Rapid City’s net worth has been valued at $6.95 billion as of December 31st, 2017, according to the office of the Pennington County Auditor, reports the Rapid City Journal. This number was part of annual financial reports acknowledged by the City Council on July 16th.
This total includes commercial, industrial, municipal, retail, and residential properties, along with all railroads and utilities infrastructure. The financial report also included information regarding the city’s debt, investments, population, and its 24 tax increment financing (TIF) districts.
At the time of the report, Rapid City held $178,728,902 in debt, of which $91 million is tied to bonds that do not count toward the municipal debt limit. The city could bear another $264.5 million in debt before reaching the state’s municipal debt limit. The city does hold approximately $71 million in debt tied to the city’s TIF districts, sales tax bonds, airport revenue bonds, and state revolving fund loans, all of which do count toward the state limit. This number is accurate only up to December 31st, 2017, however, and therefore does not include the bonds for the civic center arena project.
The city’s general fund decreased by about $2.4 million in 2017, spending more than it made, though no specific reasoning was cited. This fund covers a variety of city services, including police and fire departments, parks, libraries, and city departments. The city used $2.3 million from its undesignated cash fund to supplement the city’s 2017 budget. However, the city’s financial situation in 2017 remained “favorable” according to city finance director Pauline Sumption, despite revenue from sales tax not meeting city projections thus far.
Population has also been on the rise in Rapid City, meeting the 75,000 mark at the end of last year. This was a 2.32 percent increase from 2016, and was calculated by adding up new households, group home units, and annexed properties in 2017, for a total of 1,711 new Rapid City residents.
A $40.9 million balance remained on Rapid City’s 24 active TIF districts at the end of 2017. This is money owed to financial institutions who backed specific developments; the developer must first pay the city these monies, and the city will then repay the financial institution. Rushmore Crossing’s TIF is currently valued at $7.95 million and expires in 2025, while Cabela’s is worth $7.2 million and expires in 2027. The assessed value of all of the city’s TIF districts pre-development was $152.1 million and has increased dramatically to a current value of $751.8 million.
Rapid City has a total of $137.6 million in cash and investments with various financial institutions, and another $46.2 million invested in government agencies, which have a higher rate of return than local money market account or certificates of deposit. The earned interest on these investments is used for city operations spending.
The city also expects to receive an estimated $6.3 million in federal funding in 2018.
For more information about government in the Black Hills, visit the Black Hills Knowledge Network’s Government and Citizenship issue hub.