Lincoln County budget session spotlights $6.7M highway plan, roundabout projects and debate over road levy

Lincoln County commissioners spent much of their July 7, 2026 work session reviewing the draft 2027 budget and hearing a detailed presentation from Lincoln County Highway Superintendent Terry Floyd on major highway projects, safety priorities and revenue options.

Floyd told the board he had reworked the highway worksheets to separate materials, projects and operating costs and listed planned work for 2027: bridge inspections ($88,000), about 15–16 miles of microsurfacing, two miles of base stabilization and targeted engineering for county projects. Floyd identified two high‑priority intersection projects: a $1.5 million plan to convert a dangerous half‑cloverleaf near Hudson into a T intersection and a cost‑shared roundabout at Western and County Road 106 that he said had a full project estimate of about $2.5 million.

On the Western–106 project, Floyd said the cost-share understanding among the entities is Sioux Falls 40%, Harrisburg 20% and Lincoln County 40%. He explained that the budget shows the entire project expense and a separate intergovernmental revenue line that offsets the county’s share.

Commissioner Jim Schmidt (remarks during the meeting) outlined a funding option to help pay for the highway package: a road‑and‑bridge opt‑out at roughly $30 (per whatever assessment the county adopts) that he estimated could generate about $2.7 million, and he used an example of a $300,000 house to show that translates to roughly $90 per year (about $7 per month).

Floyd cautioned that some grant opportunities are uncertain: he said Lincoln County bundled five intersections for a Safer Streets for All grant application and expected a federal decision in December, but noted the program’s funds were limited. He also explained that project costnumbers in the budget reflect full expenditures and that corresponding intergovernmental revenues would reduce the net county expense.

The meeting included extended discussion about how to prioritize projects if voters decline an opt‑out. Commissioners and members of the public debated whether levy revenue would be spread fairly across the county or primarily benefit through‑traffic; several residents urged caution about raising taxes and suggested the commission look for line‑by‑line reductions in the draft budget.

County staff clarified that general‑fund reserves would be used for cash transfers to the highway department if needed; commissioners discussed a roughly $6.4 million cash transfer shown in the highway budget and asked for clearer revenue tables in the binder. Staff also noted that prior opt‑outs have passed and later been referred by voters.

There was no vote on a levy or opt‑out at the session; commissioners were told they have until July 15 to make a formal decision about placing an opt‑out or levy on the ballot. Staff committed to return with corrected line items and a clearer presentation of revenues and offsets at the next meeting.

What’s next: Commissioners will consider additional budget detail and the opt‑out/levy decision before the July 15 deadline; staff will supply updated budget worksheets and revenue schedules for review.