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Sioux Falls advances 2026 appropriations amid warnings that state property‑tax changes force cuts
Summary
City finance director said state tax reform (SB 216) creates a permanent revenue loss and the proposed 2026 budget includes internal reductions to close most of an $8–$10 million ongoing gap; council moved the appropriations ordinance to a second reading for detailed amendments, voting 8–0.
The Sioux Falls City Council advanced the mayor’s 2026 appropriations ordinance to a second reading after a wide‑ranging presentation by Director of Finance Sean Pritchett and public comment on Sept. 2.
Pritchett said state legislation (SB 216) will produce a permanent reduction to municipal property tax revenue and described the city’s response: eliminate $8–$10 million in ongoing operating expenses, eliminate eight positions, cut projected FTE growth by 50% (about 50 positions over…
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