Sturgis struggles with budget shortfall

RAPID CITY, S.D. (KEVN) - The City of Sturgis is struggling with a budget shortfall.

Finance officer Adam Hosch reported the shortfall earlier this month, during the presentation of the 2023 annual report to the city council.

During the presentation, he revealed the city’s nearly $11 million expected revenue for 2023 fell short. The initial estimates included a little more than $2.6 million in general sales tax, but the city received about $26,157 less than that.

“We create the budget; it’s kind of a guess with how much tax is coming in, so we just make assumptions, and depending on the economy, a lot of that can change. We just didn’t have as much tourism and people coming in as you would hope, so the sales tax was a little lower,” said Hosch.

The Sturgis Ambulance budget was another shortfall, receiving $409,291 less than expected but spending almost $69,000 more.

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