Council approves HA 2026 levy after debate, refers additional review to levy committee

The Fergus Falls City Council approved a resolution on Aug. 18 setting the Housing Authority (HA) 2026 levy after discussion about whether to maintain the 2024 levy level or accept the HA’s requested increase.

Council members questioned whether the levy should rise from the 2024 allocation (roughly $243,000) toward a requested $270,000. One council member said he preferred to hold the levy at the 2024 level and asked that HA executive staff meet with the levy committee to review operations and administrative costs before the council finalized its position.

HA staff said the local levy primarily covers administrative operations rather than direct assistance and that federal funding streams are restricted for program delivery. “Generally speaking…the local dollars that we levy in Fergus Falls are geared more toward operations than they are to direct assistance dollars,” an HA representative said.

Council debated the levy’s size, the HA’s balance sheet and whether a zero‑increase approach would reduce administrative capacity. Several council members urged committee review; staff and the HA agreed to meet with the levy committee. After discussion the council adopted the levy resolution by roll call.

Council members also debated how many levy‑funded positions and administrative functions depend on local levy funds versus restricted federal grants. Staff said the HA’s levy money gives the agency flexibility to cover operational shortfalls when federal pots are restricted.

Council directed the HA and staff to meet with the levy committee to review the numbers before finalizing longer‑term budget choices.