Sioux Falls council approves up to $32.76 million wastewater revenue bond for plant upgrades

The Sioux Falls City Council voted unanimously to authorize a wastewater system revenue bond of up to $32,761,000 to fund a package of capital improvements at the city’s wastewater treatment facilities.

Ryan Johnson of Sioux Falls Public Works told councilors the projects were identified in the city’s facility master plan and advanced through a prior facility plan and State Revolving Fund process. He described three primary elements: a biosolids dewatering and covered storage facility, replacement/rehabilitation of aging steel and concrete in a grit/processing area, and miscellaneous HVAC, roofing and electrical improvements across the plant. Johnson said the dewatering improvements would cut truck trips from “about 3,200 truckloads annually to about 800 truckloads annually.”

Johnson said the city anticipates loan terms at about 3.5% for 20 years; with council support the project would go to bid in the first quarter of 2026, construction would begin shortly after and staff expect completion in 2028. Bond counsel Anthony Hone with Davenport Evans was present to answer questions about the financing.

The ordinance authorizing issuance of the bond and related loan documents passed on second reading by a 7‑0 roll call vote. Council approval advances the city’s ability to finalize loan documentation and move to design and bidding.

Next steps include completing design and preparing bidding documents in late 2025 and early 2026, then returning to construction and procurement processes as the city secures the loan and finalizes contracts.