During the November 25, 2024 City Council Work Session in Mitchell, South Dakota, a significant discussion centered around the city's sales tax budget for 2025, revealing promising financial projections. City officials reported that the current sales tax budget is set at $13.4 million, with 2023 collections reaching $14.5 million—indicating a potential surplus of up to $1.6 million above the budgeted amount.

City Finance Director Stephanie provided insights into the revenue trends, noting that collections are currently 6% higher than in 2023. As the fiscal year nears completion, officials anticipate that total revenue could exceed expectations, although caution was advised regarding interest income, which may not meet planned targets due to fluctuating interest rates.

The discussion also highlighted the importance of considering the overall revenue budget, as sales tax is just one component. Currently, the city has collected about 90% of its total revenue for the year, with sales tax collections at approximately 95%. However, property tax collections are lagging at 57%, primarily due to pending payments.

Additionally, the council addressed the omission of grocery tax revenue from previous budgets, which has contributed to discrepancies between projected and actual figures. Despite these challenges, the outlook remains optimistic, with expectations of continued revenue growth into 2025.

In closing, the council emphasized the need for careful financial planning as they move forward, particularly in light of the upcoming budget discussions for major projects, including the Cadwell infield turf, which remains partially funded in the 2025 budget. The meeting underscored the city's commitment to transparency and fiscal responsibility as it navigates its financial future.