Council approves first reading of 2025 appropriation ordinance; members warn of revenue risk from proposed state initiatives

The Mobridge City Council approved the first reading of the 2025 appropriation ordinance on Sept. 11 after Finance staff summarized the plan and council members discussed local revenue risks.

Heather (city finance staff) highlighted key budget items: a cost-of-living adjustment for employees, a new housing director position, a replacement street sweeper, additional pool maintenance and another police vehicle. She told the council the proposed general-fund expenditures in the packet were presented as $4,470,000 (staff read the figure aloud during the meeting) and that the draft budget plans to use a portion of the city's unassigned fund balance to balance the year.

A council member warned voters about an initiated state measure on the ballot that would repeal sales tax on some "consumables," saying the South Dakota Municipal League is forecasting a possible local revenue loss in the hundreds of thousands of dollars and that the city could face cuts if the measure passes. The council speaker urged residents to vote against the initiative, citing an estimated impact to grocery-sales collections and uncertainty in the measure's wording.

What happens next: The council approved the ordinance's first reading by roll call; the second reading and final adoption will occur at a later meeting. Staff said the city will continue to refine budget line items before final approval and monitor state ballot language and forecasts for revenue impacts.