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Council approves small roadway change order and capitalization policy; sets second reading for rezoning; discusses TIF guidelines
Summary
At its meeting the Harrisburg City Council approved a $3,604.23 deductive change order on Prospect Street work, adopted a revised capitalization policy, set a March 18 second reading for a rezoning ordinance covering an 8-acre parcel, and discussed draft tax increment financing guidelines without taking action.
HARRISBURG — The Harrisburg City Council voted on several routine agenda items and discussed draft tax increment financing (TIF) guidelines at its meeting.
Change order: the council approved change order No. 1 for the Prospect Street and Southeastern Avenue roadway improvements, a net credit (deduction) of $3,604.23 to the construction contract. Chad Eby (planning and zoning) explained the change order combined several small additions — message boards, a farm field approach, extended culverts and dust control — totaling about $37,000, offset by reduced surfacing quantities that produced roughly $40,000 in deductions. The substantial completion window was extended; remaining work will resume in spring with a final change order and final pay application anticipated.
Rezoning ordinance: the council set the second reading for Ordinance 2025-01, rezoning an approximately 8-acre parcel in the Flatiron Crossing Addition from I-1 (light industrial) to GB (general business). Chad Eby said the parcel’s preliminary plan showed general business and the Planning Commission recommended approval on Feb. 11, 2025. The council voted to set the ordinance for second reading on March 18, 2025.
Capitalization policy: the council approved Resolution 2025-03, which raises the city’s capitalization thresholds for financial reporting. Staff said prior thresholds (machinery/equipment $1,000; other capital $10,000) were changed to higher amounts to reduce annual reporting workload; the council adopted the revised policy.
Tax increment financing guidelines: staff presented draft TIF guidelines for discussion only. Amanda (staff member) said she has received at least one formal TIF request and expects more; the guidelines were drafted from practices used by other communities and are intended to create a consistent process, outline exclusions and provide a calculator to measure reasonable increments. Councilmembers generally supported bringing the guidelines back for adoption at a future meeting and asked staff to return with any recommended tweaks.
Executive session and adjournment: the council entered executive session under SDCL 1-25-2 for contract negotiations and later reconvened and adjourned the meeting at 7:08 p.m.
Votes at a glance - Change order No. 1, Prospect Street and Southeastern Avenue Roadway Improvements: approved (net credit $3,604.23). Vote recorded as ayes by Councilmember Wiesinski, Councilmember Maxwell, Councilmember Westermann and Councilmember Kent. - Ordinance 2025-01, rezoning (set second reading for March 18, 2025): motion approved on first reading scheduling; vote recorded as ayes by councilmembers present. - Resolution 2025-03, capitalization policy: approved; vote recorded as ayes by councilmembers present.
Items that were discussion-only - Draft tax increment financing guidelines: discussion only; staff will bring a final draft for adoption at a future meeting if council desires.
