign) to developers.

Ultimately, while I believe these are all important steps, if we want to will move the needle quickly we need to have a region-wide, laser-like focus on growing our tax base.

This is where our public officials and community leaders need to lead the way.  Our leaders have to realize that every decision they make should consider the impact – first and foremost – on our ability to grow our tax base. If we want to truly address tax base development head on, all decisions – no matter how big or small – have to be made with the impact on our economic growth being front of mind.

Our organization at Greater Bemidji also has a clear responsibility to drive additional development and encourage tax base growth in our region. We have a clear action plan we follow that we believe positions our region for private investment.  If you have ideas that you believe would make a difference, I’d love to hear from you.

At the end of the day, growing our property tax base isn’t about balancing budgets—it’s about securing our future. It’s about making sure the kids in our schools have the resources they need, that our roads and parks stay top-notch, and that everyone—from lifelong residents to new arrivals—can thrive. It’s time we double down on encouraging private development, because the stronger our tax base, the brighter our future.