Shortfall Hampers Sioux Falls Projects

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The city of Sioux Falls will delay a number of capital improvement projects next year, in part because of slower sales tax revenues.

The city plans to spend about $85 million in 2010 on projects such as new roads, parks and building upgrades. That is $8 million less than what officials projected a year ago.

Through May, sales tax revenues have grown at a sluggish 1.7 percent compared to last year, well below the historic growth rate of 6.5 percent.

Sales tax is the single biggest source of revenue for the city's annual capital improvements budget. Fire Chief Donn Hill says just about every city department has had to move some projects around.

Copyright 2009 by The Associated Press. All Rights Reserved.

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