City Revenues Soar: Yankton Sees A 22.85% Increase Over Last Year
22 Jun 2021
Community Growth, Economic Development, Revenue, City of Yankton, sales tax
Yankton’s exceptional revenue year is continuing as 2021 nears its midpoint.
For the month of May, the City of Yankton was up 22.85% in terms of sales tax revenue over the same month in 2020.
Overall, the city is up an impressive 10.11% on the year.
City Finance Officer Al Viereck said the numbers are nothing to scoff at, even compared to previous years unaffected by COVID-19.
“It definitely reflects our economy opening back up again,” he said. “We were really compressed a year ago because of the beginning of COVID, but the good thing is, if you look back two years ago, we’re still way, way up from that.”
With all the sales tax revenue streams combined, the city took in $981,321 in May 2021, far ahead of the $856,331 recorded in May 2019.
One of the most significant areas of recovery is the BBB (bed, board and booze tax), which saw a 58.92% rise from May of last year. Overall, the BBB is up 16.06% on the year.
Viereck said it’s welcome news for a suffering industry.
“A year ago, this is when everything was closing down — bars, restaurants, a lot of the service industry,” he said. “It’s nice to see those numbers, but it’s certainly welcome by that industry. They need to see a bounce back.”
As with the overall sales tax picture for May, the BBB numbers for May well surpass the same time frame in years prior to the pandemic. Last month saw the BBB take in $56,836 — well ahead of the $48,709 recorded in May 2019.
The City Commission and city staff are set to have their first hearing on the 2022 budget during a work session ahead of the board’s regular meeting next Monday.
Viereck said the latest numbers are welcome news as city officials begin to look ahead, but the good numbers don’t mean setting their cares aside.
“It means we’re a little more hopeful,” he said. “But we’re still so cautious. This is so new to all of us. We’ve had two good months of extreme increases, but we’re comparing it with such a deeply depressed time a year ago. We’d like to think it’s going to keep going, but there’s still only so much money out there.”
He added that there’s reason for confidence as the year goes on, but a reality to keep in mind along with it.
“We’re extremely positive,” he said. “The cautionary thing is — are we through with COVID yet? There’s so much that’s uncertain yet. We certainly are feeling the effects of opening up around here, but will we run into a re-occurrence and start to slow down again? That’s our only concern.”
In the meantime, the success in sales tax revenues has been a statewide trend.
Among the Top Ten First Class Cities Plus Vermillion, only four are recording less than double digit growth on the year. Brookings is the lowest at 5.48% on the year while Rapid City is the highest, recording 18.65% revenue growth on the year.
Vermillion is reporting 12.87% growth on the year.