Mayor TenHaken Releases Proposed 2026–2030 Capital Program
Published on June 27, 2025
Mayor Paul TenHaken released the proposed 2026–2030 Capital Program on Friday, June 27, 2025. The five-year program of about $1.1 billion is primarily supported by sales/use taxes and utility user fees and continues critical investments in public safety, highways and streets, utility infrastructure, and quality of life. The implications of Senate Bill 216, which impacts property tax revenue, will be reflected in the proposed 2026 Budget when it’s released in July. Property taxes do not fund the Capital Program, but they are an essential part of the general fund that operationally supports investments being made through the Capital Program.
“Each year, through our budget process, we are tasked with prioritizing projects in a fiscally sound fashion amid continued growth. This serves as a good reminder that growth is a good thing in a community, signaling a strong economy and a great quality of life,” said Mayor TenHaken. “Our proposed Capital Program truly reflects our vision statement, ‘taking care of today for a better tomorrow,’ by addressing our community’s immediate needs while planning for the future.”
The proposed Capital Program plans for the construction of the 13th fire station in the community, which is expected to be built within the Discovery District and serve the northwest side of Sioux Falls by the end of 2026. It also supports the strategic investment to acquire land on the east side of the city for a future police report-to-work station, building on the success of the report-to-work station on the city’s west side.
Several major projects are planned through the support of utilities, which will further economic growth in the community and advance future water needs. As construction is underway on the west side of Sioux Falls on the Basin 15 sanitary sewer system, the City will start construction of a sewer basin on the southeast side of the city in 2026, eventually opening thousands of acres of developable land as Sioux Falls grows into these areas. The plan also includes funding for the third connection of the Lewis and Clark Regional Water System to bolster Sioux Falls’ water supply.
The largest portion of the proposed Capital Program remains dedicated to highways and streets, with $431 million of planned investments. The program’s priorities continue to align with the incredible investments being made by the South Dakota Department of Transportation, which include the ongoing construction of I-229 and Cliff Avenue, a new interchange at I-29 and 85th Street, and the reconstruction of I-229 and Minnesota Avenue, scheduled to begin in 2027.
Other major street investments by the City include:
- Continued construction of the intersection at Arrowhead and Veterans Parkways
- Reconstruction of Minnesota Avenue from Second to Eighth Streets in 2026
- Reconstruction of the intersection at 41st Street and Louise Avenue in 2027
- Construction of the railroad overpass at Marion Road starting in 2026
- Completion of South Veterans Parkway
- Segment from Sycamore Avenue to 57th Street
- Segment from I-29 to Western Avenue
- Rehabilitation of 700 blocks per year through maintenance programs of the existing main street network and neighborhood streets
“We live in an incredible community with so much momentum right now. This proposed Capital Program ensures Sioux Falls continues to thrive while staying fiscally responsible,” said Mayor TenHaken.
The proposed program plans for debt service to support a new outdoor aquatic experience at Kuehn Park and an indoor recreation center at Frank Olson, both expected to break ground in 2026. Other investments in the Parks and Recreation system also support the community’s highest priorities, like expanding the recreation trail at Cherry Creek, playground improvements, and new neighborhood parks at Wild Meadows on the east side of Sioux Falls and at West 22nd Street.
The full 2026–2030 Capital Program can be viewed online at siouxfalls.gov/capital.