STURGIS – The Sturgis City Council will hold a special meeting at 6:30 p.m. Thursday, Sept. 21, to review and pass first reading of the 2024 budget.

The Council failed to pass first reading of the budget at its Monday meeting.

Sturgis Finance Officer Fay Bueno explained to the council that she initially believed the city would be able to take advantage of growth in the valuation of properties within Sturgis that would net the city $685,000 in taxes over last year. 

But after conversations with Meade County Auditor Helen Hall Jensen, Bueno learned that although there has been significant growth in valuation, the city could only take a growth not tied to Tax Increment Finance Districts.

The most the city can request for 2024 for taxes is $272,573 by growth of 1.3-percent and 3-percent Consumer Price Index (CPI) increase. The city also is using stored CPI from the last three years to come up with the new total. 

“We were not able to get the amount we initially requested due to changes made two years ago at the state level on how TIF growth is account for,” Bueno said. 

Because the amount of taxes going to the city is lower, the city will need to cut its budget in order to make it balance. 

Here are the cuts Bueno is suggesting: 

• Open positions $66,465 
• Open positions $33,000 
• HRA Risk fund $30,000 
• WW transfer increase $62,000
• Equip Replacement $150,000 
• Attorney Health $15,798
• City Manager reduction in wages $15,000
• Inc. Cash on Hand $5,500.00 
• A percentage cut to each department to total % $34,664

Council member Kevin Forrester said he wanted to see the complete budget with the new figures inserted before he felt comfortable passing first reading of the 2024 budget. 

Council member Aaron Jordon concurred saying, “We need a more complete picture,” he said. 

The council voted 7-1 to table the first reading of the ordinance Monday until it could be heard at a special meeting on Thursday, Sept. 21. Members Jordan, Beka Zerbst, Mayor Mark Carstensen, Angela Wilkerson, Forrester, Tony Dargatz and Mike Bachand voted in favor. Councilor Dean Sigman voted against it and Councilor Preston Williams was absent. 

A second reading of the budget ordinance, by law, must be held at least five days after the first reading is approved. 

State law also requires that a municipality have its budget approved and budget request submitted to the county by Oct. 1, each year.