Sales Tax Increase Means City Worker Pay Raises

Sales tax income at Rapid City city hall is up $2.8 million above last year, more than expected. The 6.33 percent increase means city employees get 2.5 percent raises thanks to a union agreement that pegs employee pay to the city's revenue.

The Rapid City Journal reports:

Any increase over 5.5 percent triggered an automatic 2.5 percent pay raise for the city's union employees, a raise that will be matched for nonunion employees.

Mayor Sam Kooiker calls the extra income a sign of confidence in the local economy.