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Yankton manager says $362,061.87 sales-tax reporting error will reduce projected revenue, forces budget choices
Summary
City Manager Amy Leon told the City Commission an amended state return revealed a $362,061.87 reporting error that drops annual sales-tax performance from +7.3% to -0.79%, prompting adjustments to the upcoming capital improvement and budget planning.
City Manager Amy Leon told the Yankton City Commission on June 9 that the South Dakota Department of Revenue notified the city of a taxpayer reporting error that reduced the city’s projected sales-tax revenue by $362,061.87. Leon said the amended return changes the city’s year-to-date sales-tax growth from a positive 7.3% to a negative 0.79%.
Why it matters: Leon said the reduction will affect the capital improvement plan and other budget choices the commission had been preparing to consider. She scheduled a June 16 work session on outside agencies and the capital improvement plan to allow the commission to review options and direct staff before finalizing budgets.
Leon said the state’s taxpayer data is confidential and city staff do not know which taxpayer’s filings caused the adjustment. “The taxpayer information that we get from the state's confidential, so we don't know who made the error, how the error was made, what entity it was,” Leon said. She described the reduction as “an error” and warned it will force the city to “make some choices.”
Finance staff and commissioners framed the development as a known risk; Leon noted a similar adjustment occurred in December 2023 for roughly $300,000. Commissioner Hanoff said she appreciated being informed before the budget process and that it was better to learn about the change early. Leon said the city typically uses conservative revenue estimates because revenue can be unpredictable.
Leon also flagged two smaller operational items during her report: the fountain at Broadway and Fourth needs a new pump and the pump pit is failing; city staff plan to repair the pump and then reassess whether a larger rehabilitation or partner funding is needed. Separately, Leon said three individuals listed on the nuisance abatement roll — Lee Bridal, Lisa Burling and Renee Charrette — have paid and will be removed from the roll when the commission approves the resolution.
The commission did not take an immediate budget vote at the meeting. Leon said staff will return with a packet of recommendations and that the June 16 session is intended for direction rather than final votes.
Ending: Leon urged optimism about summer sales and noted the city will aim to cover essential services while adjusting discretionary projects. The commission’s next work session on June 16 will include a review of the capital improvement plan and outside-agency funding requests.
