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West Fargo commission adopts final 2026 budget; property tax revenue up 5.4% under new state cap rules
Summary
The commission approved the final 2026 budget that pauses new FTEs, provides a 2.5% COLA, balances the general fund without reserves, and reflects a 5.4% increase in property tax revenue under recent state law (includes 3% cap plus new growth).
The West Fargo City Commission approved its final 2026 budget on Monday, adopting a spending plan that the city says balances the General Fund without drawing on reserves while pausing new full‑time staffing requests and providing a 2.5% cost‑of‑living adjustment for current employees.
City Administrator Dustin Scott and Finance Director Willie Galindo presented the budget and its updated memo. Scott told the commission, “The General Fund is balanced without the use of reserves.” The packet added this afternoon a section explaining how the new state law limiting property tax increases contributed to a 5.4% increase in property tax revenue that is included in the budget calculations.
Scott said the 5.4% figure reflects the state’s 3% statutory cap plus allowable new growth in the tax base; the city apportioned the resulting property‑tax dollars among the General Fund, the municipal library fund, the municipal airport fund and the city’s share of special assessments based on departmental needs. Galindo explained the city calculated property tax revenue as a combined dollar amount and then allocated portions to each fund rather than applying the cap to each fund separately.
The budget preserves existing services while calling for discipline: the administration reported that departments together found more than $3 million in reductions from initial requests and that capital sales tax funds will be used to support certain approved projects. Scott and Galindo stressed that some funds show deficits on a single‑year basis in the budget because they reflect multi‑year capital commitments and the city plans to use existing cash balances and prior bond proceeds to cover those projects.
During public comment, resident David Withy urged commissioners to focus on productivity and questioned the use of capital projects sales tax to support personnel costs, noting that “for two years in a row now we’re using the capital projects sales tax fund to fund, street crew.” Withy said personnel‑related costs — salaries, healthcare and retirement — have driven larger increases than overall spending.
After discussion, Commissioner Zundell moved to approve the final 2026 budget and Commissioner Olsen seconded. The motion carried unanimously.
The city must submit the final budget to the county by Oct. 10; preliminary tax statements will be mailed by the county in December under the new timeline. The budget book and supporting schedules are posted on the city website, the administration said.
