BROOKINGS – The Brookings City Council will meet at 4 p.m. Tuesday for a workshop on the 2021 budget. Then during the regular meeting at 6 p.m., councilors will consider contractual documents for receipt of the CARES Act funds to address the COVID-19 public health crisis.

Budget workshop

“The city will host a series of budget workshops to ensure a transparent and engaging budget process. Budget Workshop No. 1 will focus on a budget overview, operating budgets, and outside agencies. Staff will present balanced and sustainable budgets to City Council,” according to a memo by Jacob Meshke, assistant city manager. The memo is attached to the council agenda.

“The City of Brookings adopts a budget on an annual basis to set the strategic direction for the upcoming year. At the completion of the six-month development and adoption process, the budget serves as a policy tool, operations guide, financial plan, and communications device,” according to Meshke’s memo.

Meshke reported that a second budget workshop will be held on July 28 to discuss the 10-year Capital Improvement Plan and the consolidated fee schedule. A third workshop date will be available on Aug. 11 for any further budget discussion and clarification as desired by the council.

The first reading of the budget ordinance is scheduled for Aug. 25. The second reading of the ordinance, adoption of the 10-year Capital Improvement Plan, and adoption of the consolidated fee schedule are scheduled for Sept. 8. The Sept. 22 meeting is a contingency date if a third reading of the budget ordinance is necessary.

“The proposed 2021 budget is $53,923,545, which is a decrease of $1.2 million, or 2%, from the 2020 budget,” according to Meshke’s memo. 

“The budget includes a proposed balanced General Fund of $16,826,047. The budget is considered balanced as revenues are equal to expenditures. Public safety, public works, and parks, recreation, and forestry account for approximately 73% of the General Fund. Sales tax, property tax, and transfers account for approximately 82% of General Fund revenue,” according to Meshke’s memo. 

“Special revenue/debt service funds total $11.9 million. Project-heavy Storm Drainage and Special Assessment Funds in addition to the Swiftel Center account for 72% of special revenue/debt service fund expenditures,” according to Meshke’s memo. 

“Enterprise funds total $15.8 million for 2021. A significant change for the 2021 budget is that the liquor pass through (approximately $6.8 million) will now be accounted for in the Liquor Fund as opposed to the General Fund. In total, Enterprise Funds are proposed to operate at a $1.5 million surplus for 2021,” according to Meshke’s memo.

CARES Act funding

The council will consider contractual documents with the State of South Dakota for the receipt of CARES Act funds to address the COVID-19 public health crisis. 

“Passage of this resolution is a requirement in the process to access the funds allocated to the City of Brookings through the State of South Dakota’s COVID Recovery Fund,” according to a memo by Ashley Rentsch, deputy finance manager.

To receive the CRF funds, cities must pass a resolution by the jurisdiction’s governing body authorizing execution of a contract with the state; execute a reimbursement agreement with the state outlining the city’s legal obligations relating to any funds provided; and submit a reimbursement request and supporting documentation to the state through an online portal.

“Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act to provide much needed resources to help governments, businesses, and individuals respond to the COVID-19 pandemic. Within the CARES Act, South Dakota was provided funding to create the Local Government COVID Recovery Fund to provide financial resources to cities and counties within the state,” according to Rentsch’s memo. 

“The State of South Dakota’s COVID Recovery Fund has allocated up to $5,519,641 to be reimbursed to the City of Brookings for costs incurred directly related to the COVID- 19 pandemic,” according to Rentsch’s memo. 

Those costs can include necessary expenditures incurred due to the public health emergency with respect to COVID-19; costs not accounted for in the budget most recently approved as of March 27, 2020, for the state of South Dakota; and costs incurred during the period beginning March 1, 2020, and ending Dec. 31, 2020.

Contact Jodelle Greiner at jgreiner@brookingsregister.com.