Moorhead City Council

Nancy Edmonds Hanson

If you live in what’s considered a home of median market value here in Moorhead – currently valued at just under $223,000 – you may be paying $35.17 more next year in property tax, or $2.93 per month.

Or maybe not.

The Moorhead City Council approved the preliminary budget for 2024 at its meeting Monday. The figures reflect a tax increase of 3.5% over the current year. Finance director Jenica Flanagan told councilors the rate is slightly higher than the average over the past five years, which is close to 3%. The property tax rate for the current year is 2.77%.

But the council’s approval of the maximum may not be precisely what will be up for final approval on Dec. 11, when the budget is set in stone. The tax rate could be somewhat less, depending on adjustments that may be made to the highly detailed numbers over the intervening months. One thing is certain, however: By law, it will not go any higher.

Flanagan said, “The budget is still a work in progress.” She explained that the preliminary numbers must be submitted by month’s end to the Clay County Treasurer’s Office, which handles billing for the city, the Moorhead Economic Development Authority, the Moorhead School District and the Buffalo Watershed District.

The finance director told the council that the total projected budget is just under $40 million, an increase of $1.46 million. She said that new homes, apartments and businesses, along with rising market values, have increased the total valuation of the city’s tax base 6.9%, to a total estimate of $3.9 billion. The increase was slightly less than the 8.4% logged in 2022.

Property tax represents the biggest source of revenue for Moorhead’s city operations, but not the only one. Those taxes will generate $15.5 million next year, covering 39% of the budget. Transfers from the city-owned utility, Moorhead Public Service, will bring in another $9.4 million, or 24%. Local government aid – funded by the state of Minnesota – will add up to $8.2 million, or 21%. The final 16% comes from a mixed bag of fees, permits and other assessments.

Flanagan detailed where the city’s income goes. The largest share of the budget, she said, is for police protection – 32% of the total, or $12.7 million. Fire protection comes in second at $6.4 million. Other major categories include city administration, $5.6 million (14%); public works, $5.2 million; engineering, $3.2 million; parks and recreation, $2.8 million; community development, $2.2 million; and governmental affairs, $1.5 million. Smaller line items include the Make Moorhead Home tax rebate program, Moorhead Public Library and debt service.

The Economic Development Authority’s preliminary budget of $709,000 was also approved by the board.

The largest share of the increase logged for 2024 is $1.5 million for staff salaries and benefits, Flanagan said. Nine staffers are slated to be added to the city roster next year, including three police officers, three administrative workers and one each in the fire, community development and public works departments.

Mayor Shelly Carlson stressed that the budget passed Monday represents five months of work by city departments, but that adjustments can – and probably will – still be made. Residents can provide input to the council at its October and November meetings. Those seeking more information can contact the finance department at 218-299-5317.