City staff briefed the Dell Rapids City Council on several infrastructure projects, reporting completion or near-term work and outlining next steps for multi-year efforts.

Third Street: Staff reported the Third Street improvement project is complete and now in its warranty period; the contractor has overseeded areas that were not vegetated and the city will perform a final warranty walkthrough this fall. The original budget estimate was $800,000; the winning bid was $479,000, and roughly 80% of that project was grant funded.

Old 77 trail phase 2: The Old 77 youth path phase 2 project is supervised by DGR; removals have been staked and the contractor planned to start work on the north end from 10th to 15th as soon as the week of the meeting. When budgeted last year the project estimate was $800,000 but the winning bid came in significantly lower, a staff member said; about 80% of that project is grant funded.

Third Street bridge (bridal bridge) replacement: Banner Construction is supervising; utilities removals are ongoing and BX plans to close the bridge on Friday, June 13, with demolition and pavement removal to begin the following Monday. BX estimates project completion by October. The initial budget listed $1.7 million; current project estimate is about $1.3 million; roughly 80% of the project is grant funded.

Orleans Avenue: DGR is in early design phase for the Orleans Avenue improvements (4th through 6th Street segment). The project estimate for that first phase was $4.9 million with a $500,000 grant and loan terms discussed as 30 years at 3.75%. Staff said further design conversations will determine whether construction occurs in 2026 or 2027.

Western utilities extension and Avera coordination: Staff said the Western Utilities extension project is in early design and that the timeline will be coordinated with Avera's needs; the project was estimated at $4.8 million with similar loan terms discussed.

Water study and MCWC contract: Staff reported the city is finalizing a water-system study in coordination with MCWC and awaiting a South Dakota Water Rights Board hearing in July; outcomes will influence decisions about future water-rights availability and the city's 40-year contract with MCWC, which expires next year. Staff emphasized the study results will affect decisions about MCWC's plant and any renegotiation or continuation of water supply arrangements.

Why it matters: These projects represent multiple millions in capital investment and several projects are heavily grant-funded. Staff asked council to prioritize capital-improvement plan items during the upcoming budget cycle and said more detailed budget recommendations will follow.

Next steps: Staff will meet with consultants and present capital prioritization recommendations during early July, then return with draft budget guidance in mid-July and a special session in August before final budget adoption in September.