STURGIS, S.D.(KBHB) – The Sturgis City Council on Tuesday night passed first reading of the 2024 budget.

Sturgis Mayor Mark Carstensen says the proposed budget makes continued strides to enhance the community’s infrastructure, enhance recreation and cultural amenities, redevelop the downtown and grow the economy.

However, due to the rising cost of capital improvements, the budget will see its  first mill levy increase in several years. Sturgis Council President Beka Zerbst.

Zerbst says it’s an uncertain economic situation right now.

Zerbst says the city’s sales tax receipts continue to remain strong. This is being fueled by the continued growth of the community, increased number of retail outlets and the continued growth of the tourism industry. This growth has remained strong in 2023.

The City Water utility is anticipated to have a 5% increase in the monthly minimum charge to maintain revenue consistent with increases costs. There is no anticipated change to metered water sales.

The Wastewater surcharge will increase to $16.88. The Wastewater utility base rate is anticipated to increase by 5%.

The Sanitation utility rate is anticipated to need to be increased by 5%, to reflect the significant increases in fuel, tipping fees (paid for every ton of garbage hauled to Belle Fourche), employee costs and truck replacement costs.