City votes to cut chamber funding

The Custer Area Chamber of Commerce will potentially receive less than half of the money it would normally by the year 2030 under an amended ordinance, for which the first reading was passed by the Custer City Council at the council’s Sept. 15 meeting.
The changes begin in  fiscal year 2026 as the city seeks to set more money aside in the hopes of moving ahead with its plans to construct a new communtiy center.
The current avenue for the chamber’s funding was laid out in 2021, which saw the chamber paid $205,000, with the possibility of the chamber receiving up to an additional 3 percent increase over the previous year’s disbursement amount. In 2024 the chamber received $224,010. 
The updated formula will see the chamber receive 45 percent of the previous year’s total third-penny tax, also know as the Bed, Board and Booze tax. Each subsequent year the percentage shall be reduced by 5 percent until it reaches 25 percent. It will then remain at that rate. The ordinance states the remaining money from that tax will be retained by the city to put toward a new communtiy center.
A document showing the potential changes in the funding based upon estimated revenue from the third-penny tax shows the chamber, under the old ordinance, would have received $237,651.90 in 2026, which is 54 percent of the projected tax revenue. Under the new formula the chamber’s cut would decrease to $199,385.89, a decrease of $38,266.01—or 16 percent.
The projected decreases grow to 25, 35 and 44 percent over the course of the next three years, before reaching the floor of the new ordinance. In 2030 it is projected the chamber would receive $124,672.54 as opposed to $267,479.31, a decrease of $142,806.77—or 53 percent.
In a statement after the meeting, chamber board president Amy Bailey said it is unfortunate that the chamber is having funding cut when it is one of the few entities that brings tax dollars to town by hosting events.
“The money we are receiving from the city comes from a state tourism tax. In today’s world of every entity needing more money, we certainly understand that cuts have to be made, which is why we work hard to fundraise and bring people to our community,” Bailey said. “That being said, we will also have to work on our budget and this cut in our funds may certainly also change how our events are run or if some even continue in the future.”
The council also approved another change order for the wastewater treatment plant at the meeting, which will see the city pay up to $10,000 to RCS Construction as it waits for the federal court challenge for its new discharge location for the facility to be adjudicated.
A month ago the city received a letter from the contractor, RCS, stating it would cost the city $100 a day for the city to rent and RCS Construction to operate pumps that are circulating wastewater through the plant’s new Submerged Attached Growth Reactor System.
Included in the cost is pump rental at $200 a week, pump inspection at $500 a week, re-testing plan effluent at $1,300 each time and re-mobilization at $3,500 each time.
Trent Bruce of DGR Engineering, the firm helping steward the city through the wastewater treatment facility upgrades, said there would be a meeting with RCS Construction soon to discuss how winter operations would look if the case is still winding its way through court. The council said it did not know when the case would be settled.
“We don’t have much choice,” alderwoman Jeannie Fischer said of approving the change order.
In other news from the Sept. 15 meeting, the council:
• Approved authorizing Mayor Bob Brown to sign and submit an application to the South Dakota Department of Agriculture and Natural Resources for drinking water and clean water projects, including the upcoming N. 5th Street  project.
Bruce said this move “gets the city in line” to receive these funds.
“More steps will come as this progresses,” he said. “The first step is to step in line and say, ‘hey, we are interested in funding if you have some.’”
• Approved its annual  animal contract within the city, which is provided by Battle Mountain Humane Society. Under the agreement, Battle Mountain receives $1,000 per month from the city.
• Approved the second reading of its 2026 budget ordinances. The budget calls for the city to spend $11,054,987 in 2026.