City Maintains High Level of Service Despite Slower Revenue Growth in 2016
Director of Finance Tracy Turbak presented the City Council with preliminary 2016 year-end financial results for the City of Sioux Falls today.
The preliminary financial results for 2016 reflect the City’s commitment to living within its means. The City recognized early in 2016 that sales tax revenues were growing at a slower pace than anticipated and took proactive steps to prudently manage expenses to ensure citizens continued to receive the quality services they’ve come to expect.
Although sales tax revenue growth slowed to 3.4 percent, the Sioux Falls economy remained strong. At $701.9 million, construction permitting reached an all-time high in 2016, an unemployment rate of 2.4 percent is one of the lowest in the United States, and the City’s population added a record number of 5,200 new residents.
Maintaining its consistent track record of fiscal responsibility, the City ended the year using less reserves than expected. Having budgeted to use $5.4 million in operating reserves in 2016, the City ended the year using only $1.4 million, leaving reserves above the 25-percent policy target.
Turbak states, “Like our citizens, the City takes fiscal responsibility very seriously. The City did as every resident would have done when income is lower than expected. Our departments prioritized spending, focused on front-line services, and saved money where it had the least impact on services and the long-term success of the City.”
The City invested just under $100 million in capital infrastructure in 2016, including replacing the highly traveled 12th Street bridge, opening the long-anticipated Midco® Aquatic Center, and completing several large utility improvements. Also included in the 65 projects completed in 2016 were the expansion of Sycamore Avenue, Maple Street, and the Main Avenue Road Diet. The City completed more than 658 blocks of street repairs, including microsurfacing, overlays, and neighborhood reconstruction.