Taxes

Is the City of Sioux Falls hoarding tax dollars?

If you watch the city council informational meeting today you will see a presentation on the city’s reserves;

The city has over $80 million in reserves and many councilors questioned why it was so high. Of course the finance director did his best telling councilors we needed to have record reserves to save for a rainy day (or a derecho).

There are two reasons why we are at this point, the first one is the obvious flush of Federal money. As I understand it the city had many projects planned with our own capital before the pandemic and once the money started flowing in the city started allocating ARPA money to these projects instead of city capital. We can argue all we want about the ethics of that kind of budgeting, but I think the public is really in the dark about how this works. Of course the finance director started questioning the Federal bailouts and blaming them for massive inflation which is hilarious coming from a dude who gladly cashed the Fed’s checks.

The second reason we have record reserves is that we are being overtaxed. This of course was NOT brought up by the finance director during the meeting but councilor Neitzert touched on it by saying there is a perception that the city is hoarding money and they shouldn’t be doing that.

This has been my argument all along against increasing city property taxes every year. The city has the revenue, but more importantly with our population and development growth (almost $2 billion last year) there is no reason to increase these taxes and fees due to natural economic growth.

So why are we in this position? Because of indiscriminate tax rebates and TIFs to developers. If we eliminated this high-end socialist welfare system to wealthy developers we could keep our property taxes down.

We also need to stop giving money away to play palaces.

We can’t on one hand and say we are in dire straits then turnaround and throw millions away on amenities and wants. We are either one or the other. The city coffers are NOT a savings account, they collect fees and taxes and spend them on the social welfare of our city.

If I were a city councilor I would propose a one-time city property tax rebate and chip away at the city’s trough.

Noem’s grocery tax repeal was just a political ploy

I never believed Noem truly wanted this tax cut and was probably secretly giddy it failed. I would be shocked if ANY tax cut is approved this legislative session. Playing the Devil’s advocate, why would those who control the coffers want to eliminate a reliable revenue source?

If I were a legislator the prudent thing to do would have been a step reduction in the food tax (eliminating 1.5% this year and 1 penny the following three years and on the 5th year eliminate the municipal food tax portion).

I personally support the property tax cut. While they contend it will only save taxpayers around $300 a year it is around a $800 savings each year in Sioux Falls (that is the approximate take of the SFSD for a $100K valuation). The food tax cut would only save me about $150 a year. As for helping the poor with a food tax cut that is a false flag (an overall sales tax reduction would have a bigger impact). Since most legitimately poor in our state receive food from food banks, FREE school lunches, WIC, churches and SNAP they pay NO taxes on food so why not give them real savings by reducing the overall sales taxes on anything purchased (especially on cigs and beer their biggest staples 🙂 I also think there should have been legislation to eliminate sales taxes on gas and electricity (something renters and homeowners both pay). As I said from the beginning, I don’t think our legislature has the courage to cut taxes. As my stepdad used to say, ‘Gutless Wonders’.

Mayor TenHaken proclaims it is time to focus on infrastructure

DakotaNews chief softball pitcher, Brian Allen, recently did an interview with Paul asking him what we should focus on in 2023. Paul said it was time to get back to focusing on infrastructure.

I guess it only took 5 years for Paul to figure out the simple premise of local municipal government; you collect taxes and fees and provide essential services like road maintenance, water and sewer, public safety and outdoor recreation in our parks.

Ever since Mayor Munson, the city has focused more and more on chipping away at our 2nd penny for things like leather chairs for a private movie theater, landscaping and ‘other stuff’ for a private research facility, butterflies and tennis courts while giving massive tax breaks to welfare queen developers.

When former city commissioner Loila Hunking proposed the 2nd penny tax decades ago it was to be in a lockbox and only to be used on road maintenance and in rare occasions other infrastructure projects, since then the penny has been on a wild spending spree that has little to do with the pothole in front of your house.

It often cracks me up listening to past and current mayors and city councilors talk about how we need to ‘get back to’ focusing on infrastructure.

Don’t be fooled by the promises. There is going to be a big fight in Pierre this winter over reducing the food tax and property taxes, one of the proposals will win at the end of the day (I think the property tax cut has a better chance). Mayors and councilors across the state will be crying about the revenue loss and will be asking how they will be able to keep up with essential services and infrastructure.

Let me give you a little advice; stop spending our tax dollars on stupid sh!t.

Downtown Sioux Falls BID tax almost doubled due to typo in ordinance

I am not surprised this happened. Over the past decade I have watched the integrity of the legal descriptions in ordinances deteriorate substantially and it seems almost weekly the council is amending some mistake or typo (Item #96);

This would have been quite the boo-boo.

This past year the Building Services manager had to apologize to the city council for screwing up on a fee adjustment that wasn’t caught by the council or attorney’s office but by a contractor.

The BID Tax increase was deferred because a couple of DTSF business owners cried. I don’t see any amendments and I don’t expect any tonight, this will pass easily. The Billionaire Italians bitching about this increase can afford it, oh, and will DTSF hang some damn xmas lights at Sunshine already!

Sioux Falls City Council Tidbits

During the regular city council meeting last night the council touched on several topics;

WASHINGTON PAVILION’S DARRIN SMITH CLAIMS THEY NEED $5 MILLION IN RESERVES

The director/president/CEO of the Pavilion told councilors during the contract renewal last night that they needed a $5 Million dollar ‘reserve’ in case they have some struggles. While I would agree they do need a slush fund, most of those reserves should be in an endowment fund that earns money thru it’s investment. It is insane that the city continues to dump millions each year into the Pavilion for maintenance and operating while the Pavilion stuffs private and Federal contributions into a savings account. Councilors defended the reserve. Of course they did.

DOWNTOWN SIOUX FALLS BID TAX INCREASE HITS A SNAG

I do support the increase, which is actually very minimal to even the largest property owners DTSF;

Druley did not specify what Raven’s new assessment would be, although a 377% increase over the assessment’s current cap of $1,700 would come to $8,109.

I’m glad our local paper hasn’t taken away their reporters calculators . . . yet.

I find it shocking that TWO properties (Raven and Sunshine/Norberg Paints-which are in the same building) can have this sort of deferral control over the council. This was vetted by DTSF and after it was explained to me it is easy to understand and why NO OTHER downtown property owners that have valuations over $1 million have come out opposed to this;

Batcheller has said the change would affect 88 buildings in the district and bring in another $160,000 per year, and estimated that Cherapa Place’s expansion and the Sioux Steel district could account for another $115,000.

It’s really not that much money, but that didn’t stop the threats;

And she floated the threat of the company leaving the downtown area as well.

“Raven is accountable to its shareholders and its board, and it’s harder to justify its presence in downtown Sioux Falls as expenses increase relative to the benefit they get,” Druley said.

See yah later!

What was NOT mentioned by the council or Raven’s legal counsel is that Raven is no longer a locally owned business. It is now owned by a very, very, very, wealthy Italian family. I have assumed after the purchase that the new owners will look to consolidate and possibly leave Sioux Falls anyway and there is very little the city can do to stop it. I hope that doesn’t happen, but we have NO guarantees it won’t.

Also not factored into their crocodile tears is that Raven has benefitted from the millions of dollars taxpayers have invested in the River Greenway making more of an attractive workplace downtown. The promotion of DTSF has also benefitted Sunshine Foods, the only FULL SERVICE grocery store in the center of downtown. I have been shopping there for 30 years, and I have seen how the store has improved it’s image in step with DTSF improving it’s overall image.

Funny how the council will keel over when ONE hired gun lawyer makes veiled threats but when dozens of citizens show up to the meetings to oppose rezones, bunker ramps, etc., they ignore the warnings.

The council should have just voted YES last night to the increase and thanked Raven for their concerns. Talk about cutting off your nose to spite your face.

EFFORTS CONTINUE TO CLEAN UP THE BIG PIOUX

While I applaud the efforts, we can’t ignore the 700 pound turd floating down the river;

Entenman notes that 78 percent of the stream miles of the Big Sioux watershed – which is the size of New Jersey – are impaired, meaning the water quality doesn’t meet certain standards, either through contamination with E. coli or other issues, primarily from runoff – from agricultural practices to city streets and residential yards.

Unless you can get the property owners (mostly ag) along the Big Pioux to actively stop that runoff, you will NEVER be able to clean up that river.

“What is the point in putting multimillion-dollar buildings on the shores of the river if it’s polluted,” Entenman said.

I have asked that question for decades.

THE STATE LEGISLATURE AND CITY COUNCIL NEED TO PASS COMPREHENSIVE GUN CONTROL

After Noem and the state legislature’s right wing radicals approved open/concealed carry laws there has been a large increase in gun violence in the state’s largest city. I don’t think that is a coincidence;

Court records indicate Billion was shot with one of four stolen guns from the McKennan Park neighborhood. They were all taken from the same truck.

And there are ZERO consequences for the incredibly irresponsible gun owner, but they do have to live with the guilt, poor fella;

It’s something people have to live with and I’d say that’s one of the unintended consequences if you happen to leave your gun in an unlocked garage, car, house whatever it may be and it ends up stolen,” Sioux Falls Police Information Officer Sam Clemens said.

While I don’t think this reckless gun owner should go to jail, I do think they should face a very heavy fine and be banned from ever owning a gun. While the city has had ordinance bans on tobacco and alcohol use in our public parks, fines for not trimming your trees or scooping your sidewalks and bans on texting and driving the state legislature and city council seem to lack the courage to punish irresponsible gun owners when their stolen property is used to murder our citizens.

I am hoping with the influence the Billion family has in our community they would pressure the legislature, the governor and the city council to implement reasonable gun control laws so there is a least some consequences for not securing a deadly weapon.