Spearfish City Council Study Session - July 29, 2026

The Spearfish City Council met in study session on Wednesday, July 29, 2026, from 4:15 p.m. to 5:12 p.m. in City Council Chambers. Mayor Senden presided; council members Jacobs, Klarenbeek, Hourigan, Myers, and Rath were present, and Hafner was absent. The council approved its agenda, reviewed the August 3, 2026 Board of Adjustments and City Council agendas, heard public comment, and received the 2027 budget request for Police, Animal Control, and E911 Funds.

Agenda Approval

• Klarenbeek moved, Jacobs seconded, and the council voted unanimously to approve the agenda.

Review of August 3, 2026 Agendas

• Board of Adjustments: One variance request for a front-yard setback on a corner lot at Eighth Street/Federal Way to install a carport over a gravel area. Staff noted city code treats both corner sides as front yard setbacks even though no street exists on one side; the Planning Commission recommended approval.
• City Council consent agenda: Approval of minutes from the last round of meetings.
• Zoning map amendment: The owner of the former city-sold Camp Canine property is requesting a change from industrial to service commercial to allow the doggy daycare, a human day spa, and three to five residential cabins for employees; the purchase agreement requires completion by January 2028.
• Final plat in the extra-territorial jurisdiction: Approval to create one additional lot west of Mountain Plains from a larger tract; the preliminary plat was approved in 2024, a conservation easement covers most of the property, and the smaller portion would be developed with a single-family home. The Planning Commission recommended approval.
• Finance: Crow Peak Brewing requests temporary beverage service at Dakota 5.0, the Black Hills Fly-in on September 19, and a Pit 14 BBQ rally location; first reading of Ordinance 1429, a 2026 budget supplement, is expected to be added to the packet, with a goal of zero net budget impact except for bond payoff from cash on hand.
• Parks and Recreation: Proposed amendments A, B, and C would extend Black Hills State University soccer field use agreements for five years (practice at Ronnie Tice Field and games at the Energy Complex), clean up outdated language, and were unanimously recommended by the Park Board. Item D would authorize continued work with the Spearfish Baseball Association on the indoor baseball facility.
• Police: A three-year MOU with Black Hills State University would place an armed campus officer, similar to an SRO, on campus in response to state campus-carry legislation; more information on PSAP consolidation with the county is expected Monday, with Sheriff Dean presenting to the county commission.
• Public Works: A temporary construction easement for a sidewalk on Colorado Loop with Elkhorn Ridge and an agreement with Butte Electric for electrical lines and street lights in the Sawmill development (Bansall Avenue) are planned.
• Administrative items: First-of-month bill list, salaries, bank fees, credit card fees, and publication of wages will be in the Friday packet. The August 3 council meeting will include more 2027 budget presentations (community development, parks and recreation, and fire) and a short executive session with no action expected.

Public Comments & Testimony

• Jeremy Smith, 287 Evans Lane, raised two questions: whether Board of Adjustments alternates have been established, and how the city sells public land to private entities through SEDC. He asked for more information about that process in the near future, noting it has lingered in part because the city attorney was not present. No other public comments were received; public comment was open from about 4:35 p.m. until closed.

Discussion Items: 2027 Police, Animal Control, and E911 Budget Request

• Police Chief Smith presented the request. He described the E911 budget as a moving target until PSAP consolidation negotiations with the county are complete; the figures presented assume no consolidation.
• The police department will absorb the cost of one of three school resource officer positions because the school district could not fund all three; Smith said he did not want to lose an established SRO.
• Smith requested an additional $15,000 in the machine and equipment budget for a drone program. Law enforcement drones are restricted by the American Security Drone Act to American-made drones on the "blue list." The proposed Parrot drone package totals about $25,000, but staff identified items to reduce that cost. Uses would include missing persons, search and rescue, crime scene mapping, collision reconstruction, officer safety, and disaster response. The drone would have a FLIR thermal camera and could assist the fire department with hot spots; Fourth Amendment case law was discussed. Council member Myers called it "a great addition."
• A new customer service assistant position was proposed to replace walk-in lobby services currently provided by dispatchers, because those services would be lost if dispatch consolidates with the county.
• The department identified about $15,000 in reductions. Professional services and fees total about $78,500, including $52,000 for citywide mental-health services, $14,000 for towing/shipping, $5,000 for Guardian background software, and $7,500 for online investigative tools.
• Software maintenance is a major cost: the 10-year Axon contract for body cameras, tasers, and vehicle cameras is estimated to save the city $255,000 over the contract term and will cost about $80,000 in 2027; Central Square services are estimated at $69,606 for October 2026 to October 2027 if the PSAP does not consolidate, with the amount expected to drop after consolidation.
• Myers asked about personnel growth from about $2 million in 2023 to about $4 million in 2027. Finance Officer DeNeui explained that 2023 and 2024 actuals did not include the former public safety administration department, and three new police officer positions approved in 2026 are budgeted for 2027. Comparing 2026 to 2027, four additional staff positions are included: three officers and the customer service assistant.
• Hiring update: three temporary officers will join for the Sturgis Motorcycle Rally though the department sought seven; interviews for new officers are scheduled next week, with two applicants in background and one polygraph on Friday.
• Klarenbeek asked about revenue opportunities from citations; Smith replied that state law directs fine revenue to schools and victim programs, and law enforcement should not be a revenue source.

Departmental Updates

• Public Works Director McMahon reported chip seal reapplication on Colorado Boulevard is complete; fog seal and striping are scheduled for next week.
• Community Development Director Wysocki said the August 4 Planning Commission meeting would likely be canceled for lack of items; building services has been busy finalizing multiple projects and starting affordable housing projects.
• Parks and Recreation Director McDonald said landscape renovation has started at the Exit 12 waterfall, with the goal of restoring the waterfall; the creekside stabilization project is near completion, with final stabilization and seeding pending.
• Smith added that BHSU Public Safety Director Cory Compton will attend the August 3 meeting when the MOU is presented. (The transcript spells the name "Corey.")

Key Outcomes

• The council unanimously approved the study session agenda.
• No formal action was taken on the 2027 police budget; it was a discussion and presentation item.
• Upcoming decisions include the August 3, 2026 Board of Adjustments and City Council meetings, the first reading of Ordinance 1429, the PSAP consolidation agreement, the BHSU MOU, and continued baseball facility discussions.
• The airport lease/fixed base operator agreement will not be ready for August 3 and is expected at the following council meeting.
• The meeting adjourned at 5:12 p.m. on a motion by Rath, seconded by Jacobs.