Fargo presents balanced 2026 preliminary budget citing state tax cap, public safety sales tax

Mayor and city budget staff presented Fargo’s 2026 preliminary budget at the Aug. 4 City Commission meeting, asking the commission to adopt a maximum property-tax levy under a new state revenue cap and to set a public hearing for Sept. 15.

The preliminary budget totals $140,287,211 and is presented as balanced without drawing down reserves, city officials said. It reflects two major shifts this year: a state-imposed property-tax revenue cap and the first full-year impact of a voter-approved public safety sales tax.

The proposal matters because the state cap limits how much property-tax revenue municipalities may collect year over year, and the new sales tax provides a restricted, sustainable revenue stream for police and fire operations. Together, those changes altered how commissioners and staff balanced recurring personnel and operational costs against flat core revenues.

Mayor (presenting) said, "This year also introduced 2 major shifts, the implementation of state imposed property tax revenue cap and the integration of a new public safety sales tax." Budget presenter Susan Thompson added that the cap calculation allows cities to use an "adjusted year" that includes new growth.

Key numbers and allocations

- Total preliminary general fund budget: $140,287,211. - 2025 general fund (for comparison) approved at $132,344,952. - Proposed 3% cost-of-living adjustment (COLA) for employees. - Public safety sales tax: estimated revenue $8,670,000 for the year; approximately $5.9…