Mayor TenHaken Announces Five-year Proposed Capital Program

Mayor Paul TenHaken today released his administration’s recommended 2023–2027 Capital Program. The five-year program focuses on balancing the demands of maintaining the City’s existing assets with developing new street and utility infrastructure to support current and future growth needs, including investments in the Sioux Falls Regional Water Reclamation Plant expansion and a continued emphasis on the City’s street rehabilitation program and roadway expansion.

The total proposed budget for the five-year Capital Program is $931 million, of which $187.2 million is programmed for use in 2023. Mayor TenHaken will present highlights from the proposed capital program, along with the fiscal year 2023 operating budget, to the Sioux Falls City Council and the public during a special meeting at 3 p.m. on Thursday, July 21.

“During what has been a time of historic growth for our community, this program is designed to ensure we continue to manage the city’s growth in a fiscally responsible manner through strategic investments,” said Mayor Paul TenHaken. “Among those, we are proposing critical investments that improve our roadway network, advance quality of life initiatives, and boost public safety. With a renewed emphasis on Kids and Families as part of the One Sioux Falls framework, we are also focused on capital projects like investing in our pools and expanding the bike trail that will continue to make Sioux Falls an incredible place for all who visit and make their home in our great community.”

The Capital Program generally represents about 30 percent of the total budget for the City. The majority of funding is generated through the second penny sales tax, which supports close to 42 percent of capital expenditures in this plan.

A significant part of the Capital Program is focused on supporting the sustainable growth category within the One Sioux Falls framework by investing close to 82 percent of the program in improvements to utility infrastructure, along with rebuilding and expanding our street system. The Capital Program also has investments in rehabilitation and construction of new cultural and recreational amenities and public safety facilities.

Considering today’s economic climate, the Mayor noted it is even more important that the City make intentional, strategic budget decisions. The budget maintains the City’s longstanding history of fiscal stewardship and maintains a conservative approach to revenue outlook.

Roadway projects and the condition of the City’s streets have been a priority of Mayor TenHaken’s administration from the start and will continue moving forward. Funding dedicated to highways and streets is proposed to increase by nearly $50 million over the next five years, a 20 percent increase over the prior Capital Program.

The plan includes several roadway expansion projects that will provide the foundation for further development and allow Sioux Falls to keep pace with projected traffic increases. This includes construction of the first segment of South Veterans Parkway in 2023 and capacity improvements for Cliff Avenue south of 85th Street in anticipation of the new Harrisburg Freshman Academy. Notably, this budget also supports downtown investments to rebuild the Sixth Street Bridge and add streetscaping from the Big Sioux River to Weber Avenue.

While a majority of the Capital Program is committed to maintaining and expanding basic infrastructure, this program also commits to projects that enhance quality of life for residents in Sioux Falls. Proposed investments include expansion of the recreational trail system by extending the trail from Lien Park to Bahnson Avenue in east Sioux Falls. Through a public-private partnership with the Sioux Falls Skatepark Association, the City will also be constructing a state-of-the-art skate park at Nelson Park in 2023.

This Capital Program also plans for a quality of life bond to be issued in late 2023 or early 2024 to fund investments and upgrades to several of the City’s aging aquatics facilities while also replacing the outdated Elmwood Golf Course Clubhouse. The City is asking the public to weigh in on planning for aquatics improvements through a community engagement initiative set to begin in July.

The proposed Capital Program is available at The City Council will hold budget hearings on the proposed Capital Program and operating budget in August and consider approval of the 2023 budget and five-year capital program in September.


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South Veterans Parkway Exhibit

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