Proposed 2025 Budget Embraces Growth, Plans for Future
Published on July 25, 2024
Today, during a special meeting with the Sioux Falls City Council, Mayor Paul TenHaken presented the proposed 2025 Budget while providing an overview of the 2025–2029 Capital Program.
The City’s annual budget is divided into three categories of expenses: operating, capital, and internal service. Operating expenses of roughly $357 million in the proposed 2025 Budget cover the day-to-day costs of operating City services. Capital expenses come from the five-year capital program, which is $1.1 billion for 2025 through 2029 and breaks down to $295.7 million for 2025, including debt service. These funds are used for large investments focusing on replacement, rehabilitation, and expansion of infrastructure and equipment. About $128 million is dedicated to internal service expenses in 2025, which is used for investing in benefits and insurance for employees, building maintenance, fleet maintenance, and, of increasing importance, City-wide technology. The total proposed budget for 2025 is $781 million, with investments guided by the One Sioux Falls framework.
“While we are fortunate for the strong Sioux Falls economy, we are not immune to the economic pressures being felt across the country by individuals, families, and businesses,” said Mayor Paul TenHaken. “Just like our residents continually reprioritize where they spend their hard-earned dollars based on their personal circumstances, the City follows the same practice to stay fiscally responsible as stewards of the community’s tax dollars.”
Many City departments continue to face the same challenges they have in the past few years, including cost escalation and keeping up with the city’s record growth. Consistent with the private sector, the City has also seen a significant impact on equipment purchases, particularly in vertical construction. The proposed 2025 Budget continues to address the community’s foundational needs while planning for transformational initiatives.
More than 70 percent of the operating and capital expenses are spent on infrastructure and public safety investments. Infrastructure investments include continued work on South Veterans Parkway and the I-29 and 85th Street Interchange, the first phases of Basin 15 on the westside of Sioux Falls, and time and money for securing future water sources with Dakota Mainstem and the Lewis & Clark Regional Water System. Over $108 million will be invested in Sioux Falls Fire Rescue, Metro Communications, and the Sioux Falls Police Department, supporting the necessary infrastructure, equipment, and personnel to protect the community. More than 75 percent of the funds for each of these departments are invested in people, including the addition of seven new officers in the Police Department in 2025.
Also included in the proposed budget is funding to support a total of 28 full-time employees. This will support the demands of service across Sioux Falls that include public safety, operations, housing, infrastructure, library, and Parks and Recreation teams. One of the full-time employees will serve as a Housing Program Specialist, supporting the Housing Division’s growth. The proposed $12.5 million for housing in 2025 will continue to be reinvested and leveraged to address residents’ unmet housing needs.
Several proposed positions for Sioux Falls Parks and Recreation will support the significant investments already made in Jacobson Plaza and the Sanford Wellness Center at Tea-Ellis, which will be reimagined, in a phased approach, as a recreation center. The proposed 2025 Budget also plans for the issuance of the aquatics and recreation bond, which will bring a new outdoor pool experience to Kuehn Park and an indoor aquatics and recreation center at Frank Olson Park on the city’s east side.
Our proposed budget also includes funding the roughly eight acres of land near Tenth Street and Cliff Avenue with entertainment tax funds. This action is the next step in the bold 2050 vision cast for the Riverline District and will provide an opportunity for further analysis of the construction of a new, modern, and appropriately sized convention center at the site. The 2050 vision also calls for the analysis of reusing the existing convention center as a flexible public indoor recreation and entertainment space.
“Time and again, Sioux Falls has progressed due to visionary leaders who make tough decisions and dream big. Dreaming big means taking the next step forward despite uncertainties,” said Mayor TenHaken. “We have a unique opportunity before us to acquire eight acres of land adjacent to downtown Sioux Falls, just minutes away from current activity. Acquiring this land is not a final decision but a step toward engaging the community in determining its feasibility and benefits.”
The proposed 2025 Budget and 2025–2029 Capital Program can be viewed online at siouxfalls.gov/finance. After the budget hearings in August are completed, the Sioux Falls City Council will consider the annual budget and the Capital Program at its meetings on September 3 and 10.