Commission reviews outside-agency funding and recommendations for Triple B allocations

City Manager Amy Leon told the Yankton City Commission at its June 16 budget work session that staff had prepared recommended funding levels for outside agencies and for the city’s Triple B (third‑penny) economic development fund and sought commissioner feedback before the formal budget presentation.

Leon recommended $20,000 for Lewis and Clark Behavioral Health and said that amount could be paid from the South Dakota opioid fund because much of the agency’s work serves people affected by opioids. She recommended $4,500 for the Small Business Development Center and proposed funding Yankton Transit at $45,000 of a $55,000 request. Leon also recommended continuing a $45,000 contribution to the United Way collective‑impact allocation and recommended $14,884 for Planning District 3.

Leon explained that Triple B spending is governed by state statute and a city ordinance that limit uses to economic development, promotion and related uses; she said the fund generally cannot pay for routine police personnel costs. Because of those constraints, some agency requests are proposed to be funded out of other funds rather than Triple B.

Why it matters: the Triple B is a dedicated sales‑tax revenue stream the city uses for economic development and promotional work; with recent sales‑tax pressures and the loss of a major employer, Leon said staff is trying to balance community investments with a shrinking Triple B balance.

Details and discussion

Leon told commissioners the historic‑facade program remains recommended at $30,000 based on past practice and visible downtown improvements. She proposed $10,000 for Riverboat Days of a $15,000 request, noting musical acts and event costs have risen. For special‑events and promotional budgets Leon proposed increasing one line to $100,000 for 2025 activity spending (she described that as a one‑time boost tied to recent high‑demand events) and said staff will recommend a smaller program in 2026 unless the commission directs otherwise.

Leon said Yankton Thrive remains a partner for recruitment and workforce work and that staff recommends continued support; she also described smaller continuing recommendations such as $2,500 for the Missouri River Sedimentation Action Coalition (MSAC) and a recommended $27,500 to support a Dakota Theatre capital campaign (Leon said the theatre’s request was $25,000 and staff added $2,500 to the recommendation).

Commission questions and staff follow‑up

Several commissioners asked about how recent and upcoming sales‑tax rebates and new retailers will be split across funds. Leon said staff has proposed apportioning anticipated sales‑tax reimbursement obligations among Triple B, the general fund (second penny) and special project funds because the city lacks precise experience with multiple new retailers. She said staff will gather more data next year and expects to refine the approach as actual sales tax receipts and rebate activity are known.

On Yankton Transit, Commissioner Sarta asked whether the reduced recommendation reflected a matching requirement; Leon said she would check the agency application to confirm whether the city’s contribution triggers any matching funds. On questions about the Menards TID debt service transfer, staff said the transfer covers a shortfall between increment revenues and annual debt service after a change in school property‑tax allocations and that staff would research the exact year and provide more detail.

What happens next

Leon said there is no budget vote at the work session; staff will use commissioner feedback to revise the draft outside‑agency and Triple B recommendations and will present them again with department operating budgets by statute in July and in full in August, with final action typically in September.

Ending

Commissioners offered brief direction and asked for follow‑up details on several items (sales‑tax rebate breakdown, Yankton Transit application, and the Menards TID history). Leon said staff will return with clarifications during the formal budget docket and that commissioners may contact staff over the summer if they want additional analysis before the next budget presentation.