Spearfish City Council Study Session - February 11, 2026

The Spearfish City Council held a study session on February 11, 2026, from 4:20 p.m. to 6:19 p.m. in City Council Chambers. Mayor Senden presided, with council members Hafner, Klarenbeek, Myers, and Rath present; Hourigan and Jacobs absent. Staff included Finance Officer DeNeui, Public Works Director McMahon, and Community Development Director Wysocki. The agenda was amended to move the City Grant Policy discussion before the TIF presentation. The council reviewed the upcoming regular meeting agenda for February 17, 2026, and discussed four major items: grant management, tax increment finance districts, snow removal subscription service, and the D.C. Booth Society agreement.

Public Comments & Testimony

• Janice Huffman (during snow removal discussion) expressed skepticism about the proposed subscription service, recalling a prior attempt in 2020-21 that failed because no one showed up. She questioned the city's capacity to handle hundreds of homes and noted that people will not be patient waiting days for service. She also suggested the city could simply stop plowing residential streets during small storms to avoid creating berms.
• Rose Jarvis (during snow removal discussion) urged the council to adopt a positive approach toward the 2010 voter-approved snow removal ordinance. She requested exploration of underutilized options such as snow gates, temporary snow fences, part-time winter staff, contractor partnerships, and enforcement of parking bans. She criticized the snow removal committee for focusing on negatives and not trying new ideas.
• Doug Markworth (during public comment period) commented on the safety action plan, warning that grant money is not "free" and the city must be cautious. He also raised the issue of deer overpopulation, suggesting humane removal.
• Ryan Wordeman (during public comment) spoke against Ordinance 1415, arguing that requiring landowners to trim trees 14–18 feet over sidewalks is unsafe for homeowners, and that the property maintenance standards (grass height 10 inches or less) are too broad and would apply to schools and city property as well. He used his own property as an example.
• Stan Tripplett (during public comment) criticized the lack of public communication during meetings and pointed out that the Safety Action Plan does not mention the upcoming 300+ vehicles from the Hill Street Stencil apartments, which will impact the intersection near West Elementary. He also noted missing speed limit signs on Hill Street.

Discussion Items

City Grant Policy Discussion

Finance Officer DeNeui introduced a proposal to have the South Dakota Community Foundation (SDCF) manage the city’s community partner grants (excluding hospitality tax grants to Western Hills Humane Society, Matthews Opera House, and D.C. Booth). Beth Massa from SDCF explained that their affiliate fund coordinator would handle application collection, financial verification, and payment processing, providing administrative relief to city staff. The council would still make funding decisions. Massa noted that SDCF has 1,300 funds and facilitated $267 million in charitable giving in 2025. Council asked about 501(c)(4) eligibility (rejected), and confirmed that the local decision-making process would remain. No formal decision was made, but council expressed interest.

Tax Increment Finance District Informational Presentation

DeNeui presented an overview of Spearfish’s eight TIF districts, historical and current:

• TIF 1 (Exit 17): Created 2005, matured 2025. Base valuation $240,000, current $84 million. Developer received $5.7 million in reimbursements; original eligible costs were $8.2 million with 9.25% interest. The district did not fully pay off due to delayed lot development.
• TIF 2 (Exit 14): Created 2006, paid off in 2017. City bond and water/sewer funds; $3.3 million in costs, $36 million valuation increase.
• TIF 3 (McGwire Ranch): Created 2008, closed 2017. City used $700,000 for affordable home lots and Prairie Hills Transit land; valuation increase $28 million.
• TIF 4 (Creekside): Created 2014, near payoff April 2026. Developer Ryan Wordeman stated the TIF covered water, sewer, and lift station costs ($1.4 million) that otherwise would have stalled his project. Valuation rose from $2 million to $15 million.
• TIF 5 (Jackson Blvd): Created and closed with no debt; insufficient increment for stormwater improvements.
• TIF 6 (Sky Ridge/Sports Complex): Created 2020, matures 2040. Eligible costs $17 million; valuation increased from $84,000 to $14 million. $5 million in payments received so far; DeNeui expects a shortfall due to slower construction.
• TIF 7 (Hill Street Stencil): Active, matures 2043. $5 million planned costs; developer has not certified costs yet. Base valuation $51,000, current $159,000. The city paid $1.25 million for a lift station (upsize costs) outside the TIF.
• TIF 8 (Sound Mill): Created 2025, matures 2045. $8 million eligible costs (out of $24 million project); no valuation increase yet.

Council members (particularly Doug Markworth) questioned the real property tax revenue versus inflated valuation numbers, and noted that upsize costs and ongoing service costs are often omitted. Ryan Wordeman clarified that school districts are made whole by the state for TIFs on affordable housing or industrial projects. DeNeui emphasized that the city has been conservative, only writing TIFs for amounts the increment can actually pay back.

Snow Removal Subscription Service Discussion

Public Works Director McMahon proposed a trial subscription service for removing windrows from driveways, starting spring 2026 at no charge, to collect data on participation and operational feasibility. The service would target residents who are elderly, disabled, or have low income, with self-certification. Qualifying individuals would receive free service; others might pay an annual fee in the future. The city would continue current urgent-needs calls (medical appointments, medication deliveries). McMahon noted that the trial would use Excel spreadsheets to track sign-ups and that the city would coordinate Parks and Rec and other departments to improve efficiency. He also mentioned updating the snow guide to match the pending ordinance revisions. Council members (Dean Myers, Larry Rath) strongly supported prioritizing medical and disability needs, and suggested using Toolcats with snow throwers. Liability waivers were discussed to cover placing snow on lawns. The trial would inform budgeting for winter 2026-27. Public comments raised concerns about capacity and past failures, but the council expressed willingness to try and reevaluate.

D.C. Booth Society – Revised Agreement and Letter of Support

Council member Hafner reported meeting with Hatchery Superintendent Carlos Martinez and D.C. Booth Society Executive Director Carolyn Ferrell. They requested updating the annual agreement between the city and the Booth Society (expired for years) and a letter of support for the hatchery to drill a well for groundwater to ensure fish health and prevent impacts from aquatic invasive species. Martinez explained that the well would be used for a portion of operations, not the whole facility, and that the state Department of Agriculture and Natural Resources requires evidence of public interest. The agreement would include use of the Snappers Club event venue, which had been discontinued due to lost institutional knowledge. Staff saw no zoning issues since the hatchery is on federal land zoned as parks. Council indicated support, and staff will work on finalizing the agreement and letter. No formal vote was taken.

Key Outcomes

• No formal votes were taken on discussion items; all were informational.
• Consensus to pursue a contract with the South Dakota Community Foundation for grant management (excluding hospitality tax grants) pending further refinement.
• Consensus to implement a trial snow removal subscription service in spring 2026 for qualifying residents, with data collection to inform potential continuation and fee structure.
• Consensus to support a revised agreement with the D.C. Booth Society and provide a letter of support for their well permit application.
• Agenda amendment approved to move Item 3B before 3A.
• Correction noted for the contract with HDR: the amount is not to exceed $7,040, not $20,000 as originally stated.
• Upcoming meetings: Regular council February 17, 2026 (Tuesday due to President’s Day); joint Planning Commission/City Council tentatively scheduled for March 17, 2026.