During a recent government meeting, Rapid City officials discussed the city's budget, highlighting significant increases primarily due to major capital projects. Mayor Solomon noted that the general fund budget has risen by 4.2%, contributing to an overall budget increase of nearly $80 million. This surge is largely attributed to two substantial projects: the expansion of the airport terminal and a significant upgrade to the wastewater treatment plant, both of which are supported by federal and state funding.
The mayor emphasized that while the overall budget figure may appear alarming, much of it is derived from external funding sources, including $20 million from the federal government for the airport project and substantial construction loans for the wastewater facility. He reassured the public that these projects are essential for the city's growth and infrastructure sustainability.
Additionally, the council addressed potential implications of the upcoming ballot measure, IM 28, which seeks to repeal the consumables tax. Mayor Solomon warned that if passed, this could lead to an estimated 8.4% reduction in the budgets of Rapid City and Sioux Falls, with potentially more severe impacts on smaller towns across South Dakota. The mayor highlighted the need for legislative action to clarify the relationship between state and municipal tax regulations, should the measure succeed.
Overall, the meeting underscored the city's commitment to managing its budget responsibly while navigating significant infrastructure developments and potential legislative changes.