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CITY of RAPID CITY Agenda Item Summary |
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Meeting Date: 8/12/2015 |
L&F Committee: 8/12/2015 |
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Staff Contact: Wade Nyberg/Pauline Sumption |
City Council: 8/17/2015 |
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Petitioners: West River Electric Association & Black Hills Electric Cooperative |
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Agenda Title: |
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Authorize Mayor and Finance Officer to Sign Electric Cooperative Revenue Agreement Between the City of Rapid City and West River Electric Association and Black Hills Electric Cooperative |
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Summary: |
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This Agreement sets the rate of the Gross Receipts Tax payable by the electric cooperatives doing business in Rapid City. By state statute, the default rate is 2%, but can be lowered by agreement between the city and the cooperatives. The City and the cooperatives have historically entered such an agreement. The five-year proposal before you would set the rate for 2016 at 1%, and reduce the rate to 0.75% for the years 2017-2020. The rate has been 1% in each of the last 7 years, and the current proposed budget for 2016 uses a 1% rate for its revenue projection. |
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Funding Source & Fiscal Impact (if applicable): |
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The City receives approximately $100k per year in revenue from this agreement. It is believed with growth in the Electric Coop’s customer base, as well as the increase in their rates, this new agreement, and moving the rates to 0.75% in 2017-2020, will have a negligible effect on future City revenues. |
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Recommendation: |
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Action: Approve Notes: |
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Options: |
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Attachments & Links: |
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