Commission approves preliminary 2027 budget, moves to create deferred equipment fund

The West Fargo City Commission voted to approve a preliminary 2027 budget package on Aug. 3 that the city administrator said leaves the city with a roughly $736,000 net position and sets a public hearing for Sept. 8 on the proposed budget. City Administrator Dustin Scott said the package reflects options the commission discussed, including removing three firefighter positions from the general fund, reducing the cost-of-living-adjustment to 2.5% and moving the City Hall lease payment into the general fund.

"What we presented is still what we are bringing forward today as our preliminary budget," Scott said, adding that the commission could refine the package before the final October adoption. Scott told commissioners staff had estimated property-tax revenue of $22.9 million for 2027 compared with $22.7 million in 2026, a roughly $170,000 increase after accounting for discounts and new growth. Commissioner Erickson moved to approve the slide-based provisions that reduce the general fund budget, move the lease payment, transfer economic development sales tax and create a deferred equipment fund; the motion was seconded and carried on a roll call of six yes votes.

Commissioners pressed staff on assumptions behind health-insurance increases, the practicality of preserving step increases versus COLA changes, and how the new deferred equipment fund would be seeded. Scott said the deferred equipment fund would initially accommodate a proposed $265,000 equipment purchase and that staff would return with a policy for contributions to the fund. The commission directed staff to continue examining revenue forecasts and to bring additional detail to upcoming meetings and the Sept. 8 public hearing.