Northeast Radio SD News Preview: Watertown City Council to Tackle Major Infrastructure, Zoning, and Fiscal Items Tonight

Northeast Radio SD News – Watertown, SD - The Watertown City Council convenes tonight, Monday, April 20, 2026, at 5:30 p.m. in City Hall. The agenda includes infrastructure contracts, zoning changes, and fiscal approvals, shaping the city’s next development cycle.

The meeting opens with routine business under the consent agenda, and everything is voted on and approved in one vote unless a council member requests that an item be pulled for individual discussion and a separate vote.

Mayor Ried Holien will nominate Bill Speier, vice‑chair of the City Board of Adjustment and Planning Commission, to serve on the Joint Jurisdiction Board of Adjustment, with Michelle Kakacek named as alternate. Council will also review minutes from the April 6 session and approve the evening’s agenda.

Police Department Equipment Surplus

·        The Watertown Police Department seeks approval to declare 51 Motorola XTS2500 portable radios obsolete and to be destroyed.

·        A second request covers seven DPMS/APF AR‑15 rifles, replaced under the 2026 Capital Improvement Plan. The rifles will be transferred to Brotherhood Arms for $1,225 in store credit, earmarked for future firearm and equipment purchases.

Business Licensing

·        Council will consider a gasfitting contractor license for Prairie Wind Heating and Air, along with individual gasfitter licenses for Andrew Vrchota and Eric Brenden. The approvals continue the city’s standard licensing process for mechanical contractors.

Tax Increment Financing District 23

A development item appears under consent: authorization for the City Manager to sign the Development Agreement for Tax Increment Financing District No. 23. The agreement formalizes a new TIF district designed to stimulate private investment and expand Watertown’s commercial tax base that was previously approved by the council on April 6, 2026.

Community Presentations

Two presentations will precede formal business:

• Watertown Masons will donate fire suppression units to the Police Department, enhancing officer safety and emergency response capabilities.

• A Street Project update will outline upcoming paving and reconstruction schedules across city neighborhoods.

Infrastructure Contracts and Bid Awards

Council will vote on three major construction contracts totaling nearly $4 million: • Airport Taxiway A Reconstruction (2027) — Award to J & J Earth Works for $3,181,502.70.

·        Taxiway A is one of the airport’s primary movement surfaces, used by both commercial and general aviation aircraft. Reconstruction typically includes full pavement removal, subgrade stabilization, drainage improvements, lighting and signage upgrades, and new FAA‑compliant pavement installation.

While the agenda does not list funding sources, projects of this scale at municipal airports are commonly supported by FAA Airport Improvement Program (AIP) dollars, paired with local or state matches. The approval tonight would lock in the contractor and allow engineering and scheduling to proceed for the 2027 construction season.

• 2026 PMP A Milling and Asphalt Paving — Award to Duininck Inc. for $517,270.80.

·        This project covers milling and asphalt paving, a core maintenance strategy used to extend the life of existing streets. Milling removes the worn surface layer, allowing crews to place a fresh asphalt overlay that restores drivability, improves drainage, and prevents deeper structural failures.

·        PMP projects are typically selected based on pavement condition ratings, traffic volume, and cost‑benefit analysis. While the agenda does not specify the exact streets included in the 2026 A package, the approval will authorize Duininck to begin scheduling work for the upcoming construction season.

• 4th Street West & Highland Boulevard Reconstruction — Award to Halme Inc. for $248,173.90. Together, these projects represent a major investment in transportation infrastructure and neighborhood renewal.

·        The third contract up for approval is the 4th Street West & Highland Boulevard Neighborhood Street Reconstruction, listed as Project No. 2604, with Halme Inc. recommended for award at $248,173.90.

o   Neighborhood reconstruction projects typically involve:

§  Removal and replacement of deteriorated pavement

§  Spot or full‑length curb and gutter replacement

§  Stormwater improvements

§  Subgrade repairs

§  Sidewalk or ADA ramp upgrades where required

§  This project targets a residential area, indicating the city is continuing its multi‑year effort to rehabilitate aging neighborhood streets. The relatively modest cost suggests a focused reconstruction zone rather than a full‑corridor rebuild.

Zoning Ordinances – First Readings

Two zoning changes will be introduced for first reading:

• Ordinance 26‑09 — Reclassifies a portion of Prairie Hills Development First Addition from C‑2 Local Commercial to R‑2 Single‑Family Attached Residential, supporting continued housing growth.

·        The change would shift the property from C‑2 Local Commercial District to R‑2 Single‑Family Attached Residential District.

·        The move signals a shift in development priorities within Prairie Hills. C‑2 zoning supports neighborhood‑scale commercial uses, while R‑2 allows for attached single‑family housing such as twin homes and townhomes. The proposed change suggests the area is trending toward residential build‑out rather than commercial expansion.

·        This is the first reading, meaning no final action will be taken tonight. The ordinance will return for a second reading and public hearing before any zoning change becomes official.

• Ordinance 26‑10 — Establishes C‑3 Highway Commercial zoning for Lot 1 of Berven’s Addition, aligning with corridor development plans along major routes.

·        The C‑3 designation is intended for higher‑traffic, corridor‑oriented commercial uses typically located along major roadways.

·        Assigning the zoning at this stage indicates the city is preparing the lot for future commercial development consistent with highway‑adjacent land‑use patterns. While the agenda does not list specific intended uses, C‑3 zoning commonly supports larger retail footprints, auto‑oriented businesses, and travel‑related commercial activity.

·        As with the previous item, this is a first reading, beginning the formal adoption process. A second reading and public hearing will follow at a later meeting.

Flood Control Study Grant

Under Resolution 26‑13, the council will consider accepting a State Water Resources Management System (SWRMS) grant for the Big Sioux Flood Control Study.

·        The resolution would formally accept a State Water Resources Management System (SWRMS) grant to fund the Big Sioux Flood Control Study, and authorize the City Manager to execute all required documents.

·        While the agenda does not include narrative detail, the study represents the city’s next major move in understanding and managing flood risk along the Big Sioux River. Flood‑control studies of this type typically include updated hydrologic and hydraulic modeling, evaluation of existing levees and drainage structures, and identification of vulnerable neighborhoods and infrastructure. The study also lays the groundwork for future mitigation strategies and potential capital projects.

·        Tonight’s vote does not authorize construction — it authorizes the study, which is required before the city can pursue larger state or federal funding for flood‑control improvements. Acceptance of the SWRMS grant positions Watertown to advance its long-range flood management strategy with state support.

Financial Statements

The Finance Office will present a preliminary report and approval of the 2025 financial statements, providing an early look at year‑end fiscal performance and departmental expenditures.

State law requires the city’s financial officer to report the municipality’s receipts, expenses, and overall financial condition no later than the first regular meeting in May. Tonight’s presentation fulfills that requirement and provides a detailed look at Watertown’s financial position as of December 31, 2025.

Governmental Funds Overview

The report shows a combined governmental fund balance of $46.06 million at year‑end. Beginning balances across all governmental funds totaled $45.79 million, with the city recording $46.23 million in revenues and $47.36 million in expenditures during 2025. After accounting for transfers in and out, the city posted a net increase of $267,028 in governmental fund balances.

Ending balances by fund include:

·         General Fund: $13.61 million

·         Park & Recreation Fund: $1.83 million

·         Capital Improvement Fund: $23.40 million

·         Other Governmental Funds: $7.23 million

The Capital Improvement Fund remains the city’s largest governmental fund, with most of its balance assigned for future projects.

Revenue Highlights

Major revenue sources for 2025 included:

·         Sales & Use Taxes: $23.88 million

·         Property Taxes: $6.12 million

·         Charges for Goods & Services: $7.0 million

·         Interest Revenue: $2.0 million

·         Intergovernmental Revenue: $2.07 million

·         Donations & Contributions: $1.52 million

Sales tax remains the city’s largest revenue source, split between the General Fund and Capital Improvements.

Expenditures by Category

Total expenditures reached $47.36 million, with the largest spending areas being:

·         Public Safety: $12.78 million

·         Culture & Recreation: $12.45 million

·         Public Works: $9.20 million

·         General Government: $4.76 million

·         Debt Service: $5.60 million

The Park & Recreation Fund recorded $6.7 million in expenditures, reflecting ongoing operations and facility maintenance.

Transfers and Long‑Term Debt

The city transferred $7.38 million into various funds and $5.97 million out, resulting in a net positive transfer impact of $1.4 million. Governmental long‑term debt stands at $57.7 million.

Proprietary Funds – Utility and Enterprise Operations

Watertown’s enterprise funds — Sewer, Electric, Water, Gas, and Airport — ended 2025 with a combined net asset total of $306.6 million, up from $278.7 million at the start of the year.

Revenues and Expenses

Enterprise operations generated $89.16 million in revenue and incurred $59.92 million in expenses, producing a strong operational surplus across utility departments.

Ending net assets by fund include:

·         Sewer Fund: $83.99 million

·         Electric Fund: $68.73 million

·         Water Fund: $44.55 million

·         Gas Fund: $37.69 million

·         Airport Fund: $57.88 million

·         Other Proprietary Funds: $13.75 million

Enterprise long‑term debt totals $38.79 million.

Cash and Investments

The report lists $110.1 million in total municipal cash and investments, all deposited with Reliabank, as of year‑end 2025.

Action Requested Tonight

The Finance Office recommends approval of the preliminary statements as presented. Tonight’s vote acknowledges receipt of the statutory report and allows the city to proceed with final reconciliation and the annual audit process.