Council approves application for up to $3.93 million SRF loan for Olman/20th–Kemper street and utility project

The Mitchell City Council voted to approve Resolution R2025-70 authorizing an application for financial assistance through the South Dakota Board of Water and Natural Resources to fund street and utility work from Olman Street to 20 Third to Kemper.

City staff told the council the application seeks up to $3,930,000 with a 30-year loan term at 3.75 percent; the resolution designates the mayor to submit the application and to sign pay requests if the funding is awarded. "This resolution authorizes the city council to approve and execute an application for financial assistance through the South Dakota Board of Water and Natural Resources," said Mr. Schrader, the staff presenter.

The council discussed project details before the vote, including the roundabout included in the street work and how project costs will be allocated. Mr. Schrader said the new lift station recently installed at the southeast corner is in a good location and will not need to be moved for this project. Council members confirmed the county has approved the roundabout and that the item is included in the proposed 2026 budget as revenue for the project.

One council member asked how much of the loan would pay for the roundabout; staff said the exact breakout was not available at the meeting but offered to provide the numbers later. A council member noted the remaining general fund cost for the roundabout was expected to be in the $700,000–$800,000 range; staff said that is the general fund contribution and not part of the financing application.

Council members also discussed the design schedule and coordination with other watershed work. Mr. Schrader said the design schedule is expected to be finished later this fall or early winter so bidding can occur in the winter timeframe. The staff discussion also noted limits on using certain state dollars inside the lake versus the watershed; staff said some nonpoint-source funds cannot be used inside the lake and must be spent in the watershed.

Motion to approve the resolution was made by Tim and seconded by Mr. Goldhammer. The mayor called for the question; the council approved the resolution by voice vote. "All those appearing in the motion say aye," the mayor said; attendees replied "Aye," and the mayor announced, "Motion carries."

The resolution allows the city to proceed with the application; if the state awards funds, the mayor is authorized to execute and submit pay requests.

The council did not take a roll-call vote; specific vote tallies by member were not provided at the meeting. Staff committed to provide a detailed cost breakout for the roundabout and a design timeline to the council.