Mayor Proposes Significant Funding for Roads
Mayor Paul TenHaken presented the City Council today with the 2020–2024 Capital Program (CIP) proposal.
The Mayor’s CIP video message, the 2020–2024 Capital Program, and letter to City Council are available at: https://siouxfalls.org/cip.
This year, 80 percent of the available sales/use tax dollars will be dedicated to highway and street projects—the highest percentage in at least the past 10 years. This means an additional $30 million to repair and reconstruct roads than budgeted in previous capital programs.
“Our roads and infrastructure are critical to quality of life and resident satisfaction,” said Mayor Paul TenHaken. “I’m committed to improving our roadways during the years ahead, and I hope to earn the support of the City Council on this proposal to invest more dollars into our infrastructure.”
The total proposed CIP is $776.5 million—an increase of $28.1 million. Of this total, $171.7 million is to be appropriated in 2020. The largest revenue source for the CIP is sales and use tax (i.e., second penny), which is projected to have $284 million available to invest in capital assets after debt service for 2020–2024. This program reflects an anticipated sales and use tax growth rate of 4 percent in 2020 and 5 percent in subsequent years. As in past years, the City will adjust these figures in future years as needed based on economic changes.
Per City Charter, the capital program is required to be submitted to the City Council no later than July 1 of each year. The City Council will hold budget hearings on the capital program in August and approve the budget in September.