CIB Proposes 1% Sales Tax Increase for Milbank

The Milbank City Council approved the first reading of Ordinance 868 during their regular meeting on Monday, July 13. The ordinance would authorize imposing a 1% percent municipal gross receipts tax (MGRT) to fund a community childcare center capital project. The new tax would be in effect for five years and is estimated to collect around $1 million dollars per year – with a $4.5 million minimum. In South Dakota, an MGRT applies to specific industries.— restaurants and prepared food, hotels and other lodging, alcoholic beverages, and event or amusement admissions. The one percent tax is in addition to the standard municipal sales tax rate.  

The city council voted to continue the process with the second reading of the ordinance at their next meeting. 

The proposal originated with the city’s newly-formed Capital Improvement Board (CIB), which recommended  the construction of a childcare facility capable of serving approximately 150 children. A third party would operate the daycare.

Resolution No 5-11-26 which authorized the formation of a Capital Improvement Board  (CIB) was passed by the city council during their regular meeting on May 11. CIB members appointed include Mindy Rogers, Kelsey Peery, Lacey Busack, Mike Hanson, and Dan Sorenson. 

The proposed 1% tax will need to come before the voters in the next election – most likely in November – and consent of 60 percent of those voters is required for it to pass. 

The July council meeting marked the final meeting for Councilman Craig Weinberg, who was recognized for his service. 

Newly elected council member Kyle Schwandt was sworn into office along with returning council members John Weyh and Josh Karels The council elected Mindy Rogers as council president and she is serving as mayor pro tem. Karels was elected as vice president.

Council members approved the minutes from the June 8 meeting, the claims list, and the treasurer’s report. 

Council members also held a public hearing before approving Public Hearing: Resolution 7-13-26. The resolution authorizes applying for financial 

assistance in the amount not to exceed $10,000,000 from the South Dakota Department of Water and Natural Resources. It also designates an authorized representative to  certify and sign the payment requests. Approving the resolution does not obligate the city to borrow the money.

The proposed water treatment facility would primarily remove iron, manganese, and total dissolved solids responsible for the discoloration residents experience. The project is also tied to state environmental requirements concerning wastewater treatment.

“This simply allows us to apply,” Pendergrass explained, adding that the city may ultimately seek a smaller loan because of the impact additional debt could have on future water rates.

The city recently secured future water rights in the Antelope Valley, giving Milbank additional options as it continues planning for long-term water needs.

As part of the consent agenda, council members authorized several routine but significant projects.

The mayor was authorized to sign documents related to airport improvement grants, including completion of the runway turnaround project and updates to the airport’s master plan, layout plan, and capital improvement plan.The Milbank Pilots Association will play an active role in updating those long-range planning documents.

The council authorized the Mayor to sign the FAA Airport Infrastructure Grant (AIG) – No. 3-46-0034-024-2026  for Phase I Master Plan Update – Airport Master Plan & Airport Layout Plan not to exceed $140,000 with the city agreeing to a 2.5 percent match.

Airport land leases approved: One-Year Leases – Reimche Airspray/Christian Reimche – (#33, #40, and #13). Buffalo Ridge Airspray (Northeast of #13, east of fuel tanks).  Dakota Air Spray (along east fence). 

Five-Year Leases – 2026-2030 – Calvin Moser ( #34). James Grorud (#35 and  #74). Henry Kliner (#36). Steve Benson( #3). Kirby Hins (#43). Ryan Kohl (#48) and Dan and  Shelly Loehrer (#73).

Council members approved categorizing a 1987 Duplex Aerial Cat fire truck as surplus and advertising it for sale. They also  accepted the donation of a 2005 Pierce Aerial Cat fire truck from the Milbank Fire Department. 

The council approved an agreement to create a digital easement mapping overlay, making it easier for city staff and property owners to identify utility easements. The approximate $21,000 cost will be spread over three years.

Department heads updated the council on a variety of summer activities.Council members also supported submitting another grant application for future bridge improvements using a 20 percent local match.

Street crews continue to sweep the streets, maintain alleys, mow ditches, and stripe parking lots along with addressing minor issues that have occurred with recently installed fuel tanks. Water department crews completed hydrant flushing, meter replacements, and water sampling. They also repaired hydrants throughout the city. Wastewater crews reported ongoing maintenance at lift stations and treatment facilities and identifying future equipment replacement needs.

The Milbank Police Department responded to 254 calls for service during June. The MPD also reported officers successfully completed their annual firearms qualifications. They participated in numerous community events during Farley Fest and the Fourth of July holiday. It was also noted that Officer Johnson is expected to return from military duty in Germany in September. Two new part-time officers and reserve officers have helped address staffing needs.

Josh Karels read a letter from a departing teacher praising School Resource Officer Jake Folk for building trusting relationships with students and serving as a positive role model for young people facing difficult circumstances.

The water department reported that 20 percent of the water distributed in June was spring water. 

Parks and Recreation Director Boyd VanVooren reported that summer recreation programs are nearing completion, four additional certified pool operators recently completed training, and Unity Health and Fitness will host a swim meet later this week. He also announced the Park and Recreation Board has formed a subcommittee to develop recommendations for spending the remaining bond funds designated for parks and recreation improvements. Councilman Ryan Gruba is on the subcommittee. VanVooren requested Karels be added to the subcommittee

The next regular meeting of the Milbank City Council will be held in the Community Room of the Milbank Visitors Center on Monday, August 10.