Watertown City Council Approves Budget Supplement, Addresses Concerns Over Rising Costs
- Steve Jurrens
- 11 hours ago
- 2 min read
Northeast Radio SD News - Watertown, SD - The Watertown City Council tonight unanimously approved the second reading of Ordinance 25-26, supplementing the 2025 budget to cover various departmental shortfalls, grant appropriations, and line-item transfers. The vote was preceded by a discussion of unexpected increases in insurance and utility bills, as well as substantial banking fees.
City Finance Officer Kristen Bobzien presented the ordinance, confirming that no changes had been made since the first reading.
Councilman Doug Allen questioned several of the required budget supplements, which the City Finance Officer explained:
· Insurance Premiums ($92,600): This supplement was necessary to cover an increase in the city’s liability insurance, not employee health plans. Bobzien noted the increase was more significant than in previous years, partly due to the 2025 budget process.
· Supervision Salaries ($46,000): This large adjustment primarily covers the payout of accrued vacation time for employees who have retired or left the city, as the budget does not typically account for the timing of these payouts.
· Electricity ($32,000 Total): The supplement was needed due to increased costs at several facilities, notably the Zoo and the Wellness Center.
City Engineer Justin Petersen, noting the city’s total utility bills are around $1.6 million, attributed part of the surprise to the Maas Ice Arena being in its first full year of operation without a full frame of historical reference, as confirmed by City Manager Alan Stager.
The most significant point of discussion centered on a $269,000 supplement for banking fees.
Councilman Allen expressed concern over the fees, noting they appeared to be “jumping exponentially,” more than doubling year-over-year from 2023 to 2025. He questioned whether the city could attempt to “claw some of that back” from the vendor.
Councilman Michael Heuer echoed the concern, suggesting the city needs to review and establish clear Standard Operating Procedures (SOPs) for handling such unexpected spikes in costs.
“I do also feel that a quarter of a million dollars worth of credit card fees is pretty wild,” Heuer stated, advocating for a plan to react more efficiently.
Bobzien noted that the Council had previously approved a move to a new credit card vendor in October, which is expected to improve the fee situation.
After the discussion, the Council unanimously approved the supplementary budget ordinance.
