07-04-2025
Marshall Mitchell: Mitchell City Council to consider setting measurable goals for nonprofit groups and their subsidy requests
Apr. 6—MITCHELL — During its regular meeting on Monday, April 7, the Mitchell City Council will consider what it expects out of non-profits seeking monetary aid from the city.
Mitchell Mayor Jordan Hanson is requesting that the council establish measurable goals for subsidy recipients as part of the 2026 funding applications.
In addition to funding non-profits like Dakota Counseling, Court Appointed Special Advocates, and the Area Community Theater, among others, the city also funds non-profits that exist for the sole purpose of growing Mitchell's economic base.
The city subsidized the city's outreach "arms" within the 2025 budget, including the Chamber of Commerce for $262,500, Mitchell Area Development Corp (MADC) for $182,000, Mitchell Area Housing Inc for $50,000 and Mitchell Main Street and Beyond for $45,000, for a total of $539,500.
"The council can pass on to them what it would like to see," Councilman Jeff Smith told the Mitchell Republic.
City outreach arms made up about 75.93 percent of the total subsidies given out in the city's 2025 budget.
"Those are the larger subsidies that we do fund, there's no question about it," said Smith, who is the council liaison to the MADC board. These organizations provide "the marketing arm, the advertising, recruitment arm that, theoretically, the city cannot do."
Mitchell is on track and on task for expansion and population increase, says Smith, who noted the work that MADC and MAHI are doing for workforce housing with developing apartment complexes, workforce housing developments, and day care initiatives.
The unemployment rate in Davison County is 1.7 percent, according to the U.S. Bureau of Labor and Statistics.
"There's absolutely nobody to employ if a new business comes to town," Smith said.
Daycare will free up stay-at-home moms to enter the workforce, according to Smith.
In September 2024, the council approved
$710,500 in subsidies to Mitchell nonprofits.
The city did not give the full requested total of $1.081 million to non-profit organizations. Funding was on a tentative basis on the condition that Initiated Measure 28 would fail during the general election in November 2024, which it did by 69%. The proposed measure sought to eliminate South Dakota's tax on consumable items. Sales tax makes up about 54% of the city's total revenue.
Subsidy applications are usually heard in September as part of fall budgetary proceedings of the council.
"I'm more inclined to think it's more of something that we should talk about at budget, not right now," council president Kevin McCardle told the Mitchell Republic.
Organizations have to fill out a new application every year to state what the intended use of the funds will be, which gives the council an opportunity to reject or deny applications based on the perceived merit of the specific request.
"Nothing has changed since I started out," McCardle said. "It's a pretty easy process. I haven't had a problem with it."
It would be difficult to set measurable goals for non-profits, according to Smith.
"If I'm disappointed, I'm voting against it next year. You have to show some form of progress, or why would we subsidize it?" Smith said.
The council will also consider approving various event permits, a pilot program for summer child care, a purchase agreement for the mobile home estate near Hitchcock Park, and hear an update on the proposed ambulance district.
A full agenda can be read on the
city's website.
The council meeting starts at 6 p.m. on Monday, April 7 at 612 N. Main St. at City Hall.
