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Information about the Sales Tax Ballot Measure
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No. This is a decision whether or not to support the financing plan deemed most appropriate by the Diversion Authority and local entities. Sales taxes are one method of paying for flood protection, including the Diversion Project. Since 2009, sales tax revenues have been successfully utilized to pay for flood protection efforts. The use of sales tax has reduced the reliance on other local forms of funding, including property taxes and special assessments. If the sales tax extension is approved; it would help ensure that property tax increases and/or special assessments would not be needed as a funding source.
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Sales taxes are paid by all those who visit, shop, or take advantages of the services within the County and City. Because Fargo and Cass County are economic centers that serve a large geography (including visitors from Canada), the use of sales tax is a fair way to fund infrastructure such as flood protection, versus charging the residents alone.
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Sales tax is expected to fully cover the local portion of the FM Area Diversion Project and other Fargo Flood Control Measures.
The Diversion Project has been determined as the best way to obtain certified 100-year flood protection for the metro area and protect our community from the devastating impacts of a major flood.
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A long-term revenue source is needed to secure the long-term financing that helps make the annual payments affordable, much like a home mortgage. The financial plan amortizes the sales tax related bonds out until 2084, which is the length of time required to affordably secure long-term sales tax-backed bonds. The financial plan also envisions a scenario in which continued historical generation of sales tax revenues could allow the early repayment of those bonds.
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The FM Area Diversion Project would be delayed, and a new implementation strategy and schedule would be developed.
Costs would increase due to delays, and the Federal and State grant funds could become at risk.
The financial plan would need to be revised to consider other funding and financing mechanisms.
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Cass County Ballot Language
Shall the Cass County Home Rule Charter be amended to extend the existing flood- protection-related sales, use and gross receipts tax of one-half of one percent (1/2%) to be used solely for the engineering, land purchase, construction, and maintenance of flood control measures including the Metro Flood Diversion Project including associated special assessments and indebtedness, through December 31, 2084, and shall be rescinded when all of the costs, obligations and debt for said project have been paid in full and satisfied, whichever event occurs first as provided in Resolution #2016-20 and in the Notice of Proposed Cass County Home Rule Charter Amendment as published in THE FORUM on the 29th day of August, 2016.
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Fargo Ballot Language
Shall the city of Fargo’s Home Rule Charter be amended to extend the existing flood-protection-related sales taxes to pay for flood protection, including the Metro Flood Diversion Project and associated special assessments and indebtedness, through December 31, 2084 unless rescinded earlier, after the costs, obligations and debt for said project have been paid as determined by the City Commission, all as provided in the Notice of Proposed Fargo Home Rule Charter Amendment as published in THE FORUM on the ___ day of September, 2016?
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FM Area Diversion Project
Flood Diversion Authority
Box 2806, 211 Ninth Street South, Fargo, ND 58108
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