Hermosa to vote on two resolutions

Two resolutions passed by the Hermosa Board of Trustees were put to a vote during the June 2 election through a petition process by the citizens.
Resolution 2026-01 is in regards to creating the Tax Increment Finance District (TIF) No. 2 on the west side of Hwy. 79, and Resolution 2026-05 is in regards to the State Revolving Fund (SRF) Loan and revenue bond that would fund the drilling of a new Madison well and other improvements to the drinking water system, including treatment for Hermosa’s existing wells. 
The TIF No. 2 resolution (Resolution 2026-01) was met with disapproval by some citizens due in part to the speed with which it was approved by the board. There have also been concerns raised about the subsequent project plan for the TIF, which included putting a grease processing depot (per the town’s website) on the west side of the TIF district. Some citizens have raised concerns about residential property values, noise, odors and having industrial zoning adjacent to residential.
The stated benefit to the town of the TIF would be expansion of infrastructure into some areas, which would allow for more businesses to move in to Hermosa.
“Through this structure, increases in property tax revenue generated by new development are reinvested back into the district to help fund eligible improvements,” the town website states. “The intent is to encourage responsible growth, address infrastructure needs and support projects that may not otherwise be feasible without assistance.”
The ballot will read as follows: Shall Planning and Zoning Resolution No. 2026-01, adopted by the Town of Hermosa, South Dakota, creating the Western Commercial and Sewer Improvement Tax Increment Financing District Number Two (2), which designates certain property within the Town as a tax increment financing district, be repealed? Fiscal Note: This measure creates Tax Increment Financing District Number Two in the Town of Hermosa, designating certain property for tax increment financing to support development and infrastructure improvements within the district.
City attorney explanation: A vote of yes will repeal the resolution and prevent the creation of the tax increment financing district. A vote of no will approve the resolution and allow the district to be created.
The second ballot measure, Resolution 2026-05, is in regards to a low-interest SRF loan from 2022 that the board would like to use to drill a Madison well and make other improvements to the town water system, including a WRT Treatment system to treat Hermosa’s two existing wells. It was a matter of concern for some citizens due to the expense and the $27 surcharge that would be added to their water bills to repay the loan. Some residents have said Hermosa could still see improvements to its water infrastructure without taking on a project as costly as drilling a new well.
Those in favor of the Resolution have argued that the SRF loan makes the necessary water upgrades possible, and that the two options for utilizing the loan are drilling a new well or connecting to rural water. Those opposed to the resolution have argued that a new resolution could be passed to take a smaller loan to only finance a WRT treatment system to treat Hermosa’s existing wells. 
The ballot will read as follows: Should Resolution No. 2026-05, adopted by the Town of Hermosa, South Dakota, approving certain drinking water facility improvements and authorizing the issuance and sale of a revenue bond to finance such improvements, including pledging system revenues and authorizing a surcharge for repayment of the bond, be approved?
City attorney explanation: This measure authorizes improvements to the Town of Hermosa’s drinking water system, including a new well project, and authorizes the issuance of a revenue bond to finance those improvements. The resolution allows the Town to pledge system revenues and impose a surcharge or special charge on water utility users to repay the bond. A vote of “yes” will approve the resolution and allow the improvements and financing to proceed. A vote of “no” will repeal the resolution and prevent the bond and improvements from proceeding. 
For more information, visit hermosasd.com for recordings and minutes from previous board meetings and full discussions on these matters.