Mayor Announces Sales/Use Tax Fund Surplus Package

Mayor Paul TenHaken’s administration today announced a proposal to invest City supplemental capital dollar income from 2019. The City will have an available balance within the Sales/Use Tax Fund, allowing the City to propose investments in key community capital needs.

The package is a fiscally responsible approach that includes adding dollars to City reserves within the City’s Sales/Use Tax Fund in preparation of a potential downturn in the national economy as well as investing in shovel-ready projects for roads, public safety, and parks.

Department

Project

Amount

Sales/Use Tax Fund

Reserve Funds

$1,700,000

Fire Rescue

Fire Station 12 construction projects

$3,300,000

Highways and Streets

41st Street from Western to Minnesota Avenues asphalt mill and fill

$1,400,000

Highways and Streets

Increase residential slurry seal projects by up to 80 blocks

$200,000

Highways and Streets

Use techcrete patch material on downtown concrete streets

$100,000

Parks and Recreation

Great Bear Chairlift replacement

$800,000

Parks and Recreation

Terrace Park structural repairs

$325,000

Total:

$7,825,000

“The economy was strong in 2019, but we need to be prepared if there is a downturn in the months ahead,” said TenHaken. “I’m recommending we add dollars to our Sales/Use Tax Fund reserve to hedge against market fluctuations and invest in some important capital needs in our City. These are shovel‑ready projects and will make an impact today rather than be delayed for completion in future years for Sioux Falls.”

These recommendations reflect input from citizens, City Councilors, and immediate capital needs. In particular, paying for the new southeast fire station in cash versus in the upcoming community bond will decrease the bond amount needed. “Thank you especially to Councilors Curt Soehl and Rick Kiley for their advocacy to expedite the construction of the new southeast fire station. Using surplus funds now moves this project along and saves us bond interest costs in the long term,” said TenHaken.

More information on these items will be presented to the City Council at their Informational Meeting on Tuesday, February 11, followed by the first reading of the package later that night at the Regular City Council Meeting.

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