Mayor TenHaken Releases Proposed 2027–2031 Capital Program
Published on June 26, 2026
Mayor Paul TenHaken released the proposed 2027–2031 Capital Program today, the final program of his administration. The five-year program totals nearly $1.1 billion and proposes critical investments in utility and transportation infrastructure, public safety and quality of life amenities and spaces.
The city’s capital program is primarily supported by sales/use tax revenue and utility user fees, and it outlines plans for capital construction, maintenance and equipment over the next five years. As part of the city’s annual budget process, the capital program is rebalanced and projects are prioritized based on revenue projections. The capital program complements the city’s annual budget, which will be released in late July, and includes funding for all city operations in addition to incorporating the first year of the capital program.
“During my administration, we have focused on fiscal responsibility, balancing critical investments in infrastructure, public safety and quality of life, and ensuring Sioux Falls remains investible,” Mayor TenHaken said. “Sioux Falls has repeatedly been recognized by independent third-party organizations as one of the best-run cities and top places to live because of our strong financial management and responsible use of public resources. Just last week, WalletHub named Sioux Falls the sixth top-run city in the U.S., our highest ranking ever. This is a testament to the hard work of the city’s finance team, our department leaders and the city council for their disciplined, strategic approach to planning and investing on behalf of our community.”
The proposed capital program outlines transportation and utility infrastructure investments, with highways and streets again the largest portion of the capital program at $440 million planned over five years. As in previous years, the program aligns funding and projects with investments being made across the community by the South Dakota Department of Transportation. Those partnership projects include the new interchange at 85th Street and Interstate 29, the Minnesota Avenue and I-229 interchange reconstruction, and the completion of South Veterans Parkway in the coming years with the final segments of Sycamore Avenue to 57th Street and Western Avenue to I-29.
City-led street investments planned across the program include:
- 41st Street and Louise Avenue intersection reconstruction
- Minnehaha County Highway 130 reconstruction, north of Foundation Park
- Reconstruction of Phillips Avenue from 8th to 10th Streets
- Reconstruction of Benson Road from I-29 to Westport Avenue
- Rehabilitation of approximately 700 blocks per year through street maintenance programs
Utility projects for water, wastewater, landfill and light and power are also planned across the proposed program, totaling $381 million. Utility projects within the capital program are funded from utility customer fees. For wastewater, the program outlines expansion and maintenance projects to both the collection system and treatment facility to support current service levels and future growth, including the ongoing expansions of wastewater basins in the west and southeast areas of Sioux Falls. The water utility has key investments planned for the future water supply sourcing, like the third connection to the Lewis and Clark Regional Water System, which will bolster the community’s drinking water supply. Utility infrastructure investments ensure the city maintains its current service levels for customers while positioning the city for future economic growth and development.
Public safety remains a top priority for the community, and the proposed capital program includes investments in equipment, vehicles, advanced technology and future facilities that will support police, fire and metro communications teams to meet growing and evolving demands. In 2029, the proposed plan includes design work to advance an eastside police report-to-work/substation and Fire Station 14, with the possibility of co-locating the facilities to serve a rapidly developing area of Sioux Falls.
For quality-of-life investments, the proposed capital program includes funding toward two large community projects that will shape Sioux Falls over the next decade. The first is one-time funding to advance the Great Plains Zoo’s state-of-the-art aquarium and help unlock further private investment in the project. The program proposes $2.5 million in 2027 from sales/use tax revenue, which was previously committed within the approved 2026-2030 Capital Program, and an additional $4 million in 2027 from entertainment tax revenue. The second investment is in the future redevelopment of the Sanford District in downtown, with plans for $2.5 million per year for four years within the program. The city’s financial support of these projects helps support two transformational opportunities in Sioux Falls that will have significant entertainment, recreational, cultural and educational impacts for years to come.
In recent years, the city has made significant progress to address community priorities of aging aquatic facilities and indoor recreation with the new McKennan Park Wading Pool completed in 2026, a new Kuehn Park Aquatic Center currently under construction, continued renovation of the Westside Recreation Center in 2026, and construction slated to begin on the future Frank Olson Recreation Center in 2027. Additional investments are planned for other community recreational priorities as well.
Compared with the prior capital program, this year’s five-year capital program increases investments in neighborhood parks from $1.1 million to $3.5 million. In 2027, funding is set aside to support three new neighborhood parks, including Whispering Woods, 68th Street and Bahnson Avenue; Wild Meadows, 6th Street and Dubuque Avenue; and the Sioux Falls School District site at West 26th Street.
Across the five-year program, $12 million will be invested for expansion and reconstruction of recreational trails, including new trail extensions for Cherry Creek Trail, Big Sioux River Trail and Eastside Trail, which connects Arrowhead Park and the Mary Jo Wegner Arboretum. Trail reconstruction is scheduled for the southeastern spur, the section from Maple Street to the diversion dam and the River Park bridge.
Due to lower sales/use tax revenue projections, the capital program years of 2027 to 2030 were reduced by almost $9 million compared to the 2026-2030 Capital Program. However, due to carrying forward surplus balances over the past several years and unexpended debt service payments in 2025, nearly $10 million in surplus funds are programmed into 2027 to fund street priority projects.
“The capital program is all about balance and prioritization,” the city’s finance director, Shawn Pritchett, said. “We carefully monitor sales and use tax revenue throughout the year, as revenues can fluctuate based on consumer spending and outside economic factors. Our long-term, disciplined planning allows us to navigate those variables while still advancing priority projects. This careful stewardship ensures Sioux Falls remains fiscally strong and well-positioned to support the services, infrastructure and amenities our growing community relies on.”
According to city charter, the proposed capital program is due to the Sioux Falls City Council no later than July 1, and the annual budget must be submitted to the city council with an accompanying message on or before August 1. The proposed 2027 operating budget will be presented later in July with the city council holding budget hearings in August and final consideration of both the 2027-2031 Capital Program and 2027 Budget in September. The full 2027–2031 Capital Program can be viewed online at siouxfalls.gov/capital.