West Fargo approves final 2026 budget with 5.4% property tax increase under new state cap

The West Fargo City Commission approved its final 2026 budget on Sept. 22 after a presentation from City Administrator Dustin Scott and Finance Director Willie Galindo.

The budget pauses new full‑time positions, includes a 2.5% cost‑of‑living adjustment for existing staff and is balanced at the general‑fund level without using reserves, Scott said. The packet added a property‑tax section that shows a 5.4% increase in property tax revenue under recently enacted state law; staff said that figure combines the statutory 3% cap with allowed new‑growth calculations.

Galindo walked commissioners through adjustments since the draft, including adding the Sandhills TIF district to debt‑service listings and a small revenue correction for the Lights Plaza parking‑ramp transfer. He said enterprise (utility) funds are forecasted to produce surpluses that will be set aside for strategic reserves and that capital sales tax fund deficits reflect previously approved projects financed by on‑hand cash balances.

Commissioners asked how the 3% cap is being applied to funds such as the library and airport. Galindo and Scott said the city calculates a lump‑sum property‑tax dollar amount (including new growth) and apportions it to the library, airport and general fund based on departmental needs rather than capping each fund separately.

Commission President Dardis noted the full budget book and updated memo are posted online. With no further changes proposed, Commissioner Zundell moved and Commissioner Olsen seconded approval; the motion passed by voice vote.

What's next: the final budget must be submitted to the county by Oct. 10 and residents will receive tax statements in December, city staff said.