MITCHELL, S.D. (MITCHELLNOW) The South Dakota Transportation Commission decided at their meeting held Thursday August 29, 2024, to abandon the fixed 1.75% interest rate and instead will base the rate on what state government’s cash-flow fund has been receiving. The commission will use the cash-flow fund’s three-year average.
The commission also decided to add a quarter-percent of interest to offset the department’s administrative costs.
The three-year average from the cash-flow fund was 2.45%. Combined with the 0.25% administrative offset, that means the total interest rate will be 2.7% for the coming year.
The commission plans to review the rates each year in August or September. The commission also reserved the discretion to charge a different rate, if there are unusual circumstances behind an application.