1st Reading Ordinance 962 - 2027 Budget

SDCL 9-21-2:  The governing body of each municipality shall, no later than its first regular meeting in September of each year or within ten days thereafter, introduce the annual appropriation ordinance for the ensuing fiscal year, in which it shall appropriate the sums of money necessary to meet all lawful expenses and liabilities of the municipality.  SDCL 9-8-10:  The majority vote of the aldermen shall be necessary to pass an ordinance or proposal which expends or appropriates money, and the mayor may not break a tie on an ordinance or proposal to expend or appropriate money. 

The budget is the master financial plan of the municipality.  The necessity of preparation and use of a budget cannot be overemphasized.  The appropriations included in the annual budget constitute maximum authorizations to spend during the fiscal year and cannot be exceeded except by subsequent amendment of the budget by the governing body pursuant to SDCL 9-21-7. 

1st Reading of the budget is from the budget work sessions council has contributed in over the month of August.  I have made the changes council requested at those meetings to prepare the first reading. There can not be substantial changes from this reading to the next.  

2027 budget overview:

$13 million in capital projects (60.9% of the budget total)

$8.3 million for O&M, debt, transfers, etc

$21 million total

2026 budget was:

$8.3 million in capital projects (49% of the budget total)

$8.7 million for O&M, debt, transfers, etc

$17 million total

Overall the O&M, debt, transfers and etc went down from 2026 budget.  The increase in total budget comes from the capital projects.  2 large projects budgeted in 2026 were not started and move to the 2027 budget.  Those projects are Orleans and Western Utilities.  

Approve 1st reading of Ordinance 962