Local Public Finance Impacts of Rural Residential Development: A Case Study in the Rapid City School District of South Dakota

One of the most obvious changes over the past 5 years is in the use of the land. Nowhere is this more apparent than in the Black Hills near Rapid City. Houses and roads have taken over land which only a few years ago was part of an agricultural operation. This is only the beginning of change; as the population continues to grow and new families acquire housing, more land will be converted to residential, recreational, industrial, and commercial uses. The decision that citizens must make is where will this change occur, and how will it happen. When land is changed from agricultural to non-agricultural uses, some important public policy issues must be considered. It is not the intention of the author to direct that change, but to (1) present the findings of researchers who have studied other rapidly developing rural residential areas, and (2) give a factual account of some of the nonmonetary issues and the public financial impact of a new residential development about 5 miles south of Rapid City.