SIOUX FALLS, S.D. (KELO AM) City Finance Chief Tracy Turbak has informed Sioux Falls City Council that there could be a $1.2 million budget shortfall this year.
"Managing expenses this year in 2017 has become more challenging, the decisions becoming more difficult as we move forward. They will become even more difficult throughout this year." warns Turbak.
The city, like the state, is dealing with continuing sluggish tax revenues. Turbak's graphs have made it clear to Council that the economy is growing, but not as strongly as hoped.
"Through March of 2017, for the past year, we have been growing at 2.5 percent and as you can see in the graphic, one year ago we were growing at about 4.9 percent."
Turbak says all city departments have been asked to come up with contingency plans if budget cuts are necessary moving forward. But, he says Sioux Falls remains in strong financial shape, so there is no need, for example, to dip into the city's rainy day funds.