The Deadwood City Commission held its first reading of the proposed 2026 municipal budget Monday,November 10, 2025 totaling $25,088,965—down more than $2 million from the previous year.
Finance Officer Jessicca McKeown attributed the decrease to the completion of a $3 million water redundancy line project and debt repayment from a 2019 FEMA initiative. The city anticipates FEMA reimbursement in the coming months, which would allow repayment of a state bridge loan.
Key projects in the 2026 plan include Crescent Street repairs, contingent on a $600,000 community access grant, along with upgrades to the city’s server and public works shop. A $2.735 million capital improvement line item has been separated from the general fund to clarify operational versus project costs
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General fund operations are budgeted at $10.85 million, with major allocations to police ($2.18M), fire ($481K), streets ($1.32M), public buildings ($1.26M), and parks ($855K). Enterprise funds include water ($985K), sewer ($91K), Mount Moriah ($361K), and parking/transportation ($1.66M). The library is budgeted at $214,888, and the “bed and booze” fund—which includes the Deadwood Recreation and Aquatics Center—is set at $1.155 million.
The city now operates two fewer TIF districts following the closure of Stage Run and dissolution of Deadwood Ridge. Remaining districts are projected to generate $650,000 in 2026. The property tax levy is expected to be 3.995, pending certification by Lawrence County.
Historic preservation funding is proposed at $7.34 million, including $2.65 million for capital improvements. Business Improvement Districts (BIDs) are budgeted at $2.2 million, functioning as pass-throughs for tourism and entertainment initiatives.
The second reading of the budget is scheduled for Nov. 17.
