Watertown City Council to Hold First Reading of 2027 Budget Nov. 2
Northeast Radio SD News – Watertown, SD - The Watertown City Council will hold the first reading of Ordinance No. 26-37, establishing the 2027 City Budget Appropriation and the 2027 Enterprise Funds Budget, during its regular meeting on Monday, Nov. 2, 2026.
Because Monday’s agenda item is a first reading, no formal council vote is scheduled. According to an agenda memo, the municipal budget must be approved before the end of November, with second reading and adoption slated for Monday, Nov. 16, 2026.
$62.24 Million General and Governmental Funds Appropriation
Under Ordinance No. 26-37, total appropriations across all municipal governmental funds—including the General Fund, Parks and Recreation, Capital Improvement, Special Sales Tax, and Tax Increment Financing districts—equal $62,241,990.
Major fund appropriations in the proposed budget include:
· General Fund: $26,465,490.
· Capital Improvement Fund: $15,294,200.
· Parks and Recreation Fund: $6,979,330.
· Capital Project Fund: $6,896,170.
· Prairie Lakes Wellness Center Fund: $1,710,910.
· E-911 Emergency Fund: $1,530,560.
· Special 1 Percent (BBB) Sales Tax Fund: $1,452,150.
· Library Fines Fund: $30,900.
· Tax Increment Financing (TIF) Districts: Combined appropriations across TIF Districts No. 5, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 19, 20, 21, 22, 23, and 24.
Department-Level Spending Breakdown
Within the General Fund and related governmental funds, key departmental expenditure categories include:
· Public Safety ($11,442,500 in General Fund; $13,951,910 across all funds): Includes $5,880,830 for the Police Department, $5,561,670 for the Fire and Ambulance Department, $1,530,560 for Emergency 911 Dispatch, and $978,850 from the Capital Improvement Fund for Public Safety Equipment and Vehicles.
· Public Works ($4,080,950 in General Fund; $16,894,120 across all funds): Includes $2,612,850 for the Street and Snow Removal Department, $1,079,900 for Street Lighting and Traffic Control, $351,710 for Cemetery operations, $4,542,000 from the Capital Improvement Fund for Street System Improvements, $975,000 for Public Works Equipment and Vehicles, $400,000 for Storm Sewer and Water Resources, and $6,896,170 in the Capital Project Fund.
· Culture and Recreation ($12,574,530 across all funds): Includes $6,979,330 in the Parks and Recreation Fund, $1,710,910 for the Prairie Lakes Wellness Center, $1,118,970 in the General Fund for the Watertown Regional Library (plus $30,900 in the Library Fines Fund), $634,920 for Forestry, and $2,499,500 from the Capital Improvement Fund for Recreation and Cultural Facility Improvements ($1,969,500) and Park and Recreation Equipment ($530,000).
· General Government ($5,649,980 in General Fund): Includes $316,000 for the Mayor, City Council, and Contingency; $2,013,500 for Financial Administration (City Manager, Attorney, Human Resources, and Finance Office); and $3,320,480 for Information Technology ($961,440), Facilities Management ($1,012,280), Engineering ($842,560), and External Organization Contributions ($504,200).
· Debt Service: $5,728,390 across the Capital Improvement Fund ($5,086,210) and Tax Increment Financing districts.
Revenues, Municipal Utility Transfer, and Property Tax Levy
To finance the governmental budget, the city projects $44,921,480 in anticipated 2027 revenues—led by $31,874,430 in tax receipts and $7,205,750 in charges for goods and services—alongside an estimated Dec. 31, 2026 fund balance of $32,981,780 and interfund transfers.
Section III of the ordinance appropriates $1,580,100 from the operation of the Municipal Utilities Department to be transferred into the city’s General Fund. In addition, Section IV directs Chief Financial Officer Kristen Bobzien to certify a General Fund property tax levy of $4,853,667 to the Codington County Auditor.
2027 Enterprise Funds Budget
Alongside the general appropriation ordinance, the council will review the 2027 Enterprise Funds Budget covering the city’s Sewer, Solid Waste, and Airport operations. Total anticipated enterprise revenues and operating transfers equal $24,715,880 against $17,749,740 in total expenses and transfers out:
· Sewer Fund: $10,505,500 in anticipated revenues against $4,207,050 in operating expenses (including $618,150 in capital outlay and $922,200 in debt service) and $1,146,090 in operating transfers out ($1,026,090 to the General Fund and $120,000 to the Watertown Development Company for economic development), totaling $5,353,140.
· Solid Waste Fund: $6,202,500 in anticipated revenues against $3,503,450 in operating expenses (including $640,000 in capital outlay) and $810,960 in transfers out ($730,960 to the General Fund and $80,000 to the Watertown Development Company), totaling $4,314,410.
Airport Fund: $8,007,880 in total sources of funds—including $6,421,980 in intergovernmental revenues, $691,880 in operating revenues, $500,000 transferred from the General Fund, and $364,020 transferred from the Capital Improvement Fund—against $8,082,190 in total operating expenses, driven by $6,795,300 in capital outlay.
