Watertown City Council Reviews 2027 Property Tax Levy Increase Driven by CPI and New Growth
Northeast Radio SD News – Watertown, SD - The Watertown City Council on Tuesday held the first reading of Ordinance No. 26‑31, which authorizes the city’s Finance Officer to certify the 2027 property tax levy to the Codington County Auditor. No action was taken, as required for a first reading.
City Manager Alan Stager presented the item on behalf of Chief Financial Officer Kristen Bobzien, explaining how state law determines the maximum amount municipalities may assess each year.
“Before you tonight is the first reading of the property tax levy for property taxes to be collected in 2027,” Stager said. “The amount of money that we may assess on property taxes is determined by state statute and they’re very specific guidelines in terms of what as a municipality we may assess.”
CPI and New Growth Drive 2027 Levy Increase
The agenda document states that the 2027 levy is calculated using:
· 2.5% CPI, as set by the State of South Dakota
· 1.23% estimated new property growth within Watertown
Together, these factors result in a year‑over‑year increase of $174,531.78 in property tax revenue.
Stager reiterated those figures during the meeting:
“We will increase overall property taxes by 2.5%, which is the CPI index applied. Plus, we will also use a factor on new properties in the community… estimated at 1.23%. This results in an increase in property taxes year over year of $174,532.”
The ordinance itself certifies a General Fund levy of $4,853,667, which matches the total Stager presented:
“That will lead to a total property tax assessment of $4,853,000 in 2027,” he said, noting that the levy is based on 2026 property values and payable in 2027.
The ordinance document confirms the certified amount:
General Fund: $4,853,667 (Ordinance No. 26‑31)
Each year, the council must adopt an ordinance establishing the annual levy. Once approved, the Finance Officer is directed to certify the levy to the Codington County Auditor.
The ordinance’s timeline is already set:
· First Reading: September 8, 2026
· Second Reading: September 21, 2026
· Adoption: September 21, 2026
· Publication: September 24, 2026
Mayor Ried Holien invited questions following Stager’s presentation.
No councilmembers offered comments or questions, and the item concluded without action.
