Hill City Council approves first reading of 2023 budget

The first reading of the budget was approved at the Aug. 8 Hill City Common Council meeting.
There was no public input addressing the topic, although approval came with a caveat of “minor changes” to revenue to reflect Alderman Dale Householder's concerns with the Senior/Hill City Center’s wages.
Householder wants the budget to reflect the $25,000 the Hill City Seniors promised to the Hill City Center.
Finance Officer Stacia Tallon contacted  the auditor to determine how to legally capture that into the revenue since it is specifically for wages.
Householder also said he still had “heartburn” for dipping $525,000 into reserves for budgeting purposes for possible street improvements, if the council decides to move forward with the road plan.
City Administrator Brett McMacken explained that budgeting for something is better than not, describing the process as “tenuous.”
McMacken said, “We’re kind of flying blind a little bit,” since the city is just starting to receive  its revenue.
He reminded  aldermen that road design plans need approval  before  going out to bid, so they will know what that cost is prior to any actual construction.
McMacken noted there are at least three points at which aldermen can stop the process.
“You’re always in the driver’s seat,” McMacken  said.
“At the end of the day, it’s just a budget,” McMacken  said, calling it the city’s best guess of revenue and expenses.
An expiring cable franchise agreement  with Golden West Telecommunications was brought to the council.
The 10 year agreement  was discussed with the City Attorney prior to the meeting.
“The recommendation  is that we just adopt the agreement  again  for  10 years,” said McMacken.
The FCC now allows the city to capture five percent of gross subscriber revenues. The current  agreement  is three percent which amounts to between  $700-$800 per quarter.
Increasing the percentage would pass through the  tax, which would merely tax the subscribers.
McMacken  was concerned most subscribers were elderly and that the added revenue would be negligible.  
Rick Reed, Director of Video Services with Golden West, was present to answer any questions.
He said the company applied for several state grants for fiber optics, none of which were approved.
“That’s a direction we want to go, but we’re just not there today,” Reed said.
The Council approved  the agreement with no changes, keeping the subscriber  revenue at three percent.
Rick Mills requested a special alcohol license for an anniversary  party for the 1880 Train and a fundraising event for the South  Dakota  State Railroad  Museum.
 Mills said according to his research, the 1880 Train has the longest continuing service in the state. “They cannot find anybody who has been doing it longer,” he said.
This is the first request for the sale of liquor in the Hill City Center. It was unanimously  approved  by the council.
 The city received  correspondence from a resident in Hill City regarding  a conditional use permit (CUP) request at 319 Park Street.
The letter stated the residents had “serious  concerns” about the CUP. The item was not on the council agenda but was read anyway.
This letter listed seven items of concern about the CUP. The CUP is still working its way through Planning and Zoning as a bed and  breakfast request after the request to be  grandfathered in as a nightly vacation  rental  was denied by the council.
Aldermen approved  the final plat of Ambur Subdivision located near Storm Mountain Cottages Subdivision.
The Pennington  County  Sheriff  report noted a couple of arrests, both assaults, in July.
The council discussed the site plan for the Lions Club Duck Race. There are 11 vendors so far for the event and Lions Club President Stefanie Doaty hopes for three or four more.  There are also several  food vendors lined up for the day in addition to a bouncy house and water slide.
The day will also feature face painting, childrens art projects, carnival games and music.
Racing ducks will be dumped  into the creek by the soccer field.
Doaty also explained the Lions Club will donate half the proceeds of the next few months’ bingo nights  to the Hill City Ambulance  District.
Alderman Carl Doaty received consensus to begin applying for a USDA grant for a fire mitigation  plan.
The grand opening of the Hill City Center is scheduled for Sept. 25.
An Oktoberfest  street dance to  benefit  the Hill City  Ambulance  District  will take place Sept. 17, the same date as the senior rummage  sale.
Sales tax numbers are almost double what last year’s numbers were. Tallon contacted the state  questioning the numbers and was told to “ride it out.”
The Hill City Common Council meets again Aug. 22 at 5:30 p.m.