TenHaken proposes city budget that reflects cost of growth
July 20, 2023
The money it takes to maintain new roads and parkland, support increased public safety needs and position the city of Sioux Falls for future needs adds up to nearly $800 million in 2024.
Mayor Paul TenHaken today proposed a budget to the City Council for the coming year that reflects “balancing the demands of a growing city while still facing various economic pressures such as inflation,” he said.
“A thriving community starts with a vision and is achieved through balanced and responsible budgeting.”
The $790.1 million total budget includes operating, capital and internal service funds. It’s up from $646.2 million in 2023.
Sioux Falls not only added 6,200 residents last year but also became the largest area for visitor spending in the state, TenHaken noted.
“This growth is occurring in all directions with an increase in residents, visitors and businesses alike, which also creates a demand for public investment,” he said. “Throughout this year’s budgeting process, our teams emphasized the need to balance critical infrastructure along with quality-of-life projects that make our city a great place to live, work, visit and play.”
The city budget includes a $234 million general operating fund, up from $214.9 million in 2023. Revenue for that fund primarily includes sales and property taxes.
The general fund includes 21 of the city’s 24 proposed new positions. The other three are in fee-based funds such as utilities.
“These positions will help us keep up and stay ahead of the service demands and growth of Sioux Falls,” TenHaken said.”We’re adding positions like a building inspector, an urban planner and a financial coordinator for risk management.”
Seven new officer positions are included for the Police Department as part of a goal to reach 300 officers by 2025. An additional six positions will directly support the new public safety campus, opening this fall.
“As our city grows, it’s important our training develops with it and provides our first responders experience with different real-life scenarios,” TenHaken said. ” This 42-acre campus will require a significant and multi-department operating budget and is reflective of the emphasis we are placing on developing operating plans for large building investments.”
The police budget also includes funding for updates to body armor, adding more vehicles to the fleet and acquiring land as available for future report-to-work stations in Sioux Falls.
Citywide, TenHaken is proposing a $2.2 million overall new investment into workforce in 2024 for the new positions, not including cost-of-living and other pay increases for existing staff, in addition to a recruitment campaign to encourage people to apply for jobs with the city.
“We will continue to do our best to stay market competitive, and this recruitment campaign will play a role in that,” he said. “It will also help retain our employees, filling our workforce to prevent burnout while proudly sharing our story as an employer and the investments our employees make into the community.”
For 2024, capital expenses break down to $341.1 million, including major road, building and park projects, land acquisition and equipment. While a significant amount will support road construction related to large state-funded investments such as Veterans Parkway, the five-year plan also includes $99.2 million to rehabilitate more than 3,600 blocks throughout the city’s road network.
“This means two things — first, I hear you Sioux Falls, when you share your concerns about potholes, and second, we are committed to getting into your neighborhoods and investing in your daily commutes,” TenHaken said. “This has been and will continue to be a priority during my time as your mayor.”
The city’s housing division is slated to receive $10.8 million in 2024 for various projects, including continuing a pilot project with Habitat for Humanity through which the city awards grants to help rehabilitate single-family homes.
“We’re investing in our city’s core and saving houses within these neighborhoods,” TenHaken said. “It’s also helping increase inventory and getting families into homes they can afford. As the housing team goes through the pilot, they’ll evaluate its success and consider investing more money as progress is made.”
TenHaken also highlighted several proposed projects in the Parks & Recreation Department, including doubling the size of the locker rooms at the Midco Aquatic Center, which will be supported in part through a $500,000 donation from Joe and Jennifer Kirby. Jennifer Kirby is an avid swimmer who competes nationally, and the couple also helped fund the downtown dog park named in their honor.
Another gift to the city, a house at Arrowhead Park, also will see improvements next year under the proposed budget.
“Many people may not even realize there is a house on the property that overlooks two historic quartzite quarries,” TenHaken said. “The parks and recreation team has plans to completely gut and renovate the interior of it in 2024, redeveloping it into a meeting space that can be used for off-site company events, private gathering space or adventure-type programming.”
Here’s a breakdown of how the spending is divided:
Almost $119 million in the proposed budget involves internal service expenses — costs such as employees’ benefits, insurance and building management.
City department heads will detail their budgets next month in City Council hearings, with the council voting on the budget in September.
“These numbers affect every single person in our community,” TenHaken said. “And it’s essential to remember a better tomorrow relies on strategic decisions that we make today.”
For more on the proposed five-year capital improvement plan, click below.
Inside city’s 5-year, $1B+ capital plan: Major road projects, pools, parks
