FARGO — After some tight budgeting during the pandemic last year, Mayor Tim Mahoney is recommending a rebound in hiring and spending for 2022.
He presented the annual mayor's budget proposal to the other city commissioners and staff on Monday afternoon, July 26, at City Hall. The proposal calls for hiring 20 new employees and addressing other issues in the growing city to keep "Fargo as the crown jewel of the Upper Midwest."
"We need to not defer these needs if we want to remain a regional leader," he said.
"It's time to play a bit of catch-up as well as respond to the growth of our city," added the mayor, noting only two new employees were hired this year, and there wasn't a cost-of-living increase for the city's approximate 1,000 employees whose salaries and benefits make up about 77% of the city's general fund.
ADVERTISEMENT
He called his proposed budget "resilient, responsive and re-emergent," with the main goals being attracting and retaining a talented work force, funding the "bread and butter" of the city and its infrastructure, reinforcing a strong commitment to public safety, supporting community equity efforts, funding delayed requests and using federal COVID-19 relief funds efficiently and effectively.
Even though the general fund that pays for the majority of operations in the city will increase from $97 million to $104 million, a 6.7% increase, Mahoney said they are keeping the city's share of the property tax bill "stable" for businesses and homeowners. He proposed the mill rate, which is used in determining a property tax bill, stay the same as the past two budgets at 53 mills.
A business or homeowner's property tax bill is also determined by how many mills the school district and county government decide upon.
The city will collect more in property tax revenue this year because of rising property values and new growth in businesses and homes. However, Mahoney said, property taxes make up less than half of the city's revenue, as other sources, such as state and federal aid and charges for services, make up the rest.
Commissioner Tony Gehrig, who called the budget "bloated," said he thought the mill levy should drop to make up for the increase homeowners and businesses will likely see in their property valuations and, thus, their tax bills.
"We should reduce the mills to meet the massive increase in values," he said.
Gehrig said he was going to propose "many cuts" as the commissioners finish work on the budget in the coming weeks, including a public hearing, before it's finalized in late September.
ADVERTISEMENT
Commissioner John Strand said he would like to see a breakdown of how much of the city's property tax base will increase due to new growth or inflationary valuation increases on homes and businesses.
Mahoney said he expects it's about a 50/50 split, but City Finance Director Kent Costin said he could break down the numbers and provide specifics.
Mahoney emphasized that 77% of the general fund goes to pay for employees and their benefits. There are also separate city "enterprise funds," such as the water treatment plant, transit, garbage and sewage treatment plant that are financed by utility fees and other sources of aid.
The mayor said he was "incredibly proud" to come to work each day to see the services offered by the city employees whom he called "second to none." He proposed a 3% cost-of-living pay increase to go on top of pay-scale step increases many employees can earn.
Gehrig took aim at the proposed pay raises in the mayor's budget, including the cost-of-living increase that he said would cost $2 million.
"Talk to a plumber or a person that works 40 hours a week and ask if they had a pay raise. They didn't," he said.
Gehrig said some of the higher paid city staff don't need a raise. He suggested their raises should be used to give those on the lower end of the pay scale an increase to "attract more new and younger people."
Mahoney said many of the city's longtime employees, several of whom are planning retirement in coming months and years, are at the top of the pay scale.
ADVERTISEMENT
New hires are needed to keep up with the growing city and were put off due to the pandemic, he said. There were requests for 38 new employees, he added, but he proposed 20.
His plan calls for adding three new police officers, two crime analysts, a police body camera specialist, senior accountant, property appraiser, city planner, building inspector, three public works equipment operators, an assistant fire marshal, fire training captain, public health nurse and billing specialist, transit employee and library staff member. He also proposed making the city's director of diversity, equity and inclusion permanent.
The city also has a plan to spend half of the $22 million from the American Rescue Plan Act on a new southside fueling and public works station to improve response times for snow removal efforts, environmental cleanup at the riverside former Mid America Steel site, replacing city revenue lost due to the pandemic and a new financial software system.
In some of the other steps to address the issues of the growing city and needed improvements, Mahoney is proposing:
- Increasing the storm water residential and commercial use fee.
- Implementing the city's core neighborhood plan to strengthen the city's older neighborhoods.
- Expanding harm reduction services to save lives in the city.
- Increasing property inspection efforts to protect property values and neighborhoods in the city.
- Finalizing plans to improve and expand the 30-year-old Fargodome's entryways, hallways and other facilities to relieve congestion and waiting lines.
- Increasing the city's share of paying family health insurance form 72% to 80% to prevent 25% of the city's workforce from receiving less take-home pay
- Designing and constructing a far south fire station and purchasing a firetruck.
- Buying breathing apparatuses, equipment replacements and vehicles for new employees in the fire department.
- Purchasing a motor grader for a new snow removal route.
