Simplified: Mayor Paul TenHaken gave his final budget address to a packed room at Carnegie Town Hall on Thursday, in which he emphasized the need to reduce city services while still ensuring Sioux Falls is set up to manage continued growth. TenHaken said it was the "most difficult" budget process he's seen in nearly eight years as mayor. Here's a closer look at the numbers.

Why it matters

  • Last week, ahead of the budget address, TenHaken warned of proposed cuts to library hours, snow plowing, contributions to nonprofits, school-based health clinics, pools and outdoor ice rinks. Those cuts are a direct result of the state legislature's move to cap property tax growth starting in 2027.
  • On Thursday, the public got its first look at the specific numbers behind the $775.9 million budget for next year, and the tone both from TenHaken and listeners in the audience was "somber," as Councilor Miranda Basye put it after the meeting.
    • Even the budget document itself is more somber this year – without the bright colors, photos and graphic design found in previous years' budget books.
  • Despite the cuts, TenHaken is also proposing adding 28 new full-time employees to the city staff, including 24 public safety positions. He's also still looking to move forward with a new downtown convention center in the Riverline District, as well as continued investments in highways and streets.
"We continue to address the foundational needs of today while setting up our community for the future," TenHaken said.

Tell me more about the specific numbers

Here's a look at some of the cuts:

  • $1.2 million cut to public health, including closing school-based health clinics,
  • $212,000 cut to pools, which TenHaken said will mean closing outdoor pools after the first weekend in August,
  • $170,000 cut to part-time library workers, which will likely mean reducing the hours libraries are open to the public by two hours per day,
  • and $941,000 in cuts to planning and development services.

But there are also a few areas – largely public safety – where the mayor is proposing the city increase the budget.

Here's a look at some of additions:

  • An additional $4.4 million for the Sioux Falls Police Department – largely to support wage increases, new hires and an increased overtime budget,
  • a $2.3 million increase for Sioux Falls Fire Rescue, and plans in the capital budget to build a new $5.5 million fire station in the northwest side of town,
  • and a $1.1 million increase to landfill spending.

What else is important to know?

There's still a big question mark hovering over some federal funding, particularly for roads, public transit and housing projects, Councilor Curt Soehl said.

TenHaken also outlined changes to how the city supports local nonprofits and social services – which will mean ending about $2.6 million in subsidies. Instead, the city will open up a request for proposals to offer support for three key areas – at-risk populations, economic vitality/growth, and culture/arts/community.

City looks to switch up how it supports nonprofits – while spending less
As the city looks to tighten its belt in the coming years due to declining property tax revenues, one of the possible spots to save is by cutting support for local nonprofits.
Sioux Falls SimplifiedMegan Raposa

What happens next?

It's ultimately up to the Sioux Falls City Council to set the budget for 2026. Councilors will hold several meetings over the next month to hear from various city departments and make any changes to the proposed budget that they see fit.

If you want to weigh in, contact your city councilor or one of the three at-large councilors, you can find their information here. To contact Mayor Paul TenHaken, you can email mayor@siouxfalls.gov.