Sioux Falls council approves recreation bond package reduced to $68 million after debate

Sioux Falls City Council voted unanimously on Nov. 19 to approve a package of bond resolutions to fund two aquatics and recreation projects, adopting the package after a key amendment reduced the bond authorization to $68 million.

Finance Director Sean Pritchard opened the discussion by describing the council’s intent to fund an indoor recreation facility at Frank Olson Park, an outdoor aquatics facility at Keene Park, $3 million in Westside Recreation Center improvements and—initially—a proposal to reimburse the city $9 million for its recent purchase of the Westside facility. Pritchard said the original resolution proposed an “up to” $77,000,000 construction-proceeds bond and explained issuance costs and debt-service reserve options, noting an estimated total issuance figure that could approach the low-to-mid $80 millions depending on premium and reserve choices.

Public commenters raised concerns about operating costs, whether the city would compete with private operators and how borrowing would affect taxpayers. One resident asked how the Westside facility would be run and whether the city intended to compete with local operators; other speakers expressed that bond proceeds would increase taxes or shift long-term maintenance costs to property owners.

Council debate focused on the $9 million reimbursement for the Westside acquisition. Councilor Steele moved to strike the $77 million figure and insert $68 million—removing the $9 million reimbursement from the bond authorization—saying the city is in good financial shape and the additional borrowing was unnecessary. Councilors discussed options to keep flexibility in the bond ordinance (for example, conditions that would require future council action to draw specific portions), timing of issuance (targeted for early 2025), and the IRS 60-day look-back rule for reimbursements.

The Steele amendment passed 8–0. Council then approved the bond package as amended, 8–0. Pritchard told the council the ordinance could be structured to allow the council to require further affirmative action before specific funds are spent, if members wanted that control.

The council also approved separate resolutions setting cost parameters for the two primary projects: staff estimated about $47 million for the Frank Olson project and $18 million for Keene Park. Council later tightened the flexibility guardrails: an amendment reduced the allowed project swing from 10% to 5% and added a requirement that an indoor recreation program plan approved by the council be in place before substantive use of proceeds. Those amendments were adopted and included in the final approvals.

Councilors and staff said they will proceed to finalize bond language and return a bond ordinance for adoption and sale timing in the coming weeks. Council vote totals on the final amended package were recorded as unanimous (8–0).

What happens next: staff will work with bond counsel on final ordinance language reflecting the council’s amendments, bring contract and design actions forward after Dec. 10 votes where required, and time bond-market sales in early 2025 depending on market conditions and council direction.