Pipeline construction boosts Yankton's sales tax

Construction of the TransCanada Keystone oil pipeline is helping to keep Yankton's sales tax receipts in the black this year.

September receipts for Yankton were 8.5 percent above September 2008, putting the city just more than 1 percent ahead of last year's sales tax receipts to date.City Manager Doug Russell said Yankton is thrilled with the 2009 annual increase, even though it budgeted for a 3 percent increase.

"I'm happy to see anything above last year _ at one point, we were down almost 3 percent from last year, which put us 6 percent below what we budgeted," Russell said. "We're happy anytime that number goes in a positive direction."More than 400 oil pipeline construction workers lived in area campgrounds, motels, houses and apartments between May and August as they installed a portion of the 2,148-mile crude oil pipeline. Workers also frequented local restaurants and other businesses.

"Every retailer in town that I've talked with had customers from the pipeline project," said Brad Dykes, chairman of the Yankton Area Chamber of Commerce pipeline task force and store manager of Yankton's Hy-Vee. "Those employees felt very welcome here."General contractor Price Gregory Construction estimates a $1 million weekly payroll while in the Yankton area.Damion Spillman, Price Gregory's local office manager, said the office laid off its welders and is getting down to just a few crews. Construction headquarters for the project moved to Norfolk, Neb., in August and the contractor hopes to wrap up work in the area the first part of November.Spillman said he's been to a lot of places and Yankton was one of the best.

"Yankton is a real nice, pretty town," he said. "Everybody went out of their way to help us out. It was truly a good experience."Russell said Yankton is fortunate to post an increase, as many South Dakota cities have been seeing drops.Sioux Falls, Pierre, Rapid City, Watertown, Brookings, Spearfish and Huron all had lower sales tax receipts in September compared to the previous year's period.

Information from: Yankton Press and Dakotan, http://www.yankton.net/