Fargo Park Board Approves $51 Million Budget with Tax Rate Reduction for 2024
The Fargo Park Board has unanimously approved a $51 million budget for the upcoming year, which includes a reduction in the tax rate for 2024. This decision comes after months of careful consideration and planning.
Finance Director Broc Lietz explained that the budget breakdown includes $34 million allocated to the district’s general fund, $10 million for the debt service fund to cover capital improvement loans, and $7 million for Valley Senior Services. This comprehensive budget aims to address various needs within the park district.
One significant development is the 12% increase in property valuations across Fargo. This increase has allowed the park district to lower its total mill levy by 1.35 mills. The mill levy is the tax rate used to collect a specific amount of tax revenue from residents based on property values. Consequently, the total mill levy for 2024 is now 36.74, with each mill worth $803,296.
This reduction in the tax rate is attributed to the city of Fargo’s rapid growth, which has led to higher property valuations. As property values increase, tax revenue also rises, enabling the park district to lower its tax rate. In comparison, the mill levy for 2023 was 38.09, while it was 33.86 in 2022.
The park district is projected to generate $19 million in tax revenue. As part of the board’s allocation, 36% will be dedicated to parks and maintenance, 33% to debt service for various projects, 20% to administration, and 11% to recreation, events, and pools.
Commissioner Aaron Hill acknowledged that the park district wanted to alleviate the financial burden on residents, particularly those who may be struggling financially. By reducing the tax rate, the board aims to minimize the impact on people’s tax bills.
However, as the city continues to grow, there is an increased demand for park district resources. Each new neighborhood that develops requires adequate park services. Board President Joe Deutsch recognized the efforts of park staff in sharpening their pencils and finding ways to reduce the mill levy while balancing the needs of the expanding community.
In addition to the reduced tax rate, the final budget includes a median 5% increase in staff salaries and a 20% increase in pooled employee benefits. The budget also accounts for costs associated with the ongoing Fargo Sports Complex project, which began this year.
Furthermore, the approved budget for 2024 is larger than the previous year, which totaled $45 million. The integration of the Fargo Sports Complex project and the increased staff salaries and benefits contribute to this increase.
With the board’s unanimous approval, the Fargo Park District can now submit its final budget to Cass County by the October 10 deadline.
Overall, the budget approval demonstrates a commitment to supporting the growth of Fargo and providing necessary recreational and park services. The reduction in the tax rate, increased funding for staffing and facilities, and careful financial planning showcase the park district’s dedication to meeting the evolving needs of the community.
