The Fargo City Commission voted 5-to-0 Monday to approve next year's spending plan. Photo: City of Fargo
FARGO (KFGO) – The Fargo City Commission unanimously approved a balanced $147.6 million General Fund budget for fiscal year 2027 on Monday night, resolving weeks of debate over public safety staffing and municipal employee compensation.
The 5–0 vote adopts a spending plan that doubles the initial staffing proposal for the Fargo Police Department, adding eight new sworn officers. Four positions will be funded directly through the General Fund, while four will be supported by updated Public Safety Sales Tax revenue projections.
Commissioners also restored funding for market pay adjustments for city employees whose salaries had fallen behind regional market rates. The adjustments, which were omitted from earlier preliminary drafts due to cost concerns, will be implemented on employees’ 2027 anniversary dates. The budget also retains a 3% cost-of-living adjustment for full-time staff across all city funds.
The city was able to offset a portion of the added personnel costs after finalized health insurance premium increases came in at 6.6%, down from an earlier 8.5% preliminary projection.
Despite the unanimous approval, Commissioner Chad Peterson cautioned that the city still faces unaddressed long-term capital needs, including future funding demands for MATBUS, municipal court facilities, water reclamation expansion, and the city landfill. Peterson urged the board to examine alternative revenue options, such as a local restaurant sales tax, during upcoming strategic planning sessions later this fall.
The approved budget preserves $440,000 for local social services and community organization grants, maintaining historic funding levels. It also retains a two-mill property tax allocation for ongoing construction at Hector International Airport.
To protect the city’s credit rating and financial standing, the final plan incorporates an intentional $1.7 million operational underspend to maintain Fargo’s policy ratio of a 25% General Fund balance against rising expenses.
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