Budget work session centers on highway projects, roundabout cost-share and debate over a road-and-bridge opt-out

The Lincoln County Board of Commissioners spent much of its July 7, 2026, meeting on the proposed 2027 budget with a heavy focus on highway projects and the possibility of a road-and-bridge opt-out to finance them.

Terry Floyd, Lincoln County highway superintendent, walked the board through the highway budget and project list. He said the department will split certain line items to make projects and routine maintenance more transparent and highlighted key projects: $1.5 million estimated for converting the dangerous half-cloverleaf near County Road 152/143 by Hudson into a T intersection to address multiple fatalities; a $2.5 million roundabout proposed at Western Avenue and County Road 106 to be cost-shared with Sioux Falls (40%), Harrisburg (20%) and Lincoln County (40%). Floyd said the county’s share of the Western/106 project as shown in the budget is roughly $1,000,000 after intergovernmental revenue offsets.

"We're going to build a T intersection there," Floyd said, explaining engineering and right-of-way considerations and that the county is fast-tracking the project because regional construction on nearby corridors will make timely completion important.

Commissioners debated whether to place a road-and-bridge opt-out (often called a levy or opt-out in local usage) before voters to provide recurring funding for road maintenance and projects. One commissioner outlined a hypothetical $30 assessment that would generate roughly $2.7 million and estimated that the cost to a $300,000 house could be about $90 a year (roughly $7 a month), calling it "a good investment" to maintain infrastructure and safety improvements. Budget staff and other commissioners cautioned that any opt-out has procedural risks—previous county attempts were referred and failed—and that state code requires 25% of collections be returned to cities.

Public commenters urged caution. Several residents told the board not to raise taxes or pursue an opt-out that would increase property levies; one resident said the county should use reserves and make line-item cuts before increasing levies. "I hope you'll stick with the budget and find a way to pull it back because it isn't easy for everyone," a resident said during public comment.

Commissioners also discussed a $2,000,000 placeholder line in the buildings/facilities portion of the budget for the old courthouse. Budget committee members said the line was included as a placeholder to allow options—renovate, remove or repurpose—and to ensure money would be available if the board decided to act; commissioners asked to make the courthouse a specific agenda item at the next meeting for fuller public and procedural consideration.

Several other budget clarifications were raised by staff: corrections to senior services and insurance lines, splitting highway materials from project work, and an IT software increase to reflect licensing costs. Floyd said the department's cash transfer proposal and project list reflect both county-only work and projects expecting grant reimbursement; Safe Streets for All grant decisions are not expected until December.

What’s next: Staff noted the board has until July 15 to act on an opt-out; commissioners left the door open for further discussion at next week’s session and asked staff to bring more detailed revenue offsets and project prioritization for review.