Moorhead City Council

Moorhead residents will see their property tax bills rise 4.99% in 2025, while monthly rates for four utilities will also reflect a small increase. That amounts to $8.74 per month in taxes on a median-priced home (valued at $235,600), plus $2.74 on its bill for city services – a total of $11.48.
The Moorhead City Council unanimously approved the budget for the coming year at its final meeting of 2024 on Monday. Finance director Jenica Flanagan detailed the proposal, which remained the same as the preliminary figures accepted on Sept. 24. The total operating and capital amount is $141.9 million, with $24.2 million coming from property taxes. The council also approved the economic development budget of $766,140, which is separate from the city’s numbers.
Flanagan noted that the 2025 budget represents an increase of $3.1 million over the current year. Nearly three-quarters of that amount falls under the heading of employee wages and benefits.
While residential property owners’ bills will rise, owners of commercial and industrial property will not feel the increase. Minnesota’s Disparity Reduction Credit caps their property tax obligation at 1.6% of taxable market value, with the state making up the difference. Their tax bills increase only due to increases in market value.
Forty-eight percent of the budget supports public safety, she said – $13.9 million for the Moorhead Police Department and $6.8 million for the Fire Department. Other departments’ allocations include Administration, $6.1 million; Public Works, $5.7 million; Engineering, $3.7 million; Parks and Recreation, $2.8 million; Community Development, $2.5 million; and Governmental Affairs and Legal Services, $1.7 million.
The director said less than half of funding for the proposed 2025 budget – just 43% – will be generated by taxation. Moorhead Public Service, the city’s publicly owned utilities, will contribute $9.6 million next year, or 22% of the total. Local Government Aid, appropriated by the state of Minnesota, is expected to provide 19%, or $8.3 million. The final $6.7 million (16% of the total) comes from fees and charges, franchise fees and other sources.
The utility rates to be increased include fees for wastewater (5%), stormwater (1%), sanitation (4%), and forestry (8%).