City Department Leaders Urge Renewal of Infrastructure Sales Tax

Those in charge of Fargo's roads, sewage, and water say the cost of utilities will skyrocket if the tax revenue is lost.

FARGO, N.D. (KVRR) – On February 5, city officials gathered in the commission chambers for a special informational meeting, watching presentations from various departments regarding how they use the funding from this soon-to-expire sales tax.

They urged the commission to approve an extension to the tax, saying the consequences to infrastructure such as city roads and wastewater treatment could be dire if the money dries up.

Though this technically wouldn’t be a new tax – just a continuation of an existing one – there is a possibility that some will balk at the added cost to goods and services.

Mayor Tim Mahoney pushes back on this, saying the ripple effect would create a much bigger price tag down the line.

“Your utility rates would almost double or triple. Big industrial rates would go up 20%. For most businesses, it would increase the cost of doing business in the community,” he said.

If and when the proposal makes it to the June ballot, the commission as a whole cannot officially endorse it, but Mahoney is in a unique situation. As he cannot be re-elected, he can act as a private citizen and says he will personally advocate for the tax as a result.

He also feels that the people of Fargo will see the necessity in keeping this revenue stream open.

“Last time, this passed by almost a 70% margin, and I would hope the public sees the benefit of just an extension,” he said.

If approved by the voters, the continuation of the 1% sales tax to fund infrastructure would last for another twenty years.