Posted: August 08, 2025
Rapid City
Agenda Item Summary

Agenda Item Ref. #: PW081225-11

Agenda Item Title:

Resolution No. 2025-103, A Resolution Segregating the Surcharge for Improvements to the City of Rapid City Water System, for Payment of a Revenue Borrower Bond and Yearly Review of Rate

Origination Group:
Public Works Committee
Origination Meeting Date:
08/12/2025
City Council Hearing Date:
08/18/2025
Staff Contact:
Daniel Ainslie
Agenda Item Summary:
The City has received approval from the state Department of Agriculture and Natural Resources (DANR) for a $3,932,000 30 year loan at a rate for 3.5%. The loan will provide the upfront capital necessary for the completion of the Well #4 upgrades. The Well #4 improvements was included in the 2023 rate analysis. Residents requested that the debt used to fund the capital projects would be funded through a surcharge. The attached resolution fulfills that request. It established a $0.55 surcharge per equivalent meter (meaning larger meters pay a higher surcharge versus a smaller meter). This surcharge will be reduced from the monthly minimum. This means that there will not be a change to the monthly water bill when this surcharge goes into effect.

Funding Source & Fiscal Impact (if applicable):

Funding Cost Center

Recommendations:

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