SIOUX FALLS, S.D. (KELO AM) - Sales tax revenue slowed to just under 3.5% last year in Sioux Falls but Director of Finance, Tracy Turbak, says the City still maintained a high level of service to its citizens.
In a preliminary 2016 year-end financial report, Turbak told the City Council that construction permitting reached an all-time high of $701.9 million. Sioux Falls unemployment is under 2.5% and stands as one of the lowest rates in the nation.
Still, Turbak says, the City recognized early last year that sales tax revenues weren't keeping up with the estimate projected in the budget. He says prudent management of the budget ensured that residents would continue receiving the quality services that they've come to expect.
Taking proactive steps meant the City used less in reserves than expected. Turbak says the budget included almost $5.5 million in reserves but the City used only $1.4 million. He says that leaves the reserve fund above the 25% policy target.
Sioux Falls invested just under $100 in capital infrastructure last year including the 12th Street Bridge rehabilitation project, opening the Midco Aquatic Center and several large utility improvements. The City finished over 658 blocks in street repairs.
Turbak told Council that "departments prioritized spending, focused on front-line services and saved money where it had the least impact on services and the long-term success of the City."