Finance Committee - August 26, 2026 Minutes

The Regular Meeting of the Finance Committee of the City of Fargo, North Dakota, was held in the Commission Chambers at City Hall at 12:00 p.m., Wednesday, August 26, 2026.

Commissioners present or absent were as follows:
Present: Boschee, Gullickson, Peterson, Strand, Turnberg.
Absent: None.

Mayor Boschee presiding.

Staff attending: Finance Director Susan Thompson, Assistant Finance Director Wyatt Papenfuss, Human Resources Director Jill Minette, City Administrator Michael Redlinger.

Order of the Agenda:
Commissioner Gullickson moved the Order of the Agenda be approved. Second by Peterson. There was unanimous approval.

Minutes:
Commissioner Peterson moved the minutes from the August 17, 2026 meeting be approved. Second by Gullickson. There was unanimous approval.

2027 Budget Discussion Items:
Budget Overview & Financial Position:

Preliminary Budget Summary:
The proposed budget includes $147,573,710.00 in total revenues, with expenses kept slightly below that level to preserve a 25% fund balance and leave a small revenue excess.

Key Revenue Assumptions:
Property taxes are set to the cap calculation transfers in rely on utility rate increases and public safety sales taxes. Two mills are currently allocated to the airport ($1.8 million total).

Personnel Expenses:
Features a 3% Cost of Living Adjustment (COLA), with every 1% COLA impacting the general fund by $775,000.00. Health insurance costs are projected at an 8.5% increase (each 1% change equates to $115,000.00).

Pending & Immediate Budget Adjustments:

Variable Expenses:
Health insurance costs could fluctuate between 6% (a $287,500.00 reduction) and 10% (an added $172,000.00 expense). Following rejected fuel bids due to high prices, fuel will be re-bid in early September.

Low-Hanging Fruit - Immediate Savings:

Legal Fees:
Shift Assistant Attorney Erik Johnson's primary focus to the Convention Center project, allowing those fees to be expensed directly to the project instead of general legal expenses.

Credit Card Fees:
Municipal Court software changes now bill processing fees directly to customers, reducing City expenses.

SWAT Transfer:
Delay City contributions toward new SWAT rental/storage space until a formal multi-entity agreement is established.

Pet Licensing:
Increase licensing fees to $20.00 to offset a new $7,500.00 website administrative expense.

Operational Options & Long-Term Considerations:

Short-Term Adjustments:
Potential savings through reduced City Hall cleaning schedules, evaluating animal impound contract handoffs with local shelters (currently $187,000.00/year to a local vet clinic) and reviewing lobbyist expenditures.

Long-Term Items:
Ongoing Cabinet discussions include vehicle fleet management, overall legal services, employee health benefits, internal/community health services, surplus land management and capital funding structures.

Key Discussion Topics:

Airport Funding & Parking Ramp Revenues:

Parking ramp revenue is projected at $10.5 million this year (up from $7.5 million historically), leaving an additional $3 million in gross revenue. Debt service for the ramp is just under $2 million.

A proposal was introduced to calculate the net profit generated by the new parking ramp and deduct that amount from the City's annual $1.8 million (two-mill) contribution to the airport.

While the airport holds the debt, the City serves as the backing entity on the bonds.

Utility Rates:

Operating costs and debt service from facility/infrastructure expansions require maintaining planned utility revenue levels.

Data shows the average Fargo residential user consumes 3,000 gallons per month (an average rate increase of $11.57), rather than the industry standard benchmark of 6,000 gallons ($14.77 increase). Nearly 50% of accounts use under 3,000 gallons.

Suggestions were made to keep rate increases under $10.00 for average or lower volume users by slightly raising top-tier usage rates, as well as evaluating revenues generated from selling reclaimed water (e.g., to the ethanol plant).

Major Expense Decisions:

Social Services:
Proposed funding remains flat from the 2026 budget across organizations such as the Downtown Community Partnership, Arts Partnership, Indigenous Association, Housing and Special Assessment Assistance.

Public Safety:
The budget currently funds 4 of the 8 requested police officer positions.

Market Adjustments:
Priority 1 personnel market adjustments across departments carry a projected $720,500.00 general fund impact and $53,000.00 for other funds.

Adjourn:

The meeting adjourned at 2:02 o’clock p.m.