Brookings city staff outline balanced 2025 budget, propose two new positions and modest levy increase

City of Brookings staff on Tuesday presented a draft 2025 budget that they described as balanced and modestly larger than the current year, emphasizing sustainability and a 10-year financial plan.

"This will be our first budget workshop for the 2025 budget," Deputy City Manager Jake Meshey told the council as he outlined the schedule and assumptions behind the draft. Staff said the proposed general fund budget shows $21.9 million in revenues matched by $21.9 million in expenditures and a total city budget near $72 million.

Staff projected a $475,000 increase in general-fund expenditures compared with the 2024 adopted budget — roughly a 2.2% rise — and identified staffing increases as the primary driver. Meshey described two proposed positions for 2025: a master mechanic in the streets division intended to reduce contracted repairs and downtime, and an associate planner to handle day-to-day duties and free the city planner for longer-range work. "We are proposing to add 2 additional staff positions in the 2025 budget," Meshey said.

Revenue assumptions use 2023 actuals as a baseline, then apply 2.2% growth for 2024 and 2025. Staff cautioned the draft does not assume impacts from a pending initiated measure (referred to in materials as I-28). Using League of Cities estimates, staff said that measure could reduce local revenues by about $1.6 million, which they described as an uncertain but material downside risk.

On property tax, staff explained the city’s levy is computed using a formula that includes a CPI component (capped at 3% under state law) and a growth factor tied to new construction. "We will be able to increase our property tax levy by a total of just over 5% in 2025," Meshey said; Finance Director Ashley Rentsch later told the council that translates to about $205,000 year over year and a certified levy near $4.2 million.

Meshey also reviewed special and enterprise funds. He said tax-increment-financing (TIF) districts 7 and 11 along Twentieth Street South/Prairie Hills are driving much of the TIF revenue growth, and that the solid-waste fund will use reserves for several capital projects identified in a recently completed master plan. For the Brookings Municipal Utility (BMU), staff said the BMU transfer was reclassified in the presentation, and that proposed water and wastewater rate increases are under consideration to cover major plant work.

Council members asked for clarification about pillow-tax and Bridal-B revenue projections, how department heads prioritized staffing requests and whether partners such as South Dakota State University might share costs for large airport equipment. Meshey described a department-head voting process used to prioritize hire requests and confirmed staff had discussed airport equipment and FAA grant possibilities with Public Works.

The presentation also outlined proposed outside-agency funding and a plan to convert the printed budget book to an interactive online format. Meshey said staff would present capital-plan details and the consolidated fee schedule at a later workshop on Sept. 24. The council did not take final action on the budget during the workshop; adoption is scheduled through ordinance readings in October and November.