Aberdeen City Council Meeting - October 6, 2025

The Aberdeen City Council met on October 6, 2025, and took final action to end the two-way Main Street proposal, replacing it with a $500,000 appropriation that includes $200,000 for manhole rehabilitation. The council also gave final adoption to the home daycare ordinance, approved first reading of the Brown County Fairgrounds annexation ordinance, appointed Police Chief Dave McNeil as incoming city manager, reviewed the FY2024 audit, and handled routine licenses, pay requests, and supplemental appropriations.

Consent Calendar

• Agenda amended to add a Boys & Girls Club raffle/lottery notification to the consent calendar; approved.
• Minutes approved for the Sept. 22 regular council meeting and Sept. 26 special meeting.
• Mayor Shoneman read a proclamation declaring Oct. 13-17, 2025 Aberdeen Area Chamber of Commerce Week, marking the chamber's 141st anniversary and its support of more than 600 Aberdeen-area businesses; chamber representative Gail thanked the council.
• The remaining consent calendar, including a second proclamation and routine city business, was approved.

Public Comments & Testimony

• No members of the public signed up to speak during the general comment period, despite a full house.
• No testimony was offered at the public hearings for liquor license transfers, one-day liquor permits, or the fairgrounds annexation ordinance.

Main Street Resolution Rescission and Replacement

• Resolution 25-09-02R, which appropriated $200,000 for two-way Main Street reconstruction, was subject to a referendum petition. City Attorney Ron explained that state law (SDCL 9-8-11) gives the council power to repeal the resolution, no money had been spent, no contracts had been let, and rescission would end the two-way Main Street proposal while keeping one-way northbound traffic.
• Councilman Dave, who supported two-way Main Street originally, said he would vote to rescind because a public vote could become a divisive distraction from bigger priorities such as Missouri River water; he also cited misinformation in the conversation.
• Mayor Shoneman praised the petition drive, estimating 1,500-2,000 signatures, about 10 percent of registered Aberdeen voters. He cited a friend's sample of 60 people in which 40 signed immediately, 15 had already signed, 4 outside city limits wished they could sign, and 1 preferred two-way Main Street, which he described as 98 percent opposition in that sample.
• Councilmember Charlotte said the petition showed the voters of Aberdeen are a force to be reckoned with; Councilman Chad said the majority of people he talked to were neutral but there was disinformation, and he supported keeping the one-way configuration because that is what the public indicated.
• Another council member praised the petition effort as direct democracy and encouraged residents to support downtown businesses.
• The council voted 8-0 to rescind and repeal Resolution 25-09-02R.
• The council then considered replacement Resolution 25-10-01R. An amendment by Councilman Johnson, seconded by Councilman Econger, divided the $500,000 into $300,000 undesignated for streets and bridges (Main Street to remain one-way northbound) and $200,000 for manhole rehabilitation. The amendment and the amended resolution were both approved 8-0. Mayor Shoneman said two-way Main Street was 'done and buried,' replaced by $200,000 for manhole rehabilitation.

Home Daycare Ordinance - Second Reading and Final Adoption

• Ordinance 25-09-02, updating home daycare regulations, was given final adoption. Staff reported no changes since first reading and positive feedback from daycare providers.
• Councilman Chad proposed an amendment to Section 14-138 to clarify building code requirements and reduce ambiguity in the discretion of the building official and fire marshal. Staff and the City Attorney said it was not a substantial change requiring another reading. The amendment was approved 8-0.
• The ordinance was then adopted 8-0.

FY2024 Audited Financial Statements

• Cameron Zent of ID Bailey presented the audit. The city received clean unmodified opinions on the financial statements and major federal program compliance.
• Three internal control deficiencies were reported as material weaknesses, the same three as last year: auditor assistance in preparing the financial statements and schedule of expenditures of federal awards; audit adjustments; and capital assets. The single audit had no federal findings; the Airport Improvement Program was tested as the major federal program.
• New standards GASB 101 and GASB 102 were implemented; the extended leave bank was recorded as a liability and no additional risk disclosures were required.
• Governmental and business-type cash and investments totaled just shy of $44 million, down from $45.6 million. Governmental assets decreased about $3.5 million, while business-type cash and investments increased about $1.8 million.
• General fund revenues were about $30.5 million, up about $860,000 (2.9 percent), with 75 percent from property and sales taxes. General fund expenditures were $26.08 million, up about $1.2 million (5 percent), with about half for public safety, 29 percent for public works, and about 15 percent for general government and administration.
• The general fund balance was $13.6 million, about 58 percent unassigned, with about $5.1 million committed from a COVID-era ordinance.
• Special sales tax revenues were about $12.3 million, up about $400,000 (3.4 percent); expenditures were about $7.3 million, down about 21 percent; and the fund balance rose about $800,000 to about $5.3 million.
• The water fund had operating revenue of $7.9 million, up 8 percent, and operating income up 32 percent to just over $1.2 million. The sewer fund had revenue of $5.4 million, up 17 percent, and operating income up 87 percent to just over $1.6 million.
• In Q&A, the auditor said finance processes have improved and the city does not necessarily need an additional CPA position; the city has no minimum fund balance policy; bond ratings serve as a general financial-health gauge.

Liquor License and Permit Approvals

• Public hearing held and approved transfer of the retail on/off sale malt beverage and South Dakota farm wine license from Waller Incorporated d/b/a Palm Garden Thai Cuisine to Rakeen Restaurant d/b/a the same name.
• Approved a special one-day retail on-sale beer license to the Downtown Association for the Oct. 9 Brew Walk.
• Approved a one-day retail on-sale beer, wine, and cider license to Aberdeen Store d/b/a Market on the Plaza for an Oct. 18 event at Refuge Retreats.

Audit Services Agreement

• Approved a master services agreement with ID Bailey for independent audit services for 2025, 2026, and 2027, following an RFP process. Finance Director Jordan noted the previous five-year agreement ended with FY2024.

Supplemental Appropriation Ordinance - First Reading

• Approved first reading of a supplemental appropriations ordinance covering insurance claims, finance-software upgrades, a police canine vehicle, a fire department vehicle, a USAR trailer, purchase of the PC nursing building with promotion-fund cash, and replenishment of unemployment claim funds.
• Councilman Ronane successfully moved to remove the $16,000 election funding line item from the ordinance; the amendment and first reading both passed 8-0.

Parks, Recreation, and Forestry Supplemental Appropriation - First Reading

• Approved first reading of the quarterly supplemental appropriation for parks and recreation donations, the parks direct gift fund, the 208 parks and rec fund, and the cemetery perpetual fund.

Brown County Fairgrounds Annexation Ordinance - First Reading

• Held a public hearing with no testimony. The Planning Commission had recommended approval on Sept. 30.
• The ordinance amends zoning Chapter 60, defines the fairgrounds, and exempts it from city ordinances as part of a Brown County Fairgrounds annexation agreement.
• City Attorney Ron explained that sales tax generated at the fairgrounds would be remitted by the city to the county for fairgrounds improvements in lieu of city-provided services; at least one-third must go to capital improvements; the county could de-annex; the city would not interfere with county operations; and the county would not issue liquor licenses enabling video lottery placement that would add to the city's total. The agreement is for 25 years, with sales tax collection expected after April 1, 2026.
• The mayor said the agreement addresses a long-standing issue and the fair board had voted to approve it. The first reading was approved 8-0.

City Manager Appointment

• The council appointed Police Chief Dave McNeil as city manager for an indefinite term, effective when current City Manager Robin's duties cease. Robin announced Sept. 22 that he would resign effective Dec. 12, 2025. McNeil is expected to identify his police chief replacement by the end of October and work closely with Robin during the transition.
• Approved 8-0.

Employee Benefits Broker

• Approved engaging Marsh McLennan Agency (MMA) for employee benefit administration and strategic planning. HR Manager Kristen said comparable cities Brookings and Watertown, along with the state of South Dakota, use MMA; this would be the city's first third-party benefits broker.

Special Olympics Bowling Tournament Display

• Approved a temporary display of inflatables and advertising at Village Bowl Oct. 31-Nov. 2 for the South Dakota Special Olympics bowling tournament.

Pay Requests and Bills

• Pay request No. 1 for Public Works Building granular fill material to H.F. Jacobson Sons: $160,821, less 10 percent retainage (net about $144,736).
• Pay request No. 7 for 10th Avenue Bridge replacement frame construction: $356,182; bridge deck concrete pour expected within the next two weeks.
• Sanitary sewer pipeline pay request No. 2: $162,000 with a $70,149 change order to Municipal Pipe Tool Company; the project added about 750 feet of 12-inch pipe and 400 feet of 8-inch lining, and the Washington Street section required a different lining than records indicated.
• CWF Masonry concrete repair pay request No. 2: $1,003,850 with a $60,512 change order for additional curb and gutter work; the mayor thanked CWF Masonry and Corey for donating concrete work for a park near First Baptist Church.
• Bills and payroll for Sept. 21-Oct. 4 were approved; Councilman Ronane and Mayor Shoneman abstained, and the motion carried.

City Manager's Report and Next Steps

• Outgoing City Manager Robin said transition meetings with Chief McNeil are happening daily; three city employees received certificates of appreciation: Roman Scalren (30 years), Tim Blue (30 years), and Robin Hornseth (25 years).
• At the South Dakota Municipal League, property taxes were a major topic; a presentation by Amber Schwab focused on council communication and community engagement. Airport staff also assisted Pierre with a weather observer/ASOS issue.
• Council members thanked City Attorney Ron for ordinance work and HR Manager Kristen Kroll for running the city manager search, estimated to have saved the city about $40,000-$80,000.

Key Outcomes

• Resolution 25-09-02R was rescinded and replaced by Resolution 25-10-01R, retaining one-way northbound Main Street and allocating $300,000 for streets/bridges and $200,000 for manhole rehabilitation; both votes were 8-0.
• Home daycare Ordinance 25-09-02 was adopted 8-0 with the clarifying building-code amendment.
• FY2024 audit accepted; clean opinions issued with three material weaknesses and no single-audit findings.
• Liquor license transfers, one-day permits, the audit services agreement, supplemental appropriation first readings, the fairgrounds annexation first reading, the city manager appointment, the benefits broker engagement, and the Special Olympics display were all approved.
• Pay requests and bills were approved; bills/payroll carried with two abstentions.
• Next steps include second readings of the supplemental ordinances, county action on the fairgrounds annexation agreement, and completion of the capital improvement plan; two-way Main Street was discontinued.