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Council OKs replacing broken lottery machine; finance report shows liquor fund transfers to general fund

City of Dell Rapids City Council · January 20, 2026
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Summary

After staff outlined repair and replacement options for an aging lottery machine (repair $800–$1,000; replace with a new IGT machine about $14,000), council voted to purchase a new machine. Finance staff said the liquor fund generates substantial revenue and typically transfers $100,000–$120,000 to the general fund.

Council members discussed options for a broken, aging lottery machine in city‑operated liquor locations and approved purchasing a new machine this year. Finance staff outlined three options: repair (estimated $800–$1,000), replace with a new IGT machine (about $14,000), or remove the machine and accept reduced revenue. Staff noted there is budgeted capital funding of approximately $50,000 that could cover replacement costs.

"Option 2 is replace it with a new IGT machine... That process is around $14,000," staff said. Council members discussed staggered replacement over multiple years, vendor availability and machine popularity; after a motion to proceed with purchase, the council approved the replacement by voice vote. The finance officer also reviewed liquor‑fund performance, saying annual revenue typically ranges from about $124,000 to $190,000, with transfers to the general fund often between $100,000 and $120,000.