The Senate Appropriations - Government Operations Division meeting held on March 11, 2025, focused on House Bill 1004, which aims to support smaller cities in North Dakota by addressing their accounting practices and financial management. The meeting began with Corey Peterson, representing the League of Cities, who expressed strong support for the bill.

Peterson, a former mayor of Horace, North Dakota, shared his experiences with the challenges faced by small towns regarding municipal accounting. He highlighted that during his tenure, the city auditor utilized small business accounting methods, which led to compliance issues and audit findings. After significant effort and collaboration with the state auditor's office, Horace successfully transitioned to compliant accounting practices, resulting in improved audit outcomes.

Peterson emphasized the importance of moving special funded full-time equivalents (FTEs) from the auditor's office to the general fund. This shift would alleviate financial burdens on smaller cities, allowing them to allocate resources more effectively. He noted that many smaller municipalities might be encountering similar difficulties as Horace did, and the League of Cities is committed to working with the state auditor's office to enhance the capacity of these cities.

The discussion concluded with Peterson advocating for a "do pass" recommendation on House Bill 1004, underscoring the need for sound accounting methods to promote transparency and efficiency in city governance. Following his presentation, the committee opened the floor for questions but received none. The meeting then adjourned for a brief recess before resuming discussions on the secretary of state's budget.

Overall, the meeting underscored the legislative body's commitment to supporting local governments in North Dakota, particularly in enhancing their financial management capabilities.