South Dakota's biggest city is in good financial shape. That's according to the preliminary 2012 financial report presented this afternoon to the Sioux Falls City Council.
The presentation covered all of the city's revenues and expenditures last year...and in short it was good news all around for the city's budget. Sioux Falls Director of Finance Tracy Turbak says, "If I had to summarize the 2012 financial year in one word, I'd say it was a solid year, certainly very solid economically."
Sioux Falls saw solid growth for sales and entertainment tax. But the biggest increase in revenue came from record building permit valuations. in 2012 building permit values surpassed $490 million compared to around $290 million in 2011 and 2010.
The city also saved on expenditures due to last years mild snowfall.
Even the 72 completed capital improvement projects and the 53 on going construction projects kept the city under budget on expenditures.
Some major highlights of those improvement projects include Marion Road, Louise Avenue, the River Greenway and the replacement of the Big Sioux River sewer system.
The snow removal savings and increased revenue helped raise the city's reserve funds to 35% of its yearly budget.....up from the mandatory 25% reserves.
Several council members questioned the need for such large reserves....asking if there are other needs or outstanding loans the reserves could be used for.
Turback says the higher reserves are a sign of the growing local economy and are needed to help sustain future growth throughout the city for things like capital improvement projects and unforeseen events like a winter full of snow.
