Spearfish City Council Regular Session – July 20, 2026

The Spearfish City Council held a regular session on Monday, July 20, 2026, at 5:30 PM in the City Council Chambers, 625 5th Street. Mayor John Senden presided. Council members present: Hafner, Hourigan, Jacobs, Klarenbeek, Myers, and Rath. Also present were city staff and department heads. The meeting included public comments, approval of the consent agenda, wage adjustments, a professional services agreement for updating the city's land usage code, liquor license matters, infrastructure project approvals, bill approvals, and a presentation of the preliminary 2027 budget. The meeting adjourned at 7:13 PM.

Consent Calendar

• Approved the minutes of the July 1, 2026, study session and the July 6, 2026, regular session.
• Added Justice Swanson to the 2026 Spearfish Volunteer Firefighter list, Eric Anderson to the Parks volunteer list, and Kathryn Cluff to the Recreation Center volunteer list.
• Approved the Treasurer's Report dated June 30, 2026. (Motion passed unanimously.)

Public Comments & Testimony

• John Dale (239 West Jackson Boulevard) provided an update on health issues related to iron levels in his home. He reported that approximately $120 in supplements from a local health food store made a marked improvement but are too expensive to sustain. He expressed concern about iron accumulation in other organs and is working to eliminate proximate causes such as wireless signals. He requested council's assistance or collaboration.
• Dave Donat (621 Bridgewater Court), on behalf of the Spearfish Youth Baseball Association, proposed constructing a 96 ft x 76 ft indoor baseball training facility on existing baseball diamond land, with a projected cost of around $400,000. He emphasized the project would be fully funded through donations and in-kind labor, and the association is not asking for city funds. He requested city permission and a lease for the site, noting that similar facilities exist on city land in Brandon and Rapid City. He addressed zoning concerns and offered turnkey donation and operating agreements.
• Ryan Wordeman (285 Evans Lane) voiced support for the facility, stating that donors are willing to write serious checks and that momentum must be maintained. He urged the council to move the project forward as quickly as possible. (No public comments were received during the public hearing for the liquor license transfer.)

Added and Adjusted Wages

Interim Fire Chief Scott provided an explanation of "red card" firefighters – those who pass fitness and training requirements for wildland deployment. The council approved the following wage additions and adjustments as budgeted for 2026, including wildland rates for seasonal employees and red carded firefighters:

• Regular Positions: Fire Dept Admin Coordinator (lateral move, no cost), Police/Background Investigator ($33.66/hr).
• Wildland Rates for Seasonal Employees: Jones, Sawyer (FFT2, $22.84/hr); Serrano, Antonio (FFT2, $22.84/hr); VanOsdaol, Alexander (FFT2, $22.84/hr).
• Red Carded Firefighters (AD Pay Plan): Anderson, Michael (FFT2, EMPF, AD-C $22.84, AD-J $44.76); Adler, Zach (FFT2, AD-C $22.84); Bussiere, Ahria (FFT2, AD-C $22.84); Dragoo, Sky (FFT2, AD-C $22.84); Felsman, Jason (FFT2, AD-C $22.84); Fiorelli, Shane (FFT2, AD-C $22.84); Gray, Taylor (FFT2, AD-C $22.84); McClure, David (FFT2, AD-C $22.84); Graeff, Tucker (FFT2, AD-C $22.84); Wenzel, Bill (ENGB, AD-F $30.08); Ziegler, Adam (ENGB, AD-F $30.08). (Motion passed 6-0 on roll call vote.)

Community Development – Professional Services Agreement

Community Development Director Peter Wysocki presented a proposal to hire Clarion Associates, LLC to update Title XV (Land Usage) of City Code at a cost of $152,675. He explained that the current code is approximately 30 years old, has inconsistent processes, and needs a comprehensive rewrite to align with the city's comprehensive plan. The project would include a stakeholder steering committee, regular check-ins with council, and an estimated timeline of 18 months. Council members expressed support for using an outside consultant to avoid overburdening staff. The motion passed 5-1, with Councilor Klarenbeek voting nay.

Finance

• Special Event Malt Beverage License: Approved an application from Ali Eddy with Sawyer Brewing Company for the Black Hills Fly-In on September 19, 2026, from 12:00 p.m. to 9:00 p.m. at Black Hills Airport (400 Aviation Place). (Unanimous.)
• Liquor License Transfer: A public hearing was held (no comments) and council approved the transfer of retail (on-off sale) malt beverage & SD farm wine license and retail (on-off sale) wine and cider license to Tim Moore with First Venture LLC for 127 W. Grant Street, including an encroachment agreement. (Unanimous.)
• Early Payoff of 2015 Sales Tax Revenue Refunding Bonds: Finance Officer Michelle DeNeui reported that the bonds have a 4% interest rate with five scheduled payments remaining ($1,245,000 principal and $62,900 interest). The city's current investment return is 3.55%, so early payoff would save an estimated $5,000–$7,000 in net interest and free up budget authority (over $600,000 in 2027 and under $350,000 in 2028). Payoff would occur with the December 1, 2026 payment using general fund cash. (Motion passed 5-1, with Councilor Hourigan voting nay.)
• Liquor License Auction: Approved offering one on-sale liquor license (minimum $300,000) and two package (off-sale) liquor licenses (minimum $100,000 each) via sealed bids. Revenue will go to the general fund. (Unanimous.)

Public Works

• Rainbow Road Box Culvert: Approved the Certificate of Final Completion and Acceptance, setting June 17, 2026, as the start of the two-year warranty. (Unanimous.)
• Airport Water Main Extension: Awarded the lowest responsive and responsible bid to Wilson Contracting at a total amount of $464,706.97. The engineer's estimate was $765,000; the city's budget for this project combined with the terminal access road and parking lot is $1.6 million. This work constitutes the city's match for the airport terminal grant. (Motion passed 6-0 on roll call vote.)

Approve Bills

Approved the bill list dated July 20, 2026, totaling $594,250.31. (Motion passed 6-0 on roll call vote.)

Departmental Discussion

Public Works Director McMahon reminded council that reapplication of chip seal from Grant Street to Highway 14A started that week. He also updated that 90% plans for the Main Street mill and overlay project would be received this week, with bidding anticipated in August. A special meeting may be needed for award to allow early completion. Community Development Director Wysocki noted a planning commission meeting the following evening.

Presentation of 2027 Budget Information

Finance Officer DeNeui, along with department heads, presented preliminary 2027 budgets:

• Human Resources (Jody Mathis): Operating budget increase of $5,500 to $83,500. Health insurance premiums are budgeted at a 15% increase due to claims experience. A proposed new paid parental leave policy would provide 160 hours for birth or adoption, plus an additional 80 hours for the birthing mother (total 240 hours). A new applicant tracking system (Workable) is proposed at a cost of $10,590 (additional $5,591 over current contract).
• Library (Amber Wilde): Minimal net increase of $208 from 2026. Most of the budget is for personnel, including the second half of longevity adjustments from the Condrey study. A county funding increase is pending.
• Finance/Revenues (Michelle DeNeui): General fund revenue projected at nearly $27 million. Property tax increase of 6.3% (up to the maximum allowed) due to the closure of TIF 1 and TIF 4. Sales tax budgeted with a 3% increase over 2025 actuals. Conservative estimates for building permits and franchise fees. Administration fees for enterprise funds increasing to $3.4 million.
• Mayor/Council: Includes $50,000 for a new strategic plan and $6,500 for the 2027 election.
• Contingency: Reduced to $250,000 regular and $250,000 weather-related (down from $500,000 each in 2026).
• Vacant Positions: Budget authority set at midpoint for City Administrator (Grade 28, Step 9, $220,000 salary plus family health insurance) and City Attorney (Grade 26, Step 11, $189,633 salary plus family health insurance).
• Information Technology: No personnel; increases in managed network services and software licenses. A 2026 capital outlay for financial software upgrade is ongoing.
• Special Revenue Funds and TIFs: Minimal changes; TIF 1 and TIF 4 closed; TIF 7 and 8 active; Sky Ridge debt service continued. Next budget steps: Study sessions on July 29 (Parks/Rec, Police), August 3 (Community Development, Fire), August 12 (Public Works), August 17 (overall recap), September 2 (final discussion), September 8 (first reading), September 20 (second reading).

Key Outcomes

• Consent agenda approved unanimously.
• Added and adjusted wages approved 6-0.
• Professional Services Agreement with Clarion Associates approved 5-1 (Klarenbeek nay).
• Special event malt beverage license approved unanimously.
• Liquor license transfer approved unanimously.
• Early payoff of 2015 Sales Tax Revenue Refunding Bonds approved 5-1 (Hourigan nay).
• Liquor license auction approved unanimously.
• Certificate of Final Completion for Rainbow Road Box Culvert approved unanimously.
• Airport Water Main Extension awarded to Wilson Contracting approved 6-0.
• Bill list approved 6-0.
• Meeting adjourned at 7:13 PM.