No one addressed the East Grand Forks city council during last night’s (Tuesday) public hearing to discuss the proposed 2024 budget. The current spending plan projects an 11% levy increase next year – although the mayor has set a 5% goal.
At that level the city would need to dip into budget reserves to cover a $444,000 dollar budget shortfall. That would drop the fund balance from 50.5% to around 48%. In 2021 the reserve was at 57.61%. The state recommends a balance of between 35% and 50% as a goal. Council President Mark Olstad says he’s not a fan of pulling more money out of the bank.
The city has been looking for savings including reorganization of certain departments…leaving unfilled positions open….and staff reductions. Mayor Steve Gander says it’s a tough balancing act between a tax hike and services.
The council faces a December 28th deadline for finalizing the budget.
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The East Grand Forks council will continue a police recruitment and retention bonus program for another year.
The council adopted the bonus pay plan in October of 2022 on a one-year trial basis in response to stiff competition for filling positions within the department.
Bonuses of $3,000 dollars are paid to officers who have been with the department for 2-4 years. The figure climbs to $5,000 dollars for years ten to retirement. The budget impact for 2024 is estimated at $42,000 dollars.
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