Grand Forks presents preliminary 2027 budget with modest tax and utility impacts

City staff presented the mayor's preliminary 2027 budget at the July 20 Grand Forks City Council meeting, highlighting public safety, capital infrastructure and a plan to smooth long-term spending across funds. Maureen Dorstad, the staff presenter, told council this is a proposal for discussion and that preliminary approval is scheduled for Aug. 3, with final approval and a public hearing set for Sept. 8 and levy certification due Oct. 10.

Dorstad said the budget includes a 2.5% step increase and 0.75% of the Employment Cost Index (about a 2.55% combined adjustment) for salary planning and estimated the general fund impact at roughly $1.4 million. The mayor's proposal also would decrease the city mill levy by about 0.1 mills, which staff said, combined with revaluation, keeps the tax increase below the state's 3% property tax cap; staff estimated the net change on a $250,000 home at about $22–$23 annually.

On program priorities, Dorstad emphasized increasing capital reserves for fire, police and streets, and continuing the phased-in COPS grant that covers 50% of three police officer positions (2027 is the second year of a four-year phase-in). She said staff plans to use some cash and short-term internal financing to buy out seasonal street leases and build reserves for future capital replacements.

The presentation also spelled out proposed changes to enterprise fund rates. Staff proposed a 5% sanitation rate increase (residential), landfill adjustments, a 5% residential wastewater increase (6% for some commercial rates), 3.5% for water, and an 11% increase in the stormwater charge (about $0.50/month). The mosquito control fee would drop from $3.00 to $2.50 as related debt rolls off. Dorstad estimated the net effect on an average 4,000-gallon household at about $4.62 more per month, from roughly $94.90 to $99.52.

Dorstad stressed that these rate changes are part of multiyear rate studies intended to smooth cash balances and pay for upcoming projects, including the final wastewater treatment plant construction phase proposed in 2027. She also encouraged council members and the public to review the detailed budget binder and posed the timeline reminder that preliminary approval would lock the budget downward only.

Council members asked staff follow-up questions about sales-tax forecasting, reserve targets (the stated general-fund target is 25%), how long the city will cover the phased-in officers, and capital project timing. Dorstad said more detailed materials and the itemized fee list are in the binder and that staff would be available for follow-up before preliminary approval.

The council took no final action on the budget at the meeting; staff will return to council for the scheduled preliminary and final votes.