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Sioux Falls council adopts 2026 budget, approves 2026–30 capital plan with amendments
Summary
The Sioux Falls City Council on Sept. 9 adopted the 2026 budget and five-year capital program after approving a series of amendments that preserved library evening hours, extended pool openings, adjusted community partner funding and shifted some planned capital spending. The appropriation ordinance including a 2.9% property tax CPI adjustment passed 7–1.
The Sioux Falls City Council adopted the city’s 2026 budget and the 2026–2030 capital program on Sept. 9 after approving multiple council amendments. The council voted to advance the final appropriation that requests the county apply a 2.9% CPI adjustment to property tax under SDCL 10‑13‑35; that ordinance passed 7–1.
The budget passed after the council approved a slate of amendments that altered spending priorities and funding sources. Councilor Bassey successfully moved a $270,000 amendment to the Siouxland Libraries operating budget to sustain current evening hours, citing public testimony that many residents need access after work. Councilor Barranco’s amendment to allocate an additional $75,000 to keep outdoor public pools open through Aug. 16, 2026 passed 7–1; one councilor opposed, expressing concern about offsetting cuts. Councilor McCorris moved to shift $350,000 in undesignated general funds for at‑risk community partners to liquor license proceeds per ordinance 52‑23, freeing general fund balance for other purposes; that amendment passed.
Council also approved a motion to increase the planning and development community partners allocation from $650,000 to $950,000 to support economic vitality programs and added $60,000 to neighborhood grant funding to set a baseline of approximately $5,000 per neighborhood association. Councilor Sighetty moved reductions totaling $350,000 across future Sioux Falls Stadium improvement line items in the capital plan; that amendment passed and reduced projected stadium spending in the five‑year plan.
Finance staff presented the mayor’s proposed budget and described the city’s approach to reserves and long‑term planning. Sean Pritchard, Director of Finance, described the package as a recalibrated budget intended to maintain core services, invest in infrastructure and preserve long‑term fiscal sustainability. He noted that the council’s amendments were incorporated transparently and that staff would continue to provide information on revenue forecasts and plan implementation.
During public comment, residents raised concerns about property tax burdens and asked the council to consider broader relief. One speaker urged state action to freeze property taxes for seniors; another urged caution about perceived selective allocations. Councilors emphasized the ongoing uncertainty in sales tax and ag‑sector impacts and repeatedly cited the need for reserves.
The council voted to adopt the amended budget and capital program; the final tally on the appropriation ordinance was 7 in favor and 1 opposed. Councilors said next steps include committee follow‑ups, implementation of the amended capital plan and the fiscal committee’s scheduled review of the proposed reserve policy no later than Dec. 9, 2025.
The council adjourned after completing the meeting agenda.
