In a recent government meeting, Rapid City officials engaged in a heated discussion regarding the city's property tax rates and the upcoming budget for 2025. The council faced a pivotal decision on whether to adopt a Consumer Price Index (CPI) increase for property taxes, which is permitted under state law. Council member Lindsey Seacrest advocated for the increase, emphasizing that Rapid City currently has the second-lowest tax rate among 14 cities in the Black Hills, at 3.11%. In contrast, nearby Lead has a significantly higher rate of 8.2%.

Seacrest pointed out that previous decisions to forgo tax increases have led to financial constraints, making it difficult for the city to recover lost revenue. However, council members John Roberts and another unnamed member expressed their opposition, citing concerns for residents on fixed incomes who may struggle with increased taxes.

The motion to implement the CPI increase ultimately passed with a majority vote, despite the dissenting opinions. Following this, the council moved on to the first reading of Ordinance 6634, which pertains to the full-year 2025 appropriation. The ordinance was approved without further discussion, setting the stage for the budget process.

City officials confirmed that the timeline for budget approval remains on track, with the finance officer required to certify the tax levy by the end of the month. The council plans to hold a second reading of the budget on September 16, with the possibility of scheduling additional meetings if substantial changes are proposed.

The discussions highlighted the balancing act city officials face between maintaining fiscal responsibility and addressing the needs of their constituents, particularly those on fixed incomes. As the budget process unfolds, the council will continue to navigate these challenges to ensure the city's financial health while considering the impact on its residents.