Spearfish City Council Study Session – September 2, 2026

The Spearfish City Council held a study session on September 2, 2026, from 4:15 PM to 6:08 PM, to review the upcoming regular council agenda, discuss a proposed snow removal assistance program, receive the Community Development Department's annual report, and gather input on 2027 budgets. The meeting included public comments and detailed departmental discussion.

Consent Calendar

• Approved the agenda as presented.
• Reviewed the draft agenda for the September 8, 2026, regular council meeting, including items related to the 2025 financial audit, consent agenda (meeting minutes, new hires, real estate purchase agreement for Sky Ridge subdivision), development agreements, liquor license applications, grant agreements, and various public works items (change orders, equipment purchases, lease transfers). No objections were raised.

Public Comments & Testimony

• Jessica Rear, representing Enso Mental Health, requested the city designate an ADA accessible parking space near their facility. She noted that she had been pursuing this since April 2025 and asked for a clear lead department and a target date for approval. The council acknowledged the request and asked for her contact information to follow up.
• Joe Jorgensen, a resident, offered tours of the new Centennial Mountain Development ahead of the dedication agreement approval at the next council meeting. He thanked the council for their investment.

Discussion Items

Snow Removal Assistance Program (Proposed Resolution 2026-18)

• Public Works Director Adam McMahon presented the proposed program, modeled after the City of Fargo. Eligibility requires meeting both criteria: (1) a physical disability or mobility issue preventing snow removal, with no able-bodied person in the household, and (2) household income at or below 60% of area median income (e.g., $40,740 for one person, $58,200 for a household of four). Applicants would self-certify. The program would be administered by city staff; a pilot last spring had only five participants, so staff expect to handle demand without additional equipment.
• Councilmember Dean questioned the restrictiveness of requiring both criteria, suggesting that meeting any one criterion might be more appropriate. Other members (Scott, Larry) supported running the program as proposed, noting that the city already provides a good snow removal service and that additional social layers were not needed. McMahon noted that residents can still call for one-time assistance in emergencies.
• Councilmember Hafner asked about the number of toolcats (four) and pickup plows (eleven) and whether additional equipment was needed. Staff indicated that current equipment is sufficient for the anticipated participation rate, but will evaluate after the program's first winter.

2025 Community Development and Comprehensive Plan Annual Progress Report

• Community Development Director Peter Wysocki, along with staff Shelby and Vana, presented the department’s first annual report. Key statistics for 2025:
  • 340 building permits issued; total project valuation of $82 million.
  • 1,932 building inspections conducted, with a 92% pass rate.
  • Residential construction: consistent trend in single-family with median lot size of 0.2 acres; 104 multifamily units added (from Hollow Gulch apartments).
  • 30,000 square feet of commercial construction (additions and new).
  • Planning and zoning: 89 applications processed, 33 lots created through subdivision, first TIF district for Stone Ridge Commons processed.
• The report tracks progress on the city's Comprehensive Plan goals, including housing affordability, economic development, and land use. Staff noted the need for a Spearfish-specific housing needs assessment (requested in 2027 budget). The report is posted on the city's website.
• Council members praised the report and suggested finding ways to share highlights with the public (e.g., via local newspaper inserts).

Departmental Discussion

2027 Budget Amendments and Overview

• Finance Officer Michelle DeNeui reviewed amendments since the last meeting:
  • General Fund: Added $50,000 for IT software upgrade (carryover from 2026); reduced $400,000 for Main Street Mill & Overlay (project completed in 2026); reduced $120,000 for Sandstone Hills Remediation (project moved to 2027) and reallocated to street repair; removed $250,000 transfer to E911 fund due to consolidation with Lawrence County.
  • 911 Fund: Removed $900,000 in operational costs (8 staff, contracts) as calls will be consolidated by December 2027; added $250,000 for contractual obligations.
  • Water Fund: Reduced transfer to airport by $750,000 (airport waterline project bid came in lower); now $350,000 in 2027.
  • Downtown BID Parking Fund: Removed anticipated revenue from increased special assessment (unable to meet certification deadline); trimmed $2,000 in supplies.
• Overall, the 2027 budget shows a projected use of cash of $1,825,425 (down from nearly $5.5 million in 2026). DeNeui explained that recurring revenues ($44.7M) exceed recurring expenditures ($37.5M), meaning the city uses accumulated savings for one-time capital projects. The general fund reserve of 30% remains untouched.
• Councilmember Bill and citizen Jeremy Smith raised concerns about relying on savings for two consecutive years and the perception of overspending. DeNeui clarified that the reserve is separate and that unassigned fund balance is being used for planned projects. Mayor Senden noted that in 2025, the budget ended with a surplus despite a projected deficit.
• Council discussed contingency funds: currently $250,000 for weather and $250,000 general contingency. After hearing Finance Officer’s explanation of the advantage of contingency over budget supplements (easier council action, no publication costs), the consensus was to retain both at $250,000 each.
• Councilmember Larry proposed increasing hospitality tax allocations to three organizations (Booth Society, High Plains Heritage Center, Matthews Opera House) from the committee-recommended total of $260,000 back to the requested $284,000 (an increase of $24,000). After discussion, council reached consensus to adopt the $24,000 increase, citing the fund’s purpose and available cash.

Key Outcomes

• Snow Removal Assistance Program (Resolution 2026-18): Council reached consensus to move forward with the proposed program as presented. Staff will monitor participation and adjust if needed. The resolution will be placed on the September 8 council agenda for formal approval.
• 2027 Budget Directions:
  • Finance Officer will incorporate the $24,000 increase in hospitality tax allocations.
  • Contingency funds will remain at $500,000 total ($250,000 each for weather and general).
  • Sandstone Hills Remediation budget of $520,000 was retained as planned (construction in spring 2027).
  • The first reading of the 2027 appropriations ordinance (Ordinance 1431) will be on the September 8 council agenda.
• ADA Parking Request: Mayor Senden committed to identifying a lead contact from the city to follow up with Jessica Rear and determine a target date for resolution.
• Public Participation: The meeting included 14 minutes of public comment (5:14 PM to 5:18 PM).
• Adjournment at 6:08 PM.