Watertown's Road Budget: Balancing Maintenance with Community Needs
- Steve Jurrens
- Apr 20
- 3 min read
Northeast Radio SD News – Watertown, SD - The Watertown City Council faced a reality check during its April 20 meeting as City Engineer Justin Petersen detailed a gap between the city’s current road budget and its actual infrastructure needs. While the city is currently managing roughly $4 million in annual street projects, Petersen identified more than $38 million in critical, unbudgeted street requirements that currently lack a funding source.
The Science of Decay: The PCI System
To manage the city’s 200-plus miles of roadway, the engineering department utilizes the Pavement Condition Index (PCI), a 0-to-100 scale that dictates maintenance strategies.
· PCI 60+: Roads receive “Crack Chip Fog” (CCF) surface treatments to seal out moisture.
· PCI 40–60: These roads require more intensive “mill and overlay” projects.
· PCI < 40: These streets are candidates for total reconstruction.
“All the paved roads in town have a PCI score between 0 and 100,” Petersen explained. “When the PCI drops to between 40 and 60, then we start looking at mill and overlays... if the PCI drops below 40, those are typically reconstructs”.
The city’s current five-year plan includes reconstruction projects for Broadway Street North and 17th Street Southeast in 2027, followed by significant mill-and-overlay work in the stadium and Mellette neighborhoods in 2028.
The $38 Million “Wish List.”
The most uncovering portion of the presentation was the list of “unscheduled or unbudgeted” needs totaling $38.4 million. The single largest item is a $31 million total reconstruction of North and South Lake Drive, which would involve widening the road, adding curb and gutter, and extending culverts.
Other unfunded projects include:
· 3rd Avenue Northeast: Paving the gravel road by the Ice Arena ($5M–$7M).
· 24th Street: Finishing a one-block gravel section near Evolution ($350,000).
· 16th Avenue Northwest: Completing the “half-road” by Jefferson School ($250,000).
· Alleys: Repairing seven miles of paved alleys that are currently only “pothole patrolled.”
“Kind of all total, there’s over $38 million of kind of unbudgeted street needs that... we really kind of looking for some additional funding in order to add that into our CIP plan,” Petersen said.
Council Debates: Sales Tax vs. Special Assessments
The presentation sparked a debate on how to generate the revenue necessary to tackle the backlog. Councilman Lynn Jurrens pointed out that property tax increases are historically unpopular, necessitating creative solutions.
“Property taxes, there’d be a revolt in town if we did something there,” Jurrens noted. “What are other ways... to make this work that might be a tad bit more acceptable?”
City Manager Alan Stager outlined several aggressive revenue options for the Council to consider in future budget cycles:
· Special Assessments: Charging property owners based on the lineal feet of street frontage.
· Drainage Formulas: Implementing assessments based on drainage utility needs.
· New 1% Sales Tax: A newly authorized tool from the state legislature allows cities to implement an additional 1% sales tax for up to five years for special capital projects.
“Any option that we look at involves some new source of revenue if we want to enhance the overall quality of our street transportation system,” Stager said. Regarding the new 1% tax tool, he added, “We could generate as a city... about $12 million a year over five years... that tool would require a 60% vote of the voters”.
The High Cost of Growth
Council members also highlighted the ongoing frustration with heavy traffic on gravel roads. Councilman Allen noted that 3rd Avenue Northeast is rapidly deteriorating due to heavy industrial use.
“Daily now, we have these large side dumpers rolling down the road from the gravel pit, and it just destroys the road,” Allen said. “I understand the dilemma of a blotter top [temporary fix] because I can tell you it would not last... it could be more than a month, I bet, and it would be destroyed”.
Stager emphasized that while Watertown currently has a higher PCI rating than comparable towns in South Dakota, the city’s unique geography—covering over 200 miles of road—strains its limited resources.
“There is a thought process that goes into how we determine where to spend the scarce resources that we do have,” Stager concluded. “There are no easy answers when it comes to streets and the scarce dollars that we have available”.
