Aberdeen Development News
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City Council Meeting June 22nd, 2026
Published: Jun 22, 2026
City Approves Application for Water Tower Funding, Estimates Potential Rate Increase
The council discussed and approved a resolution authorizing an application for drinking water facilities funding for the water tower and transmission project. The project has an estimated total cost of \$14.5 million, with \$2 million from an Economic Development Administration grant and \$10 million in loans from the South Dakota Department of Agriculture and Natural Resources already secured. An additional \$2.5 million is being sought through this application. The presentation included a 'worst-case scenario' analysis assuming a loan at 3.75% for 20 years, which would result in a \$1.75 per user per month increase on a flat rate basis. The state requires 110% debt capacity for such funding. Council members inquired about the likelihood of receiving grant funding versus an only-loan scenario, with the presenter estimating it would likely be an all-loan situation. The current interest rates from the state were deemed the best available, as the city does not qualify for USDA rural development loans due to its population exceeding 25,000.
Rezoning Approved for Car Wash Expansion
The council approved a rezoning request for a property at 402 15th Street South to eliminate split zoning. The rezoning from I2 and C2 to C2 was a result of a replat to allow for the expansion of an existing car wash. The Aberdeen City Planning Commission unanimously recommended approval of this request on June 16th, 2026. Staff also recommended approval.
Contract Approved for New Bus Barn Design Services
The council approved a contract for Architectural and Engineering (AE) services for a new bus barn for the city's Ride Line transportation service. The project aims to store approximately 10 additional vehicles. A grant of up to $100,000 was applied for, administered by DOT, which will cover $67,236 of the AE services cost. The total contract amount for AE services came back at $84,45. The new bus barn will be a standalone building constructed west of the current facility. Staff recommended approval.
City Manager Reports on Community Events, Infrastructure Projects, and Water Levels
City Manager Dave McNeel provided a report highlighting recent community achievements and ongoing projects. Spencer Lux was recognized for 10 years of service in the parks and wreck forestry division. The 'Arts in the Park' event was noted as a success, celebrating its 50th year. The 8th Avenue water tower is nearing completion, with painting underway. Regarding water levels, the water on Foot Creek continues to rise, and flow in Moxin Creek has reversed northwards; measures are in place to protect construction sites. The city is exploring placing water flow meters on its website for public access. Construction on 8th Avenue and North Dakota Street is progressing on schedule, with driving lanes paved on 8th Avenue and subgrade work ongoing on Dakota Street.
TIF District 8 Dissolved After Fulfilling Infrastructure Obligations
The council considered and approved the dissolution of Tax Increment Finance (TIF) District Number 8. This district was established in 2007 to finance public infrastructure for the ADC manufacturing facility for Molded Fiberglass. The city issued $3.8 million in bonds in May 2008 to support this. The district has facilitated significant development and growth in taxable value. Staff reviewed the district after the final debt service payment in May 2026 and determined all obligations have been satisfied. Upon dissolution, any further tax increment revenue will be remitted to Brown County for apportionment among taxing entities. The resolution to dissolve TIF 8 was recommended for approval and subsequently passed.
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