CHAPTER 9-21
TAX LEVIES AND APPROPRIATIONS
9-21-1 Fiscal year of municipalities.
9-21-2 Annual appropriation ordinance--Time of introduction--Contents--Enterprise and trust and agency funds.
9-21-3 Appropriations limited to municipal powers.
9-21-4 9-21-4. Repealed by SL 1981, ch 44, § 29.
9-21-5 Appropriations for support of Civil Air Patrol.
9-21-6 Classification of expenditures in annual appropriation ordinance.
9-21-6.1 Line item for contingencies--Maximum amount--Transfer to other appropriations.
9-21-7 Supplemental appropriation ordinance for indispensable functions or discharge of municipal duties.
9-21-8 Additional appropriations prohibited--Bond authorization as appropriation.
9-21-9 Expenditures limited to appropriated amounts.
9-21-9.1 State, county and federal grants expended without provision in appropriation ordinance--Publication.
9-21-9.2 Restoration of funds on reimbursement from other subdivisions, departments, or insurance.
9-21-10 Contracts prohibited unless covered by appropriation or bonds.
9-21-11 Long-term contracts authorized for utility services and improvement of irrigable lands--Appropriation required--Referendum.
9-21-12 Authorization of depreciation reserve within proprietary fund.
9-21-13 Purposes of depreciation or capital replacement reserves.
9-21-14 9-21-14. Repealed by SL 1994, ch 69, § 3.
9-21-14.1 Accumulation of funds for capital outlay purposes--Maximum amount.
9-21-14.2 Vote required for capital outlay accumulation--Time of expenditure--Reversion of unused funds.
9-21-14.3 9-21-14.3 to 9-21-14.5. Repealed by SL 1989, ch 75, §§ 2 to 4.
9-21-15 Replacement or repair required by unanticipated event--Borrowing and addition to tax levy.
9-21-16 Surplus funds used for replacement or repair required by unanticipated event.
9-21-16.1 Casualty reserve fund authorized--Limitation on amount and use of fund--Interest.
9-21-17 Judgment against municipality--Borrowing--Maximum tax levy to pay judgment.
9-21-18 Contracts exceeding maximum tax levy as misdemeanor--Personal liability of authorizing officer.
9-21-18.1 Municipality authorized to enter into lease-purchase agreements.
9-21-19 Annual tax levy included in appropriation ordinance--Apportionment among funds, bond interest, and debt service funds.
9-21-20 Certification of annual tax levy to county auditor.
9-21-21 Warrants limited by tax levy--Violation as misdemeanor--Removal of offender from office.
9-21-22 Maximum obligations under appropriation.
9-21-23 Proration of expenditures under appropriation for more than one year.
9-21-24 Highway taxes paid to municipal treasurer quarterly--Purposes for which expended.
9-21-24.1 Encumbrance of unexpended appropriations for obligations incurred but not paid.
9-21-25 Diversion of money belonging to funds prohibited.
9-21-25.1 Contingency amount included in general fund appropriation--Transfers from other funds--Maximum contingency fund balance.
9-21-26 9-21-26. Repealed by SL 1993, ch 73, § 1.
9-21-26.1 Transfer of surplus funds--Restrictions.
9-21-27 Transfer of bond redemption funds allowed if certain amount is retained.
9-21-28 Transfer to school districts of surplus from revenue-producing enterprises--Transfer to funds.
9-21-29 Transfer by county of funds received on behalf of municipality--Statement by county auditor of source and amount of funds.
9-21-30 Transfer by county auditor of funds received on behalf of municipality--Interest charged for failure to distribute--Statement of source and amount of funds.
9-21-31 Capital replacement reserve fund authorized.
9-21-32 Internal service fund for equipment purchases authorized--Equipment defined.
9-21-33 Contributions to technical colleges.
9-21-34 Municipal appropriation--Deadlines.
9-21-34.1 Municipal appropriation--Moved deadline--Certification.
9-21-1. Fiscal year of municipalities.
The fiscal year of each municipality shall commence on the first day of January of each year.
Source: SL 1890, ch 37, art VII, § 7; SL 1890, ch 37, art XV, § 1; RPolC 1903, § 1295; SL 1913, ch 119, § 114; RC 1919, § 6333; SL 1921, ch 298; SDC 1939, § 45.1401.
9-21-2. Annual appropriation ordinance--Time of introduction--Contents--Enterprise and trust and agency funds.
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. The ordinance shall specify the function and subfunction as prescribed by the Department of Legislative Audit for which the appropriations are made and the amount appropriated for each function and subfunction, which amount shall be appropriated from the proper fund. It is not necessary to appropriate revenue to be expended from an enterprise or trust and agency fund if the fund is not supported or subsidized by revenue derived from the annual appropriated tax levy. However, an annual budget for these funds shall be developed and published no later than December thirty-first of each year.
Source: SL 1890, ch 37, art XV, § 2; RPolC 1903, § 1296; SL 1913, ch 119, § 115; RC 1919, § 6334; SL 1921, ch 295, § 1; SDC 1939, § 45.1402; SL 1953, ch 257; SDC Supp 1960, § 45.1402 (1); SL 1983, ch 58; SL 1984, ch 58; SL 1985, ch 63.
9-21-3. Appropriations limited to municipal powers.
No money belonging to any municipality shall be appropriated except for such objects and the defraying of such expenses as necessarily arise in the exercise of the powers granted to it.
Source: PolC 1877, ch 24, § 24; CL 1887, § 1045; RPolC 1903, § 1443; RC 1919, § 6345; SDC 1939, § 45.1406.
9-21-5. Appropriations for support of Civil Air Patrol.
The governing bodies of municipalities may contribute sums of money annually to the support of units of the Civil Air Patrol located in their respective municipalities. For the purposes of carrying out the provisions of this section, such governing bodies may appropriate out of the general funds of their respective municipalities.
Source: SL 1964, ch 146.
9-21-6. Classification of expenditures in annual appropriation ordinance.
The classification of expenditures in the annual appropriation ordinance of municipalities of the first and second class shall conform to the uniform classification in the municipal accounting manual published in accordance with § 4-11-6.
Source: SL 1925, ch 115, ch II, art III, § 3; SL 1931, ch 107; SL 1933, ch 57, § 1; SL 1937, ch 106; SDC 1939, § 45.1403; SL 1957, ch 249; SL 1971, ch 62; SL 1977, ch 73, § 2.
9-21-6.1. Line item for contingencies--Maximum amount--Transfer to other appropriations.
In preparing the annual estimate of expenses as provided by § 9-22-23, the auditor or clerk may include in the budget a line item for contingencies. The line item shall be included in the annual budget adopted pursuant to § 9-21-2 and shall not exceed five percent of the total municipal budget. No expenditures shall be charged to this item but such appropriated amount may be transferred, by resolution of the municipal governing body, to any other appropriation in which insufficient amounts were provided or for items for which no appropriation was provided.
Source: SL 1975, ch 95, § 1.
9-21-7. Supplemental appropriation ordinance for indispensable functions or discharge of municipal duties.
In the event of the failure to provide by the annual appropriation ordinance, sufficient revenue to enable the municipality to conduct the indispensable functions of government in any department, or to discharge any duty which it is the lawful duty of the municipality to discharge and which requires the incurring of liabilities or expenditures of funds for a purpose or object for which no provision has been made in the annual appropriation ordinance for such fiscal year, and when any of such occasions arise the governing body of such municipality may make, approve and adopt a supplemental appropriation ordinance, providing therein for appropriations for any or such purposes in such amounts as said governing body may determine necessary and such supplemental appropriation ordinance shall set out in detail each item for which an appropriation is made and the amount thereof. The adoption of such supplemental appropriation ordinance shall be governed by the same laws pertaining to the adoption of the annual appropriation ordinance.
Source: SDC 1939, § 45.1402 (3) as added by SL 1953, ch 257.
9-21-8. Additional appropriations prohibited--Bond authorization as appropriation.
No further appropriations shall be made at any other time for such fiscal year, except as provided in §§ 9-21-2 and 9-21-7. Whenever the governing body is authorized by the voters to issue bonds for a specific purpose, it shall be deemed an appropriation to the extent of the bonds authorized.
Source: SL 1890, ch 37, art XV, § 2; RPolC 1903, § 1296; SL 1913, ch 119, § 115; RC 1919, § 6334; SL 1921, ch 295, § 1; SDC 1939, § 45.1402; SL 1953, ch 257; SDC Supp 1960, § 45.1402 (4).
9-21-9. Expenditures limited to appropriated amounts.
Neither the governing body nor any department or officer of the municipality shall add to the municipal expenditures in any fiscal year any sum in excess of the amount provided for in the annual appropriation ordinance except as otherwise specially provided. Nor shall the amount spent for any purpose or any department exceed the total amount appropriated for such purpose or for such department in the annual appropriation ordinance for such year, except as otherwise specially provided.
Source: SL 1890, ch 37, art XV, § 3; RPolC 1903, § 1297; SL 1913, ch 119, § 116; RC 1919, § 6335; SL 1921, ch 295, § 2; SL 1933, ch 152; SDC 1939, § 45.1404; SL 1939, ch 187; SL 1949, ch 184.
9-21-9.1. State, county and federal grants expended without provision in appropriation ordinance--Publication.
Any funds made available after the final appropriation ordinance is adopted by a municipality from state, county, and federal grants for expenditure by the municipality shall be paid into the municipal treasury and may be expended without specific provision in the appropriations ordinance of the municipality. In this case the governing body shall publish, in the official newspaper of the municipality, the purpose for which the expenditures were made and to whom the expenditures were made.
Source: SL 1973, ch 42, § 2; SL 1980, ch 56, § 2.
9-21-9.2. Restoration of funds on reimbursement from other subdivisions, departments, or insurance.
If the governing board of any municipality authorizes lawful expenditures from any specific fund for the use or benefit of another municipal department or political subdivision or expenditures to be reimbursed by insurance claims, the reimbursement for such expenditures shall be restored to the fund from which originally withdrawn and the deposit of the same shall restore the budget of such fund in the amount of the reimbursement.
Source: SL 1975, ch 87; SL 1976, ch 81.
9-21-10. Contracts prohibited unless covered by appropriation or bonds.
Except as otherwise provided no contract shall be made by the governing body of any municipality and no expense shall be incurred by any department or any officer thereof, whether ordered by the governing body or not, unless an appropriation shall have been previously made concerning such expense, or the governing body authorized to issue bonds for a specific purpose.
Source: SL 1890, ch 37, art XV, § 4; RPolC 1903, § 1298; RC 1919, § 6336; SL 1921, ch 295, § 3; SL 1925, ch 233; SDC 1939, § 45.1405; SL 1941, ch 199; SL 1953, ch 258; SL 1959, ch 269.
9-21-11. Long-term contracts authorized for utility services and improvement of irrigable lands--Appropriation required--Referendum.
The governing body may enter into a contract for any term of years as the governing body may determine with any person or any rural water system, water user district, sanitary district, water project district, or like organization for the purchase by the municipality of water, gas, or electricity. If a contract is entered into with the United States government, or any agency or department thereof, providing for the sale and purchase of water or the acquisition of a municipal water supply, the contract may be for any term of years as said governing body may determine, or for the leveling or improvement of irrigable lands belonging to the municipality, which lands were on February 20, 1953, located and situated within the boundaries of an existing irrigation district. If any contract entered into pursuant to this section extends for more than one year, an appropriation need not have been previously made concerning such expense, except sufficient to cover the amount payable or estimated to become payable under such contract for the first year thereof. The governing body shall annually thereafter appropriate an amount sufficient to cover the amount payable or estimated to become payable under such contract during the ensuing fiscal year.
Such contracts shall be subject to referendum as ordinances.
Source: SL 1925, ch 233; SDC 1939, § 45.1405; SL 1941, ch 199; SL 1953, ch 258; SL 1959, ch 269; SL 1974, ch 72; SL 1991, ch 71.
9-21-12. Authorization of depreciation reserve within proprietary fund.
The governing body of a municipality may by resolution create a depreciation reserve within each proprietary fund, as necessary, not to exceed the accumulated depreciation of the fixed assets of the respective fund.
Source: SL 1951, ch 247, § 1; SDC Supp 1960, § 45.0201-1 (9); SL 1978, ch 62, § 8; SL 1991, ch 72.
9-21-13. Purposes of depreciation or capital replacement reserves.
The depreciation or the capital replacement reserves shall be used only to replace and repair equipment belonging to the municipality and may not be used for the acquisition of equipment which would represent a substantial expansion in the total amount of equipment belonging to the municipality. Equipment for the purposes of this section shall mean properties commonly considered as representing capital outlay rather than operating expense outlay and shall include municipally owned buildings and lands.
Source: SL 1951, ch 247, § 2; SDC Supp 1960, § 45.0201-1 (9); SL 1994, ch 69, § 2.
9-21-14.1. Accumulation of funds for capital outlay purposes--Maximum amount.
The governing body of a municipality may by resolution authorize the accumulation of funds for a period longer than one year for specific capital outlay purposes otherwise authorized by law. For the purpose of this section, capital outlay purposes means purposes which result in the acquisition of or additions to plant, or equipment, including expenditures for land, existing facilities, improvement of grounds, construction of facilities, additions to facilities, remodeling of facilities, or for the purchase of equipment. The governing body shall establish a maximum amount allowed to be accumulated in the fund.
Source: SL 1979, ch 55, § 1; SL 1980, ch 68, § 1; SL 1989, ch 75, § 1; SL 2016, ch 53, § 2.
9-21-14.2. Vote required for capital outlay accumulation--Time of expenditure--Reversion of unused funds.
The resolution authorized by § 9-21-14.1 shall be enacted by a two-thirds vote of the governing body and shall set forth clearly the purposes for which the funds are to be accumulated and the maximum amount that may be accumulated. The funds to be accumulated shall be expended within sixty months from the date of the resolution. If the specific purposes for which the funds are accumulated are deemed no longer necessary, these funds shall revert to the general fund.
Source: SL 1979, ch 55, §§ 2, 4.
9-21-15. Replacement or repair required by unanticipated event--Borrowing and addition to tax levy.
No expenditure for any improvement, replacement, repair or service shall exceed in any one year the amount provided therefor in the annual appropriation ordinance of a municipality, except that the governing body may expend the proceeds of any bond issue authorized by the voters of the municipality, or in case of emergency, by a unanimous vote, may by resolution order any improvement, replacement, repair or lawful service the necessity of which is caused by any casualty, accident, circumstances or event happening after such annual appropriation ordinance is made which could not have reasonably been anticipated at the time of making the annual appropriation ordinance. The governing body may order the mayor or president to borrow in the name of the municipal corporation, with the attest of the auditor or clerk, a sufficient amount to provide for the necessary expense to be incurred in making any improvement, replacement or repair and in furnishing such service the necessity of which has so arisen, for a period not exceeding the close of the next fiscal year, which sum and interest shall be added to the amount authorized to be raised by the next general tax levy.
Source: SDC 1939, § 45.1404; SL 1939, ch 187; SL 1949, ch 184.
9-21-16. Surplus funds used for replacement or repair required by unanticipated event.
If the municipal corporation has on hand any unappropriated money, or money not raised by taxation, loan, or assessment, which can be spared for the purpose described in § 9-21-15 and which has not been pledged for the payment of any indebtedness of the municipality, or any money in any fund which the governing body by unanimous vote determines will not be needed for any other municipal purpose during the current fiscal year, such money may be transferred by the governing body, by unanimous vote, in order to provide in whole or in part the money made necessary by such unanticipated events or circumstances, and such money may be used in lieu of such borrowing or the borrowing may be supplementary thereto.
Source: SDC 1939, § 45.1404 as added by SL 1949, ch 184.
9-21-16.1. Casualty reserve fund authorized--Limitation on amount and use of fund--Interest.
The governing body of a municipality may, by resolution or ordinance, establish a fund to be designated the casualty reserve fund and the governing body may, in their annual appropriation, set forth a specific amount for such fund. The amount appropriated shall be transferred to such fund. However, at no time may the money in such fund exceed the sum of one hundred thousand dollars. The money in the fund may be expended only for the payment of expenses to replace and repair property of the municipality which was damaged or lost as a result of a casualty loss. If this fund is at the maximum amount allowed, the interest earned from the investment of the fund shall be placed in the municipality's general fund.
Source: SL 1968, ch 189; SL 1977, ch 75; SL 1986, ch 74.
9-21-17. Judgment against municipality--Borrowing--Maximum tax levy to pay judgment.
If any judgment is obtained against the municipality, it may borrow for a space of time not exceeding the close of the fiscal year a sum sufficient to pay the judgment, if a tax levy of ten dollars per thousand dollars of taxable valuation of the municipality will be sufficient to pay all judgments subsisting and final at the time of making the levy. No tax levy greater than ten dollars per thousand dollars of taxable valuation of any municipality, may be made in any one year for the payment of a judgment or judgments. If a levy of ten dollars per thousand dollars of taxable valuation per year on such valuation will be insufficient to pay any final judgment within ten years from the date it becomes final in a municipality with a population in excess of five hundred, a tax levy may be made of any amount sufficient to pay every judgment and the interest thereon in ten equal installments within ten years from the date it becomes final. In a municipality with a population of five hundred or less a tax levy of ten dollars per thousand dollars of taxable valuation of such municipality may be made for the payment of the judgment and the interest thereon. However, the levy may not be made for a period in excess of nineteen years for the purpose of payment of any one judgment.
Source: SL 1890, ch 37, art XV, § 3; RPolC 1903, § 1297; SL 1913, ch 119, § 116; RC 1919, § 6335; SL 1921, ch 295, § 2; SL 1933, ch 152; SDC 1939, § 45.1404; SL 1939, ch 187; SL 1949, ch 184; SL 1983, ch 60.
9-21-18. Contracts exceeding maximum tax levy as misdemeanor--Personal liability of authorizing officer.
It is a Class 2 misdemeanor for the officers of any municipality, unless expressly authorized by law, to contract any debt or incur any pecuniary liability, for the payment of either the principal or interest, for which during the current year or any subsequent year it will be necessary to levy on the taxable property of such municipality a higher rate of tax than the maximum rate prescribed by law.
Every such contract shall be null and void in regard to any obligation thereby imposed on the municipality on behalf of which such contract purports to be made.
Every officer who makes or participates in making or authorizes the making of any such contract shall be held individually liable for its performance.
Every officer present when any such unlawful contract was made or authorized to be made shall be deemed to have made or to have participated in making or to have authorized the making of the same, as the case may be, unless he dissented therefrom and entered or caused to be entered such dissent on the records of such municipality.
Source: SL 1897, ch 28, § 140; RPolC 1903, § 2243; RC 1919, § 6957; SDC 1939, § 45.1416; SL 1981, ch 43, § 17.
9-21-18.1. Municipality authorized to enter into lease-purchase agreements.
The provisions of § 9-21-18 or any other provision of law notwithstanding, any municipality may enter into a lease-purchase agreement for a term of years, not exceeding ten years for equipment and twenty years for an improvement to real property, for the purchase or lease by the municipality of real or personal property. Any lease-purchase agreement for a term exceeding one year requires the approval of more than sixty percent of the members-elect of the governing body of the municipality.
Source: SL 1995, ch 37, § 2; SL 2018, ch 52, § 1.
9-21-19. Annual tax levy included in appropriation ordinance--Apportionment among funds, bond interest, and debt service funds.
The annual appropriation ordinance of each municipality shall also contain the annual tax levy, which for all purposes except park purposes shall not exceed the limitations prescribed by law. It shall apportion among the various funds provided for therein the amount levied for general purposes and shall designate the amount to be applied upon each fund. It shall also specify the amount levied to pay the interest on each outstanding bond issue, and the amount levied for the purpose of each debt service fund established to pay the principal of each series of bonds when matured.
Source: SL 1890, ch 37, art X, § 7; RPolC 1903, § 1229, subdiv 3; SL 1913, ch 119, § 115; RC 1919, § 6334; SL 1921, ch 295, § 1; SDC 1939, § 45.1402; SL 1953, ch 257; SDC Supp 1960, § 45.1402 (2).
9-21-20. Certification of annual tax levy to county auditor.
Immediately upon the passage and publication of the annual appropriation ordinance the auditor or clerk shall certify the tax levies therein made to the county auditor in the county in which the first or second class municipality is situated in the following form:
For general purposes ..........
For interest and debt service fund ..........
Source: SL 1913, ch 119, § 115; RC 1919, § 6334; SL 1921, ch 295, § 1; SDC 1939, § 45.1402; SL 1953, ch 257; SDC Supp 1960, § 45.1402 (5); SL 1992, ch 60, § 2.
9-21-21. Warrants limited by tax levy--Violation as misdemeanor--Removal of offender from office.
No liability may be incurred against the municipality in excess of the total appropriation of the fund.
No liability may be incurred under any appropriation for which a warrant cannot be drawn as herein provided.
No member of the governing body may vote to incur a liability or to issue a warrant, nor may any mayor or finance officer sign, issue, or deliver any warrant, nor may any finance officer pay any warrant, issued in violation of the provisions of this section. A violation of this section is a Class 2 misdemeanor.
Upon conviction of a violation of this section the court in which such conviction is had may in its discretion enter an order removing the member of the governing body or other officer so convicted from his office.
Source: SL 1890, ch 37, art XV, § 3; RPolC 1903, § 1246; SL 1913, ch 119, § 119; SL 1915, ch 117, § 1; RC 1919, § 6342; SDC 1939, §§ 45.1414, 45.9902; SL 1976, ch 82; SL 1981, ch 43, § 18; SL 1993, ch 72.
9-21-22. Maximum obligations under appropriation.
No obligation under any appropriation shall be incurred or warrant drawn in excess of seventy-five percent of the tax levy made for the fund provided for such appropriation for the current fiscal year and seventy-five percent of the cash in the treasury in such fund derived from sources other than such tax levy prior to the second Monday in May of each fiscal year, except under appropriation made exclusively for the purchase of land or buildings or the erection of buildings for the municipality.
Source: SL 1890, ch 37, art VII, § 3; RPolC 1903, § 1246; SL 1913, ch 119, § 120; SL 1915, ch 117, § 2; RC 1919, § 6343; SDC 1939, § 45.1415.
9-21-23. Proration of expenditures under appropriation for more than one year.
In all cases where appropriations of money are authorized and made for periods longer than one year, the expenditure thereof in any one year shall never exceed the proportion which one year of time bears to the whole time, unless otherwise expressly provided.
Source: SL 1890, ch 108, § 1; RPolC 1903, § 310; RC 1919, § 6959; SDC 1939, § 45.1417.
9-21-24. Highway taxes paid to municipal treasurer quarterly--Purposes for which expended.
All highway taxes collected as personal taxes from residents of any municipality and all highway taxes collected on account of real or personal property situated within any municipality by the treasurer of the county in which such municipality is located, shall be turned over quarterly by such treasurer to the treasurer of such municipality to be expended under the direction of its governing body in the improvement of the streets, alleys, highways, or public grounds thereof.
This section shall not apply to taxes levied by the county and state.
Source: SL 1887, ch 147, § 1; CL 1887, § 1167; RPolC 1903, § 1534; RC 1919, § 6524; SL 1919, ch 333, § 67; SDC 1939, § 45.1426.
9-21-24.1. Encumbrance of unexpended appropriations for obligations incurred but not paid.
The governing body may by resolution not later than its first meeting in February encumber that portion of unexpended appropriations from the prior year for which applicable obligations were incurred but were not paid. The resolution shall state the appropriation account and amount encumbered. The auditor, clerk, or finance officer shall keep a detailed listing by payee and amount supporting such amount shown in the resolution for examination at the time of audit.
Source: SL 1971, ch 61; SL 1976, ch 74, § 1; SL 1979, ch 56.
9-21-25. Diversion of money belonging to funds prohibited.
Except as herein provided no money belonging to any fund shall ever be diverted to the use of any other fund, and no warrant shall be drawn upon any fund not properly chargeable to such fund.
Source: SL 1913, ch 119, § 118; RC 1919, § 6341; SDC 1939, § 45.1413; SL 1939, ch 187; SL 1955, ch 204; SL 1965, ch 213.
9-21-25.1. Contingency amount included in general fund appropriation--Transfers from other funds--Maximum contingency fund balance.
The amount to be budgeted for the contingency pursuant to § 9-21-6.1 shall be included in the appropriation for the municipal governing body out of general fund revenues. When transfers are made from the contingency budget to other appropriations, whose revenue is provided by other than general fund revenues, a transfer of fund balances may be made from the municipal general fund to such other fund in the amount of the budget transfer. At no time shall the balance in the contingency fund exceed five percent of the total municipal budget.
Source: SL 1975, ch 95, § 2.
9-21-26.1. Transfer of surplus funds--Restrictions.
The governing body may by a two-thirds vote transfer the surplus money in any of the several funds to any other fund or funds or may appropriate such surplus money to the payment of any outstanding indebtedness of the municipality. No money in any fund may be transferred unless a sufficient amount is left to pay all outstanding warrants drawn against the fund, together with any other indebtedness or contemplated expenditures from the fund for the current fiscal year. No money may be transferred from any sinking or interest fund unless sufficient money is left to pay all interest which may accrue on and the principal of all outstanding bonds. If there remains in the treasury of any municipality an unexpended balance of any special fund, and all claims against such fund have been fully paid, and the purpose for which it was created has been fully served, and there remains no further use for such balance for the purpose for which it was created, the governing board of the municipality may transfer such balance to any other fund of the municipality or subdivision to which such balance belongs. Enterprise funds are not construed to be special funds for purposes of this section.
Source: SL 1993, ch 73, § 2.
9-21-27. Transfer of bond redemption funds allowed if certain amount is retained.
No balance remaining at the end of any fiscal year in any fund raised for the purpose of paying the principal or interest upon the bonded indebtedness of the municipality may be transferred to any other fund unless enough money is retained in the fund to retire all outstanding bonds and to pay any interest which will accrue on the bonds.
Source: SL 1913, ch 119, § 118; RC 1919, § 6341; SDC 1939, § 45.1413; SL 1939, ch 187; SL 1955, ch 204; SL 1965, ch 213; SL 1988, ch 77.
9-21-28. Transfer to school districts of surplus from revenue-producing enterprises--Transfer to funds.
Authority is hereby granted to all municipalities to transfer surplus funds accumulated through special municipal revenue producing enterprises to public school districts operating within the municipality; provided such transfer of funds shall be made through a majority vote of the governing body of the municipality and accepted by a majority vote of the governing body of such school district.
No funds shall be transferred that are acquired through legal tax levy in the municipality. All such funds may be transferred by the school district to the general fund or the capital outlay fund of such school district.
Source: SL 1947, ch 220, §§ 1, 2; SDC Supp 1960, § 45.1436; SL 2005, ch 98, § 2.
9-21-29. Transfer by county of funds received on behalf of municipality--Statement by county auditor of source and amount of funds.
The county treasurer shall transfer, by the twentieth day of the month, all money received during the prior month on behalf of the municipality to each municipality. Whenever any funds which have been collected by the county for the municipality from taxes or from any other source are remitted to the municipality, the county auditor shall send to the municipal finance officer or treasurer a statement showing the exact source and amount of such funds.
Source: SL 1977, ch 74; SL 1988, ch 78, § 1.
9-21-30. Transfer by county auditor of funds received on behalf of municipality--Interest charged for failure to distribute--Statement of source and amount of funds.
The county auditor shall, by the twentieth day of the month, transfer all money received during the prior month on behalf of each municipality to each municipality. Any county failing to distribute the receipts within the time prescribed is subject to an interest charge of one percent per month based on the receipts for the first thirty days of delinquency or part thereof and, thereafter, one percent per month for each month or part thereof. When any funds which have been collected by the county for the municipality from taxes and from any other source are remitted to the municipality, the county auditor shall send to the municipal finance officer a statement showing the exact source and amount of the funds.
Source: SL 1986, ch 75; SL 1988, ch 78, § 2.
9-21-31. Capital replacement reserve fund authorized.
The governing body of a municipality may by ordinance create a capital replacement reserve fund or account for general fixed assets, not to exceed fifty percent of the value of the general fixed assets.
Source: SL 1994, ch 69, § 1.
9-21-32. Internal service fund for equipment purchases authorized--Equipment defined.
The governing body of a municipality may by resolution create an internal service fund to provide for the acquisition of equipment. Moneys may be budgeted and transferred to the fund from any source which may lawfully be used for such purpose, including equipment usage charges on any municipal department or agency. For purposes of this section, the term, equipment, includes machinery, motor vehicles, and any other equipment or personal property.
Source: SL 2005, ch 51, § 1.
9-21-33. Contributions to technical colleges.
The governing body of a municipality may contribute sums of money to provide general operating and capital support to any technical college and other career and technical education purposes. The funds necessary to execute this section may be appropriated from the municipal general fund, the capital outlay fund, or both.
Source: SL 2014, ch 93, § 1, eff. Mar. 28, 2014; SL 2020, ch 61, § 35.
9-21-34. Municipal appropriation--Deadlines.
A municipality may move the deadline for introducing the annual appropriation or budget, contained in § 9-21-2 and subdivision 9-10-15(5), as applicable, to as late as the first regular meeting of the governing board in November. Each municipality that opts to move the deadlines shall, by ordinance, establish budget hearing and publication deadlines pursuant to § 9-19-7.
Source: SL 2021, ch 41, § 1.
9-21-34.1. Municipal appropriation--Moved deadline--Certification.
If a municipality opts to move the budget deadlines, the provisions of § 9-21-20 do not apply. On or before October first, after notice and hearing on the requested levies, the municipal finance officer shall certify the tax levies to the county auditor in the county that the municipality is situated in the following form:
For general purposes..........
For interest and debt service fund..........
Source: SL 2021, ch 41, § 2.
