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Spearfish previews $27M 2027 budget and plans to take full property-tax request
Summary
City staff presented a preliminary 2027 budget projecting nearly $27 million in general-fund revenue and recommended requesting the full property-tax amount allowed under state law ($3,808,087), a projected 6.3% increase driven in part by the closure of TIF districts that return value to the tax base.
City finance staff presented a preliminary view of the 2027 budget that would include nearly $27 million in general-fund revenue and a proposed property-tax request of $3,808,087, which finance staff described as the full amount the city can request under state law.
Michelle (speaker 2) told council the proposed property-tax figure represents roughly a 6.3% increase in the property-tax budget and that the change is driven primarily by the closure of two tax-increment financing districts (TIF 1 and TIF 4), whose taxable value is now returning to the rolls. "We would ask for $3,808,087," Michelle said, noting staff budgets property-tax collections at 95% to reflect historical nonpayment rates.
Staff presented a conservative 3% sales-tax increase projection, and noted several conditional revenue items: about $1.3 million in potential federal grant revenue tied to a project that may or may not move forward, and a tentative two-year state grant of roughly $70,000 for software. Michelle also identified a $100,000 typo in intergovernmental revenue and corrected that figure on the record.
Human resources director Jody Mathis (speaker 14) outlined department-level items the budget will carry, including a proposed paid parental-leave policy (160 hours for adoption or birth, with an additional 80 hours for a birthing parent) and an anticipated $5,591 one-time increase to adopt a new applicant-tracking system (Workable) when the current contract expires.
Library director Amber Weil (speaker 12) said the library sees only a small net budget increase, mostly due to personnel costs, and reported she had requested increased county support.
Staff reviewed a public schedule of study sessions and hearings: study sessions on July 29, Aug. 3, Aug. 12 and Aug. 17, first reading of the budget ordinance on Sept. 8, and final reading on Sept. 20; the budget must be filed with the county auditor by Oct. 1. Council members were asked to review packet materials and forward questions to staff ahead of study sessions.
