2025 Draft Final Budget

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CITY OF WEST FARGO 2025 BUDGET

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Preliminary Budget Presented to WF City Commission: July 29, 2024 Preliminary Budget Approved by WF City Commission: Aug. 5, 2024 Public Hearing on Preliminary Budget: Sept. 16, 2024 Draft Final Budget Presented to WF City Commission: Sept. 23, 2024 Final Budget Approved by WF City Commission:

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table of contents 1 Introduction 2 Updates from Preliminary Budget 3 Budget Expenditures by Fund 4-23 General Fund Departmental Expenses 5 Organizational Structure 6 Administration Department Expenses 7 Assessing Department Expenses 8 Communication Department Expenses 9 Municipal Court Expenses 10 Economic Development Department Expenses 11 Engineering Department Expenses 12 Finance Department Expenses 13 Fire Department Expenses 14 Fleet & Facility Department Expenses 15 Human Resources Department Expenses 16 Information Technology Department Expenses 17 Non-Departmental Expenses 18 Planning & Inspections Department Expenses 19 Police Department Expenses 20 Public Works Department Expenses 21 Right-of-Way Department Expenses 22 Streets Department Expenses 23 Street Lights Department Expenses

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24-28 Utility Fund Departmental Expenses 25 Forestry & Vector Department Expenses 26 Sanitation Department Expenses 27 Sewer Department Expenses 28 Water Department Expenses

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29-31 Other Special Funds Departmental Expenses 30 Airport Authority Expenses 31 Public Library Expenses

32-39 Revenues 33 2025 Property Tax/Mill Levy 34 Revenue by Fund 35 General Fund Revenue Detail 36 Utility Fund Revenue Detail 37 Other Levied Funds Revenue Detail 38-39 Sales Tax Revenue 40 Special Revenue/Debt Service 41 Reserve Fund Revenues & Expenses 42 Net Position

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city of west fargo 2025 budget On behalf of Mayor Bernie Dardis, and City Staff, I am pleased to present the City of West Fargo’s 2025 Budget.

Work on this budget began in March 2024 to identify the operational, staffing, and administrative needs of each of our City Departments. Our Department heads have worked diligently to bring forward budgets that allow staff to provide the highest quality service to the residents and businesses of West Fargo, while balancing the fiscal responsibility we owe to the taxpayers of our great community.

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The work extended beyond budgets, to an organizational restructure of Departments that prioritized the efficiency of teams and workflows and allows us to advance institutional knowledge and encourage new and fresh perspectives.

I am proud of the leadership team we are building, and look forward to seeing how our City benefits over the coming year and into the future.

As we continue to prioritize the retention of our outstanding and experienced staff, this budget includes a 4% Cost of Living Adjustment, and maintains a high quality of employee benefits. This budget also includes the addition of staff across many departments, a majority within the Public Works and Public Safety Portfolios. The additional Public Works staff will allow the City to take on more projects internally, completing necessary infrastructure work while lowering the direct costs to taxpayers. We pride ourselves on the safety of our community, and the additional staff in our Police and Fire Departments will allow our agencies to become even more robust and strengthen their ability to provide the highest quality services across our City.

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We greatly appreciate the guidance and support from our elected leaders. As Commissioners continue to engage constructively, we will stay diligent and focused to further refine and optimize the budget through a collaborative and transparent process.

summary of all budgeted funds

Dustin Scott

City Administrator

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updates from preliminary budget The following changes were made between the approval of the Preliminary Budget and the Presentation of the Final Budget: Departmental Expenses reduced by $567,583

Significant Line Item Deductions Across Departments:

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*”Payroll Costs” includes Salary, Social Security, Retirement, WSI, and Health Insurance

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Revenues increased by $957,763, including additional transfers in from Sales Tax to balance the budget without the use of additional mills.

Property Tax Revenue decreased by eliminating the addition of 2.8 mills from the preliminary budget. Mills will be held at 79.75

Fire Fund reporting will be added into General Fund. All Fire Department Expenses, Revenues, and Mills will be shown as part of the General Fund. $308,000 Equipment Expense added to Right-of-Way Departmental Budget, paid for by Economic Development Sales Tax $300,000 Equipment Expense added to Street Lights Departmental Budget, paid for by Economic Development Sales Tax Health Insurance final rates were provided to the City of West Fargo on 9/19/2024. Additionally, changes to health insurance elections were noted. This created minor changes in the health insurance line items of all departments, as well as changes to transfers in and cost allocations.

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2025 Budget expenditures by fund

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NOTE: 2024 budget numbers may be different than what appears in the 2024 Budget adopted in Oct. 2023 based on budget amendments.

Budget amendments made throughout 2024 can be found in West Fargo City Commission Meeting Minutes.

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GENERAL FUND

DEPARTMENTAL EXPENDITURES

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City of west fargo organizational structure

Departments/Divisions are categorized into 5 Portfolio Areas, all overseen by the Administration Department: Administrative Services Community & Development Services Fire Department Police Department Public Works

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This chart outlines the structure of department/divisions with designated expenditure budgets.

It does not necessarily reflect the structure of staffing in each portfolio area.

city administrator

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administrative services

ASSESsing

COURT

POLICE DEPARTMENT

FINANCE

HR

Fleet & Facility

forestry

public works

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Right-of-way

Sanitation

sewer

street

fire department

COMMUNITY & Development SERVICES

Comms.

ECONomic DEVelopment

ENGINEERING

street lights

Water

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pLANNING & iNSPECTIONS

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administration department expenses

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notable department budget changes 2024-2025

Senior Director Positions were approved in 2024 and are reflected in the 2025 Budget.

Additional positions include increases to all salary and benefit line items Receptionist position moved from Finance Department to Administration Department Project Funding Specialist Position removed from 2025 Budget No new positions requested in 2025

changes from preliminary budget Reduced Corporate Education by $4,900 Reduced Travel by $6,500 Reduced Service Contracts by $10,000

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assessing department expenses

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notable department budget changes 2024-2025 Salary and Benefit increases are standard across all line items No new positions requested in 2025

changes from preliminary budget Reduced Travel & Education by $1,500

Purchase of one new fleet vehicle for Property Appraisers per regular vehicle replacement schedule

administrative services portfolio

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communication department expenses

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notable department budget changes 2024-2025

changes from preliminary budget

Salary and Benefit increases are standard across all line items No new positions requested in 2025

Reduced Marketing by $20,000 Reduced Advertising by $6,900 Reduced Travel & Education by $500 Increase in Technology Line Item to move website and software costs from Non-Departmental into Communication

community & development services portfolio

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court department expenses

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notable department budget changes 2024-2025

Salary and Benefit increases for Full Time Employees are standard across all line items No new positions requested in 2025 Judge Salary line increase based on industry standards Increase in Technology line item for new laptops and docking stations, per replacement schedule

changes from preliminary budget Reduced Travel & Education by $1,500

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administrative administrative services services portfolio portfolio

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economic development department expenses

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notable department budget changes 2024-2025 Addition of 1 FTE - Economic Development Coordinator Increases in all Salary and Benefits line items Increase in telephone and technology to equip new employee

changes from preliminary budget Reduced Travel & Education by $1,500

Increase to Membership line item for consolidation of all memberships into one line item.

Previously spread across multiple line items Increase in Marketing line item for print publications

community community & development & development services services portfolio portfolio

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engineering department expenses

notable department budget changes 2024-2025 Salary and Benefit increases for Full Time Employees are standard across all line items No new positions requested in 2025

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Added line items for Gas & Oil and Vehicles Maintenance to cover these costs for their fleet vehicles. This expense was previously included in the Public Works budget.

Increase to Office Supplies line item to produce EJCDC Specification Documents

changes from preliminary budget Delaying Hiring of Assistant City Engineer until mid-year Reduced Payroll Costs by $60,041.Includes Line Items: Permanent Employee Salaries Social Security Retirement Health Insurance

community community & development & development services services portfolio portfolio

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finance department expenses

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notable department budget changes 2024-2025

Receptionist position moved into Administration Department Results in a smaller net change in all salary and benefit line items increased for standard annual increases

changes from preliminary budget Reduced Travel & Education by $2,200 Reduced Furniture & Equipment by $1,000

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administrative administrative services services portfolio portfolio

fire department expenses

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notable department budget changes 2024-2025

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Addition of 3 FTEs - 3 Firefighters/EMTs Increases in Salary, Benefits, and Education line items $310,909 in Long Term Debt Retirement

Reductions in operations of $87,730 from previous year Reduction of strategic operations of $104,904 from previous year Increase of $4,628 for annual preventive medical screenings for all employees (cancer, cardiac, mental health) Service Agreements line item increase for CARE contract and Johnson Controls contract Furniture and Equipment line item increase for new lifts for fire mechanics for work on heavy trucks Payment to Rural Fire Association based on total amount of state reimbursement, expected to increase in 2025

changes from preliminary budget Reduced Travel & Education by $50,000 Increased Service Charges by $1,250 Fire Fund Reporting combined with General Fund

Fire department portfolio

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fleet & Facility department expenses

notable department budget changes 2024-2025

Salary and Benefit increases for Full Time Employees are standard across all line items No new positions requested in 2025 Salary line item includes Overtime Pay

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Building Repair line item increased to cover aging building maintenance Capital Assets line item increased for purchases including safety equipment, tool storage, and welding equipment, per equipment purchase schedule Vehicle Purchase line item decreased from 2024.

Only one new vehicle to be purchased in 2025 per vehicle replacement schedule

changes from preliminary budget Reduced Building Repair by $50,000 Reduced Capital Assets (Equipment) by $35,000 Reduced Travel & Education by $3,000

portfolio public public works works portfolio

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human resources department expenses notable department budget changes 2024-2025 Salary and Benefit increases for Full Time Employees are standard across all line items No new positions requested in 2025

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1 FTE added by budget amendment in 2024.

Telephone line item increased to accurately reflect number of department cell phones

Travel & Education line item increase includes staff training on new HRIS system Technology line item increased to accurately reflect cost of employee badges and printing costs, and all software costs

changes from preliminary budget Reduced Payroll Costs by $20,156. Includes Line Items: Permanent Employee Salaries Social Security Retirement Health Insurance Reduced Telephone by $540 Reduced Technology by $90 Reduced Membership by $215 Reduced Travel & Education by $4,650 Increased Postage by $250 Increased Printing by $250

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administrative administrative services services portfolio portfolio

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information technology department expenses

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notable department budget changes 2024-2025

Salary and Benefit increases for Full Time Employees are standard across all line items No new positions requested in 2025

changes from preliminary budget Reduced Travel & Education by $5,000

1 FTE added by budget amendment in 2024.

Cyber Insurance added by budget amendment in 2024.

Will be in Non-Departmental budget for 2025

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administrative administrative services services portfolio portfolio

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non-departmental expenses

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planning & inspections department expenses notable department budget changes 2024-2025 Salary and Benefit increases for Full Time Employees are standard across all line items No new positions requested in 2025

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WSI line item updated to accurately reflect cost per employee Service Agreements line item decreased due to removal of Copy Machine Contract cost Books line item increased to cover cost of new building code books with adoption of updated building codes

changes from preliminary budget Reduced Travel & Education by $2,700

community community & development & development services services portfolio portfolio

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police department expenses

notable department budget changes 2024-2025 Addition of Four sworn positions Increases the following line items: salaries, benefits, telephone, travel/education, uniforms/equipment, medical, physicals, equipment, weapons/ammo

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Overtime budget increased due to additional comfort dog, US Postal Task Force Officer, four sworn officers and one civilian and Contract Police Services due to salary increases Medical/Vaccines line item increased due to annual cardiac screening for sworn officers General Computer Technology line item increased due to Body Worn Camera – El Cloud Maintenance, new Sergeant and civilian position, increase of annual New World/Tyler Annual Maintenance, Investigations digital evidence storage, and Leadsonline/Cell Hawk The following will be paid through transer of PSST: $86,300 Annual Subscription fee and $15,000 for digital investigation storage Police vehicles and equipment line items increased due to in-car cameras with automatic license plate and software and the increased cost of purchasing and installing police vehicles. This will be paid with transfer of PSST

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Police equipment increase is due to the purchase of a drone, flock camera systems, replace the current digital fingerprint machine as it’s end of life, camera for our Special Investigations Unit (SIU), and radar signs, rapid deployment pack, and Taser charging hub. This will be paid with transfer of PSST Membership line item increased due to ND POST board renewal licenses K9 line item increased due to pet insurance for K9 duals and the purchase of an additional comfort dog Ammo line item increased due to sworn officer duty guns, rifle barrels and red dot sights. This will be paid with transfer of PSST

changes from preliminary budget Eliminate Civilian Supervisor Position. Reduced Payroll Costs by $125,091. Includes Line Items: Permanent Employee Salaries, Social Security, Retirement, Health Insurance, WSI Reduced Travel & Education by $1,000 Reduced Technology by $5,000 Reduced Public Relations by $7,000 Reduced Office Supplies by $1,500 Reduced Prisoner Board Expenses by $15,000 Reduced Wrecker Fees by $1,000

department portfolio police police portfolio

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public works department expenses

notable department budget changes 2024-2025 Salary and Benefit increases for Full Time Employees are standard across all line items No new positions requested in 2025

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Technology line item increase to more accurately reflect actual costs of all software

changes from preliminary budget Reduced Vehicles Purchase by $30,000 Reduced Technology by $10,000 Reduced Travel & Education by $2,500

portfolio public public works works portfolio

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right-of-way department expenses

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notable department budget changes 2024-2025 Addition of 1 FTE - Equipment Operator Increases in all Salary and Benefits line items

changes from preliminary budget Reduced Travel & Education by $1,500 Increased Capitalized Assets (Equipment) by $308,000

Purchase of one new vehicle for additional employee

Purchase of one new vehicle per replacement schedule

portfolio public public works works portfolio

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streets department expenses

notable department budget changes 2024-2025

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Addition of 5 FTE - 4 Equipment Operators, 1 Crew Chief Increases in all Salary and Benefits line items

Technology line item increase to cover Snow Plow Tracker software Furniture and Equipment line item increase to cover purchases of safety and storage equipment

changes from preliminary budget

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Reduced Travel & Education by $3,300 Reduced Capitalized Assets (Equipment) by $20,000 Remove Cost Allocations to Sewer Fund

portfolio public public works works portfolio

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street lights department expenses

changes from preliminary budget

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Increased Capitalized Assets (Equipment) by $300,000

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portfolio public public works works portfolio

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UTILITY FUNDS

DEPARTMENTAL EXPENDITURES

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forestry & vector department expenses notable department budget changes 2024-2025

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Addition of 2 FTEs - 2 Arborists Increases in all Salary and Benefits line items Increase to uniforms, phone, and technology for new employees 70% of City Forester/Stormwater Management Program Coordinator Salary moved to Forestry Budget Gas line item added, previous expense was included in Public Works budget Purchase of one new vehicle for additional employee

Purchase of one new vehicle per replacement schedule

public works portfolio

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sanitation department expenses

notable department budget changes 2024-2025 Addition of 2 FTEs - 2 Equipment Operators Increases in all Salary and Benefits line items Increases to phone and technology line items

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Non-landfill disposal line item increase due to new compost sites and freon appliance disposal site Purchase of one new vehicle per replacement schedule

Purchase of additional sanitation collection equipment included in Capital Assets line item

changes from preliminary budget

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Reduced Corporate Education by $4,900 Reduced Travel by $6,500 Reduced Service Contracts by $10,000

public works portfolio

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sewer department expenses

notable department budget changes 2024-2025

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70% of City Forester/Stormwater Management Program Coordinator Salary moved to Forestry Budget No new FTE requests for 2025

Sewer Treatment line item includes increased flow and rate increase from Fargo to send waste for treatment Increased technology line item for computer replacement per schedule

changes from preliminary budget

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$112,069 in Cost Allocations moved from Street Fund to come out of Sewer Fund

public works portfolio

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water department expenses

notable department budget changes 2024-2025 Addition of 1 FTE - 1 Equipment Operator Increases in all Salary and Benefits line items Increases to uniforms, phone and technology line items

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Technology line item increases to cover new computers and iPads per replacement schedule and includes software needs

Vehicle purchase of Dump Truck per vehicle replacement schedule Purchase of loader included in Capital Assets line item

Fund 6020-490000 covers payment of 2012 and 2019 Water and Sewer Revenue Bonds

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changes from preliminary budget

Reduced Capitalized Assets (Equipment) by $50,000 Reduced Travel & Education by $2,400

public works portfolio

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OTHER SPECIAL FUNDS

DEPARTMENTAL EXPENDITURES

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airport authority expenses

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public library expenses

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notable department budget changes 2024-2025 Salary and Benefit increases for Full Time Employees are standard across all line items No new positions requested in 2025

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2 FTEs added through budget amendment in 2024

Increase in Building Rental Line Item for Lodoen Center rent increase, and rent cost at City Hall Satellite location

Books and Magazine line item increase for increased postage and processing costs E-Resources line item decrease due to discontinuing of Hoopla service

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REVENUE FUNDS

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2025 property tax/mill levy

*Fire Fund added into General Fund in 2025 *No Mills added from 2024 to 2025

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calculating the value of a mill

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*As of Sept. 12, 2024

*Discount factor of 4.2% applied for those who pay off specials during early discount window.

understanding your property tax Statement

The number of mills levied by the City of West Fargo is added to the number of mills levied by all political subdivisions including Cass County, West Fargo Public School District, West Fargo Park District, Diversions, Water Districts and others to determine a consolidated mill levy for each property.

The City of West Fargo will likely account for 25-30% of each property’s consolidated mill levy.

The preliminary property tax statement included a mill increase of 2.8 mills for the City of West Fargo. Since those tax statements were sent out, the City has removed the increase in mills. The only increase to your property tax from 2024 to 2025 will come as a result of your increased property value.

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2025 Budget revenues by fund

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*Sales Tax Revenues planned for 2025 Budget Use are included as transfers in, or earmarked for use in specific budget categories. Sales Tax Revenues as a whole are not included in the total budget revenue.

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general revenue fund detail

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utility fund detail

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utility rate changes for 2025

Increases in Utility Fund Revenues are based on an increase in Utility Rates. The following table shows the proposed rate increase for an average residential property. Rates will differ based on usage, meter size, garbage can/dumpster size, etc.

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other levied fund revenue detail

Other levied funds have a specified number of mills dedicated specifically to one department or service. These mills are part of the City’s total 2025 Mill Levy.

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public safety sales tax Revenue

expenses

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*PSST Reserves will be transferred to the General Fund for operational costs of both Police and Fire Departments.

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capital improvement sales tax Capital Improvement Sales Tax Revenue

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economic development sales tax

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Economic Development Sales Tax Revenue

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additional special revenue funds

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Generally, special revenues are either transferred into the General Fund Revenue or Other Revenue Funds.

Revenues in Funds 3000-3999 are used to pay Special Assessment Bonds, TIF Bonds, and other bonds taken out by the City to fund capital improvements.

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Revenues in Funds 8000-8999 are used to pay park District Special Assessments

RIB: Refunding Improvement Bond (Special Assessment Infrastructure) GO: General Obligation W&S: Water & Sewer Revenue Bonds TIF: Tax Increment Financing (Economic Development Projects)

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RESERVE FUND REVENUES & EXPENSES

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All Reserve Fund Expenses besides the $500,000 transfer in are related to the lease of the New City Hall Building and will be covered by cash reserves.

The West Fargo City Commission authorized the use of reserve funds for a 5-year building lease and related expenses in 2023.

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net position by fund

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next steps

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This final budget draft will be presented to the City Commission at a special meeting on September 23, 2024.

The Commission will provide feedback on the final budget draft, and staff may make additional changes between September 23 and October 7.

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The Commission will approve a final budget at their October 7 Meeting for submission to Cass County by October 10, 2024.

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