RAPID CITY, S.D. (KOTA) – Tensions are on the rise in Sturgis, as finances wear thin for the town.
Cost of business is up, while sales tax trends have been going down for Sturgis, and both those at City Hall and the residents feel the instability.
“Sturgis has been facing some budget challenges, and they know that they are going to have to tighten their belt in the coming year,” Deb Holland, the director of communications for Sturgis, said.
City Hall says they are working diligently to increase revenue in the town, but many locals are worried about how the city is responding to the needs of the people.
“To act like now it is a surprise or ‘we’re just acknowledging,’ it shows a lack of vision or leadership to stay in front of what’s just the responsibility of the people in the leadership roles of to match revenue to expenses,” Rod Bradley, a business owner in Sturgis, said.
Holland said that to keep costs low, they have chosen to not fill certain jobs, like custodians, cut 10 percent of operating budgets for each department, and cut travel for employees.
“For the past ten years the city has really made a concerted effort to keep taxes lower, and they just know now they need to take all available revenues that are coming to the city,” Holland said.
Holland stated the reason for these financial issues come from the city keeping the cost of services, such as housing permits, at the same price for years. As well as the city purchase of the Richard’s property, which was to be a city owned aquatic park, for 1.4 million dollars, cutting into the available budget.
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