Flandreau — City staff told the council that fiscal year 2024 sales-tax receipts exceeded the year’s conservative estimates and improved the city’s year-end position.

Lori Cole, staff member, presented the FY2024 sales-tax breakdown and said, “we exceeded where we thought we would be.” Cole reported that the bed-board-and-booze fund was budgeted for about $32,000 and produced $37,000 in 2024; she said the city budgeted about $410,000 per penny for the first and second penny and that each penny generated $466,928.24 in receipts in 2024.

Nut graf: Higher sales-tax receipts covered several unanticipated expenses in the 2024 supplemental budget and increased general-fund reserves; staff said the trend is generally upward compared with recent years but remains below 2022 levels.

Details and context

Cole walked the council through historical comparisons: she reported a roughly 2% increase over 2023 overall, while 2022 remained a stronger year. She noted that sales tax revenues are affected by online point-of-sale collections and one-time construction projects in town. Council members and staff discussed how upcoming local projects (including sewer and water work and construction tied to the Boys and Girls Club) may boost point-of-delivery sales tax receipts.

Ending

Cole said the positive variance should allow the city to cover last year’s supplemental expenses and that excess funds will revert to general-fund reserves or BBB reserves as applicable. No formal council action was required on the report.