Many municipalities have been hit hard by the lower than projected sales tax, including Rapid City…which has prompted Mayor Steve Allender to propose that Rapid City diversify its portfolio. He said during his budget presentation, which he gave to council on Monday night before the regular council meeting, that sales tax growth from year to year is volatile….
He spoke with KOTA Radio Tuesday morning and said the city’s over-reliance on sales tax provides for challenges that are not in the city’s best interest, and believes diversifying will provide a little more stability….
He said service fees like licenses and permits have remained low and that’s no way to do business….
He proposes studying the fee and rate schedule before the end of the year, and re-calculate to decide what costs need to be covered in the fee schedule….
He said those additional funding sources should be built up to make them relevant, or stop charging for them. But he said the fees are necessary as the typical tax revenue schedule doesn’t come close to providing the resources necessary to deliver services. Allender however said he doesn’t believe the goal is to cut services. Council Leadership has scheduled the following Budget Hearing dates: Tuesday, August 15; and, if necessary, Thursday, August 17; Monday, August 21 (prior to Council); and Thursday, August 24. All hearings will begin at 5:30 p.m. in the Council Chambers.
By: KOTA’s Marnie Cook