STURGIS -- Sturgis city officials say they did nothing improper concerning a Feb. 2 annexation referendum.

The response came after reports of an investigation by the South Dakota Division of Criminal Investigation.

"The city strongly denies these allegations and wishes to present the facts," Sturgis Mayor Maury LaRue said during a news conference Wednesday. LaRue read a statement that was prepared Tuesday night during a special executive session of the city council.

Other than confirming the existence of an investigation, Meade County State's Attorney Jesse Sondreal said he cannot comment further.

"In fairness to the investigative process, I do not feel comfortable naming the complainants," Sondreal said.

The City of Sturgis attempted to annex 1,821 acres of land east of the city limits along S.D. Highway 34. Included in the proposed annexation were Sturgis Brown High School, Fort Meade, Glencoe CampResort and the Full Throttle Saloon. Petitions forcing the issue to a referendum were submitted Dec. 14, 2009. Citizens voted down the annexation 920-818.

LaRue, who said he was speaking for the entire city council, condemned Sondreal's comments regarding the ongoing investigation as an insult to the honesty of the council members and a move that would degrade the relationship between the city and Meade County.

"We request that Mr. Sondreal refrain from making any further statements implying that the City of Sturgis or the citizens of Future Sturgis have acted unlawfully," LaRue said.

Sondreal said he was disappointed that the mayor or anyone else from the city did not contact him before releasing the city's public comments.

Although Sondreal and the city wouldn't elaborate about what prompted the investigation, Full Throttle Saloon owner Michael Ballard did.

Ballard, who opposed the annexation attempt, said he believes the investigation is looking into the possibility that the City of Sturgis:

• Used public funds to include an informational insert about annexation in a Chamber of Commerce newsletter.
• Provided free memberships to the city-owned Sturgis Community Center to residents who attended informational meetings at which annexation was one of the topics discussed.
• Funded the pro-annexation Future Sturgis group, which posted "Vote Yes" signs throughout town before the election.

LaRue said state law allows the city to provide factual information for the purposes of voter education. He said the information in question appeared in a city newsletter that is distributed monthly.

"There is nothing improper or illegal about responding to voter's questions; in fact, no response would be irresponsible," LaRue said.

As for the free community center memberships, which normally cost $133, LaRue said more than annexation was discussed at the Future Sturgis meeting at which they were given.

The Future Sturgis group, LaRue said, consists of six citizen committees and is not a city organization nor controlled by the city council. Any money used for signs posted before the election would have come from the committees, not the city, he said.

Sondreal said Wednesday that he had received a rough draft of the state investigation's findings.

"If the city did what they claim, there would be no repercussions. It would be totally transparent for the entire community," Sondreal said.

City council members attending the news conference were Jamie McVay, Dane Sundstrom, Sherry Scudder, Joe DesJarlais and Clint Brengle. City Manager David Boone was also present. None commented further, saying that the mayor's statement was the position of the body as a whole.