Posted: August 25, 2017
Rapid City
Agenda Item Summary

Agenda Item Ref. #: LF083017-09

Agenda Item Title:

Second Reading and Recommendation of Ordinance No. 6195, an Ordinance to Change the Allocation of the Revenue Raised by the Retail Occupational Sales and Service Tax by Amending Section 3.16.060 and Section 3.16.090 of the Rapid City Municipal Code

Origination Group:
Legal & Finance Committee
Origination Meeting Date:
08/30/2017
Stage 2 Group Name:
Legal & Finance Committee
Stage 2 Meeting Date:
09/13/2017
City Council Hearing Date:
09/05/2017
City Council First Reading Date:
09/05/2017
City Council Second Reading Date:
09/18/2017
Staff Contact:
Pauline Sumption / Wade Nyberg
Agenda Item Summary:
Currently, sales tax revenues are split between 3 funds as follows: general fund 46%, CIP & Vision Fund 46%, and Utility Support Fund 8%. CIP & Vision revenues are then evenly split between the 2 accounts (CIP Account & Vision Account). This ordinance will change that allocation to 50% to General Fund and 50% to CIP & Vision Fund (1 penny to each). The penny to the CIP & Vision Fund would be split 58% to CIP and 42% to Vision. As a result of this ordinance, the General Fund’s share of sales tax revenue would increase from 46 to 50%. CIP would increase from 23 to 29% of sales tax revenue. The Vision Account would decrease from 23 to 21% of sales tax revenue. The Utility Support Fund would receive no further sales tax revenue. Note that the change is scheduled to happen January 1, 2018, as that would keep this year’s revenue stream intact.

Funding Source & Fiscal Impact (if applicable):

Funding Cost Center

Recommendations:

Origination Recommendation Action:
Approve

Attachments & Links to Download:

pdf LF083017-09 Ordinance No. 6195 (99 KB)

Login Form