Fargo, N.D. – Fargo’s city engineer is starting to get the word out about the need to continue using a portion of city sales tax revenue to cover the cost of roadwork and water projects.
The voter-approved 1-percent infrastructure sales tax has been in place since 2009, but is set to expire at the end of 2028.
“Without that sales tax, we’d have to find other way to pay for [projects],” City Engineer Tom Knakmuhs told Flag Family News.
Knakmuhs there’s “hardly a project that we do” for roads that doesn’t use it.
“It really gets used on nearly every street across town,” said Knakmuhs.
If it isn’t renewed, Knakmuhs says utility rates could possibly rise to cover the costs.
Listen: Fargo City Engineer Tom Knakmuhs speaks to Flag Family News Director Ken Duffy
Revenue from the infrastructure sales tax is also devoted to maintaining the water supply system, which includes sewage and sewage treatment.
“If we’re still going to have to maintain the pipes and the plants that we have to maintain, our residents are the ones who are going to have to pay for that.” said Knakmuhs.
If it’s not approved, it would ultimately be up to the city commission to determine the best way forward.
Knakmuhs says the city could either decide to do “less work…or find other revenue.”
“They [the state] did give us the opportunity to create a street utility. Many cities choose to use property tax [revenues].”
The city could also look at reshaping how special assessments are used.
But Knakmuhs says that could lead to increasing spending caps, which would lead to taxpayers paying a greater share for street projects.
