SIOUX FALLS, S.D. (KELO) – The city of Sioux Falls will be cutting $8 to $10 million from its annual budget in the next three years and Mayor Paul TenHaken announced a few of the city’s plans to cut pool and library services, among other cuts.
“We have to reduce services to make up the $8 to $10 million,” TenHaken said in a news conference Thursday. “There’s no solutions, only tradeoffs.”
TenHaken called the cuts “the best of the worst.”
He said the city wanted to avoid raising fees on taxpayers. He also acknowledged state lawmakers felt pressure from people across the state to lower property taxes. He argued the property tax cuts should’ve been more targeted. He also said the city of Sioux Falls was not involved in the property tax discussion.
In a news release, the city said: “The changes are necessary due to Senate Bill 216, which was passed by the South Dakota State Legislature earlier this year. The bill caps property tax growth for municipalities, counties and school districts, resulting in a permanent revenue reduction from property taxes for the city of Sioux Falls.”
In a news release from Gov. Larry Rhoden’s office on June 30 celebrating SB 216, Rhoden called it “a big win for South Dakota homeowners.”
“It is impactful and workable, and it will certainly slow down any future tax increases,” Rhoden said in a news release. “I am grateful for the legislators who worked with me and engaged in meaningful discussions along the way. Everyone pulled their weight in order to get this important bill passed.”
TenHaken said the city will hold budget hearings in the coming months to finalize some of the cuts.
For budget cuts, TenHaken said the city will phase out contracted snow removal work and reduce times libraries and pools are open.
“It wouldn’t affect the quality, but it could result in slightly longer snow-clearing times,” TenHaken said.
TenHaken said the city plans to close pools in Sioux Falls after the first weekend in August and libraries will close two hours earlier and open later.
The city will close three school-based health clinics run by Falls Community Health in schools. TenHaken said less than 5% of the patients served in those clinics are kids.
All the non refrigerated ice rinks will be closed in the city. TenHaken said the weather makes it hard to keep those rinks open.
The city has reduced its “community subsidizing agreements” with a variety of nonprofits across the city.
He said the city will eliminate four staff positions, including one staff position in the mayor’s office.
“We’ll focus on reducing overtime,” TenHaken said.
TenHaken said that’s just a “handful” of the cuts that will come after the budget process.
“It’s hard because of the rate we’re growing,” TenHaken said. “This is Sioux Falls approach to this.”
This is a developing story. KELOLAND News will have more coverage from the mayor’s budget cuts announcement online and on-air.
