Minnehaha County Commission advances 2026 budget planning and approves $1.5 million opt-out resolution

The Minnehaha County Commission on July 15 advanced work on the 2026 budget and approved a $1,500,000 opt-out resolution intended to preserve funding capacity for public-safety and justice costs.

The commission heard a budget update from Susan Beeman of the auditor’s office, who said projected revenues for the general fund are about $88,800,000 against appropriations just over $95,600,000, producing about $12,000,000 in cash-applied spending, or a 12.5% cash-applied rate versus a historical target of roughly 8%. Beeman advised the panel that public-safety and justice-related costs account for 71% of the general fund and have risen about $23 million since 2021. "We do not plan to levy this immediately," Beeman said of the $1.5 million opt-out, adding that the county anticipates needing at least a portion of it in 2028 under the current forecast.

Commission staff also brought several discrete budget items to the commission’s attention. Julie Hofer, the county public advocate, described a requested conversion of an existing trial attorney position to a senior trial attorney and supervisory role — a reclassification rather than a new hire — that would increase that position’s pay by $11,499 and add supervisory capacity amid an expanding criminal and juvenile docket. The commission agreed to include the conversion in the provisional 2026 budget.

Two vehicle requests were also discussed. Chris Lilla, equalization director, described a 2008 assessor vehicle with roughly 88,000 miles and multiple mechanical failures; staff estimated about $3,600 in repairs versus a Kelley Blue Book retail value near $4,600. Commissioners indicated support for budgeting a replacement rather than repeatedly repairing an aging vehicle. Jacob Morris of the highway department recommended purchasing a bucket truck used primarily in winter and for emergency responses; Morris said rental options are limited locally and that owning the truck would pay off compared with repeated rentals and would improve emergency response capability. Morris estimated the existing truck’s salvage value at $10,000–$15,000.

On the opt-out resolution, commissioners framed the vote as a response to structural funding pressures at the state level and as a replacement mechanism for an expiring opt out of roughly $1.6 million. Several members argued that many county obligations are state-mandated and require stable local funding. One commissioner summarized the argument: "Opt outs are what we have left," adding that the panel must balance spending reserves and levying opt outs to maintain services.

After public comments — including residents urging caution about levies and appeals for expanded programs addressing recidivism — the commission approved the resolution by roll-call vote. The resolution covers $1.5 million in opt-out capacity for 25 years (taxes payable through 2050); staff said the county does not plan to levy it in 2026 and would only do so if the forecast and needs require it.

Next steps: staff will return to the commission next week to file a provisional budget with the auditor’s office and continue refinements to the five-year forecast. The commission discussed joint sessions with the City of Sioux Falls on shared budgets (911, museum, library) scheduled for Aug. 26.

The commission then recessed for public comment on nonagenda items and later moved to executive session to address matters allowed under South Dakota law.