City manager presents conservative 2026 budget as sales tax and water revenues fall

YANKTON, S.D. — City Manager Amy Leon presented the proposed 2026 budget to the Yankton City Commission on Aug. 18 and described a plan built on restraint as sales-tax and utility revenues show signs of decline.

"The budget is just a plan," Leon told the commission and the public at a budget work session. "It's a compass, not a cage." She said the budget as presented is conservative and that commissioners would not be asked to vote on it that night; the first reading would occur later in the process and additional readings could follow if substantive changes are required.

Leon said the city faces a drop in sales-tax receipts and lower enterprise revenues after the loss of a long-standing local employer, which she named in the meeting as Sympls. She said water sales through July 2025 were down roughly 14% compared with the same period in 2024 — about 38.3 million gallons through July 2024 versus about 32.9 million gallons through July 2025 — while operating costs such as electricity have risen. "So that's just one of those challenges that we have to face," Leon said.

Nut graf: The presentation framed the 2026 budget as prioritizing core services and planned capital already under way while cautioning that some projects and discretionary programs could be delayed if revenues fall short. Leon explicitly asked the commission to expect more month‑by‑month updates on sales tax and warned that some budgeted items might not proceed if revenue does not support them.

Most important figures and rate proposals

- General fund (without carryover) estimated at about $4,600,000; the city budget was presented with a planned 0 balance (no built‑in reserve) absent carryover. - Total budget: Leon said last year’s budget exceeded $93 million and the proposed 2026 budget is about $72 million (largely reflecting previously planned capital spending that is underway). - The city budget shows roughly $20.8 million committed in projects while…