S.D. Codified Laws § 46A-14-57
In lieu of tax or special assessment levies in municipalities, the managers and the governing boards of municipalities may enter into contracts for annual payments by the municipality to the district. The governing boards shall include amounts sufficient to cover the annual payments to the district in the annual appropriations of the municipalities. If contractual commitments between a district and a municipality are to meet in part obligations imposed by a contract or other agreement between the district and an agency of the United States, the commitments on behalf of a municipality shall be a continuing annual obligation during the life of the contract between the district and the United States in the same manner as though the municipality had entered into the contract or agreement with the United States under provisions of § 9-36-15 or 9-43-137. In no case may the governing board of a municipality execute a contract or agreement with the managers of a district until a favorable vote by the voters of the municipality has been obtained in order that claims for payment may be paid by the municipality under provisions of § 9-42-2.
SDCL 46A-14-57