STURGIS – The Sturgis City Council took a first step in positioning the community for a secure financial future when it approved first reading of the 2027 budget at its Oct. 19, meeting.
The discussion considered options for closing a budget shortfall while building a stronger financial foundation. Those options included reducing expenses, adjusting some service fees and determining how much money the city should keep in reserve.
“This budget provides a roadmap for the city’s financial future, helping us maintain essential services and plan for improvements that will benefit our community for years to come,” Mayor Rod Bradley told the council.
The 2027 General Fund budget includes approximately $10.38 million in expenses. That fund provides for everyday city services, including police, fire, streets, parks and the library.
City officials used the 2026 budget as a starting point and removed more than $300,000 in one-time expenses. The 2027 proposal also accounted for wage increases established through the city’s labor agreement and an anticipated 35% increase in Black Hills Energy bills.
Projected General Fund revenue totaled approximately $9.35 million, leaving an initial shortfall of about $1.03 million between 2027 revenue and expenses. Available money from city operations funded through fees, along with the special sales tax fund known as the BBB fund, reduced the projected remaining deficit to $593,647.
To address that shortfall, $400,251 in potential additional revenue and $331,527 in possible expense reductionswere identified for 2027. Together, those options could close the shortfall and leave a projected surplus of $138,131.
Revenue options presented for consideration included adjustments to Community Center fees (which have not been adjusted for several years), airport leases and maintenance fees (which would more reflect market pricing), commercial dumping fees at the Rubble Site, bulk water prices and ambulance service fees (comparable to surrounding communities). Other possibilities included park shelter usage fees (to help cover staff costs) and reimbursement for part-time library programming.
It was here that Sturgis Public Library Director Chris Hahn approached the council with concerns about coming up with the $25,000 to help balance the budget.
“One of the issues is the Public Library Gift Fund, by state law, can not have money in that fund revert to local government,” said Hahn. Mayor Bradley asked if there were any other options the Library Board could explore.
Hahn replied that the memorials and donations, about $6,900 also can be used for specific things like programming and books. Another source is the book sale which generates about $1,800.
Hahn added he’s been looking at some reductions that can be made but the $25,000 would wipe out the memorial funds and erase the interest on the funds in the Alice Wiggins Dunn Trust for the year.
“It would take away quite a bit of our services. That’s where we’re at,” he said.
Mayor Bradley assured Hahn no one feels the library is unnecessary, but it’s the allocation of resources that makes the budget work.
Library Board member Robin Englehart Bailey told the council $25,000 means staff cuts at the library.
“It’s open six days a week and we have long hours and we’re not over staffed by any means. Everyone there serves a purpose so we’d have to look at services we would have to cut,” she said.
Potential savings included leaving some vacant positions unfilled, reducing insurance costs and adjusting ambulance staffing and schedules.
The budget process also raised longer-term questions about making the General Fund less dependent on revenue from the annual Sturgis Motorcycle Rally, and transfers from other city funds, while ensuring those funds could cover their own expenses and future needs.
Strong financial planning and direction, and setting reserve goals will help the city provide for residents’ needs, keep essential services dependable when unexpected costs arise and plan improvements that make Sturgis a better place to call home.
Ward 3 councilor Mark Chaplin stated he doesn’t feel the $138,131 as a surplus amount is enough but it’s a place to start.
Ward 4 councilor Jesse Blakeman felt utilizing sponsorships may be a good way to generate revenue and Ward 1 councilor Terry Kessler was wondering how selling tickets to the rubble site would generate the $100,000 mentioned in the budget. Mayor Bradley explained the plan but then he added between first and second readings adjustments can be made to the budget.
Ward 3 councilor Mark Chaplin made the motion to approve the first reading with a surplus amount of $138,131 and fellow Ward 3 councilor Jim Thompson seconded it. The motion passed unanimously.A second reading and final adoption are scheduled for the Nov. 2, City Council meeting.
