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City Manager presents roughly $93.5 million 2025 budget, warns of uncertainty from state sales-tax measure
Summary
City Manager Amy Leon outlined a proposed 2025 budget of about $93.5 million, described restricted capital funding, proposed a 3% utility rate increase, and warned commissioners that the state 'I am 28' sales-tax initiative could cut the city's general fund by roughly $1 million if it affects municipalities.
City Manager Amy Leon presented the proposed 2025 budget during a Yankton City Commission work session, saying the document totals roughly $93.5 million and reflects a mix of ongoing operations and large, restricted capital projects.
Leon said much of the budget total is grant- or project-restricted — including the aquatic center, water-treatment work and wastewater improvements — and therefore not available to pay for general city services. "That doesn't necessarily mean we're going to spend all those dollars," she said, noting the difference between total budgeted dollars and freely available general-fund revenue.
Leon recommended a 3% increase to all utility rates for 2025 (water, sewer and solid waste), citing recent capital needs and rising operating costs. She gave example per-customer impacts included in the budget letter: about $0.95 on water, roughly $1.73 for wastewater and $0.78 for solid waste for the year. Leon said the solid-waste increase is the third of four planned adjustments tied to previous commitments.
The manager also flagged a statewide initiated statute labeled "I am 28" that would exempt certain consumables from sales tax. "The language right now seems to indicate that it would not impact municipalities," Leon said, but she added state officials and municipal legal advisors have not clarified the measure's municipal effect. Staff currently estimate a possible $1 million impact to Yankton's general fund if the initiative reduces local sales-tax receipts.
Leon said staff are planning for "what if" scenarios over the coming months and have budgeted a slightly larger contingency for 2025 to allow flexibility for wage negotiations and potential revenue changes. She urged commissioners to monitor revenues closely and to consider timing for major equipment purchases if revenue uncertainty persists.
The manager recommended commissioners schedule first and second readings of the budget in September to allow further public comment and to complete the formal adoption process.
