Council hears budget requests

Four entities came before the Hill City Common Council (HCCC) at its first budget hearing July 10. The Pennington County Sheriff’s Office (PCSO) is asking for a flat five percent increase on all its contract towns, which includes Hill City. 

In addition, PCSO will ask the Pennington County Commission for a wage increase for its deputies, according to sheriff Brian Mueller, who came before the HCCC. 

Mueller said PCSO is “falling behind on wages” and is “anticipating getting a little bit of a raise for my deputies,” from the county. Mueller said PCSO is $2-$6 behind depending on the position and notes PCSO is struggling since it recruits out of the same pool as Rapid City police. 

Mueller said PCSO is “starting to lose out a little bit on new hires” but has not lost any deputies yet.   Mueller said Hill City has “some of our very top staff working up here now,”  adding they “truly care about the community.”

PCSO is requesting $86,330 for 2026, as compared to $82,220 in 2025. 

The Hill City Economic Development Corporation (EDC) is asking the council for $20,000, most of which will cover its executive director. While the director was not present for the request, Pat Rowe, EDC member, said 70 percent of the money EDC asks for goes to the executive director.

“The rest you get for free,” Rowe said.

A letter from the EDC board of directors to the Hill City Prevailer after the Prevailer requested financial documents from the group read at the budget hearing states, “In response to your inquiry, we’ve consulted with the city regarding best practices for transparency and financial reporting. While there are no formal requirements in place for EDC specifically, we understand that sharing financials as part of the annual budget request is strongly encouraged. We agree that transparency is important, and we are providing the same financial documents to you that we are submitting to the city as part of our 2025 funding request.

“We’ve been providing quarterly updates to the city council and plan to continue doing so. While there are occasional scheduling conflicts—since most of our committee members are volunteers with limited availability—we are committed to staying in regular communication with the council and the community.”

A representative from EDC has not been formally present at any HCCC meetings in 2025, although updates have been given by EDC member Vic Alexander and council liaison Justin Thiry during that time. The 2025 EDC budget shows $20,000 was given from EDC to the Hill City Trails initiative, while year to date, $11,107.77 was spent on administration expenses.

The Hill City Boys and Girls Club also asked for $20,000, with outgoing CEO Lisa Sagdalen giving most of the presentation. 

Sagdalen said the club sees almost 100 children a day in the summer and that the high participation rate  in Hill City is likely the “highest in the nation.” Children can stay at the club from 7:30 a.m. to 5 p.m. in the summer. 

Sagdalen and her staff explained the range of programming offered at the club, including a positive action program, a mind works program, hands on STEM/math programs, a physical fitness program  and a reading program.

“We are keeping them off the streets,” Sagdalen said adding, “They have nothing else in this town.” 

She said the club is the “lifeline for working parents.”

Council board chair Lori Miner questioned the fees of the club, saying after talking to people in the community, “Every one of them tells me you don’t charge enough.” 

The club charges a $25 annual membership fee and a $25 per month activity fee in the summer. 

Sagdalen stressed the whole point of the club is that it’s “affordable to everybody,” and that staff applies for grants and the club accepts donations. The club may lose its 21st Century Grant later this year, which could affect next year’s summer program.

During the summer the club has six full-time staff and five to six part-time staff. The $20,000 budget request would support a part-time person, keeping a low staff-to-children ratio, preventing a need to limit the number of children who use the club. Aldermen also discussed repairs needed to the Boys and Girls Club building, which the city owns. Those include a full overhaul of the air conditioning system.

City administrator Nate Anderson suggested a partnership for a rejuvenation plan with the club and explained the city’s plans involved using the building to its maximum potential for the community with offerings like adult pickleball or basketball.

The Hill City Area Chamber of Commerce is seeking $225,000 from the city. Its executive officer, Erin Loder, as well as its board president, Matt Stelmach, were both on hand to speak with aldermen. The pair touted that the chamber is the biggest marketer of Hill City, listing numerous marketing efforts being used including print, digital and face-to- face interactions. It has used some dollars to go after state matched money and sees 45 to 60 people a day at its Visitor Information Center (VIC), with  Stelmach calling  the VIC team phenomenal. 

Stelmach said the chamber is testing phone ads in an attempt to “target the people that are here and get them to stop in Hill City.”

Stelmach said the board’s shoulder season goal is to review the current marketing plan and come up with a new plan if necessary. Loder explained the importance of cross promoting Hill City with other towns.

Alderman Dennis Siebert asked why only 10 percent of Black Hills visitors come to Hill City and if Custer and Keystone were also getting that amount.   Miner pointed out the lack of child-centered activities in the town, with Loder saying she is targeting a wide variety of markets including couples, family friendly and outdoor enthusiasts. The chamber is also using social media influencers to get real time marketing with digital assets. 

Loder said influencers  “love those types of vibes” from a small town. 

City finance officer Stacia Tallon gave an overview of the city budget and said that aside from the Hill City Center she does not like to see Bed, Board and Booze funds being used for salaries. She also said she gets heartburn from the $24,000 balance in the sewer fund, which she said is unhealthy. She suggested American Rescue Plan Act funds and money in a CD be moved into that fund.

“Water, sewer and bridges, that’s where most of our money is gonna go,” Tallon said.