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Sturgis council votes to take full 3% property tax levy for 2025
Summary
The Sturgis City Council voted to request the maximum 3% CPI increase for the 2025 property tax levy after city finance staff presented figures showing no remaining banked levy capacity; council discussed routing excess above a threshold to contingency.
Sturgis — The Sturgis City Council voted to request the maximum 3% allowable increase for the city's 2025 property tax levy, a move city staff said is necessary after the city exhausted prior "banked" levy capacity.
City finance staff told council that the city has no remaining banked capacity this year and recommended taking the full 3% adjustment from the county. Finance staff presented an illustrative figure showing the city's portion on a $100,000 assessment at about $399.30.
Councilors questioned the budgetary implications of the increase and discussed routing any revenues above an identified rate into a contingency fund to address reserve shortfalls. Councilor Kevin moved to take the maximum levy while directing amounts above a specified threshold toward contingency; the motion carried on a voice vote after discussion.
Officials said the move will increase city revenue in dollar terms but that specific allocations and any budget adjustments will be addressed during the formal budgeting process. City staff indicated the change should be reflected in the county's levy calculations once submitted.
The council did not set final spending decisions at the meeting; members said exact budget uses will be determined during the upcoming budget process and that contingency allocations could be revised when the council reviews the full budget.
