County approves bond refunding, reviews old courthouse options

With all members present, the Lincoln County Commissioners met Tuesday, Dec. 23 in the Lincoln County boardroom to discuss agenda items.

Chairwoman, Tiffani Landeen started the meeting with a public hearing regarding the proposed issuance by the Issuer of its Tax-Exempt Refunding Revenue Bonds (the “Bonds”), in one or more series, in an aggregate principal amount not to exceed $9,900,000. The proceeds of the Bonds will be used to refund all or a portion of prior obligations issued for the benefit of the University of Sioux Falls, a nonprofit corporation described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended. The original obligations financed or refinanced educational facilities located at the following University of Sioux Falls properties. Todd Meierhenry, acting as bond counsel, was present for any questions the commission had. 

“The university is paying off a good portion of those bonds and when they did it changed the paying terms and the IRS rules say we have to come and ask you to consider the motion and pass it,” Meierhenry said. 

Chairwoman Landeen asked for any proponents to the proposed issuance, hearing none, she asked for opponents where Sherry McKenny stood to speak. 

“I’m not really an opponent, just concerned. I read through the information on the website and I’m not versed in legal jargon, so I would like this explained to us in language that us common folks can understand and I was just wondering has this been done before and God forbid something happens to the college, but things happen and if they go bankrupt are we as a county responsible to come up with those funds?” she asked. 

Meierhenry returned to answer the questions posed. 

“Under federal law, the United States did not want 501(c)3’s, which are nursing homes, hospitals, and universities to issue bonds by themselves. So, they wrote the law to have a conduit issuer. The conduit issuer are governmental issuers, so in South Dakota it would be cities, counties, a sanitary district and the state authority, and they issue. Our state statute says the counties and municipalities issue this, but they can pledge no revenue, none of their taxing power, and it is not an obligation of the county,” he responded. 

Motion to approve by Joel Arends, seconded by Jim Schmidt, motion carried 4-1 with Doug Putnam being the nay vote. 

 Auditor Sheri Lund asked the commission to consider a motion to authorize the Chair to execute an Agreement for Detention Services between Minnehaha County, Lutheran Social Services and Lincoln County for the period of January 1, 2026, to December 31, 2026. 

“This is the contract for the juvenile detention center. I’m just requesting that the agreement be approved,” Lund said. 

Motion to approve by Schmidt, seconded by Betty Otten, motion carried.

Human Resources Director Kari Elling asked the commission to consider a motion to approve a Policy Update for Communications Department Pay to align with Sheriff’s office for Night and Weekend Differentials. 

“Right now, we pay the Sheriff’s Department a 3.5% night and weekend differential where we pay our 911 officers 75 cents. Sheriff Swenson did budget for this item and the total cost for the year across all employees is approximately $1,000 for the whole year,” she said. 

Motion to approve by Schmidt, seconded by Otten, motion carried.

Lund returned to ask the commission to approve the 2025 contingency transfers. 

“We are looking at doing the transfers from contingency to the funds to make sure they are not over budget. We do have $200,000 worth of contingency available. This request totals $61,500 with four contingency transfers. The first is in the auditors office and that would be for increased health insurance coverage from a change in employees. The next is for fees and transfers from the coroners office, we started the contract with Dakota Transport and we unfortunately had to have more transports than we had budgeted for. There were $30,000 more in costs for mental illness holds than budgeted for, with that said we have recovered about $7,000 from other counties for those holds not related to Lincoln County. The next one is for debt services for delinquent taxes, and this says that the money I’m transferring will make the budget whole,” Lund said. 

Commissioner Arends asked where they money for the transfers would be coming from. 

“The contingency fund, which is for this specific reason. We budgeted $200,000 for the small overruns that happen throughout the year,” Lund responded. 

Motion to approve by Otten, seconded by Arends, motion carried.

Emergency Management Coordinator, Harold Timmerman requested board discussion regarding funding issues with the Local Emergency Management Performance Grant program. 

“The South Dakota Office of Emergency Management (SDOEM) has been awarded a federal emergency management grant for the Federal Fiscal Year 2026 (FFY26) but has not yet received the award for FFY25 grant. I’m sure it got held up with the government shutdown and we will get that money, but not before the end of this year,” he said. 

Timmerman reported he has had limited communications with FEMA due to litigation with other states, so funding and reimbursements will come, but they will take time. With no questions for Timmerman, the commission thanked him for the update. 

Assistant Commission Administrative Assistant, Paul Anderson was present for a review of the Lincoln County Old Courthouse Committee and possible board action on the next steps for the Old Courthouse. 

“I’m here to review the old courthouse committee and look for direction on the next steps. With the Lincoln County Justice Center still on target to open next September, we need to make decisions about what are going to do with the space that will be vacated…Budget time comes around sooner than you think and before we know it, it’ll be June, so, it’s time to start thinking about what to do with the Old Courthouse,” he said. 

Anderson reported the committee has met three times already to discuss plans, toured the courthouse, review the 2020 report from Architecture Inc., and heard estimated costs and brought six options to the commission without voting themselves. 

Options include the following: 

Option 1: Short Term fix – $400,000 – 500,000 

• Immediate roof upgrades $400,000 - $500,000 

• $94,500 Shingle Replacement o $300,000 approx. attic structural improvements. 

Option 2: Remodel with no full roof - $6,400,000 - $8,500,000 

• Immediate roof upgrades $400,000 - $500,000 

• Remodel of interior $2,300,000 – $2,900,000 

• Mechanical - $2,100,000 

• Engineering and architectural - $600,000 - $1,000,000 

• Contingency - $1,000,000 - $2,000,000. 

Option 3: Remodel with full roof fix (20-year lifespan) - $9,600,000 

• Full roof fix - $1,600,000 

• Remodel of interior $2,300,000 – $2,900,000 

• Mechanical - $2,100,000 

• Engineering and architectural - $1,000,000 

• Contingency - $2,000,000. 

Option 4:Demolition with Façade fix $1,690,000 

• Demolition $225,000 to $350,000 

• Façade repair - $540,000 

• Engineering - $400,000 

• Contingency - $350,000 

• Asbestos - $50,000. 

Option 5: leave building as is with minimum utilities to keep further problems from developing. 

Option 6: City of Canton takes over the building and maintains the property as their City Hall.

“This has not been discussed, other than by the committee, it has not been approached with Canton, these are all just options discussed by the committee and all the options would need to be solidified with bids and full engineering,” Anderson said. 

“What is the bottom line to spend all this money to do what?” asked commissioner Otten. 

“We don’t have a reason. The idea is there may be need in the future for additional space, that’s an unknown at this point. We could possibly put departments from this building in there, but, there is additional space in this side of the building that can take some of that burden,” said Building Superintendent, John Rombough. 

“My whole problem with this is we are getting it from an architect and they might be the best architect in the world, but we had a courthouse going up and what they thought they could do for the money they thought they could do it for, it was so far off base, that I don’t trust architect bids because of what I went through with the courthouse. They were so underpriced that I don’t trust these numbers at all and I don’t see any other engineering in this,” Chairwoman Tiffani Landeen said. 

Chairwoman Landeen opened the floor to the public to ask for their opinion. Scott Montgomery stood to speak. 

“I sat on that committee and there’s no easy decisions here. I go back to the 2020 work that was documented that had pictures of the work that needed to be completed. None of that has been touched and it was absolutely 100% ignored. The gutters that were coming off five years ago, with pictures showing them not attached to downspouts were still laying there five years later. What the heck is going on? If you destroy the foundation of that building by letting the water run in, which you did, and it was $10,00 to fix those gutters and get the water to run away from the building, but did we do it? No. Are we going to do the same thing at the new courthouse? Ignore the maintenance that needs to be done there,” he said. 

“I believe the tax payers of this county should have some kind of vote on what it is that we do with that building,” Commissioner Schmidt said. 

Chairwoman Landeen asked if any commissioners wanted to take action on the agenda item, hearing none, thanked Rombough for his time.