Mayor Presents Proposed 2024 Budget for the City of Sioux Falls
Published on July 20, 2023
Today, during a special meeting with Sioux Falls City Council, Mayor Paul TenHaken presented the proposed 2024 Budget while providing an overview of the 2024–2028 Capital Improvement Program.
The City’s annual budget is divided into three categories of expenses: operating, capital, and internal service. Operating expenses cover the day-to-day costs of running City services while meeting residents’ expectations. Capital expenses come from the five-year capital program, which for 2024–2028, is at $1.1 billion. For 2024, capital expenses break down to $341.1 million, which is used for large investments focusing on replacement, rehabilitation, and expansion of infrastructure and equipment. Almost $119 million will be dedicated in 2024 to internal service expenses, which is used for costs like employees’ benefits, property insurance, fleet maintenance, and building management.
“As we collaborate as One Team throughout this budgeting process, we recognize that many departments face the same challenges, including cost escalation and keeping up with our city’s record growth,” said Mayor Paul TenHaken. “The $790.1 million proposed budget for 2024 balances critical investments in public safety and infrastructure with strategic and thoughtful investments that add to the quality of life in Sioux Falls.”
The direct Service Expenditure Budget, comprised of the operating and capital budgets, impact the public directly. Seventy-five percent of this annual budget supports public safety and infrastructure throughout Sioux Falls. Several planned infrastructure investments for 2024 include the continued construction of South Veterans Parkway, the beginning construction of the interchange at I-29 and 85th Street, more than 700 blocks of street reconstruction, and capacity expansion of the water reclamation pump station and sanitary sewer expansion.
More than $94 million of the 2024 budget is proposed for Sioux Falls Fire Rescue and the Sioux Falls Police Department. This investment will be used for personnel, vehicles, and equipment for these departments. The budget also accounts for a proposal of $2.2 million to add a total of 24 full time employees, seven of which are for police officer positions and six to support the 24/7 Public Safety Campus, which includes the 911 Dispatch Center. The six positions include three building custodians, one Fire Training Captain, and two positions for IT support.
“Throughout this process, we are focused on taking care of today while planning for tomorrow, especially as it relates to operating what we build. This includes how we will staff and operate the $55 million Public Safety Campus, the estimated $16.5 million Jacobson Plaza, and what becomes finalized at Frank Olson and Kuehn Park,” said Mayor TenHaken. “We look to the One Sioux Falls framework to guide our investments year-round, but particularly through this budget process. A thriving community starts with a vision and is achieved through balanced and responsible budgeting.”
As part of the One Sioux Falls framework, $10.8 million is dedicated to housing in 2024. These funds will continue to be used to reinvest and leverage funding while working with community partners to address housing challenges in Sioux Falls.
Partnerships have helped move several large projects forward in the city, and Mayor TenHaken announced another public-private partnership for aquatics during his budget address. Joe and Jennifer Kirby will donate $500,000 through the Parks Foundation to complete an expansion to the locker rooms at the Midco® Aquatic Center in 2024. The $1.2 million project will double the square footage of locker room space and increase the amount and size of the lockers.
This is one of several investments in aquatics in Sioux Falls in 2024. There is $3.8 million set aside to replace the McKennan Park wading pool, and construction is expected to begin the end of summer of 2024. The City is also anticipating final designs in 2024 for what will become reality at Frank Olson and Kuehn Park as those parks’ pools are aging and in need of renovations. Those renovations will be part of the Quality of Life Bond that is expected to start being paid at a small portion in late 2024 with full payments in 2025.
The proposed 2024 Budget and 2024–2028 Capital Improvement Program can be viewed online at siouxfalls.org/finance. After completion of budget hearings in August, the Sioux Falls City Council will vote on the annual budget and the Capital Program at its meetings on September 5 and 12.
Mayor Paul TenHaken’s Budget Presentation
Mayor Paul TenHaken’s Address (As Prepared)