City Council Reviews Funding Adjustments to Combat Overtime, Credit Fees, and Maintenance Costs
- Steve Jurrens
- 8 hours ago
- 2 min read
Northeast Radio SD News - Watertown, SD - The Watertown City Council held the first reading of Ordinance No. 25-26 on December 1, 2025, proposing a supplemental appropriation to the 2025 budget. The ordinance seeks to cover overruns across various departments and projects, incorporate state and federal grant appropriations, and authorize line-item fund transfers among the General Fund, Park & Rec Fund, and Capital Improvement Fund.
Finance Officer Kristen Bobzien presented the proposal, explaining that the annual supplement process allows the City to adjust budgets based on year-end projections.
City Manager Alan Stager provided an overview of the three primary areas requiring additional funding due to overspending in 2025…
Steger detailed the budget discrepancies the supplement is intended to remedy:
1. Public Safety Overtime: The 2025 budget significantly underestimated overtime costs, particularly in public safety departments. Steger noted that a normalized operational level for public safety typically requires approximately 5% overtime, a benchmark that the original budget did not meet. The supplemental request addresses this shortfall, and Steger confirmed that the 2026 budget has been adjusted to reflect a more realistic overtime level, mitigating future unplanned overruns.
2. Credit Card Fees: The budget line item for “banking services,” which covers credit card transaction fees, exceeded its appropriation. Steger stated that the city has addressed the core issue by transitioning to a new credit card supplier and implementing a resolution to transfer some credit card fees back to consumers. Councilman Hoyer clarified and confirmed that this supplement corrects a past issue, and the policy change should eliminate the need for future supplements in this area.
3. Aging Facilities Maintenance: Unplanned expenditures in older facilities, notably the Wellness Center, also contributed to the need for a supplement. Steger highlighted that mechanical equipment and system updates were required as the building ages. He advised the Council that future budgets must anticipate increasing maintenance costs for the City’s aging infrastructure. Staff were able to delay the replacement of the pool-area HVAC system by a year or two through specialized contractual advice.
The discussion also centered on long-term fiscal strategies for the City’s infrastructure.
Councilman Kyle Peters raised the importance of proactive capital planning...
Stager stated that a comprehensive facility assessment—set for completion next year—will provide necessary guidance on the condition of specific systems and facilities. This data will allow the City to make better-informed decisions on maintenance priorities and the long-term viability of particular assets, moving the Capital Improvement Plan (CIP) beyond a simple replacement schedule based on age.
Mayor Ried Holien inquired about the discretion in overtime…
In response to a query from Councilman Brent Mohrmann regarding fiscal discipline, Stager acknowledged that the City underspent in many budget areas, such as materials, supplies, and staffing, where staff successfully managed expenses and reduced overall municipal headcount.
Other line items addressed included consultant services for the Ice Arena pre-operation planning and utility spikes at the Aquatic Center due to a water main break and a pool leak.
Ordinance No. 25-26 was presented for first reading and requires no immediate action. It is scheduled to return for a second reading and final vote at the next City Council meeting.