Moorhead City Council

The Moorhead City Council has approved a budget for 2024 boosting the increase in residential property taxes by just 3.3%.
That’s a decrease of 0.2% from the preliminary budget approved three months ago. The final budget presented Dec. 11 by finance director Jenica Flanagan totals $39,892,701.
That means that the property tax on the median home in the city, valued at $222,900, will rise $2.77 per month, or $33.24 for the year. The increase will not, however, affect industrial and commercial properties. Their rate is capped at 1.6%; the difference between that amount and the actual tax will be covered by state appropriations under the Disparity Reduction Credit Program aimed at reducing disparities for border cities.
According to Flanagan, 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.
However, other fees will also go up. Among them are monthly charges for wastewater, $1.39 per home; stormwater, $.10; sanitation, $.42, and forestry, $.28. The last one is largely due to costs for fighting the emerald ash borer.
With fee increases added, the monthly increase comes to $5.06 monthly or $60.72 for the coming year.
Employee wages and benefits account for just under 70% of the general and park fund budget, an increase of $1.5 million over the previous year. It includes cost-of-living adjustments in union contracts, step increases for permanent employees, wage increases for temporary and seasonal workers, and an increase in the cost of health insurance. The city has budgeted for nine more full-timers: three in the police department, three in administration, and one each in fire, public works and community development.
Operating costs are projected to reach $1.6 million more in 2024, largely related to fleet and equipment needs, software maintenance and street striping.
The capital budget for the upcoming year totals another $40,014,323. Among projects in that total are approximately $20 million for infrastructure improvements throughout the city, including those for the 11th Street underpass project, a number of roadway improvements and infrastructure related to recevelopment of the Center Mall area. $10 million is set aside for Reimagine Romkey Park (offset by a $5 million grant from the Department of the Interior. $4.4 million is earmarked for replacement of city-owned vehicles and equipment.
Annual property tax bills will be mailed by the Clay County Treasurer’s Office in March. Along with the amount levied by the city, they include taxes set by Clay County, Independent School District 152, the Moorhead Economic Development Authority, and the Buffalo Watershed District.