Council takes first reading of the 2026 appropriations ordinance totaling $72.5 million

Finance Director Ashley Rensch presented the first reading of Ordinance 25‑034, the 2026 appropriations ordinance. She said the proposed 2026 budget totals $72,527,765 and the general fund totals $22,900,000, which the presentation described as balanced with revenues equal to expenditures.

Rensch told council the city projects sales tax growth of 3% and property tax growth of 5% for 2026. She said core general fund services — public safety, public works, and parks/rec/forestry — account for roughly 73% of general fund expenditures. The proposed 10‑year capital improvement plan includes $13.4 million in proposed CIP expenditures for 2026, with key items listed in the presentation: $4.5 million for annual street maintenance, $1 million contributions to SDSU performing arts center and Brookings Health System (noted as an ongoing contribution through 2027), $700,000 for a fire engine replacement, $450,000 for a recreation facility improvement and $330,000 for police vehicles.

Rensch said the second reading and adoption of the budget, the 10‑year CIP and the fee schedule are scheduled for the Nov. 18 council meeting. Councilmember Hager read a prepared statement to disclose a potential employer conflict of interest (her employer is South Dakota State University) and explained why she believed she could participate in deliberations; she invited colleague questions and none were raised.

This item was informational at first reading; no final vote on the appropriation ordinance occurred tonight. The council will consider adoption at the next meeting.