Sioux Falls council moves bond ordinance for parks and recreation improvements to second reading; $68 million proposed from sales tax revenue

The Sioux Falls City Council advanced a bond ordinance on Jan. 7 to a second reading that, if adopted, would authorize the issuance of sales-tax revenue bonds to finance parks and recreation projects including a replacement outdoor pool at Keene Park, a new indoor aquatics and recreation facility at Frank Olson Park, and improvements at the Westside Recreation Center.

Finance staff said the ordinance would authorize a series of bonds structured to produce up to $68 million in proceeds, to be repaid from the city's existing second-penny sales and use tax. Finance Director Sean Pritchett told the council the ordinance sets a 20-year repayment term and a maximum interest rate of 6%; staff currently model interest around 4% for planning purposes.

Staff outlined an allocation of the $68 million roughly as: $18 million for an outdoor pool at Keene Park, approximately $47 million for the Frank Olson indoor aquatics and recreation facility, and $3 million for day-two improvements at…