Watertown City Council Approves City Manager Alan Stager’s New Employee Agreement After First-Year Review, w/ Pay Increase
Northeast Radio SD News – Watertown, SD - The Watertown City Council voted 5-1 on Monday night to pass Resolution 26-35, approving a revised employment agreement for City Manager Alan Stager that increases his annual base salary to $200,000 following his first-year performance review.
Presented by City Attorney Lisa Carrico, the resolution officially marks the end of Stager’s probationary period. The contract terms include a roughly 5% base pay increase from $190,299.20 to $200,000, an annual $22,500 contribution to a qualified deferred compensation plan, and a $500 monthly personal vehicle allowance. Stager surrendered a previously purchased $50,000 city vehicle for use by the police department instead.
Supporters Highlight First-Year Fiscal Savings
During council discussion, Councilman Lynn Jurrens spoke in support of the contract, citing significant municipal cost savings achieved over Stager’s first 12 months in office.
“These are factual dollars just in 12 months that the taxpayer in the city of Watertown has saved,” Jurrens said. “The first position was a position made up by the previous administration called an assistant city manager that had a payroll and incentives of close to $200,000... that position has been absorbed by current employees and the city manager.”
Jurrens also credited Stager with identifying $140,000 in engineering cost reductions on a major northwest Watertown road project, reducing municipal travel budgets by $25,000, and scaling back plans for a proposed $27 million street department facility toward a $7 million to $12 million target range.
Councilman Brent Mohrmann cast the sole vote against Resolution 26-35, emphasizing that his vote was based on compensation structure rather than job performance.
“My decision for voting against it has nothing to do with City Manager Stager. It’s about the position and not the person,” Mohrmann said. “I believe whatever is given to your lowest-paid employee should be good enough for your highest-paid employee when it comes to raises and benefits... I cannot vote and will never vote and support something that I know will have a negative impact on morale of our city workforce.”
Mohrmann added that he deeply appreciates his working relationship with Stager and respects his ongoing efforts for the city.
Evaluation Process and Market Benchmarking
Mayor Ried Holien explained that the contract negotiation followed a formal performance evaluation process coordinated by Councilman Doug Allen and Deputy Mayor Councilman Kyle Peters. Holien noted that the city manager role carries unique responsibilities in Watertown compared to peer cities—including oversight of an Essential Air Service airport, the Bramble Park Zoo, and 70 more miles of municipal roadways than nearby Brookings.
Councilman Dan Schutte supported the resolution as a fair market adjustment, noting that Stager initially accepted a below-average starting compensation package a year ago to demonstrate his value to the community.
“This year we’ve seen it as a reset to kind of get him to what he’s deserved to pay,” Schutte said. “I don’t believe he’s in this for the money... I believe his heart’s in it and he wants to serve the community of Watertown.”
Addressing revenue structures, Councilman Peters added that public education is crucial when discussing executive compensation, noting that approximately 70% of the city’s operational funding stems from sales tax growth rather than property taxes.
Stager Responds to Council Action
Addressing the council following debate, City Manager Alan Stager thanked the elected officials for their feedback and reiterated that the contract adjustment represents a one-time structural reset following his probationary year.
“This is a reset after the first probationary year. This isn’t something we should do every year,” Stager said. “I want to be treated like any other employee... I appreciate all of your perspectives, all of your kind words, and I appreciate you taking the time to make this adjustment for me and the position.”
Stager also directly acknowledged Councilman Mohrmann’s dissent, praising his public-sector experience and stating that differing perspectives strengthen city governance.
The motion was made by Councilman Peters and seconded by Councilman Schutte. Roll-call voting recorded Councilmen Allen, Jurrens, Peters, Schutte, and Mayor Holien voting in favor, with Councilman Mohrmann voting against.
