Rapid City SD – Mayor Jason Salamun presented his proposed 2027 City of Rapid City budget to the Common Council in a Special City Council meeting on July 20, 2026. The proposal totals $312,332,582 in both revenue and expenditures — a 7.4% decrease (nearly $25 million) from the 2026 budget of $337.3 million, driven primarily by reductions in capital expenses.

The mayor framed the presentation around transparency, noting that raw data spreadsheets were provided alongside the budget book.

He also gave a “state of the city” overview: Rapid City’s inclusion among Livability.com’s Top 100 Places to Live, a #30 ranking from the Milken Institute, continued growth in building permits and healthcare facilities, and a note that Ellsworth Air Force Base is undergoing roughly $2 billion in construction and expects to double its population over the next 15 years.

Where the Funding Comes From

The largest revenue sources are:
Sales tax — $98,736,636 (31.6% of total revenue)
Utility fees — $56,873,696
Construction loans — $35,818,004
Tickets, leases, user fees — $27,546,970
Property tax — $26,861,091
Grants, federal & county funding — $23,516,273

Where the Funding Goes

Public Safety — $59,800,577
Capital Improvements — $57,039,161
Utilities — $53,959,042
Airport — $22,619,601
Public Works — $23,897,19
The Monument — $20,133,750
Vision Fund — $19,718,275
Parks & Recreation — $15,190,417

Mayor Salamun’s Top 10

The administration organized its presentation around ten headline items:
1. A “responsible” overall budget — $312,332,582, a 7.4% decrease from 2026, attributed to lower capital spending.

2. Historic road investment — the “largest investment in roads in Rapid City history”: $450,000 for a proactive road crew, $3 million for mill-and-overlay rehabilitation, $16.7 million in CIP funds for reconstruction (Wonderland Drive, Skyline Drive, Robbinsdale and Dakota subdivisions), and $17 million from the Vision Fund’s strategic growth account for new road construction.

3. No property tax CPI increase for 2027, relying instead on sales tax growth.

4. Public safety — $3.2 million for the North Side Police precinct; $9 million in TIF funds to complete the Homestead Fire/Police/Library building (referred to in the address as “Fire Station 9,” which will include a police component); funding toward an eventual 15 new firefighters and 6 new ambulance personnel; and a shift of existing Police Department resources to add investigators to the crimes-against-children unit, addressing what the mayor called a “serious increase” in sexual crimes against children.

He noted that boosting that unit was one of his first actions after being elected in 2023, and delivered this warning: “If you intend to hurt children in Rapid City we will come after you… this is the worst place for you to be. I want you to be afraid. I want you to go away. I want you to stop.”

5. Quality of life — the indoor sports complex, with the mayor stating $66 million is secured toward the $76 million goal; $500,000 in CIP funds recommended for 2027 (and another $500,000 proposed for 2028) to overhaul Main Street Square’s turf, ice, and concrete; and a $7 million restoration project at Canyon Lake Park. (This last figure lines up with the budget booklet’s own Vision Fund Allocation table, which lists a $7,057,000 total project cost for Parks & Rec’s Canyon Lake work, with $3,559,000 of that coming from the Vision Fund.)

6. Real America Birthday Bash continuation — $250,000 recommended to continue the multi-day July 4th celebration in 2027.

7. A new internal review initiative, to be led by Assistant Finance Director Tracy Davis, auditing departments for spending and waste reduction.

8. The “Innovation District” / “The Sandbox” — as the streets maintenance facility (located near South Dakota Mines) relocates, an MOU will be proposed with South Dakota Mines, Western Dakota Tech, and Elevate Rapid City to determine the “highest and best use” of the vacated land.

9. A combined PTO model, transitioning city employee leave benefits as part of an “employer of choice” retention push.

10. Generational projects — continued airport terminal expansion, wastewater treatment facility work, and future water treatment facilities.

Data Center Regulations coming in August

Separately, while discussing diversifying and protecting Rapid City’s water supply, the mayor said his administration will bring “data center regulations” before Council in August, with protecting the city’s water resources as a stated priority of those regulations.

His line on it: “No data center is worth our water.”

Given how heavily this budget already leans on water infrastructure — Water Reclamation alone runs $43.7 million, one of the largest single enterprise fund allocations in the document — this is worth tracking closely once the actual regulatory language surfaces in August.

A Repeated Claim

The “$66 million fully secured” sports complex figure is the same claim from a Mayor Salamun Facebook press release that this outlet already fact-checked — and found only $64.06 million actually documented, with an unsigned naming rights deal counted as if it were already secured.

Community & Crisis Services Investments

The Humane Society received its full requested funding, which the mayor described as reflecting the organization’s “critical role” in the city.

Journey On (“the green team”) — increased to $475,000 for expanded roles in encampment assistance, school-area work, and aftercare/loss teams.

Cornerstone Rescue Mission — $200,000, explicitly contingent on continuing to provide emergency weather shelters.

Community enrichment funding maintained for groups including the municipal band, the Symphony, and senior centers.

Department Budget Changes Worth Noting

City Council budget rose 27.1% year over year ($964,981 → $1,226,131), driven mainly by a $300,000 increase (+57.6%) in “Other Operating” costs — the council’s contingency fund, now at $820,500.

The mayor called this an “anomaly,” explaining the money is intentionally left unallocated so individual council members can negotiate funding for their own priorities — transportation initiatives, beautification, or additional Main Street Square funding among them.

That leaves the council itself to account publicly for how nearly a million dollars gets spent. He described the contingency as “historically $200,000–$250,000” — but the budget document’s own table shows the 2026 comparable line at $520,500, a real discrepancy between his stated baseline and the document itself.

Mayor’s Office revenue shifted almost entirely away from the General Fund, which dropped from $197,859 to just $541 (-99.7%). The office is now funded almost entirely through Department Service Charges instead.

Information Technology budget rose 31.2%, with “Other Operating” costs more than tripling ($313,651 → $951,400, +203.3%) and General Fund contribution up 228.6%.

Finance Department professional services spending dropped 65% ($1,002,929 → $350,646), consistent with the department’s stated goal of reducing reliance on outside consultants.

Water Reclamation capital improvements spending dropped 55.7% year over year ($71 million → $31.5 million) as the Water Reclamation Facility Phase II project winds down.

A Numbers Discrepancy

In the Vision Fund section (p. 70), the “Community Projects” category lists the Summit Arena bond payment (half the total cost) at $16,414,323. The “Economic Development” category lists the other half of the same bond payment at $416,414,323 — apparently a typo adding an extra digit.

Even correcting for the likely typo, the three Vision Fund categories (Community Projects, Economic Development, Civic Improvements) sum to approximately $88.56 million, not the stated total of $90,999,036 — a gap of about $2.4 million that isn’t otherwise explained in the document.

The mayor’s proposal now heads into departmental budget workshops scheduled for July 27–30, 2026 (no votes taken at those sessions). State law requires the Council to give final approval by September 30, 2026, via two formal readings — dates for those readings haven’t been announced yet.

Sourcing

Based on the City of Rapid City’s proposed 2027 Budget Booklet and the mayor’s July 20, 2026 budget address to the Common Council.

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