Property Taxes

Mayor TenHaken proclaims it is time to focus on infrastructure

DakotaNews chief softball pitcher, Brian Allen, recently did an interview with Paul asking him what we should focus on in 2023. Paul said it was time to get back to focusing on infrastructure.

I guess it only took 5 years for Paul to figure out the simple premise of local municipal government; you collect taxes and fees and provide essential services like road maintenance, water and sewer, public safety and outdoor recreation in our parks.

Ever since Mayor Munson, the city has focused more and more on chipping away at our 2nd penny for things like leather chairs for a private movie theater, landscaping and ‘other stuff’ for a private research facility, butterflies and tennis courts while giving massive tax breaks to welfare queen developers.

When former city commissioner Loila Hunking proposed the 2nd penny tax decades ago it was to be in a lockbox and only to be used on road maintenance and in rare occasions other infrastructure projects, since then the penny has been on a wild spending spree that has little to do with the pothole in front of your house.

It often cracks me up listening to past and current mayors and city councilors talk about how we need to ‘get back to’ focusing on infrastructure.

Don’t be fooled by the promises. There is going to be a big fight in Pierre this winter over reducing the food tax and property taxes, one of the proposals will win at the end of the day (I think the property tax cut has a better chance). Mayors and councilors across the state will be crying about the revenue loss and will be asking how they will be able to keep up with essential services and infrastructure.

Let me give you a little advice; stop spending our tax dollars on stupid sh!t.

Downtown Sioux Falls BID tax almost doubled due to typo in ordinance

I am not surprised this happened. Over the past decade I have watched the integrity of the legal descriptions in ordinances deteriorate substantially and it seems almost weekly the council is amending some mistake or typo (Item #96);

This would have been quite the boo-boo.

This past year the Building Services manager had to apologize to the city council for screwing up on a fee adjustment that wasn’t caught by the council or attorney’s office but by a contractor.

The BID Tax increase was deferred because a couple of DTSF business owners cried. I don’t see any amendments and I don’t expect any tonight, this will pass easily. The Billionaire Italians bitching about this increase can afford it, oh, and will DTSF hang some damn xmas lights at Sunshine already!

A tax cut I can get behind!

Finally, the legislature is proposing a property tax cut this session;

“Because it would exempt the first $100,000 in valuation from taxing,” Ladner said. “Rather than a proportional cut, South Dakotans with smaller home value will get a bigger percentage tax cut from this mechanism.”

In Sioux Falls that would be about $1,500 a year tax break. Of course, I doubt this even gets out of committee considering towns, schools and counties will push back on it. It would help a lot of first time homebuyers getting into a starter home and the elderly on a fixed income.

City of Sioux Falls Finance Director claims not approving property tax increase would cause ‘structural deficit’

Them’s some fancy words from our chief finance bull thrower (FF 52:00)

So what is a structural deficit?

the amount by which a government’s spending is more than it receives in taxes in a particular period, whether the economy is performing well or not

Mr. Pritchett made this wild claim at the city council meeting last night, and six of the councilors agreed with him.

It is total nonsense.

As one citizen pointed out the way to not produce municipal debt is to budget better, in other words do the job we elected you to do. He also pointed out that this $2 million dollar increase is less than 1% of the total budget and can easily be made up.

The problem is for decades the city has implemented the piling on approach to building the yearly budget instead of doing zero based budgeting each year. This has caused bloated department budgets.

As for property taxes, valuations in Sioux Falls have skyrocketed over the past 3 years driving property taxes up with or without government intervention.

Even if the economy was doing great right now, this natural FREE market increase makes up for any inflationary increases we may need.

We also have given millions away in TIFs.

It cracks me up that the city council would nickel and dime $50K for the Siouxland Heritage endowment fund and $68K for an arts coordinator, but doesn’t blink an eye approving $50 million in TIFs for parking ramps attached to luxury condos.

That’s our council doing the important work, making sure developers, banksters and bondsters are happy and well fed.

I’m starting to think the only structural deficit the city has exists between the ears of our councilors.

Sioux Falls City Councilors Starr & Barranco reject the need for a property tax increase

During the City Council meeting last night (FF 1:25:00) Pat and David spoke out against the increase siting inflation hurting citizens;

“. . . we have families struggling with high inflation and I am NOT comfortable with a property tax increase,” David Barranco.

“We sit and talk about putting the city in good financial shape and it really doesn’t take that much from the citizens, it’s only a couple of bucks here, and it’s a Coke or a cup of coffee, but if look at the chart director Pritchett presented were talking about 11 to 12 million dollars over the next 10 years that the city will be ‘SHORT’. NO, it’s the taxpayers that will be short of this money,” Pat Starr.

Their colleagues on dais SAID nothing while voting to move to 2nd reading. Starr and Barranco voted NO.