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 the recently acquired Westside Recreation Center (roof, parking and miscellaneous upgrades). The ordinance allows for issuance of one or more bond series; staff explained the city may choose to issue without a one-year debt-service reserve fund if market and rating conditions make that advantageous, which would reduce the total borrowed amount.

Pritchett described a proposed procedure for Frank Olson design and oversight: the city would use initial bond proceeds to pay for early design work, assemble a design-advisory team including council representatives and city staff, and present schematic designs at key milestones (approximately 25%, 50%, 85%). City council approval of the recommended 85% schematic design would be required before issuing a second series of bonds to fund construction.

During public comment, residents and users offered mixed views. Tim Stenga urged clarity about the Westside facility’s purpose, asking whether it will be a "rec center" or a fitness/competing fitness center and whether programming and equipment would replicate the Westside at Frank Olson. A second public speaker, 10-year-old Samuel Cowell, urged the council to approve the Frank Olson indoor pool so East Side children could use it year-round.

Parks staff said Midco (the existing indoor facility) meets requirements for indoor square footage historically but usage has climbed above recommended per-capita levels since Midco opened; they described outdoor pools’ typical operating season as roughly 70–75 days and indoor facilities as effectively year-round (about 360 operating days). Staff said design choices will focus on programming, accessibility and meeting community needs.

Finance staff reported the city currently has about $6 million set aside in the sales-tax capital fund toward these projects. Annual debt service for the bond package was estimated between roughly $5 million and $5.4 million depending on whether a one-year debt-service reserve is included. Staff emphasized that the bonds would be repaid from existing sales tax revenues and that no new taxes are proposed to fund the debt.

Council discussion emphasized continued public input during design, the long-term regional need for multiple recreation centers, and the equity goal of broad community access. Councilors and staff noted the project has been under consideration for multiple years and that the proposed approach includes additional council oversight at schematic-design milestones.

A motion to send the ordinance to a second reading was made at the meeting; the second reading is scheduled for Tuesday, Jan. 14, when council will consider additional details, design approvals and potential bond issuance. The transcript records the motion and discussion and shows council members speaking in favor of advancing to a second reading; a formal roll-call vote is not recorded in the provided transcript excerpt.

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Quotations in this article are drawn from the Jan. 7 city council meeting transcript.