The Moorhead City Council passed a preliminary proposed 2017 City of Moorhead budget Monday, September 12. The package features a much-needed increase in public safety, contains a budget increase of 0.7% over last year, and a proposed tax levy of $12.4 million -- a tax rate increase of less than 2.5%. Moorhead’s budget development process began in February and has been guided the City’s Advisory Budget Work Group, consisting of council members and City finance and administrative staff.
Key factors that drove the formation of this budget include:
- Population growth: Moorhead's rate of growth since 2010 ranks ninth among all Minnesota cities. Of the top ten growth cities, only Moorhead and Rochester are located outside of the Twin Cities metro area.
- City workforce retention: The proposed budget takes steps to recognize the importance of maintaining a competitive, vibrant public workforce in the Moorhead-Fargo metro area.
- Less state aid than anticipated: The proposed budget had to accommodate the impact of not receiving an anticipated Local Government Aid increase from the state of Minnesota of approximately $100,000 due to the nonpassage of a 2016 tax bill during the legislative session.
The 2017 budget accommodates staff additions to meet growing service demands, including three public safety positions (two police officers and one fire fighter), an engineering technician, and a part-time park and recreation instructor. It also includes a number of public infrastructure projects to facilitate the continued growth of the community.
The proposed budget maintains important municipal services and has a 2017 property tax impact to a median value home [$170,600 home value] of a modest $14.50 for the year.
The 2017 proposed budget will continue to be considered and potentially modified until final approval sometime in late November or during December as prescribed by state law. The proposed 2017 tax levy amount may be decreased in the coming weeks, but not increased. “This budget is responsible while taking care of our community’s needs,” said David Schmidt, interim city manager. “The tax levy presented last night is the ceiling and could go down up until final adoption late this year. The City is committed to reviewing the current and proposed 2017 budget for further expenditure reductions and alternative revenue sources."
