Financial Review of the City of Sioux Falls in 2020

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EDITOR’s NOTE: This is a guest post by Mike Zitterich. I found a lot of the information helpful. He does opine towards the end of the post, feel free to comment.

My thoughts based on studying the 2020 C.A.F.R – The City of Sioux Falls did fairly well considering the rest of the Country, Sales Tax was not as bad as first thought, and the population grew to 195,000 residents. While the sales tax remained constant from 2019, we did not seem to lose $1 compared to the year before, we simply lost our “gains” of $3,500,000 a year we have been accustomed to. Here is a list of Excise Taxes, Duties, and Imposts that I have noted within our 2020 CAFR along with our Net Position (State of the City), along with fun statistics regarding Water/Water Reclamation and Public Parking the two most hotly contested topics of the “people” …  

Direct Property Taxes:
Sales Tax (First Penny) – $67,135,048Sales Tax (Second Penny) – $67,135,016Property Tax – $70,288,580Sales Tax (Third Penny):

  1. Entertainment Tax – $7,170,446
  2. Lodging Tax – $681,346
  3. Hotel BID Tax – $1,492,011
  4. Frontage Tax – $15,362,566
  5. Other Taxes – $127,780

Duties (User Fees):

  1. Electric/Light Fees – $10,257,468
  2. Public Parking Fees – $2,585,491
  3. Landfill Fees – $10,402,978
  4. Water & Water Reclamation Fees – $74,847,388

Imposition Fees:

  1. License & Permits – $6,675,773

State Motor Vehicle Funds:

  1. SDCL 32-11-4.1 (b) – $13,475,000 (state bridge and road fund)
  2. SDCL 32-11-4.1 (c) – $10,208,000 (contributions from counties)

**The City Council should discuss ‘auditing’ these Motor Vehicle Funds Collected Each Year to determine proper collections, use of funds, manage the funds, appropriate the funds, etc. We get these funds from two sources within the law itself – Minnehaha and Lincoln Counties transfer payments quarterly (sub-section c), while the State Dept of Revenue deposits 0.335% annually into the City Treasury (subsection b). By choosing to audit these funds, we can assure that they are being properly appropriated and used. 


Total Cash In Bank Accounts – $300,345,555Net Position of City of Sioux Falls:  $1,949,969,607 or $9,999.84 Per Resident


Total Cash in Enterprise Funds (Net Position of Fund):

  • Electric/Light Fund – $9,218,960  ($29,232,123)
  • Public Parking Fund – $3,251,888 ($13,882,250)
  • Landfill Fund – $14,373,200  ($32,789,126)
  • Water & Water Reclamation Fund – $66,146,302  ($515,824,329)

NET POSITION = defined as the total net worth of the CITY OF SIOUX FALLS after Expenses, Liabilities, Debts, Future Employee Obligations are paid for…
Water & Water Reclamation Statistics:

  • Average Water/Sewer Payment of City Resident:  $1,288.27 Per 12 Months or $107.36 For 1 Month

Public Parking Statistics:

  • Public Parking Spaces – 3,973  > 67% Spaces Used or 2,661 – $971.62 Annual Space Revenue or $0.47 Per Hour

*Note:  IF we would had 95% Spaces Used it would have generated $3,721,390.44 Annually; the City 10 Year Average Spaces Used is 86% of total parking spaces; so if we use the ten year average, we can expect to generate a projected $3,369,367 in revenues for Public Parking with annual expenses of $2,638,179 + $1,200,000 Debt Payment for a negative 468,812 deficit. Our goal should be to maintain 95% Spaces Used to maintain sufficient revenues, and keep from having to use as much of the 2nd Penny Sales Tax as possible. As per the 2021 City Budget, we are projecting revenues to be $3,320,213 about on par with the 86% User Rate. 

Tuesday, 13, 2021 during the Informational Meeting, the City Council will get updated by the Finance Department of the Results of the 2020 Fiscal Season, I’d say, our finances are much better than realized, and the State of the City is in very good hands. 

My only question for the City Council is as follows – Where was the so called “emergency” or pandemic that was supposed to cause such a racket, and did the City of Sioux Falls really need to take the “CARE ACT FUNDS” based on the 2020 Financial Report. The difference in “CASH VALUE” as stated on page 28 of the C.A.F.R is $300,690,042 million dollars, roughly an increase of $54 million from the year prior. If my memory is correct, that is the same dollar amount we as a city took from the Federal Government as part of the Care Act Funding. Now, I do understand, much of those dollars are being appropriated thru-out the 2021 Budget in Capital Expenditures – but I do not see a huge decrease in Tax revenues from 2019, that we necessary had to take such federal monetary funding. So what was the so-called “Emergency” really about? 

My answer to that question, in “my opinion” was to allow the States and Municipalities to grab more and more federal dollars in order to expand their already bloated ‘budgets’ of wants and needs. Which then obligates us to federal rules, codes, regulations the more we take such funds, this tends to dampen our ability to self rely on ourselves in the sovereign whelm.
I have become a big advocate for ‘knowing’ our total TAX REVENUE as it relates to the actual budget to determine where the excessive revenues derive from over and above the actual ‘tax revenue we collect from state and local taxes (excises, duties, imposition fees). 


The City Council has approved to spend the Care Act Funds in places such as:

  • Fire and Police Academy 
  • Pay for 5 New Law Enforcement Officers
  • Pay for the Water Reclamation Projects (part of it)
  • Maintain Current Payroll and Liabilities
  • To Help pay off prior debts (which proves we could lower the 2nd Penny)

Which leads me to my next thought: “Economic Local Stimulus Plan“ 
This city is in great shape, even thru the Economic Emergency Crisis I felt was caused by many federal policies in the past, and our future; and I often thought, what if we can build a “Economic Stimulus Package” here in Sioux Falls, that encourages residents, businesses, to not only save money,  but to invest those dollars more so in the future providing us new found tax growth. 


Something I thought of more as I drove around this city, if we can lower the 2nd Penny to let’s say the 2005-2009 rate of 0.92% for two years, as we as individuals do as we manage and control our personal incomes while committing a small portion to debt, if we:

What if we held this such discussion during the summer months of 2021, as we discuss future budgets, goals, and projects, plug into that discussion a “City Wide Economic Stimulus Plan”, that that in the short term (2 years) lowers the 2nd Penny to the 2005-2009 rate of 0.92%.


The big question would be can we decrease the 2nd Penny at the same time having debt obligations, but I ask the council, what and how do private citizens deal with loss of income while affording to keep up with such obligations of debt, they simply ‘change’ or ‘amend’ the terms of the contract during that short term period of time until their income expands. Here are my thoughts to interject within conversation of passing or establishing a “Economic Stimulus Package” as it relates to the City of Sioux Falls:

Agrees to:

  • Create a Stimulus Package to Rebuild Our Economy helping businesses and individuals expand their Income;
  • Commit, or promise a % of that 2nd Penny to maintain our current debt payments, protecting that current debt;
  • Commit to no less than a 2 Year Plan (1 Election Cycle);
  • Promise to Set the Rate of the 2nd Penny back to 1.00% at the expiration of the two years;
  • Set forth a plan on to spend, invest, and build and repair Streets and Highways in Sioux Falls during the two years, and thereafter;
  • Set parameters on any new ‘tax base’ that becomes of the increased buying power in years 3, 4, 5, and beyond;
  • Set goals for businesses local and foreign to invest in new jobs, increased wages, benefits, and infrastructure within the private sector;
  • Encourage the Residents to support locally owned companies in order to build the new tax base, employment, and higher wages;
  • Create and Modernize new citywide policies regarding the 2nd Penny, any Future Debt Planning, and Prudent Use of the 2nd Penny.

I believe we have the ‘sovereign ability; to as a governing body and/or the people to adjust our tax rates at anytime as per state laws, that was proven by precedent in 2005; we can adjust them lower and higher as the need is warranted, but most importantly, in times such as these, establishing tax policy in times where we need to re-energize the economy, to benefit the long term planning of the city, is the key motivator here.


Keep in mind, the direct sales tax is tied to population growth, as it adjusts itself in subsequent years following the rate change; we should study the effects of population growth of the City as it relates to the gains or losses we have had over the past 10 years. 

Until this economic emergency crisis where many of the Multi National Corps were following C.D.C Guidelines, adapting to federal resolutions, laws, causing so many people to spend less income, the Sales Tax of Sioux Falls has constantly remained at a steady growth of $3,500,000 per year in direct comparison with the growth of our population. Even if we cut the rate of tax this year, what will the gains be in years 2, 3, and 5? 


Those are just a few points of reference I would raise as part of this economic discussion moving forward, and I think my ideas coincide with many of our stated goals of protecting the health of the city, protecting our economy, and encouraging people to invest fully into the city through private/public partnerships. 


What would a small rate cut in our sales tax mean for the people of the city, we do such a great job of maintaining reserves, managing our debt payments, to investing in the city, instead of giving back as some have stated, a ‘refund payment’ of any concurrent surplus of revenues, a small decrease in the rate would effectively accomplish the same goal, without any liability of the city, cause my theory is as such – those residents, myself included would then be able to increase our buying power, spend more locally which then affords us to collect more tax revenue, let alone attract more new jobs, tourism, and visitors to the city, in coalition with the population growth, the tax base automatically expands. 

With All Due Respect, and Continued Support, I thank you for your time…

Posted in: SF City Council, Sioux Falls

Sioux Falls City Council Agenda, Jan 12, 2021

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Informational Meeting • 4 PM

• Tuthill House Resource Group: Thursday, January 7, 2021 (Council Member Brekke)

• Vacant Home Registration Fees For Historic Districts and Non-Historic Districts by Matt Tobias, Planning and Development Services Manager; and Diane deKoeyer, Neighborhood And Preservation Planner. As you can see, the city continues to NOT post documents in advance on SIRE to review before the meeting, so I have NO idea what this is about. I’m not a realtor or a rental home owner so my best guess is the city wants to register vacant homes on some list? Or charge for it? If anyone knows, send me a note.

Regular Meeting • 6 PM

Item #6, Approval of Contracts;

Sub Item #7, School Park Site Coordination – Marion Road Utility Relocate;
Amendment to relocation agreement, Xcel Energy, $42K. While I have no doubt this needs to be done AND Xcel has to do it, I wonder why the SFSD isn’t paying for this? The city isn’t building a new school, they are.

Sub Item #12, Option to Extend: Extending agreement for after-hours
answering service for various City departments, Helpline Center, $17,500. While the city DOES need a service, I don’t understand why this can’t just be electronic? Heck, even when you call city departments during the work week you rarely get a real person. I have called city councilor’s office numbers, the water department, the public works department, the attorney’s office and the mayors office and rarely had a real person answer during the day. I will say that when I do leave a message I do get a return call. I always chuckle how our Mayor consistently talks about 5G and taking on technological advances for the city but operates it like it is the 1960’s. We have a city council agenda page and video system that continues to fail, we have a city website that is nearly impossible to navigate and virtually have zero access to administrative actions (like ethics insurance). I have also heard from city employees that the city is extremely vulnerable to hacking. What this city needs is an IT Director that will come in and overhaul the entire system without the mayor tying their hands for accolades about free atta-boy coins and lapel pins.

Item #16-17, Resolutions, A RESOLUTION VACATING A PORTION OF THE ARROWHEAD PARKWAY RIGHT OF WAY, AS SHOWN ON EXHIBIT A. (Tracts 2-3 Willows Edge Addition) The hearing is going to be set for February 9. I’m not sure if this has to do with the controversy that happened early last year where several folks showed up to the Parks Board meeting and protested to vacation. We will see.

Item #18, Ordinance, A MOTION TO RECONSIDER AN ORDINANCE OF THE CITY OF SIOUX FALLS, SD, PROVIDING A PROVISIONAL ONE-TIME SUPPLEMENTAL APPROPRIATION TO FUND A COVID-19 PUBLIC HEALTH EDUCATION CAMPAIGN. (Health, $100,000) (The ordinance was considered at the meeting of January 5, 2021.) Last week there was talk that this will go towards an education program about getting a vaccination. While I agree with that, I don’t know why we are paying an outside ad agency to create this program as mentioned at the meeting. The city’s media department could easily create a PSA and put it on CityLink. They could also post on YouTube and Facebook at NO cost to taxpayers. We already pay city employees at Falls Community Health, The Health Director and Media services, we don’t need to waste $100K on an outside agency that will essentially tell people ‘Get a shot.’ On top of that, after the media department created the PSA they could distribute to the local TV stations and ask them to play it. We could also adapt it for radio and ask them to do the same. This is just another clever way the administration is finding a way to funnel money to his pals in the advertising world. The good news is that his former(?) ad agency will NOT be getting the contract. I guess they probably figured it would be hard for them to create a PSA about Covid Safety and Vaccination after running a campaign that promoted Covid Tourism.

Also, who doesn’t already know about the Covid vaccinations? It has been on the news for over a month. Sure there will be people that don’t want to get one, but at this point, it is NOT about education, it’s about getting enough doses in arms of the people who do want to get one. Shouldn’t we be getting them through the line first before worrying about the Q-NON anti-vaxxer weirdos?

Posted in: SF City Council, Sioux Falls

Guest Post: Mike Zitterich, Sioux Falls City Council and Taxes

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This was an email Mike sent to City Council and gave me permission to post;

Good Morning,

After attending the 3/3/2020 City Council Session the other night listening to many interesting debates, I want to discuss a few issues that I feel are important here.

The definition of the word Surplus is where you have excess monies available at the end of a fiscal season after all expenses have been paid out for the year.

My definition of a surplus is one of which the people spent a lot of money for the year, and ‘we’ over paid our taxes. This is the proper way to think of a surplus, not to mention, build a case that this would prove that the citizens are overly taxed, and that we could very easily afford to cut the tax rates.

Lets remember here shall we, “I” like many people, only consented to give up a portion of our sovereign property rights to the “City” in order to pool our assets as one to provide us the basic necessary services to each other. Therefore we agreed to fund Basic Government @ 1% Sales Tax in order to pay for…

– Roads/Streets, and the basic maintenance and repairs needed to maintain them thru out the year.

– Public Parks, where we the people have donated, or ceded some of our land to the city in order to provide each other cheap, fun, family activities thru out the township.

– Police Department, we agreed to fund a local police force in order to protect our properties, keeping us safe from bad men and women whom may attempt to harm us.

– Local Fire Department, in order to provide us Fire, Rescue, and Emergency Safety in order keep us safe thus protecting each other and our properties.

– Public Utilities (water, sewer, lights, electricity) in order to pool our infrastructure to help provide the basic most cheapest service possible as a community.

– Public Parking, helping to provide enough sufficient space thru out the town giving us cheap, well maintained parking spaces for FREE or at Discounted User Rates to go about our daily activities as a community of conducting business.

– Public Transportation in order to provide ourselves as a community the most cheapest service possible helping to provide us a way to commute to work, school, or to do daily activities as a community.

– Basic Government Administration in order to help manage, plan, and provide those basic services to the people.

That is all ‘we’ the people have consented to, and these costs should be as cheap and affordable as possible as to NOT over tax the people.

Now, we have placed in our ordinances the ability to raise in the short term of 2 years, the ability to borrow from the people money to invest in Land, Buildings, Infrastructure, New Roads, in order to expand the city, make our daily lives better, let alone improve upon our city. This is in fact the true purpose of our 2nd Penny Sales Tax. And this should be a temporary tax that should be used for 2 year periods, in order to NOT to place a burden on future generations. We simply give the City the ability to extend that tax up to 5 years. But as we ‘vote’ every 2 years to change our councils, the mayor, those Capital Plans change with those elections.

Thus – the 2nd Penny Tax in my opinion is a temporary tax, and should be allowed to expire when ‘we’ have raised the appropriate funds to pay for the land, new roads, new buildings, new infrastructure, etc.

The true measure of what it costs our city is the allocated expenses paid for by the 1st Penny Sales Tax. That is it.

This was the point I believe Pat Starr was attempting to make at the 3/3/2020 Council Session about the Property Tax issue. IF our Sales Tax is consistently creating huge surpluses year in and year out, and our population keeps growing every year by 3,500 people – that is an automatic $2,500,000 in new sales tax revenue every year, couple that with the Mayor restricting funds, re-financing the Bonds, the interest income that comes in from stocks, bonds, and capital, “WE” should be able to stop pulling from the Property Tax that the statutes allow us to take each year. Why do we keep keep taking more from Property Taxes, when we really do not need them.

This current ‘council’ and city administration currently believe that those property tax dollars are ours for the taking, no they are not. And there is NO mandate that we must use them. The statutes simply say, if we do not take them this year, we lose them. That is fine in my book. If we truly do NOT need them to balance our city budget, why not allow the STATE LEGISLATORS re-apportion those funds back to the people directly back to the School Districts, our Seniors, our Homeless population, our Low Income Citizens, our Children’s Lunch Programs, etc. This was the point Pat Starr was making. And I agree with him on that subject manner.

Now – I was hoping that Pat Starr and Greg Neitzert would have extended that little tax debate longer Tuesday night. They are two of the most respected city councilors, Greg and his analytic skills, and Pat with his common sense and due process. This is the DEBATE ‘we’ need to have as a community, and this is the discussion that we must force. I dont want anyone to argue, or fight. No. That is not the point, but those two are probally the best at leading this debate. Not to mention, its my most favorite topic mind you. I call for a respectful discussion in order to address this growing concern of mine –> To Much Revenue leads to an out of Control Government, and that leads to higher tax rates, more expenses, more ‘wants’.

We can very effectively cut our sales tax rates, and take less and less from property tax dollars, thus rewarding the people for their good work of Saving, Investing in our City, to spending lots of money, while helping to promote the city attracting foreigners, tourists, visitors to attend our public events, concerts, and attractions. That helps produce even more sales tax revenue.

Then there is the other Misc-Excise taxes, Imposts, and Duties that fund the Enterprise Funds, Programs, and Services offered by the city that raise their own revenues totally separate from sales and property taxes. They are self sufficient and create huge profits, which then provide us the capital needed to sustain them, invest in them, manage them. Again –> allows us to cut the Direct Taxes we call sales tax and property tax, which hurt the most vulnerable in our community.

Our effective sales tax rate is 1% – it then becomes a matter of how much ‘we’ need to borrow in the short term from the people for new roads, purchase land, new infrastructure, build new buildings, etc. Thus we create cost estimates to put forth a 2 year plan raise tax dollars from the people. That is what the Second Penny is for. And we allow the government to ‘tax’ us for up to 5 years. After we raise the necessary funds, this ‘tax’ should be allowed to expire. Until the next time ‘we’ need to raise funds in the short term.

Folks, this CITY can survive on $70,000,000 in Basic Sales Tax Funds; it can survive on the $200,000,000 it raises in Misc-Excises, Imposts, and Duties we collect to fund the activities and services of the city. We do not need to keep borrowing from bond holders, if we simply DO NOT over tax the people. We should be allowing the “citizens” to pay less in sales tax, which then allows them to invest in their own properties, spend a little extra cash, and perhaps save their money for tomorrow. “They” the citizens then become more vested in our community. Our revenue will rise in due time.

I will continue to hammer at this, lobby to lower our sales tax rate in the spirit of trying to save the citizens money. Thus rewarding them for a job well done.

In the end – we must stop over taxing people, we do NOT need anything so bad that it cannot wait 5 years until we can raise the necessary funds thru the 2nd penny. We need to be responsible, prudent, and manage our tax dollars better. We can and will lower these rates soon enough. It is just a matter of time.

I strongly encourage some thought on an ordinance that would mandate that the 2nd Penny expire every five (5) years; for no less than a term of two (2) years; placing the expiration on the same two year election cycle. This means that during a councilor’s 8 years (should anyone serve 2 terms); they would have to deal with less revenue for 2 of those 8 years in office. Not only does this help the citizens, I believe it encourages public debate, more discussion on goals, agenda, future wants and needs, thus slowing down the process of pushing items thru from 1st and 2nd Hearings. There have been a few items discussed where I felt we could have followed thru and deferred them a couple weeks. Public discussion is what we need to strive for. I do not believe this hurts the city one bit, the goal is to enforce, mandate, and encourage more public discussion on our future needs. 

Our current tax revenue consists of:

  • $126-130,000,000 million worth of Sales/Use Tax
  • $65,000,000 worth of Property Tax dollars (optional)
  • $200,000,000 estimated/projected Misc-Excises, Imposts, and Duties
  • $100,000,000 in Bonds, Federal and State Loans, Grants, Budget Restraints, Bond Refinancing

    Saving the Citizens $60-70,000,000 per year for a term of 2 years should NOT harm the City at anytime. This is a City that has a net position of nearly $2,000,000,000 billion dollars after all expenses, liabilities, debts, and future obligations are paid in full. That equates to writing each ‘resident’ a check in the amount of $10,000 dollars if we were to shutdown the city. That is a lot of money. Government should not create surpluses – that means the people are overly taxed. 

Please, lets encourage this respectful discussion, lets fix our spending problem, our debt problem, lets be good stewards of the community. We owe it to our ancestors, and to our future generations.

*DaCola Note; While I disagree with Mike on several city issues, I think he nailed it in this post. It is getting more and more expensive to live in Sioux Falls, and the main reason is we are extremely overtaxed. I agree that the 2nd Penny should be reviewed every 5 years and adjusted. I also think property taxes should decrease instead of increasing each year.

Posted in: Property Taxes, SF City Council, Sioux Falls, Taxes

UPDATE: The ‘TIF’ Threat

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I still remember attending the open house about the Sioux Steel Development at Josiah’s. Many people from the public offered their opinions at the meeting, as did I. I remember telling them it was a great idea, but I advised them to ‘go it alone’ and not get the city involved. I remember Rysdons’ incredulous look. Shocker! They didn’t take my advice.

It’s like the playbook never changes, when a developer in Sioux Falls wants a TIF they use the tired old threat,

Right now, the Sioux Steel site is valued at about $3.1 million by the county equalization office, resulting in an annual tax bill of $57,000. When the project is complete, the anticipated property tax payment would be around $1.58 million a year.

That equates to a 14 YEAR TAX BREAK!

Without it, parking to service the businesses included in the vision would likely be scaled down to surface parking lots, said Jake Quasney, executive vice president of development for Lloyd Cos.

“What would happen if we didn’t do the parking ramp, we’d build a scaled down version of the hotel and conference center, maybe some apartments and some surface parking,” he said.

Oh Well?

These are private developers that are already getting around $10 million from taxpayers to upgrade the river greenway along their property (something else I’m opposed to – because I think the city should just sell them Kiwanis Park and let them ‘upgrade it’). They are also ‘Private’. Why should the city be concerned if they scale back the project? Which brings us to another interesting factor. As we are trying to get the EC campus to get it’s poop in a group so the CVB (that we fund) can bring in more conventions, this private development wants to build a convention center, downtown. While I will applaud them, because it is a great idea, it is still private. So why would we give property tax rebates to a private development that will be competing with taxpayers for conventions? It is insane! It would be like paying Wild Water West to accept the City of Sioux Falls pool passes!

In this ARTICLE and STUDY they lay out what TIF’s really do;

“On average, [TIF] may be moving development from one part of the city to another, and changing the timing of the development, but there’s not more development than would have otherwise been made,” Merriman said.

Basically he is saying that you are robbing Peter to pay Paul. As I have argued, the development will happen anyway – with or without the TIF.

In addition, this is a tool with several drawbacks. According to Merriman, TIFs might “capture” some tax revenue above the capped “base value” that may have been generated anyway through natural appreciation in property values if the TIF hadn’t been created. This is money that taxpayers might have otherwise paid directly towards an overlapping school district, or for public services. And while TIF is not a direct tax increase, it may lead to higher rates or service cuts elsewhere, if the city plans on bringing in the same general property tax revenue as before TIF.

In other words, while this PRIVATE developer is getting a massive 14 year tax break, the rest of us are paying higher taxes to support it. Even with provable economic impact, those higher taxes for the rest of us don’t offset what benefit we would get from it. In other words the only one who is really benefitting is the developer.

Also take note that we have bonded for several major projects recently, the Denty, the City Admin Building, the Bunker Ramp, the new jail, the new schools and very soon the public safety training facility and water plant. At rough estimates that is about $680 million in new bonds over a short period of time with a payoff amount exceeding $1 Billion.

There is something else developers and city leaders like about TIFs;

Perhaps the biggest concern with TIF, though, is that of transparency, because of the way this mechanism effectively bypasses the public municipal budget process.

“Once a TIF is created, the operation of a TIF receives less scrutiny than other spending,” Merriman said.

In other words the public is essentially left out of that process and is usually given ZERO evidence that it will help us. But in this town, we love closed door deals, 5G is a great example of this.

Not everything about TIFs is bad, if used properly;

But TIF is good for sparking public-private partnerships that may help fund useful infrastructure that may not otherwise be appealing to investors, such as raising the height of a bridge tunnel so it can carry large trucks, for example. In the report, Merriman recommends several ways to use this tool more effectively, and make it easier for policymakers and researchers to evaluate. Most important: Cities needs to be more transparent about how they are using TIF. It’s not a magic free-money generator.

“It’s a concern about why those decisions are being made,” he said, “and why there’s a public subsidy for development that might have occurred even without the subsidy.”

So is the Sioux Steel development giving Sioux Falls residents something we need to improve quality of life and infrastructure? Not one iota. In fact the infrastructure upgrades to the river greenway along this development is being paid for by us. I would even be willing to gift the development the river greenway land, give them a smaller TIF, and have them upgrade it. There the taxpayers would benefit.

I also enjoyed this little tidbit;

The ramp portion of the project is estimated to cost about $22.6 million.

So they are going to build another Bunker Ramp downtown for about $25K a space. How is this possible? I will tell you – BECAUSE THAT IS THE F’ING GOING RATE! Never mind that hand soap sanitizer man child Neitzert has told you different. The cost for the Bunker Ramp was incredibly inflated and we said it from the beginning. With the new codes in place they will have to build this facility with the proper lighting, fire suppression and generator power – just like the bunker ramp.

I will say this, I think the concept of this development is fantastic, and I commend them on it, but like most things ‘FREE ENTERPRISE’ I also believe they can sink or swim on their own. TIF or NO TIF, it will be successful, and they know it, they just want to save a little money, that is obvious. I encourage every single public servant who is voting on this to request a comprehensive TIF study in Sioux Falls on economic impact and workforce development. I would even go so far to say that the city pays for it and has one of our public universities do it. It seems like when we ask for TIFs in Sioux Falls, it is all based on a whim, and NOT reality. Don’t be suckered by the ‘threats’. Make the one’s asking provide the evidence that this will help us. I already know the answer and this is why they avoid the study.

UPDATE: I see they are bringing out the ‘big guns’ on this, employing everyone in the (paid) media to tell us that this is a partnership with the community;

Both current downtown redevelopment projects require some level of partnership with our city government. In the case of the rail yard development, the city is being asked to sell land. In the case of the Sioux Steel development, the city is being asked to approve tax increment financing.

It sure is a partnership. The developer gets a gigantic tax break and all of our taxes continue to go up. Who wouldn’t be for this kind of ‘partnership’? Comparing the railyard project to getting a TIF is hardly a comparison. Did we get what we wanted for the land? Nope. But that was never going to happen. I think it is wise for the city to liquidate property so it can start generating tax revenue. Unlike what they did with Phillips to the Falls where the city ‘sat on’ land and held it for 11 years for a developer. They were never going to sell it to anyone else. And surprise, surprise, the same the developer is going to the trough once again.

It will be fun to watch the predictability of how this will play out. They asked for $21 million, but the city will come back and say we will give you ‘X’ amount instead. Then the city will brag about how they negotiated a better deal. It’s the old bait and switch the energy companies have been playing for years with rate increases. They always ask for double of what they really want or need then make it look like they cut a deal with the PUC. Old’s trick in the book, and our elected officials fall for it everytime.

Posted in: Developers, Development, Downtown Sioux Falls, Sioux Falls, TIFs

Welcome to Opt-Out Falls!

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Well, it was bound to happen, with ALL of our local government agencies in Sioux Falls going Bat Sh*t crazy over opt-outs, the name change is no surprise.

“I will admit I was a little surprised and kind of hurt when I found out the name change,” local philanthropist Lenny Spamford exclaimed, “I mean just how much does a no state income tax paying billionaire in SD have to give before he gets a town named after him?”

The governor, Donita Trump, didn’t seem too bothered by the change either, “I guess we kind of forced it on them, you know, by collecting over 30% of our sales tax revenue from the city and giving them nothing in return. It may not seem fair, well because it isn’t. I told you I would do things differently, and I’m delivering on that promise. Talk to you later, I have to get back to trucker hat shopping and hip-hop dance lessons.”

The latest to opt-out was the Minnerahrah County Commission today voting 6-0 for an opt-out (and 5 of them are Republicans! The shame!).

“The county, especially Sioux Falls has become the place to commit crimes, it’s like it’s trendy or something to drive from Freeman, or Menno or even Highmore to commit crimes in our county,” said county commissioner Gene Bart, “We really enjoy arresting people here and putting them in the endless cycle of the criminal justice system. Heck, just yesterday we arrested someone for looking at the Arc of Dreams the wrong way, on top of that we even put a guy away for trying to burn the newly sodded grass at the Levitt with a magnifying glass. Lawn crimes, just another mole we are trying to whack! Building collapses, not so much.”

Of course nothing gives the Sioux Falls School District more jollies than an opt-out. Superintendent Baron Von Maulher said, “We were getting such a kick out of it, I banned joke books from the IPC. Whenever I see anyone down and out around the offices, I just yell ‘OPT-OUT’ and the whole place breaks out in laughter. Of course, the finance department does get a little trepidation, because they have to ‘count’ (wink, wink) the votes. I always tell them they can do that with their hands tied behind their back and blindfolded. Worked in the school bond election.”

I asked Baron what the opt-out schedule looked like for the school district over the next 5-10 years.

“Well, since Pierre really doesn’t care how much we raise taxes, we figured we would push the envelope a bit,” Von Maulher replied, “We are going to try 6-12 opt-outs per year through the board, and if the people whine about having a choice, we will hold an election, but this time there will be only ONE super precinct, and it will be in my office.”

The city council is also infamous for raising property taxes. In fact, I don’t think a city council has voted down an increase in over 15 years.

City Council Vice Chair, and RS5 self-appointed leader, Ned Greitzert explained it like this, “When someone hands you lemons, you make lemonade, when the state hands us an opportunity to raise the tax rate, we make grenades, uh, I mean lemonade.”

Well, that would explain the potholes.

I asked him about all the other numerous increases in fees and taxes the city imposes on the citizens, and couldn’t they just take it a little easy?

“Funny you bring that up,” replied Greitzert, “The majority of the council, the ‘RS5’ as we like to call it, or the ‘He-Man Steely Hater’s Club’ is all about positivity and progressive measures to keep our city’s high level of quality of life at a maximum, that means if we are going to raise fees on water, sewer and other stuff, we have to keep that tradition of caring  and due diligence with property taxes. Wouldn’t it seem odd to you that your water bill went up last year but your property taxes didn’t? Where’s the consistency there? If you want inconsistency with taxes, just vote Steely for mayor. All she’ll do is bankrupt the city while giving taxpayers a break. The next thing you know, we will all be swimming in an outdoor pool in the middle of January.”

I didn’t have the heart to tell Ned that I didn’t know how to swim, especially under ice.

Some question why all the local entities have to constantly raise our tax rates when valuations have had record growth over the past 6 years?

Mayor TenBibleverses’ Chief of Staff took a stab at the question, “I call it the candy syndrome, something I kind of started when I worked for that last crook, I mean, mayor and quit ONLY after I was forced to write the largest TIF in city history for the Spamford Sports Complex,” said Jericho Speck, “We just started handing out TIFs, tax rebates, excusing tipping fees, ignored environmental laws, built millions in infrastructure for ice cream warehouses and just said, screw it, corporate welfare for whoever wants it. Don’t tell my pastor.”

I asked, “The Candy Syndrome?”

“Yeah,” Speck said “Whatever rich developer in town that needs a handout for NO reason at all, we just give it to them. No questions asked. No proof of economic impact. No proof of job growth, or even good paying jobs. We just make sure the request is signed and we approve it. The city clerk’s office handles petitions in a similar same way.”

I wondered if this haphazard way of giving tax cuts and tax incentives was driving up everyone else’s property taxes.

Speck responded, “What? Are you stupid? Does beer like foam collect at the bottom of Falls Park every Spring for the past 100 thousand years?! You certainly are the poster child for the large percentage of South Dakotans that don’t go to college. Ever think about taking up welding? There’s a program I could refer you to.”

I had more questions, but I had to get back to my call center job, my 8.5 minute break was over.

While this was satire, some of the sh*t is true, mostly everything but the fake names.

Posted in: County Commission, Humor, Minnehaha County, Property Taxes, Satire, SF City Council, Sioux Falls, Taxes