For two months in a row Rapid City sales tax collections have fallen behind earlier projections.
According to the February 2017 Sales Tax Report, collections are down by two percent from last year. This year’s budget projected a two percent increase.
Alderman Steve Laurenti sits on the Legal and Finance committee with the city.
“We as a city council, and I know the mayor is on top of this with his staff, but if it comes down to it ultimately, as we move through this budget year—this particular calendar year, that it becomes necessary for the city to make additional cuts that will ultimately have to come to council, which I’m hoping we won’t have. That we will turn this around and sales tax will be a positive,” Laurenti says.
Laurenti says the council will do what it can to keep a balanced budget, even if that means cuts.
The city’s finance director says the city is not quite at crisis, and the city can dip into undesignated cash or reserves if needed.
The lagging sales tax for Rapid City mirrors a statewide downward trend in revenue. Officials point to a sluggish Ag economy and internet purchasing.