SEPTEMBER 18, 2024:
The City of Pierre’s 2025 budget is set at just over $60 million.
City Administrator Krisiti Honeywell says the town has two primary revenue sources– sales tax and utility rates.
Sales tax revenue supports Pierre’s Police and Fire Departments, Parks and Recreation, Rawlins Library, City Administration and the Street Department. It also provides funding for outside agencies such as Meals on Wheels, The Discovery Center, Pierre Economic Development Corporation, River Cities Public Transit, Missouri Shores Domestic Violence Shelter, Capital Area Counseling Service, the Boys and Girls Club of the Capital Area and others.
Honeywell says the City has three large expenses that require funding in 2025.
Honeywell says Pierre utility customers will see a 3% increase in the cost of each of the three utility services– electric, water and wastewater. The utility rates fund operations, maintenance and improvements in each of their respective utilities.
All towns in South Dakota have wildcard to consider when formulating their 2025 budget– the possible passage of Initiated Measure 28 during the November general election. Supporters say it would eliminate the sales tax charged on most things sold for human consumption, thus helping lower income people make their dollars go further. Opponents of IM28 say the wording of the measure is too vague and could include removing the tax on things such as tobacco, alcohol and candy.
Pierre Mayor Steve Harding says if voters approve IM28, the budget passed this week will be “unworkable” because of the anticipated lost sales tax revenue.
SEPTEMBER 17, 2024:
The City of Pierre’s 2025 budget is set at just over $60 million.
The city has some imperative expenses that require funding in 2025, and they account for a significant piece of next year’s anticipated revenue growth.
“Our biggest new expenditure next year is the $600,000 we’re setting aside to replace the Fire Department’s ladder truck,” said Krisit Honeywell, City Administrator. “In total, the truck will cost us about $2 million. It’s easier if we start setting money aside now to cover that cost rather than absorb it all in one year.”
Honeywell added that nearly $430,000 is in the 2025 budget as the local match for the primary runway rehabilitation project at Pierre Regional Airport, and another $136,000 will be used to purchase new servers for the city.
“Those three expenditures account for about $1.2 million,” said Honeywell. “We expect to be able to fund the ongoing expenses we have, as well as several other department requests like additional playground equipment and several pieces of new equipment.”
Mayor Steve Harding expanded with a disclaimer to the budget explanation.
“The wildcard to the 2025 budget is Initiated Measure 28,” said Mayor Harding. “If that measure passes during the November election, sales tax revenues will be reduced, and our programs supported by sales tax will be impacted.”
“The budget we outlined tonight will be unworkable.”
The city has two primary revenue sources -sales tax and utility rates.
Sales tax revenue supports the Police and Fire Departments, Parks and Recreation, Rawlins Library, City Administration, and the Street Department. Sales tax also provides funding for outside agencies such as The Discovery Center, Pierre Economic Development Corporation, Chamber of Commerce, River Cities Transit, Missouri Shores, Capital Area Counseling, the Boys and Girls Club, Meals on Wheels, and others.
The utility rates fund operations, maintenance, and improvements in each of their respective utilities.
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