STURGIS, S.D. – The Sturgis City Council passed first reading of the 2027 $25.7 million dollar budget Monday night.

Among the biggest expenditures in the 2027 budget are public safety, which includes Police and Fire, at nearly $4.9 million and public works, which comes in at just over $6 million dollars.

The projected 2027 budget includes total expenditures of $10,379,202 dollars. The projection was developed using the 2026 budget as a starting point, with adjustments to reflect anticipated expenses and known cost increases.

The financial operating performance of the City Enterprise Funds so far in 2026 is less than anticipated in the budget. Mayor Rod Bradley says this impacts the funds’ ability to cover operating expenses and meet financial obligations as originally projected.

“Some of the enterprise funds don’t appear to be performing this year as planned. So, where we end up as far as the budget and supplemental appropriation at the end of ’26, we’re still working on, Bradley stated. “But all we can do in planning the ’27 budget is go off the best information that we have now, which for some of the enterprise funds appears to be different than what was projected or planned when the ’26 budget was put together.”

The 2027 budget has an anticipated General Fund revenue projection of $9.3 million, leaving an initial estimated shortfall of just over a million dollars.

Mayor Bradley has said the Enterprise Funds and Triple-B fund could be used to supplement the General Fund, leaving a remaining budget shortfall of $593,647.

Furthermore, additional revenue increases totaling just over $400,000 along with potential cost reductions of $331,527 dollars have also been identified as part of the budget process.

Some of the potential revenue increases include asking departments to find ways to pitch in to help with the deficit. They include $150,000 from ambulance fees, $100,000 from commercial dump fees at the rubble site, nearly $37,000 in airport rental and maintenance fees and $25,000 from the library.

That, however, didn’t sit well with Robin Englehart-Bagley, a member of the Sturgis Public Library Board who feared having to cut staff or services.

You know, our staff works six days a week, we have long hours, and it’s not overstaffed by any means. Everybody that is there serves a purpose. So, we would have to look at services. What do we cut?”

Mayor Bradley says he commends the Library Board and all the work they do. However, he reinstated he wants assistance from all departments in finding ways to supplement the lack of revenue.

“What we’re talking about is overall, when this council is charged with dividing the pie up, what are all our options? And that’s what we’re asking the library board to do,” Bradley said. “Go back and discuss, do we have any options in that area to help with the with the overall?”

The library’s budget has been set at $484,471 for 2027.

As for Potential cost reductions, Bradley says they include reducing personnel costs by not filling vacant positions and making schedule adjustments within ambulance staffing.

Mayor Bradley emphasized after discussion from council that some adjustments can be made ahead of the second reading next month.

The council passed a motion that included a mayor-requested targeted surplus of $138,131.