STURGIS, S.D. – Sturgis Council members passed second and final reading of their 2022 budget Monday night.
The 2022 budget is approximately $30.4 million – up a bit from the first reading following some changes.
The biggest change will be the addition of some Tax Increment Finance money that has been approved.
Sturgis City Manager Daniel Ainslie says they are adding approximately $6.5-million to the second reading – which increases it to the $30.4 million from an estimated $23.9-million at first reading. The change is revenue neutral because the cost is offset by the property owners in the district paying off the TIF’s.
Ainslie says the city will still see its Mill Levy drop to its lowest rate in 30 years.
The reduction in property taxes has been funded through a growth in a variety of non-property tax revenue. The major contributors allowing for the reduction include the increased profitability of the liquor store, the annual motorcycle rally, increased revenue from interest payments made to the city on TIF Loans, increased sales tax revenue and an increase in contractor licenses and building permits.
Ainslie also says the city’s general fund remains in a very strong position, with a reserve of 229-percent of its annual operational budget. The fund has been increasing for several years as the City’s growth related income have increased and the General Fund’ expenditures have decreased.
Ainslie says an additional $1.3-million in CARES act funds will help the fund’s reserves.
