Sturgis City Commission passes budget amid recycling debate, $500K shortfall

The Sturgis City Commission voted 5-2 Wednesday to approve the city’s 2025-26 budget, which carries a projected $563,536 deficit and eliminates funding for curbside recycling. Mayor Frank Perez and Vice Mayor Richard Bir cast the two dissenting votes.

About 15 members of the public attended the August 13 meeting, most urging commissioners to restore the recycling program. Several residents spoke during public comment, stating their support for the service and their willingness to absorb additional costs. Commissioners also acknowledged receiving calls and emails in support of keeping the program, ranging from one to five messages per commissioner.

Commissioner Jeff Mullins and others expressed interest in bringing the issue to a vote, but no formal motion was made. Mayor Perez addressed the matter before budget discussions began, saying, “Recycling’s going to get cut.”

City Manager Andrew Kuk presented the budget in detail, noting $11.74 million in total revenue and transfers against $12.31 million in expenditures and transfers. The general fund’s largest spending areas include police and fire services at $5.75 million, general government at $1.88 million, and recreation and culture at $808,488. The budget also sets the operating tax rate at 11.0800 mills and the street and sidewalk improvement rate at 2.9667 mills for the coming fiscal year.

During deliberations, Commissioner Cathi Abbs, elected in 2024, voiced concerns about approving a budget that starts in the red. She also cited the looming costs of replacing lead service lines — estimated at over $5 million — as a reason for greater caution.

“It just gives me a scary feeling…we’re going back to taxpayers,” Abbs said. “We should be doing our due diligence and giving some direction officially to our city manger.”

Mullins responded to Abbs’ comments by defending the city staff’s work.

“We’ve been working on this budget since June, Andrew and Holly have done everything we’ve asked them to do,” Mullins said. “This is your first time around and I understand you have a lot of questions, but just see how it works out this year.”

Commissioners also approved an extension of a marihuana license for 1640 S. Centerville Road and adopted the city’s annual utility rates.

During commissioner comments, Vice Mayor Bir voiced frustration about unhoused individuals in Oaklawn Terrace Park.

“I’d like to know if we could maybe rename Oaklawn Park to ‘Homeless Park,'” Bir said.

Bir then asked about the city’s ability to remove these individuals. Kuk replied, “As long as they’re using the parks in a manner which is consistent with any other member of the public’s use of the park, it’s very difficult to differentiate vagrancy from just using the park. So that would be the distinction that we are trying to be very careful to make so we are not doing something to disenfranchise one group of citizens that we wouldn’t want to do to another group of citizens.”

Maxwell Knauer is a staff writer for Watershed Voice