Moorhead City Council
Nancy Edmonds Hanson
When the Moorhead City Council voted on its preliminary budget for 2026 in back in September, several council members voted “no,” concerned that it foretold a property tax increase of 5.58%. Despite their reservations, it passed on a 6-2 vote, with the promise that it would be “workshopped” to try to get it below 5%.
The “workshopping” worked. On Monday night, the councilors voted unanimously for a final budget of $156.8 million, with a property tax levy of $26.6 million. It caps the tax increase at just 3.89%.
The increase amounts to $7.24 per month for a home valued at the city’s median of $247,700. Commercial and industrial property will continue to be taxed at the current rate of 1.6% of taxable market value, since they are not impacted by the increase.
City finance director Jenica Flanagan presented the final proposed budget, noting that it includes $3.2 million more than 2025, for a total of $46.4 million. The largest portion – 65% – is funded through property taxes. Transfers from utilities, including Moorhead Public Service, accounts for another 21%. Local government aid from the state of Minnesota provides 18% of the total, while the balance of 17% is supplied by franchise fees, intergovernmental payments, fees and charges.
Police and fire departments represent the largest expenditures – $14.1 million and $7.7 million respectively. Administration accounts for the next largest portion, $7 million, closely followed by public works, $6 million. Other categories include engineering, $4 million; parks and recreation, $3 million; community development, $2.7 million; and government affairs, legal and prosecution, $1.9 million.
Flanagan pointed out that the final budget includes funds for adding three firefighters to the Fire Department in 2026. Money has also been added to support another trio of new hires if the city’s application to FEMA for a SAFER grant (Staffing for Adequate Fire and Emergency Response) is successful. Support for additional firefighters ignited lengthy debate when the preliminary budget was considered in September; several advocates again spoke Tuesday.
Wages and benefits for all city employees represent the largest increase over 2025. They account for $2.7 million. Other increases include $276,000 for IT equipment and software subscriptions; $68,000 for the new Red River Regional Dispatch Center; and $50,000 for city vehicles and equipment. A separate tax levy of nearly $800,000 supports the Economic Development Authority.
Mayor Shelly Carlson said that balancing this budget has been the most challenging she’s experienced in her seven years as a member of the council. “I will say that this year has been the hardest year to come to a budget, because of balancing the wants and needs of city departments with the financial hardships many in Moorhead are facing. You want to give departments everything they want and desire, but you also need to be cognizant and not tone-deaf to what’s actually happening in our communities.”