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Mitchell council earmarks $600,000 in entertainment tax and $5.75 million in general-fund reserves for future capital projects
Summary
At its March 3 meeting, the Mitchell City Council voted to designate $600,000 in entertainment-tax reserves to Corn Palace–related facilities and set aside $5.75 million of general-fund reserves for future capital projects, a move council members said preserves options for infrastructure and tourism-related improvements.
Mitchell — The Mitchell City Council on March 3 voted to designate $600,000 from the city—s entertainment-tax reserves to support future Corn Palace facilities and to set aside $5,750,000 of general-fund reserves for future capital projects.
City staff presented the proposal as a way to preserve funds for projects that support tourism and local use. "If council isn't gonna move forward with the plaza, it would not make sense to designate these funds," a city staff member said during the presentation, noting the proposed designation was intended to show an "intended use" of the account while leaving final project decisions to future councils.
The $600,000 designation is drawn from the entertainment tax revenue stream, which the city collects on lodging, food and beverage, and event ticket sales; council members emphasized state law limits how that revenue may be used. The staff presentation showed entertainment-tax reserves and current allocations, and a council motion amended the wording to designate the funds to "future capital improvements to the Corn Palace facilities," allowing flexibility for plaza work or other Corn Palace needs.
Council also voted to designate $5,750,000 of general-fund reserves for future capital projects. City staff said the designation would lower the city's unassigned reserve balance toward the council—s policy target while reserving money for anticipated large projects and possible near-term debt-service needs.
Council members who spoke in favor cited the Corn Palace's economic draw and the value of having a committed funding source for both maintenance and improvements. A few members said they wanted to see more detail before approving specific elements of plaza work; others urged moving forward with design and partnership-seeking to avoid losing momentum in fundraising.
Mayor Jordan Hansen and city staff during the discussion noted design work and sponsorship conversations would continue, and that the designation can be reversed if council priorities change.
With the designations passed, staff said it will bring proposed project budgets and designs back to council for future approval and any required procurement or grant matches.
