Special Fargo City Commission Meeting - August 12, 2024

Agreeable with a call for a Special Meeting issued by Mayor Mahoney, the Board of City Commissioners of the City of Fargo, North Dakota, convened in a Special Meeting in the City Commission Chambers at City Hall at 10:00 o'clock a.m., Monday, August 12, 2024.
The Commissioners present or absent were as shown following:
Present: Kolpack, Piepkorn, Strand, Turnberg, Mahoney.
Mayor Mahoney presiding.

Reconsideration of the City Commission’s Action Taken on August 5, 2024 to Approve the 2025 Preliminary Budget:
Commissioner Turnberg moved that the Board reconsider its August 5, 2024 approval of the 2025 Preliminary Budget.

Second by Piepkorn. On call of the roll Commissioners Turnberg, Piepkorn, Strand and Mahoney voted aye.
Commissioner Kolpack voted nay.
The motion was declared carried.

Commissioner Turnberg said after the August 5th meeting, she met with Airport representatives and with members of the Appropriations Committee, who said the Airport needs the $1.6 million in funding from the City in order to finance its $200 million parking ramp and expansion project. She said she was told without the backing of the City, it does not look good when the Airport is asking for State and Federal dollars. She said the City needs to stand by the 2 mills for the Airport this year; however, going forward the Commission will need to take a closer look.
Mayor Mahoney said the year-over-year increase in the budget is for employee raises to boost retention, increased costs for MATBUS and general inflation across the board. He said the City is not hiring any new employees this year, he is prioritizing spending on retaining current staff and if the Commission reconsiders the mill levy, the budget will be locked in with only 55 mills for the City. The COLA will be at 3.5% at 55 mills, he said, and for the 3.5% to happen, $400,000.00 in expense reductions are still needed. He said the budget is as tight as it can be and over the next 40 days, the Commissioners can work with each department to find ways to cut. There is $3.5 million in Transit costs that the City has not had in the past, he said, as well as funding for the Police headquarters. If it were personnel only, he said, the budget would only increase 8 percent.
Commissioner Piepkorn said there are plenty of places to cut without taking away the COLA and the City can make up that money by eliminating the Diversity, Equity and Inclusion Department, cutting spending in the Communications Department, closing the Downtown Engagement Center and additional cuts to Transit and Health Departments. He said Commissioners should reduce spending even further to 52 or 53 mills and if that happened, the taxpayers would rejoice.
Mayor Mahoney said closing the Downtown Engagement Center would create an increased burden on the Police Department and other first responders.
Commissioner Kolpack said the City's priority in 2025 has to be funding staff and boosting retention. She said she does not support raising taxes to pay for those increases; however, she wants the Commission to look at ways to cut costs to get to a 4.5% COLA. She said she does not support 2 mills for the Airport due to the fact that she has not seen justification that the Airport needs it. She said she has looked at the Airport budget and has not been told where exactly that money is needed. Part of the separation agreement between the Airport and the City, she said, was every year the Airport has to come to the City Commission and justify the request for any mills. She said just this year the Airport will make $1.8 million net interest on its reserves, yet the Airport is asking for $1.6 million in mills. She cannot reconcile the 2 mills, she stated, priorities have to be staff and she will continue to look at all reductions and is confident the City will get there.
Commissioner Strand said the City needs to pull in its belts and each Commissioner will need to examine ways to cut spending across all departments in order to maintain a balanced budget and give staff raises. He said the community will not be happy; however, he would rather retain the City’s workforce. He said he would like to enhance the Police and Fire Departments and he will stand by the City’s commitment to the Airport for now. The Commissioners need to look at every way the City can decrease costs and increase revenues, he said, including asking if incentives are working and if there should be a moratorium on boards and commissions in order for staff to focus on the City’s core mission.
Commissioner Strand moved to separate the votes for the Airport mills and the City mills.

Second by Turnberg. On call of the roll Commissioners Strand, Turnberg, Kolpack and Mahoney voted aye.
Commissioner Piepkorn voted nay.
The motion was declared carried.

Commissioner Turnberg moved that the Municipal Airport Authority receive 2 mills.

Second by Piepkorn. On call of the roll Commissioners Turnberg, Piepkorn, Strand and Mahoney voted aye.
Commissioner Kolpack voted nay.
The motion was declared carried.

Commissioner Turnberg moved that the City mills be set at 55 and the total proposed mills to be levied for 2025 be 57 mills.

Second by Piepkorn. On call of the roll Commissioners Turnberg, Piepkorn and Kolpack voted aye.
Commissioners Strand and Mahoney voted nay.
The motion was declared carried.

The time at adjournment was 10:28 o’clock a.m.