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Financial plan calls for 80 year sales tax extension to pay for FM Diversion

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FARGO (KFGO-AM) - The Fargo City Commission will discuss a proposal to extend two existing city sales taxes for flood control Monday.

The extensions, lasting up to 80 years, would be used to help pay the local share of the $2 billion F-M flood diversion project. If approved, voters would get to make the final decision in the November general election. The financial plan would not require any new taxes or special assessments. 

But City Commissioner Tony Gehrig says one of the taxes is misleading. He says it was sold to voters in 2012 as a sales tax for flood protection when it actually is being be used for other city projects. He calls that "dishonest." Gehrig wants the language changed so the tax revenue can only be used for flood protection. He says it should be a true flood tax. 

Mayor Tim Mahoney says that's not the case. When first presented by city leaders four years ago, the sales tax was clearly spelled out for voters that it would be used for infrastructure and flood protection and it passed with a 60% majority. Mahoney also says a recommendation will be made to eliminate the use of the tax proceeds for infrastructure at a later date.


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