SDCL § 34A-6-39: Appropriations for long-term contracts.

If the term of any contract entered into pursuant to § 34A-6-26 or 34A-6-38 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 sufficient money to cover the amount payable or estimated to become payable under such contract during the ensuing fiscal year.

Source: SL 1977, ch 280, § 31.