Special City Commission Meeting
Valley City, North Dakota

Wednesday, July 29, 2026

President Bishop called the meeting to order at 7:30 AM.

Members present: President Bishop, Commissioner Gulmon, Commissioner Magnuson, Commissioner Kline, Commissioner Erickson, City Administrator Crawford, City Attorney Martineck, Finance Director Klein

 

New Business

Discuss and Approve the 2027 Preliminary Budget

Finance Director Klein reported that we are expecting to have the value of a mill the first part of August. The cap of 3% plus new growth sets the maximum amount the City can levy for the General Fund at $1,691,918 (3.75% increase from 2026). The City’s Share of Specials Fund 203 is not subject to the 3% cap. The amount to levy in Fund 203 is $32,400. The Library Fund is subject to the 3% cap plus new growth which brings the amount to $206,625. The increase in expenditures in the General Fund is 2.7%. The 2027 Transfers In consist of $260,000 being transferred in from Fund 241 Property Tax Relief and $147,390 from Funds 357 & 358 (Debt Service Funds). Transfers Out total $361,454: Fund 225 Building Reserves $115,000, Fund 230 Renew & Replacement $246,454, Cash reserves are at $1,400,000 which is 30% of expenditures, this is within the guidelines set in the City’s Fund Balance policy. Discussion was had regarding the Police Department’s vehicle rotation and needing to put aside money annually for those years where two vehicles would need to be purchased. City Administrator Crawford suggested reducing the Police Department’s building reserve fund by $10,000 and adding that amount to a vehicle fund for the Police Department.

The transfer from the Utility Fund to General Fund is $1,399,360. This brings the % of transfer compared to Public Works Revenues to an estimated 11%.

The proposed salaries in the 2027 Budget includes a 4.0% cost of living allowance (COLA) increase and a step increase in the 0-24-year salary schedule.

The increase in health insurance premiums for 2027 is 9.76%. We have budgeted for the City to pay 85% of the health insurance premium. In 2027 the City will also pay a $3,500 insurance incentive to those employees who are not on the City’s Health Insurance Policy through NDPHIT. The City’s contribution to the employee’s HSA accounts would remain the same, with the employees matching a portion of the contribution in order to receive the full amount.

Commissioner Gulmon moved to approve the 2027 Preliminary Budget which includes the proposed salary structure and 4.0% COLA with the change City Administrator Crawford suggested for the Police Department vehicle reserve fund, seconded by Commissioner Magnuson.

Roll Call: Gulmon-Yes; Magnuson-Yes; Kline-Yes; Erickson-Yes; Bishop-Yes   Motion Passed

ADJOURN

Meeting Adjourned at 8:13 A.M.