Bill's Christmas cheer doesn't stop with the New Year!
After being alone for another holiday season, Bill gets inspired by Hank's suggestion to answer a Dear Santa letter. Motivated by his new holiday spirit, Bill decides to create his own Santa's workshop at home and spread the Christmas cheer to all of Arlen's underprivileged youth.
While the rest of Arlen is taking down their decorations after the New Year, Bill refuses to let go of his newfound Saint Nick status and continues to build upon his winter wonderland. Hank and the other neighbors begin to get frustrated but feel guilty about telling Bill to stop the one thing that truly makes him happy.
The turning point comes when a local juvenile delinquent, Wally, cons Bill into letting him stay in Bill's house. Wally starts throwing parties, disturbing neighbors and trashing the street. Hank vows to put a stop to it, but is withdrawn when he sees how Bill has assumed an odd fatherly role to Wally. When Wally gets Bobby drunk though, it's the final straw. Hank forces Bill to make a decision, which ends with Wally being sent to military school.