County Briefing
Custer County residents deserve to know what's happening in their government. This page tracks key issues sourced directly from public records, commission minutes, audit reports, and local news — updated as information becomes available.
Custer County Cash Reserves Are Shrinking
At the April 8, 2026 commission meeting, County Finance Officer Dawn McLaughlin presented the county's financial position to the public. To balance the current budget, the county must transfer approximately $3.3 million in cash from reserves — leaving an estimated $4,551,000 remaining in the general fund. Commissioner Craig Hindle has stated publicly that ideally 40 percent of the budget should be kept in unassigned reserve funds. McLaughlin warned that if the county continues supplementing the budget with cash reserves, those reserves will eventually run out. Revenue losses are attributed to the dissolution of the law enforcement contract with the City of Custer, unpaid property taxes, and grants the county anticipated but did not receive.
Source: Custer County Commission Meeting, April 8, 2026; Custer County Chronicle ("Commission hears of dwindling reserves," Jason Ferguson, April 15, 2026)2026 County Budget: $13 Million with Rising Costs
The adopted 2026 Custer County budget totals $13,037,867 — a 1% increase over 2025. Public safety accounts for $2,662,985, including $2,031,663 for the sheriff's office and $520,500 for prisoner care. The number of delinquent tax real estate property listings jumped from 172 in 2024 to 392 in 2025 — a 128% increase.
Source: Custer County Commission Budget Hearing Minutes, September 2025Commission Enacts Hiring Freeze as Revenue Falls
At the March 25, 2026 commission meeting, the Custer County Commission enacted a hiring freeze, requiring all new hires — even positions already budgeted — to receive individual commission approval before being filled. Revenue in 2026 is estimated at approximately $2.23 million, compared to approximately $3 million in 2025, according to figures stated at the March 25 commission meeting. Finance Officer McLaughlin stated that if the county continues putting cash in to supplement the budget, "eventually that cash is going to go." Highway Superintendent Jess Doyle told commissioners his department was already down two to three employees: "How am I expected to run a $3 million department a couple of guys short? That changes plans for everything." Commissioner Hindle responded: "That's our problem right there. We have a $3 million department we can't afford." On the broader budget outlook, Hindle said: "Hopefully it corrects itself."
Source: Custer County Commission Meeting, March 25, 2026; Custer County Chronicle ("County enacts hiring freeze," Jason Ferguson, April 8, 2026)Eight Years of Repeat Audit Findings — Zero Written Responses
South Dakota Legislative Audit Division reports covering the 2017, 2019, 2021, and 2023 audit cycles document the same core findings repeating across all four periods: illegal overspending in violation of SDCL 7-21-25, cash reconciliation failures, financial reporting errors, and failure to file required annual financial reports under SDCL 7-10-4. The 2023 audit alone documented 22 misstatements and negative cash balances in the Road and Bridge Fund (-$657,128) and Other Governmental Funds (-$350,733). Across all four audit cycles, the commission submitted zero written management responses.
Source: SD Legislative Audit Division — Custer County audit reports, 2017, 2019, 2021, and 2023 cycles (apps.sd.gov/DLASearches/countymenu.aspx)Law Enforcement Contract Dissolved — First Time in Nearly 50 Years
The 2025 contract paid the county $435,000. In late summer 2025, the commission informed the city it wanted $750,000 — a 72 percent increase in a single year — after four years of $10,000 annual increases. Negotiations continued through December 18, 2025. The commission's final offer was a three-year structure of $500,000, $650,000, and $750,000. The city's final counteroffer was $500,000 for 2026 with 6 percent annual increases. The commission rejected the city's offer, rescinded its own proposal, and authorized the state's attorney to send a letter acknowledging the contract would expire. When City of Custer alderwoman Peg Ryan said she was "really sorry" an agreement could not be reached, Commissioner Craig Hindle responded: "So are we — the citizens, business owners (and) chamber are going to suffer." Mayor Bob Brown was quoted: "That's not the way you negotiate, by coming in and (saying) 'this is it — take it or leave it.' That's not negotiating."
Source: Custer County Chronicle ("Law enforcement contract will expire," Jason Ferguson, December 2025)School Resource Officer Saved by School District After Contract Dissolution
A direct consequence of the December 18, 2025 unanimous vote to dissolve the law enforcement contract: the Sheriff's Office indicated it could not maintain the school resource officer position with reduced staffing. At the March 11, 2026 commission meeting, Lt. Reifenrath stated on the record that the office had initially planned to remove the SRO from the school because it did not have enough personnel to cover patrol shifts, and that this was "still true." The position was preserved only after the Custer School District agreed to fund a new two-year SRO agreement directly with the Sheriff's Office at $65,000 per year — signed at that same March 11 meeting, nearly three months after the contract dissolution.
Source: Custer County Commission Minutes, March 11, 2026 (Item Q.2); Lt. Reifenrath testimony, March 11, 2026 commission meetingVolunteer Fire Departments on Borrowed Time
Custer County's volunteer fire departments are operating on aging equipment and shrinking budgets. According to the Custer County Fire Advisory Board, the average age of wildland brush trucks is 22 years, structure trucks 32 years, and water tenders 26 years. Some departments operate on annual budgets under $30,000 — making equipment replacement effectively impossible. A tax opt-out question is on the June 2, 2026 ballot that, if approved, would generate an additional $320,000 per year for four years for the six non-district fire departments. Argyle Volunteer Fire Department Chief Casey Brazell stated at a public meeting that if conditions do not improve, departments will likely start closing their doors — and fire officials stated that if that happens, insurance rates would rise more than the cost of the opt-out itself.
Source: Custer County Chronicle ("Fire opt-out rationale given," Jason Ferguson, March 18, 2026); Custer County Commission Meeting, April 8, 2026State Passes Property Tax Relief — What It Means for Custer County Residents
The 2026 South Dakota legislative session produced two significant property tax relief measures. Senate Bill 96, signed into law, allows counties to levy up to a half-percent sales tax with proceeds used as credits against owner-occupied property taxes. Senate Bill 245 captures revenue from a scheduled state sales tax increase into a dedicated homeowner property tax relief fund. According to the Bureau of Finance and Management, as reported by the Custer County Chronicle, a home valued at $325,000 could see an estimated annual savings of approximately $547. Counties are not currently required to implement the optional sales tax authorized under SB 96 — that decision rests with each county's board of commissioners.
Source: Custer County Chronicle ("Legislators proud of property tax relief," Esther Noe, April 8, 2026); South Dakota Searchlight ("County sales tax heads to Rhoden's desk," Makenzie Huber and Meghan O'Brien, March 11, 2026)