The Regular Meeting of the Board of City Commissioners of the City of Fargo, North Dakota, was held in the City Commission Chambers at City Hall at 5:00 o'clock p.m., Monday, September 30, 2024.
The Commissioners present or absent were as shown following:
Present: Piepkorn, Preston, Strand, Turnberg, Mahoney.
Absent: None.
Mayor Mahoney presiding.
The Mayor read a message with the following information: October is Fire Prevention Month; The Harm Reduction Division video series won an Award of Excellence in the Education/Training Category at the 2024 Savvy Awards; walk-in flu shot clinics will be October 18th and 25th at Fargo Cass Public Health; monthly Community Game Nights are at the Northport Library the first Monday of each month; a “Reptiles at the Library” event will be October 12th at the Main Library; and the 2024 Northern Focus Photography Exhibit is on display at the Main Library through October 31, 2024.
Order of Agenda Approved:
Commissioner Piepkorn moved the Order of the Agenda be approved adding an additional Public Hearing to Item No. “42” - Notice of Hearing for Nuisance Abatement – Snow Removal to the Regular Agenda.
Second by Turnberg. All the Commissioners voted aye and the motion was declared carried.
Minutes Approved:
Commissioner Kolpack moved that the Minutes of the Regular Meeting of the Board held on September 16, 2024 be approved as read.
Second by Strand. All the Commissioners voted aye and the motion was declared carried.
Consent Agenda Approved:
Commissioner Piepkorn moved the Consent Agenda be approved as follows:
1. 2nd reading, waive reading and final adoption of an Ordinance Rezoning a Certain Parcel of Land Lying in Harwood’s 4th Addition to the City of Fargo, Cass County, North Dakota.
2. 2nd reading, waive reading and final adoption of an Ordinance Rezoning Certain Parcels of Land Lying in Legacy I Eighth Addition to the City of Fargo, Cass County, North Dakota.
3. 2nd reading, waive reading and final adoption of an Ordinance Rezoning Certain Parcels of Land Lying in Legacy I Eighth Addition to the City of Fargo, Cass County, North Dakota.
4. Renewal of the Alcoholic Beverage and Live Entertainment Licenses until 9/30/25, contingent upon all essential requirements for renewal are met by 9/30/24.
5. Applications for Games of Chance:
a. 4 Luv of Dog Rescue for a raffle on 11/2/24.
b. Eagles Elementary PTA for bingo on 10/25/24 and 2/11/25.
c. Family Wellness for a raffle on 10/24/24.
d. Fargo South High School for a raffle on 10/22/24-2/25/25.
e. Kennedy Elementary PTA for a raffle on 10/25/24.
f. Sts. Anne and Joachim Catholic Church for a raffle on 11/10/24.
g. United Way of Cass-Clay for a raffle on 11/29/24.
h. Women’s Care Center (FirstChoice Clinic) for bingo on 10/15/24.
6. Consent to Construction with JBJ Properties, LLC for a parking lot located at 5508 and 5418 53rd Avenue South.
7. Conduit Lease Agreement with VAL-ED Joint Venture, LLP d/b/a 702 Communications for conduit in the 4th Street Duct Bank.
8. Variance Acknowledgement and Liability Waiver with Riverside Cemetery Association to construct an ossuary and columbarium structure at 2102 5th Street South.
9. Encroachment Agreement (Bus Pullout) with Oak Grove Lutheran School for a bus pullout at 2710 32nd Avenue South.
10. Agreements Regarding Deferral of Special Assessments with A & T Land Co. LLC for properties located at 6000 45th Street South, 6132 45th Street South, 6679 45th Street South and 6897 45th Street South.
11. Negative Final Balancing Change Order No. 1 in the amount of -$192,930.10 for Project No. PR-21-E1.
12. Memorandum of Understanding Regarding Construction and Maintenance with the Park District of the City of Fargo for the River Drive Shared Use Path (Improvement District No. SN-14-A1).
13. Memorandum of Understanding Regarding Construction and Maintenance with the Park District of the City of Fargo for the Drain 27 Shared Use Path (Improvement District No. SN-25-A0).
14. Change Order No. 3 in the amount of $4,614.50 and time extension to the final completion date to 2/14/25 for Improvement District No. BN-23-E1.
15. Reimbursement to St. Mary’s Cathedral in the amount of $12,587.17 for repair of the sprinkler system damaged during construction (Improvement District
No. BR-23-C1).
16. Create Improvement District No. BR-25-A (Paving and Utility Rehab/Reconstruction).
17. Contract and bond for Improvement District No. BR-23-G3.
18. Bid Award to Valley Green and All-Terrain for snow and ice removal services (RFP24314).
19. Items from the FAHR Staff Meeting:
a. Receive and file General Fund – Budget to Actual through 8/31/24.
b. Fire Department Budget adjustment in the amount of $150.00.
c. ND Department of Transportation Traffic Safety Contract in the amount of $49,000.00 for the Fargo Police Department (CFDA Nos. 20.600, 20.608 and 20.616).
d. Revised plans for the Parking Garage on NP Avenue.
20. Authorize the City Attorney’s office to sign a letter of support to the FAA for the Certificate of Waiver/Authorization for the Red River Valley Unmanned Aircraft Systems Unit.
21. Memorandum of Understanding Related to Joint Training Program for West Fargo and Fargo Fire Department Recruits with the City of West Fargo.
22. Master Service Agreement with AdShark (RFP24278).
23. Agreement for Services with Clay County Public Health.
24. Notice of Grant Award from the ND Department of Health and Human Services for PHEP City Readiness Initiative (CFDA #93.069).
25. Notice of Grant Award from the ND Department of Health and Human Services for HIV.HCV Counseling, Testing and Referral (CFDA #93.940).
26. Notice of Grant Award from the ND Department of Health and Human Services for Combatting Obesity (CFDA #93.991).
27. Notice of Grant Award from the ND Department of Health and Human Services for PHEP-EPR All Hazards (CFDA #93.069).
28. Contract Agreement for Services with New Life Center.
29. Contract Agreement for Services with New Roots Midwest.
30. Contract Agreement for Services with Soul Solutions.
31. Contract Agreement for Services with Southpointe Pharmacy.
32. Contract Agreement for Services with Kelly Buettner-Schmidt.
33. Letter of Support for the EPA 319 Grant Proposal.
34. Amendment No. 1 to Consulting Agreement with czb, LLC for Land Development Code and Incentive Policy Updates (RFP22159).
35. Exempt Purchase from Butler Machinery in the amount of $144,701.97 for the Solid Waste Landfill Gas Generator maintenance and top-end overhaul (EX24336).
36. Task Order No. 1 with HDR Engineering, Inc. in the amount of $179,130.00 for the reconditioning and piping improvements for Water Tower No. 6 Project.
37. Amendment No. 1 to Task Order No. 22 with AE2S in the amount of $96,850.00 for Project No. WA2152.
38. Bills in the amount of $14,155,780.13.
Second by Kolpack. On call of the roll Commissioners Piepkorn, Kolpack, Strand, Turnberg and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.
Purchase of FLOCK Safety Technology for the Fargo Police Department Approved:
Police Captain Bill Ahfeldt gave a summary of his September 23, 2024 Finance Committee presentation regarding the purchase of FLOCK Safety Technology. FLOCK is a company providing stationary license plate readers, cameras and computer platforms to gather intelligence and evidence, he stated. The company offered an option to participate in a 60-day pilot program which started June 3, 2024, allowing placement of 21 license plate readers (LPR), he said, and it was extended into September due to installation taking longer than expected He is requesting approval for $116,750.00 to be removed from the seized asset account to purchase the technology and equipment supplied and installed during the pilot program and allow for continued operation of that technology, he said. The two-year contract with FLOCK has been reviewed and approved by the City Attorney, he stated. The technology makes response to crime more effective, assists in investigation and can serve as a deterrent, he said. Camera footage is owned by the City and has a 30-day retention before being automatically hard deleted unless it is pulled for evidence, he said, and it is stored securely. A benefit is access to 591 shared cameras and license plate readers across 19 jurisdictions, he said, and since using the system there have been 42 documented successes in three months.
Ron Gilmore spoke in opposition to the technology, stating he is fully aware of the benefits; however, he feels it is an intrusion on 1st and 4th Amendment rights. It is an illegal search, he said, and puts many people under scrutiny and opens the possibility of mistakes being made.
Commissioner Piepkorn said this item should be delayed as there are financial challenges and eventually the funds will be needed from the City. There are privacy questions, he said, and he feels other neighboring agencies could fund it initially.
Commissioner Strand moved the purchase of the FLOCK Safety technology from the Flock Group, Inc. in the amount of $116,750.00 from the Police Department’s seized asset account be approved.
Second by Kolpack. On call of the roll Commissioners Strand, Kolpack, Turnberg and Mahoney voted aye.
Commissioner Piepkorn voted nay.
The motion was declared carried.
Parcels of Land in The Pines at the District Second Addition and The Pines at the District Addition Rezoned (4400 56th Avenue South and 5691 43rd Street South):
At a Hearing held on September 5, 2024 the Fargo Planning Commission recommended approval of a change in zoning from MR-3, Multi-Dwelling Residential and LC, Limited Commercial with a C-O, Conditional Overlay to MR-3 Multi-Dwelling Residential with a C-O, Conditional Overlay.
The City Auditor's Office published a Notice of Hearing stating this is the time and date set for said Hearing at which time all interested persons could appear and would be heard.
Current Planning Coordinator Donald Kress said the applicant, Bethany on 42nd,owns a property with two different zones and are proposing to change it entirely to one zone, MR-3 Multi-Dwelling Residential with a C-O, Conditional Overlay.
Commissioner Piepkorn offered the following Resolution and moved its adoption:
WHEREAS, All legal requirements in connection with the above-described request for rezoning have been complied with; and
WHEREAS, There have been no written or verbal protests to the request for rezoning and no one is present to protest thereto.
NOW, THEREFORE, BE IT RESOLVED, That the findings of staff and the Planning Commission be accepted and the rezoning be approved with the Conditional Overlay requirements listed in the Ordinance on the basis that it satisfactorily complies with the Comprehensive Plan, Standards of Section 20-0906.F (1-4) and all other applicable requirements of the LDC.
Second by Turnberg. On the vote being taken on the question of the adoption of the Resolution Commissioners Piepkorn, Turnberg, Kolpack, Strand and Mahoney voted aye.
No Commissioner being absent and none voting nay, the Resolution was adopted.
First Reading of an Ordinance Rezoning Certain Parcels of Land Lying in the Pines at the District Second Addition to the City of Fargo, Cass County, North Dakota:
Commissioner Piepkorn moved the requirement relating to receipt of the Ordinance by the Commission one week prior to first reading be waived and that the Ordinance Rezoning Certain Parcels of Land Lying in the Pines at the District Second Addition to the City of Fargo, Cass County, North Dakota be placed on first reading.
Second by Turnberg. On call of the roll Commissioners Piepkorn, Turnberg, Kolpack, Strand and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.
First Reading of an Ordinance Rezoning Certain Parcels of Land Lying in the Pines at the District Addition to the City of Fargo, Cass County, North Dakota:
Commissioner Piepkorn moved the requirement relating to receipt of the Ordinance by the Commission one week prior to first reading be waived and that the Ordinance Rezoning Certain Parcels of Land Lying in the Pines at the District Addition to the City of Fargo, Cass County, North Dakota be placed on first reading.
Second by Turnberg. On call of the roll Commissioners Piepkorn, Turnberg, Kolpack, Strand and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.
Renaissance Zone Project for TA Investments, LLC Approved:
A Hearing had been set for this day and hour to receive comments on a Renaissance Zone Project for TA Investments, LLC for the rehabilitation of a residential property at 315 Main Avenue (Project 366-F).
No written protest or objection to the Project has been received or filed in the City Auditor's Office.
The Board determined that no person is present to protest or offer objection to the Project.
Director of Planning and Development Nicole Crutchfield said the work includes renovating portions of the interior into five residential units, there are three existing, as well as some exterior façade improvements. The application indicates an investment of $900,000.00, she said. It was found upon review, she said, that there was a previous application at the site in 2001 (Project 9-F) by a different owner. It was approved and work began on the site; she stated; however, it appears the project was not completed as approved, not finalized and final approval was not requested or granted by the State. Though the project did not receive final approval, she said, staff found that the local property tax benefits were applied to the property between 2006-2010 totaling approximately $18,700.00. Due to the benefit received by the previous property owner was applied in error, the new owner should be eligible for a Renaissance Zone project and staff’s recommendation is to allow the application to move forward based on determination of eligibility for the tax benefit.
In response to a question from Commissioner Kolpack asking about the score being 49 out of 90 possible points, Ms. Crutchfield said each five years the Renaissance Zone Authority does a five-year plan update. Most recently it was amended to align with the Downtown Infocus Plan, she said; however, it may have been over-corrected. She said they are seeing more minor-in-scope applications and the scoring system is not averaging out to original numbers. The Renaissance Zone Authority plan is scheduled for an update at year end, she said, and in three years, once the LDC is done, it will be examined more holistically.
Commissioner Kolpack moved that the property at 315 Main Avenue be deemed eligible for a Renaissance Zone project and the application filed by TA Investments, LLC for a project located at 315 Main Avenue be approved and the income tax and property tax exemptions be granted as recommended by the Renaissance Zone Authority.
Second by Turnberg. On call of the roll Commissioners Kolpack, Turnberg, Piepkorn, Strand and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.
Action on Special Assessments for Business Improvement District (BID) Fees, Unpaid Utility Bills, Maintenance of Skyway System and Nuisance Abatement – Snow Removal Approved:
A Hearing had been set for this day and hour on the special assessments for Business Improvement District (BID) fees, unpaid utility bills, maintenance of skyway system and nuisance abatement – snow removal.
No appeals have been filed in writing against any item appearing on such special assessment list and no person is present at this Hearing to appeal or offer any objection thereto.
City Auditor Steve Sprague said the annual renewal of the BID fees helps keep the Downtown clean, safe and maintained. In 2022, he said, the assessment for BID was under $700,00.00, in 2023 it was approximately $730,000.00 and this year it is proposed to be about $760,000.00. He said the assessment is based on square footage and value, with the only change being valuation of the buildings. The skyway assessment at $160,000.00 is about $40,000.00 higher than last year due to a
five-year plan implementation for deferred maintenance, he said, in addition to the heating, cooling and cleaning expenses in the skyway. The snow removal abatement is for only two properties, he said, reflecting the mild winter last year. As of today, he said, there are 193 properties on the list of unpaid utility bills.
Commissioner Kolpack moved that the special assessment lists for Business Improvement District (BID) fees, unpaid utility bills, maintenance of skyway system and nuisance abatement – snow removal be and the same is hereby approved and confirmed and ordered filed in the office of the City Auditor and that the City Auditor's Office be instructed to proceed to collect the assessments in the manner provided by law.
Second by Piepkorn On call of the roll Commissioners Kolpack, Piepkorn, Turnberg, Strand and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.
Action on Special Assessments List for 2024 New and Reconstruction of City Ordered Sidewalks (Project No. SR-23-A):
A Hearing had been set for this day and hour on the special assessments list for 2024 new and reconstruction of City ordered sidewalks in the City of Fargo, North Dakota, on which special assessments list a Hearing had been held by the Special Assessment Commission, after which it had been confirmed and filed with the Board of City Commissioners.
No appeals have been filed in writing against any item appearing on such special assessments list and no person is present at this Hearing to appeal or offer any objection thereto.
Commissioner Piepkorn moved the Special Assessment List for 2024 New and Reconstruction of City Ordered Sidewalks (Project No. SR-23A) in the City of Fargo, North Dakota be and same is hereby approved and confirmed and ordered filed in the office of the City Auditor, that the City Auditors Office be instructed to proceed to collect the assessments in the manner provided by law and that the interest rate be set at a rate not exceeding .75 percent per annum over the net rate on bonds financing said projects.
Second by Turnberg. On call of the roll Commissioners Piepkorn, Turnberg, Kolpack, Strand and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.
Action on Special Assessments List for 2024 New and Reconstruction of City Ordered Sidewalks Approved (Project No. SR-23-B):
A Hearing had been set for this day and hour on the special assessments list for 2024 new and reconstruction of City ordered sidewalks in the City of Fargo, North Dakota, on which special assessments list a Hearing had been held by the Special Assessment Commission, after which it had been confirmed and filed with the Board of City Commissioners.
No appeals have been filed in writing against any item appearing on such special assessments lists and no person is present at this Hearing to appeal or offer any objection thereto.
Commissioner Piepkorn moved the Special Assessment List for 2024 New and Reconstruction of City Ordered Sidewalks (Project No. SR-23-B) in the City of Fargo, North Dakota be and same is hereby approved and confirmed and ordered filed in the office of the City Auditor, that the City Auditors Office be instructed to proceed to collect the assessments in the manner provided by law and that the interest rate be set at a rate not exceeding .75 percent per annum over the net rate on bonds financing said projects.
Second by Turnberg. On call of the roll Commissioners Piepkorn, Turnberg, Kolpack, Strand and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.
Special Assessment List for Various Improvement Districts: Hearing Continued to October 14, 2024:
A Hearing had been set for this day and hour on the special assessment list for the construction of the following Improvement Districts in the City of Fargo, North Dakota, all having been approved by the Special Assessment Commission, setting the interest rate at .75 percent per annum over the net rate on bonds financing said projects:
a. New Paving and Utility Construction Improvement District No. BN-22-C.
b. New Utility and Paving Construction Improvement District No. BN-22-F.
c. New Paving and Utility Construction Improvement District No. BN-22-G.
d. New Paving and Utility Construction Improvement District No. BN-22-L.
e. New Paving and Utility Construction Improvement District No. BN-23-C.
f. Paving and Utility Rehab/Reconstruction Improvement District No. BR-22-A.
g. Paving and Utility Rehab/Reconstruction Improvement District No. BR-22-B.
h. Paving and Utility Rehab/Reconstruction Improvement District No. BR-22-C.
i. Paving and Utility Rehab/Reconstruction Improvement District No. BR-23-B.
j. Paving and Utility Rehab/Reconstruction Improvement District No. BR-23-C.
k. Paving and Utility Rehab/Reconstruction Improvement District No. BR-23-E.
l. Paving and Utility Rehab/Reconstruction Improvement District No. BR-23-F.
m. Paving and Utility Rehab/Reconstruction Improvement District No. BR-23-H.
n. Paving and Utility Rehab/Reconstruction Improvement District No. BR-23-J.
o. New Paving Construction Improvement District No. PN-22-M.
p. Asphalt Wear Course Improvement District No. PN-23-A.
q. New Paving Construction Improvement District No. PN-23-E.
r. Seal Coat Improvement District No. PR-23-C.
s. Asphalt Mill and Overlay Improvement District No. PR-23-E.
t. Asphalt Mill and Overlay Improvement District No. PR-23-G.
u. New Utility Construction Improvement District No. UN-23-A.
v. Utility Rehab/Reconstruction Improvement District No. UR-23-A.
City Engineer Tom Knakmuhs said the North Dakota Supreme Court issued a ruling on September 17, 2024 that impacts the City’s process. He said the Public Hearing will be held as scheduled for those who would like to speak about their assessments; however, the information will go back to the Special Assessment Commission on October 3, 2024 at 3:30 o'clock p.m. to affirm whether the projects meet the new requirements. He said he would like the Public Hearing be continued until 10/14/24 and that public be allowed to speak at this meeting.
Tim Nasheim spoke on Asphalt Wear Course Improvement District
No. PN-23-A. He said this project is classified as an improvement and special assessed at 100 percent. There were street repairs, curb and gutter repair, and sidewalk repair, which are special assessed at a different rate than the asphalt wear course, he said, and he would like them separated and assessed at the appropriate rates.
Mr. Knakmuhs said there are two types of projects, slightly different in scope and different in assessment. A mill and overlay project is in an established neighborhood, he said; however, this project is in a new development. Part of the process in a new development is that the top lift of asphalt is not applied in the initial construction due to the possibility of damage from the buildout of new homes in the neighborhood, he said, plus the soil is allowed to settle. It comes back as part of a wear course project to put the final lift on, he said, and by policy, this is an initial installation, part of the initial project and 100 percent special assessed. He will follow up with Mr. Nasheim and provide the purpose and need for the project, he said, and he will provide a summary to the Board in two weeks.
Commissioner Kolpack moved that the Special Assessment list be accepted as presented pending confirmation that the Special Benefit exceeds the amount of the Special Assessment presented and action be continued until October 14, 2024 at 5:15 p.m. for further consideration and recommendation of the Special Assessment Commission’s determination of benefit and for final approval of the assessment list on October 14, 2024.
Second by Turnberg On call of the roll Commissioners Kolpack, Turnberg, Piepkorn, Strand and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.
2025 Preliminary Budget Approved:
Mayor Mahoney outlined the timeline and basics of the preliminary budget. He said over 70% of the general fund expenses are salary and benefit costs. This year Transit has a $3.5 million expense that must be covered, he stated, as well as bonding for the Police station. He said 33% of revenue is property taxes and the rest are intergovernmental charges, franchise fees, licenses and permits, fines, forfeits and transfers. Revenue from property taxes increased 4.93%, franchise fees are up 6.85% and State revenues are up, he said, as are local grant revenues. He said there is enough revenue to cover the budget change of 10.44% and he does understand residents are frustrated with property taxes. The City portion is only 20% of a property tax bill, he said, and schools, parks, county and airport make up the other 80%. He said it is the City that plows the streets, takes care of the water and the wastewater. The budget is balanced, he said, with no new mill increase for 2025. Bringing targeted cut suggestions at the last hour does not allow the public to weigh in, he said. The goals established are delivering excellence, investing in the team, and strategically balancing revenues and expenses, he said, and he is now adding a goal of civility. He said employees are concerned for their financial security. Fargo has one of the strongest economies in the State and region, he said, and he would like his fellow Commissioners to recommit to being leaders together and to be strategic in decision-making.
Commissioner Piepkorn said the budget was made before the Moody’s downgrade, which can affect what the City pays in interest rates. A first priority is getting the financial house in order, which is not done by raising the budget 11%, he said, and he would like to see it at 3% and each department should be asked what they can do. He will not be voting in favor of this budget, he stated, and he would like to see cuts to the Downtown Engagement Center, the Communications Department and some in each department.
Mayor Mahoney said the Moody’s change tells the City it needs to work on some things and it is known the reserve fund needs to be increased and there are plans to correct that. It is not a downgrade, he said, the City is at Aa2 and has been for many years. He said it was at Aa1 due to Moody’s changing categorizations at a time and then moved back. He said Aa2 is one of the top levels as far as bond rating, which can help decrease interest rates on specials. He said if the budget were only at 3% increase there would be no steps for employees, no COLA, Transit cuts and employees laid off.
Commissioner Strand said priorities are getting the employees raises and public safety emphasis. An entire department was eliminated and 4.2 Public Health employees were removed at the last meeting, he said, and the path to budget trimming must continue to get to the desired COLA. He said he distributed a proposed amendment in the packet that includes trimming 3 or more FTEs, sunset several committees, elimination of the Office of Strategic Planning and Research, adding Police to the Downtown Engagement Center team and reductions in funding for a list of non-core services.
Commissioner Strand moved to amend the 2025 Preliminary Budget to include the consolidated amendments as presented.
The motion died for lack of a second.
In response to a question from Commissioner Turnberg asking why the budget cannot get to the 3% rate of inflation, Mayor Mahoney said the $1.3 million Transit deficit is not part of the inflationary rate and the police station that was leased is being purchased, which is about $5 million of the $12 million being discussed. The COLA last year was 2%, he said, and Fargo is down 3.6% according to a market survey, so the reality with a 4.5% COLA is .9%. He said following what the County does could be discussed, which looks at the Consumer Price Index (CPI). The percent the budget goes up does not truly follow inflation, he said, it follows different expenses. He said if one looks at Fargo compared to cities across the nation, Fargo is one of the lowest indexes in what is offered in services to the community. He said rather than percentages, he would compare it to the cost of living everyone sees.
Commissioner Kolpack said being a Commissioner is a nonpartisan position and she works for every citizen to come to the best solutions. The balanced budget has no mill increases, the City is contractually obligated to continue agreements and debt, she said, and there are real increases due to inflation for things such as chemicals. Data shows Fargo is no longer competitive in salaries, she said, and she stands behind a 4.5% COLA. She said the governance policy lays out the budgeting process and it is not the job of the Board to ask for specific operational or staffing cuts in departments they do not manage. The oversite of the Board is the City Administrator, she said, whose oversite is the department heads, and the oversite of their teams. Each department brought requests and personnel positions that were not funded and each made cuts, she said, and in the end, the recommendations balanced the budget. She thanked employees and said she supports a 4.5% COLA and supports the balanced budget. There is an expectation that work will continue in every department to look for efficiencies, she said.
Whitney Johnson, Chair of the Native American Commission, said she is pleased the Indigenous Association funding was not eliminated.
Summer Sturlugson advocated for funding of the Downtown Engagement Center and affiliated resources in the FM area.
Ron Gilmore said he supports the COLA; however, the Board has to cut the fat.
Melanie Heitkamp said YouthWork’s programs are important to Fargo and the funding from the City is needed.
Kimberly Kemppanion said loss of funding for the Downtown Engagement Center would have a ripple effect.
Commissioner Turnberg said it is concerning that Fargo foots the bill for homelessness when it involves people from across the State. If a normal increase in the City budget is 5% to 10%, could there be a compromise, she said, to perhaps get to 5%, she is convinced there is still fat.
City Administrator Michael Redlinger said if a targeted level of additional expenditure reduction were to be identified, everything from COLA and vacant positions would be considered. There are many fixed cost increases in technology and health insurance, service agreements and things that cannot be negotiated, he said, so it would be the personnel budget that would be evaluated. Over the next year additional reductions in expenditures will be looked at thoughtfully and methodically, he said. There is a new system being implemented that will give a better forecast and better look at expenditures, he said, and the new tools will help inform and manage the bottom line.
In response to a question from Commissioner Piepkorn asking about the potential of the vacant former Health Department building and the building housing the Downtown Engagement Center, should it be moved, be put up for sale, Mr. Redlinger said there are options for positionings of revenues for sale in future years and those would be one-time revenues and could be put in the general fund or reserve accounts.
In response to a question from Commissioner Strand asking where the additional amount is coming from because the Reductions in Force (RIF) did not amount to the full $1.2 million, Finance Director Susan Thompson said it is a combination of things, both additional revenues and decreases in expenses. She said a grant came in after the budget cycle and there were adjustments to the Health Department fee structure and some other expenses.
In response to a question from Commissioner Turnberg asking what would it happen if open positions are not filled, Mr. Redlinger said every given week there is a variety of vacancies with turnover or retirements. He said stale vacant positions are looked at regularly.
Commissioner Strand said he proposed his amendment to support the 4.5% COLA for retention and to increase public safety.
Commissioner Strand moved three additional RIFs be added and to remove the Office of Strategic Planning and Research.
The motion died for lack of a second.
In response to a question from Commissioner Strand asking if the 4.5% COLA can be supported, Mr. Redlinger said the budget is balanced with the proposed 4.5% COLA. He said staff will work diligently and almost immediately on additional reductions and opportunities. There are fixed costs in the 2025 budget, as well as service agreements and necessary contractual agreements, he said; however, with the RIF’, new revenues and expenditure reductions, the results are achieving a balanced budget for now. Knowing cost pressures will continue, he said, workforce and its future will continue to be a topic.
Mayor Mahoney said a balanced budget is preferred over dipping into reserves, which also has implications to bond ratings. Also, he said, critical to next year is to build the reserve fund.
In response to a question from Commissioner Strand asking about City wages being behind market, Assistant Human Resources Director Beth Wiegman said a compensation study was completed earlier this year through MRA Consulting and on average, the City is 3.5% behind regional cities as of the beginning of 2024. This does not consider inflation or COLAs that may be awarded in those cities for 2025, she said.
Commissioner Strand said hard conversations need to happen and he is shifting to honor the people and workforce and law enforcement will be a high priority. For a way forward and a consensus, he said, even though he is not 100% there, he will support the Mayor’s budget.
Commissioner Kolpack moved the 2025 Preliminary Budget be approved as the Final Budget for 2025 and the proposed tax levies be approved as presented.
Second by Strand. On call of the roll Commissioners Kolpack, Strand and Mahoney voted aye.
Commissioners Turnberg and Piepkorn voted nay.
The motion was declared carried.
At 7:02 p.m. the Board took a five-minute recess.
After recess: All Commissioners present.
Mayor Mahoney presiding.
Liaison Commissioner Assignment Updates:
The Commissioners gave reports on the Boards and Committees on which they serve.
Resident Comments:
Asher Lorentzen spoke on the safety and dignity of the homeless.
Olivia Fischer (via conference call) spoke about Gaza.
Commissioner Piepkorn moved that the Board adjourn to 5:00 o’clock p.m., Monday, October 14, 2024.
Second by Strand. All the Commissioners voted aye and the motion was declared carried.
The time at adjournment was 7:13 o’clock p.m.