STURGIS, S.D. – In a press release, the City of Sturgis say their financial position is stronger than it has ever been.
Since 2011, the City has completed $68 million in capital improvements and equipment upgrades:
- $23.8 million in wastewater enhancements
- $11.4 million in buildings
- $11.0 million in water and well improvements
- $8.2 million in road construction
- $5.4 million in airport improvements
- $4.0 million in new equipment
- $3.1 million in new parks and enhancements
- $1.1 million in land acquisition
Most of these projects were funded through City resources. Â However, to obtain as many federal funds as possible, the City has occasionally taken on debt to apply for federal grants. Â Over the past five years alone, the City has received more than $10 million in federal funding for improvements.
The City was able to complete these improvements through grants, growth, Tax Increment Financing, Increased Sales Tax collections (up 65.6% 2011-2021), and increased Rally profits.
The City reduced the average City of Sturgis portion of the tax payment made by the average parcel in the community nominally (not adjusted for inflation) by 8.4% from 2007 to 2020 and by 28.1% in real (adjusted for inflation) terms.
Additionally, the City’s financial assets have increased 111% since 2007. Â In 2022, these assets will generate $445,000 for the community, or enough to fund the Finance Office with $100,000 leftover.
The State constitution limits the total amount of debt a community can retain. Â Our community’s growth and wise financial planning have allowed this to increase significantly. Â Furthermore, the City’s financial capacity has grown. Â The City’s Constitutionally authorized debt availability is $9.5 million, an increase of 45.4% since 2007
The comprehensive, independent annual audit process conducted by Ketel Thorstenson has continually reaffirmed that the City’s approach to financial growth and our investments in the community’s infrastructure is sound.
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