Revenues for the city of Sioux Falls are breaking records, but tax dollars aren’t the only measure of the city’s growth. The final tally from last year puts most of the numbers above and beyond estimates. Sioux Falls leaders say they’re working to stay ahead of problems associated with quick development.
The special city council meeting comes to order with a gavel, an invocation, and a pledge. Right away, Mayor Mike Huether starts the State of the City address with finite numbers that prove Sioux Falls is growing.
2013 sales tax revenue jumped eight percent. Huether says that’s one of the top sources for funding city operations. The mayor says the first-penny sales tax data show the highest number ever.
"The first penny pays for things like, yes, public safety, police and fire protection, street maintenance, clearing that dreaded snow, park maintenance and upkeep, recreational programs, libraries, and, yes, things like planning and building services," Huether says.
Huether says the entertainment tax dollars are also above the estimates at nearly six percent. 2013 Property taxes soared past estimates and increase to a record $49 million. The mayor says those numbers are impressive. City Council Member Kermit Staggers says leaders might need to consider a tax decrease as the revenues climb so high.
"We do have a large budget, and we don’t necessarily have to just spend-spend because we have the money. We should be thinking of the citizens of Sioux Falls. Especially if we want more people to come here, to retire here with the great medical facilities that we have, and in having retired people come here to Sioux Falls, we’ve got to watch how we’re doing the property taxes and the cost of living," Staggers says.
As he finishes with tax talk, the mayor notes Sioux Falls’ general fund is also at the highest amount ever. The available balance is nearly $46 million.
"Let’s say that we didn’t have a single dime come into this city’s treasury. This city of Sioux Falls, 162,300 strong, without another dime coming in, could actually sustain itself for four months," Huether says.
He says money in reserves is above the city’s goal, despite a wicked spring 20-13 ice storm that crippled the city for days. FEMA and the State of South Dakota reimbursed 6-and-a-half million dollars in ice storm expenses, so Sioux Falls used more than one million dollars.
Mayor Mike Huether takes time to talk about the city’s high bond rating and the trend to pay off city debts on time. He says Sioux Falls leaders are spending money on projects that improve quality of life – improvements to roads, parks, infrastructure and a new events center.
"This is truly a public and private partnership, and I think it’s one that you should all be proud of, and let me tell you why," Huether says. "It’s that very dollar that we get in private funds is one less dollar that comes from the public domain, the taxpayer."
Huether says the unemployment rate from January of this year sits at 3.7 percent in Sioux Falls, and building permit valuations reached more than $100 million this first quarter. He notes dozens of businesses starting up and expanding throughout the city.
As Sioux Falls experiences growth, the city also endures some growing pains. Huether says leaders are trying to establish enough affordable housing.
"In fact, we’ve tripled the level of local funding for affordable housing since 2010. What does it do? It helps us with new construction, rehabilitation, rental assistance, case management, first-time home buyers assistance, and things like furnace replacement as well," Huether says.
Three thousand people moved to Sioux Falls during 2013. City Council Member Kermit Staggers acknowledges that kind of increase triggers some challenges. But he cautions that too much work ahead of a possible problem could do more harm than good.
"We have to make sure we don’t over-regulate here in Sioux Falls, because over-regulation can result in higher price for housing, and then that makes it more difficult for people. So we have to watch our regulations. We are getting more and more regulation. We have to really tone that down a little bit," Staggers says.
City leaders are working to stay ahead of that growth by examining public safety. They want to avoid a potential increase in crime, so they’re boosting law enforcement by hiring more police officers. They’re also building a new fire station.
The mayor mentions specific plans for Sioux Falls throughout 2014. Those include completing and opening the new events center and taking on major street projects and redevelopment.
A video of the presentation is available on the City of Sioux Falls’ website.