City budget battles also break out in Grand Forks and West Fargo

The free-for-all over Fargo’s next proposed city budget may be getting most of the limelight, particularly since city commissioners voted to eliminate the Diversity, Equity and Inclusion Department, among other staff positions. But taxpayers in Grand Forks and West Fargo are also voicing concerns to their local elected officials over high taxes and city spending.

This week’s West Fargo City Commission meeting to work on the 2025 budget inspired several residents to speak out at the public forum. The Forum focused on the concerns they raised over generous pay increases for city employees and other bread-and-butter issues.

West Fargo resident Steve Marquart, who is also a member of the government watchdog group West Fargo TAP (Transparency, Accountability and Professionalism), questioned the 4% cost of living increase for all employees in 2025, which will result in a pay raise of 7% to 9% for most city employees. Marquart said such increases are not on par with jobs in the private sector and are not needed.

“How do we justify a 9% raise when most people are not getting that? That is something you people need to understand,” Marquart said Monday. “The private sector is not paying that. No one is jumping ship, guys.”

While West Fargo plans to increase next year’s spending, city staff noted the proposed hike will probably not result in an increase in the mill rate charged to taxpayers. But that doesn’t necessarily mean residents won’t see an increase in property taxes.

Three of the residents noted their tax bill is increasing exponentially in 2025, mostly because their property valuation is increasing.

Even if a city doesn’t raise its tax rate, property owners can often still see their property taxes increase because their home valuations have gone up.

Increased valuations for property mean an increase in the value of a mill, the rate used by the city to calculate taxes. This means the local government is bringing in more dollars for every mill collected. Commissioners can also choose to keep the increase in valuations in mind when deciding to increase spending. A mill levy decrease can help lessen the burden of an increased valuation.

Meantime, the pressure’s also on elected officials in Grand Forks. The city faced calls from employees to bump up their pay to keep pace with inflation, according to the Herald.

Employee representatives said that matching the cost-of-living adjustment to 75% of the employment cost index is key to helping with recruitment, retention and the ability of city staff to do their jobs.

“We understand the City Council’s goal to reduce mills, to not inflict any impact to taxpayers. However, we do not support reducing the (employment cost index) below a 75% match to achieve that goal,” said Shelia Schreiner, president of the employee representatives. “Keeping the salary plan competitive is crucial. Over three years we have lost nearly 55% of our workforce; this is a significant amount of job knowledge that left the city and places a demand upon our remaining employees to fill the gaps and train new staff.”

Nevertheless, Grand Forks city councilors reduced the cost-of-living adjustment to 50%. That allowed the city to lower the mill rate and hold the line on property taxes.

For the average property owner in Grand Forks, city property taxes will stay about the same as they did for the 2024 budget, since the mill reduction matches what would be roughly a net-zero change in a tax bill. Since the budget was first presented to the City Council in July, the mill levy has been reduced by 0.5 mills, lowered again by 2.93 mills in the preliminary budget, to now being lowered by 4.13 mills from 2024’s budget.

That doesn’t mean other taxes won’t be increasing. Grand Forks residents’ trash and utility bills will be going up next year.