Sturgis Council passes first reading of tough 2025 budget

STURGIS, S.D. – Sturgis Acting Mayor Kevin Forrester warned citizens of a brutal 2025 budget – and that was none more apparent at first reading Monday night.

Forrester said the 2025 budget, developed with a focus on financial prudence, sustainability, and the continued delivery of essential services, reflects the city’s commitment to balancing fiscal responsibility with the needs of the community.

Forrester said that due to unresolved revenue reconciliations from 2024, this budget was created without applying cash reserves.

He says currently, the city’s third-party CPA contractor is finalizing the reconciliation process, which will provide greater clarity on the city’s cash position for each fund.

“In the meantime, the budget reflects a balanced approach, achieved through careful collaboration with all departments,” he said.

Forrester said every department worked to identify adjustments that maintained critical services while aligning with financial realities. He added that unfortunately, this process required difficult decisions, including staff reductions and reassignments in the Legal, Rally & Events, and Engineering departments. These changes result in a net reduction of five full-time equivalent (FTE) positions compared to the 2024 budget.

Rally and Events was among those hardest hit, where three FTE positions were affected. They include one vacant position that will not be filled, one position eliminated with the option for the staff member to apply for other city openings, and one position transferred to another department. The eliminated position was Rally and Events director, headed by Tammy Even Cordell.

Even Cordell approached the council and gave a synopsis of her time and dedication to the city of Sturgis in the various positions she has held.

“These decisions were not made lightly,” Forrester said. “We deeply appreciate the dedication and contributions of the staff members whose positions are no longer part of the city’s structure. Their work has made a lasting impact on our community, and we are grateful for their service.” Still Forrester says while these changes are substantial, they are designed to streamline operations while ensuring
continued support for key community events.

For example, the city will also not be continuing with the Camaro Rally efforts in 2025 but will instead work to facilitate the event through another organization. Another change in events includes the Sturgis Chamber of Commerce agreeing to host the eight ‘Music on Main’ events, along with four additional events after the Rally. Forrester says this will reduce event costs and significantly extend the event window immediately following the Rally. He says Rally-specific events will be contracted to an external event contractor, with the goal of reducing costs, enhancing the event experience, and generating additional sponsorship opportunities.

The city’s General Fund of the total $25.7 million budget totals $10,081,644 as do the revenues for the 2025 budget. That is approximately $1.25 million dollars less than 2024.

Other budget totals include public works at $4.6 million, general government at $3.7 million, public safety at $4.6 million, economic development at nearly $4.8 million and Ambulance at $1.7 million.

Council passed first reading of the 2025 budget on a unanimous 6-0 vote, although with regret by some of the losses being realized.

Second reading of the 2025 budget is scheduled at a special City Council meeting on Monday, Dec. 9.

You can view the 2025 Budget Presentation here: https://www.sturgis-sd.gov/media/Sturgis%20Budget%20Overview%20Final2.pdf?fbclid=IwY2xjawG7DhhleHRuA2FlbQIxMAABHRIKxJQMVjJIzIkmjz-6kYbwUk04VTK3D_KSE9WCvRFz9E-zvVqsozYGXA_aem_pwHSfejVLa-c6m6u5fsKnQ

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Rapid City, US
12:27 pm, Dec 23, 2024
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