Early returns show lack of needed support to extend Fargo sales tax

FARGO -- A citywide sales tax measure here was teetering on the edge of passage Tuesday night, with the majority of Fargo precincts reporting.

The proposed extension of a half-cent infrastructure sales tax needed 60 percent of the citywide vote to pass.

With 17 of 20 precincts reporting as of 10:55 p.m., 59.66 percent of Fargo voters approved of city Measure 1, while 40.34 percent voted it down.

In terms of actual vote totals, that equates to 9,204 Fargo voters who voted "yes" and 6,223 voters who voted "no" on the measure.

This spring, Fargo Mayor Dennis Walaker and other proponents of the tax extension waged a campaign to inform Fargo voters about needed infrastructure and flood protection, which the extension would fund.

However, critics - led by City Commissioners Dave Piepkorn and Mike Williams - have voiced concerns about the vagueness of the ballot measure and the exact purpose for the revenue.

If the measure fails, Walaker said he isn't giving up on the extension.

He's already expressed intentions to bring the measure back to Fargo voters in November, which will give city leaders another five months to try and convince voters.

If adopted, the half-cent sales tax would return Jan. 1 and last through 2032.

It should generate at least $11 million a year. But with the city's growth, that tax revenue could climb to $22 million a year by 2031, resulting in a total income of $312 million over the life of the 20-year tax.

The half-cent sales tax, which expires this month, was established in 1992 for street and sewer projects. Voters extended it in 2002 to also pay for permanent flood protection projects.

Earlier this year, Walaker proposed extending it for 20 years to help pay for an umbrella of priorities: streets, sewer and water infrastructure, and internal flood protection.

In March, city commissioners voted 3-2 to put the measure on the June 12 ballot.

Walaker and Commissioners Brad Wimmer and Tim Mahoney favor extending the tax, while Williams and Piepkorn oppose the extension.

Walaker has been among the most prominent cheerleaders for the extension, although key city officials and community members have also been on board.

A group of anonymous Fargo residents and businesses rallied together to support the sales tax extension.

The "Protect Fargo Committee" formed in mid-May, led by its chairman, Cole Carley, outgoing CEO of the Fargo-Moorhead Convention and Visitors Bureau.

No group had formed in official opposition to Fargo's Measure 1.

Piepkorn and Williams opposed the extension largely because they felt the ballot language was too vague.

Williams also argued that Fargo's other sales tax revenue ought to be enough to fund infrastructure projects.

Aside from the expiring half-cent tax, Fargo has 1½ cents in sales tax that generates $33 million a year toward water and sewer, streets, internal flood protection and the Red River diversion project.

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