First District Association Reports “Massive” Financial Windfall for Watertown; Regional Cooperation Yields 250-to-1 Return

Northeast Radio SD News – Watertown, SD - The Watertown City Council received a “rosy” financial update Monday night that underscored the tangible power of regional cooperation, as the First District Association of Local Governments reported that the city saw a staggering $250 return for every single dollar it invested in the organization last year.

Todd Kays, the Executive Director of the First District—humorously introduced by Mayor Ried Holien as the “Grand Poobah”—presented the 2025 annual report, highlighting a year of high-water marks in grant procurement and economic development.

A Multimillion-Dollar Impact

The First District, one of six regional planning and development districts in South Dakota, serves 11 counties and 76 municipalities in the northeast corner of the state. For Watertown, the association’s ability to “bridge the minefield” of state and federal financing has resulted in a significant influx of capital.

“Last year was a good year,” Kays told the Council. He reported that the district assisted Watertown in obtaining two major grants: a $2.5 million Economic Development Administration grant and a $500,000 Local Infrastructure Improvement Program (LIIP) grant, both earmarked for the Calvin Industrial Park expansion.

The numbers for the broader region were equally impressive:

·         Regional Total: The district secured $27 million in total loans and grants for its members in 2025.

·         Grant Efficiency: Of that total, $21 million consisted of pure grant dollars, requiring no repayment.

·         Average ROI: Across the entire 11-county district, members saw an average return on investment of $63-to-$1 based on their membership dues.

Beyond the Bottom Line: Technical Expertise

While the financial returns took center stage, Kays emphasized that the First District provides essential “behind-the-scenes” services that many municipalities cannot afford to maintain in-house.

“All that quote ‘free money’ has a lot of strings to it,” Kays noted, explaining that the district manages the complex project administration and compliance “strings” attached to federal and state funds.

The district’s technical toolkit includes:

·         GIS Mapping: Managing local and statewide databases with a staff Kays described as the “most seasoned” outside of Sioux Falls.

·         Emergency Planning: Conducting commodity flow studies—including one that secured $10,000 for Codington County to identify hazardous materials transported through the region.

·         Business Support: Operating a $4 million revolving loan fund to promote new business growth and expansion.

A Long-Term Partnership

Kays, who has been with the district for nearly 33 years, noted that the high returns seen in 2025 are part of a consistent trend. Since he became director in 2008, the association has helped Watertown secure approximately $26.5 million in grants, maintaining a long-term average ROI of $ 157 to $1 for the city.

Councilman Dan Schutte, who serves as the municipal representative on the First District Board, praised the organization’s stability and culture. “It’s always nice to have an organization in our region... the teamwork of not just the number of years of employment, but working together and understanding each other, it’s just encouraging to see,” Schutte said.

As the city moves forward with the Calvin Industrial Park expansion and various water and sewer projects, Kays assured the Council that the district’s “phone is always open”.