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Record of Proceedings

Spearfish City Council Study Session - July 15, 2026

City Council — Wednesday, July 15, 2026
BodySpearfish, South Dakota
SessionCity Council
DateWednesday, July 15, 2026
StatusFILED
Video Record
0:00 / 37:34

Original source
Transcript — VerbatimClick a timed line to jump · ⧉ to share it

Speaker numbers apply only to this recording.

Speaker 1

7:47

Afternoon,

Speaker 2

7:48

everyone.

7:48

Welcome to this evening's study session.

7:50

I appreciate everyone being here timely.

7:52

I'll call this meeting to order.

7:55

Uh item one on the agenda for the tonight is to approve the agenda as presented.

7:59

There's no changes that I have.

8:01

And if there's a motion to move to approved agenda

Speaker 3

8:04

for

Speaker 2

8:04

July fifteenth.

Speaker 4

8:06

Second.

Unassigned speaker

8:06

We

Speaker 2

8:06

have a motion of the second.

8:08

All in favor?

8:09

I opposed.

8:12

That motion carries.

8:13

Thank you very much.

8:14

And we'll move on to item two, reviewing the council agenda for uh July twentieth.

8:20

Um so Michelle's getting that pulled up for us.

8:24

Go ahead and we got consent agenda, a few things there to start with.

Speaker 4

8:29

So under consent agenda, we do have minutes for our last round of meetings, and then two volunteers, one for the fire department and one in the parks department.

8:38

And then the treasure's report for June thirtieth is also a new packet for approval.

8:44

Then under added or adjusted wages, we do have two uh staff members uh coming on board.

8:51

Uh their wages are listed there.

8:54

And then under the wild land rate, so annually um, we do update what we pay our wild land uh firefighters, whether they're volunteers or seasonal staff.

9:04

And they get paid the current federal AD rate um based on their certification.

9:11

Uh I did find these items for the seasonal staff,

Unassigned speaker

9:15

these

Speaker 4

9:15

two different rates, that's actually the rates we bill for their services.

9:19

These are our hired summer people that work 40 hours every week, whether they're here or deployed.

9:30

The red carded firefighters, these are volunteers.

9:34

So they will be at the twenty-two eighty-four, they're all firefighter two level.

9:39

Um, so they will be paid the twenty-two eighty-four for any wildland calls they go on.

9:45

Um, and then the rest of them are listed there.

9:47

We do have uh, I think this is a paramedic, and then the other two are engine bosses.

Speaker 2

10:01

Wanna make a point to those two of the three wildland fires, I think were here the previous year.

10:07

And what one I think is on its third year.

10:09

So

Speaker 4

10:10

correct.

10:10

Yep.

10:11

Those

Speaker 2

10:11

guys in really good shape.

10:14

So that's

Unassigned speaker

10:15

important.

Speaker 4

10:16

And then I'll turn it over to Peter for the community development.

Speaker 5

10:25

So the first item.

Speaker 6

10:36

That is to update our zoning and subdivision chapter of city code.

10:41

If you recall during our March 17 joint planning commission meeting, um to members of the Clarion team were here to present their assessment of our code.

10:56

So this is basically phase two of that entire project.

11:03

The cost would be about 152,000 dollars in your packet for next week.

11:09

We'll have the complete scope of work, the contract, and the project schedule.

11:16

Okay.

11:20

That is a budgeted item.

11:21

It's a budgeted item for uh this year.

11:25

Um obviously this will be a multi-budget year project.

11:29

So not all funds will be spent this year, just on the tentative project schedule.

11:35

Uh, we're anticipating completion in Q1 of 2018.

11:40

So

Speaker 2

11:42

2028, you mean.

Speaker 6

11:43

I mean 2028, sorry.

Discussion Breakdown — Share of Meeting
Procedural███████████████████████23%
Fiscal Sustainability██████████████████████22%
Public Engagement████████████████16%
Cannabis Regulation███████████████15%
Budget Equity Analysis██████████10%
Zoning Regulations██████6%
Legal Affairs████4%
Parks and Recreation██2%
Transportation Safety██2%
Summary of Proceedings

Spearfish City Council Study Session - July 15, 2026

The Spearfish City Council held a study session on July 15, 2026, at 4:15 PM in the City Council Chambers. The meeting focused on reviewing the upcoming regular council agenda for July 20, discussing the early payoff of the 2015 Sales Tax Revenue Refunding Bonds, and offering three liquor licenses for sale via sealed bids. No public comments were received. The session adjourned at 4:44 PM.

Review of July 20, 2026 City Council Agenda

  • Staff reviewed each item on the draft agenda for the July 20 regular meeting, including consent agenda items (minutes, volunteer appointments, treasurer's report), wage adjustments for new staff, wildland firefighter pay rates (federal AD rate), a zoning and subdivision code update (Phase II, cost $152,000, budgeted, completion expected Q1 2028), a development agreement for the Stone Ridge Commons project, a special event malt beverage license for the Black Hills Fly-In (September 19, noon-9 PM), a liquor license transfer for a wine bar to include an encroachment area, a certificate of final completion for the Rainbow Road box culvert, a change order for the Mountain View Elementary Alley project, and the award of a bid for the airport water main project (bids came in below engineer's estimate). Also noted: first round of 2027 budget presentations will occur at the end of the meeting, with departments highlighting major changes, staffing, and capital projects.

Discussion Items

2015 Sales Tax Revenue Refunding Bonds Early Payoff

Finance Officer DeNeui led a discussion on paying off the bonds early. Key details:

  • Bonds are callable with no penalty; scheduled maturity June 2028.
  • Current interest rate on bonds: 4%; current investment return rate: 3.55%.
  • Early payoff would save an estimated $5,000 to $7,000 in net interest after accounting for lost investment earnings.
  • Remaining principal: approximately $1.245 million; total interest savings over remaining term: about $31,600 in interest payments avoided.
  • City would need a budget supplement of about $1.2 million to pay off the bonds in 2026.
  • Councilmember Scott expressed concern about spending $1.2 million given public comments about a $5.5 million deficit, but noted the city has cash reserves.
  • Council agreed to place the item on the July 20 regular agenda for action.

Liquor Licenses for Sale

DeNeui discussed offering one on-sale (bar) liquor license (minimum bid $300,000) and two package (off-sale) liquor licenses (minimum bid $100,000 each) via sealed bids. Since the last sale six months ago, interest has increased, particularly for package licenses. Some interested parties for the on-sale license can qualify for a restaurant liquor license (fee $130,000, unlimited quantity) and are exploring that option. DeNeui recommended keeping minimum bids unchanged. Council agreed to add the item to the July 20 regular agenda.

Key Outcomes

  • Council directed staff to place the early bond payoff item on the July 20 regular council agenda for a vote.
  • Council directed staff to place the liquor license sealed bid sale item on the July 20 regular council agenda for action.
  • The study session served as a review and discussion only; no formal votes were taken.

Departmental Discussion

  • Parks and Recreation Director McDonald reminded all that Festival in the Park is July 17-19; a new passenger drop-off/pickup area will be near the security tent.
  • The open house for the Spearfish Creek Preservation Plan was well attended; public input via the Social Pinpoint map is open through July 26.
  • Mayor Senden acknowledged police efforts on motorized vehicle issues on the rec path.
  • Public Works Director McMahon updated on the chip seal project: sand has been applied to mitigate asphalt bleeding; reapplication of chip seal postponed until after the weekend events, resuming next week.

Meeting Transcript

Afternoon, everyone. Welcome to this evening's study session. I appreciate everyone being here timely. I'll call this meeting to order. Uh item one on the agenda for the tonight is to approve the agenda as presented. There's no changes that I have. And if there's a motion to move to approved agenda for July fifteenth. Second. We have a motion of the second. All in favor? I opposed. That motion carries. Thank you very much. And we'll move on to item two, reviewing the council agenda for uh July twentieth. Um so Michelle's getting that pulled up for us. Go ahead and we got consent agenda, a few things there to start with. So under consent agenda, we do have minutes for our last round of meetings, and then two volunteers, one for the fire department and one in the parks department. And then the treasure's report for June thirtieth is also a new packet for approval. Then under added or adjusted wages, we do have two uh staff members uh coming on board. Uh their wages are listed there. And then under the wild land rate, so annually um, we do update what we pay our wild land uh firefighters, whether they're volunteers or seasonal staff. And they get paid the current federal AD rate um based on their certification. Uh I did find these items for the seasonal staff, these two different rates, that's actually the rates we bill for their services. These are our hired summer people that work 40 hours every week, whether they're here or deployed. The red carded firefighters, these are volunteers. So they will be at the twenty-two eighty-four, they're all firefighter two level. Um, so they will be paid the twenty-two eighty-four for any wildland calls they go on. Um, and then the rest of them are listed there. We do have uh, I think this is a paramedic, and then the other two are engine bosses. Wanna make a point to those two of the three wildland fires, I think were here the previous year. And what one I think is on its third year. So correct. Yep. Those guys in really good shape. So that's important. And then I'll turn it over to Peter for the community development. So the first item. That is to update our zoning and subdivision chapter of city code. If you recall during our March 17 joint planning commission meeting, um to members of the Clarion team were here to present their assessment of our code. So this is basically phase two of that entire project. The cost would be about 152,000 dollars in your packet for next week.

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