During a recent government meeting, officials discussed the city's financial challenges and the implications of a proposed $200,000 annual loan payment. The council determined that taking on this debt would be unwise, especially given uncertainties about future financial conditions. Instead, they opted to pay for current expenses upfront, despite the immediate financial strain this decision may cause.
The discussion also highlighted the ongoing project involving a suspended sidewalk, originally funded by a $2.8 million agreement with the state of South Dakota. This funding was intended to cover construction and design costs, but the project faced significant budget overruns due to unforeseen circumstances, including the impact of COVID-19. The city's share of the costs increased by approximately $900,000, alongside additional expenses related to water main extensions.
In light of these developments, the council expressed gratitude for the state's willingness to provide a loan to cover the excess costs. However, they ultimately decided that paying for the project outright would prevent future councils from being burdened with long-term debt obligations.
In other business, the council approved the purchase of aviation gasoline for the Hot Springs airport, selecting Valcon as the supplier at a rate of $4.67 per gallon, while also considering quotes from other vendors. Additionally, the council approved a plat for two new lots in the city, furthering local development efforts.