STURGIS, S.D. (KELO) — The 84th annual Sturgis Rally has just recently ended and the mayor of Sturgis is asking city departments to cut their operating budgets by 10% amid a budget shortfall.
In a news release, the City of Sturgis says city expenses are outpacing revenues and the city would be “unable to balance the budget with the departmental budget proposals that were submitted.”
The city said “recent municipal sales tax trends are trending lower than anticipated.”
“I know this is not going to be easy and it might mean you have to reduce or eliminate some services provided by your department,” Sturgis Mayor Angela Wilkerson said in a memo to city department heads.
The city says it used $1.4 million to buy the Richards Property in 2022 and that has impacted the city’s cash reserves. An aquatic park on the property “was not a financially viable project,” the city said in a news release.
Despite the budget cuts, Wilkerson said the city will continue to explore ways to restore the city’s financial stability.
“We are focused on finding solutions that balance fiscal responsibility with the needs of our community,” she said. “Together, we will navigate these challenges and secure a stronger future for Sturgis.”