Watertown City Council to Vote on 5% Raise, New Contract for City Manager Alan Stager
- Steve Jurrens
- 49 minutes ago
- 2 min read
Northeast Radio SD News – Watertown, SD - The Watertown City Council is scheduled to vote Monday night on a new employment agreement and a 5% salary increase for City Manager Alan Stager.
The measure, listed as Resolution 26-35 on the council’s regular agenda for Monday, Aug. 17, comes following an executive session performance review conducted by elected officials.
According to official council documents submitted by Mayor Ried Holien, the council determined that Stager’s overall performance was satisfactory and that he has “effectively carried out the duties and responsibilities of the position” since taking on the role.
If approved by the council, Resolution 26-35 will increase Stager’s annual base salary from $190,299.20 to $200,000.00, effective retroactively to July 1, 2026.
In addition to the base salary bump, the proposed agreement details several financial and benefit terms:
· Deferred Compensation: The city will contribute $22,500 annually to a qualified deferred compensation plan selected by Stager, on top of standard South Dakota Retirement System (SDRS) contributions.
· Vehicle Allowance: Stager will receive a $500 monthly car allowance for official city travel within Codington County. Starting Jan. 1, 2027, the allowance will index annually to the Consumer Price Index (CPI). Travel outside the county will be reimbursed at the standard city mileage rate.
· General Employee Adjustments: Stager will remain eligible for cost-of-living adjustments (COLA), bonuses, and pay range adjustments on the same basis as other non-union city staff.
· Cell Phone Stipend: A standard $40 monthly stipend for official business use of his personal mobile device.
Contract Terms & Oversight
The updated agreement formally supersedes Stager’s previous June 2025 contract and confirms that he has successfully completed his initial probationary period.
Under South Dakota state law and the Watertown Home Rule Charter, the City Council is not required to reappoint the city manager annually. Instead, the terms of this agreement will govern his continued employment moving forward.
The contract also outlines specific severance terms, guaranteeing three months of base salary if terminated without cause. It contains standard non-disparagement and confidentiality requirements, alongside an annual goal-setting and review process to be conducted around Jan. 1 of each year.
Monday’s City Council meeting begins at 5:30 p.m. at City Hall.
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