Taxes

Why are the taxpayers of Sioux Falls giving money to a Religious Organization?

Not sure how long the city has been doing this, but if you look at the December expense report apparently we need to fund religious orgs in town now;

YMCA (YOUNG MENS CHRISTIAN ASSN OF SF): $16,416.63, Operating Support

Besides being kind of an odd amount and giving money to a religious organization without the consent of the public or even the city council is NOT a good look. Also, if you check their tax filing from 2020 they are part of a National organization that pulls in millions from donors and grants;

This organization is an independent organization and not affiliated with a larger national or regional group of organizations. Young Mens Christian Association is a 501(c)(3) and as such, is described as a “Charitable or Religous organization or a private foundation” by the IRS.

They even describe themselves as a religious organization. It would be like the taxpayers giving money to the Catholic Diocese. I know we have been giving to them for awhile on different programming but after they f’d up the deal with Sanford on the west side rec center, essentially forcing us to purchase the place because Sanford was loosing money on the facility, they shouldn’t get another penny from us!

The entire expense report is fascinating to read because it provides little detail for massive handouts, like this;

LLOYD COMPANIES: $992,331.40, Various Projects

Closed government at it’s best!

Speaking of that, the salaries finally posted Friday afternoon, AFTER, they were printed in the Dakota Scout and distributed. I have not done a deep dive yet, but if you compare to last year, some folks got some massive raises!

2024 DOC2025 DOC

Legislative Update by Cathy

 Bills are still coming. You’ll see here a number are concerning already. Let’s be speaking up.

A. Sales tax.

            Please. Let’s have no sales tax rate changes until we see what happens with the cost of living under the upcoming tariffs, like in all these bills:

            HB1050, to allow cities to add another whole % tax for special projects. This raises the cost of living (food and other basics), makes SD taxes more regressive (harder on lower-income folks), benefits bigger towns more than smaller ones.

            HB1019, to increase the state’s sales tax from 4.2% to 5.0% (besides city 2%), and use funds to reduce property tax. Several unfairnesses: Most of the benefit goes to high-end homes, where “relief” may not be needed. Higher sales tax disproportionately requires more from lower-income households. Worst, it’s highly reliant on renters (31% of SD households), who would get NO benefit. And, replacing property taxes(school tax) is not a proper use of sales tax. HB1019 moves school tax around with no benefit to the schools. Property tax is a concern, but relief needs a different funding source and some focus on need.

            __Expect a bill to make the .3% sales tax cut permanent. Remember that the revenue the state is foregoing for this cut would have been enough to take the state food tax to 0%. So first, let’s see what tariffs do to the cost of living.

B. Property tax. 

            As listed above, HB1019, to cut prop.taxes using higher sales tax. Property tax payers have real concerns about recent increases. (In Minnehaha Co. statements went out this week. To me the increases seem to have stopped skyrockting. What do others think?) See notes above about this bill’s wrong revenue source.

            SB44, to renew the Sales or Property Tax Refund for Senior Citizens and People with Disabilities and make cost-of-living adjustments. This program helps but needs to reach more people. A higher income cut-off would really help, like at least the same cut off as for SNAP(food stamps).

C. School vouchers

            HB1009(educational empowerment accounts) and HB1020(education savings accounts). Both are first decided by House Education committee. They started on 1009 but did not finish. Of course, new programs should not be started when the state is short of funds. The cost to schools is not only the diversion of these millions from public education, but also schools lose the usual state aid for each student. Object to these Rep’s in House Education: Amber.Arlint@sdlegislature.gov, Heather.Baxter@sdlegislature.gov, Roger.DeGroot@sdlegislature.gov, Josephine.Garcia@sdlegislature.gov, Lana.Greenfield@sdlegislature.gov, Jim.Halverson@sdlegislature.gov, Mellissa.Heermann@sdlegislature.gov, Travis.Ismay@sdlegislature.gov, Phil.Jensen@sdlegislature.gov, Dylan.Jordan@sdlegislature.gov, Logan.Manhart@sdlegislature.gov, Kathy.Rice@sdlegislature.gov, Tesa.Schwans@sdlegislature.gov, Mike.Stevens@sdlegislature.gov, Nicole.Uhre-Balk@sdlegislature.gov,

D. Medicaid

            HJR 5001 to make voters re-vote again on our ballot decision to finally have Medicaid expansion. Legislators want us to let the state drop it, if federal funds for it change.  Legislators are messing with our vote again, even before federal fund changes.

E. Citizen rights

            All these are attacks on our citizen rights to amend our State Constitution.

            HJR 5003 to require 60% to pass. It passed the house and goes to Senators.

            HJR 5004 and SJR 504 to make it harder to get the needed signatures.

UPDATE: Legislature wastes no time trying to increase taxes for a convention center in Sioux Falls

UPDATE: The argument the reps will use who support this is that smaller communities in SD need this tax leverage, for needed infrastructure, which I support 100%, but Sioux Falls doesn’t need this. Some have been suggesting to reps amend the bill so 1st class cities like SF and RC cannot get this kind of tax leverage, I would also make it so the bonds have to be for NEEDED infrastructure in their communities, not play palaces.

As I have been saying, no new convention center will be built without a tax increase. The city cannot borrow $400 million without another revenue source (full doc);

So the Municipal League suckered a retired business owner in Ft. Pierre to carry their water. Hey Mike, ever read your own campaign materials from your website?

To review my credentials, I am a conscientious, common-sense Republican who is respectful of our institutions, values, and the rewards created by investing in our people and relying on free enterprise to create opportunities for the betterment of our society. 

Hey Mike, why not take your own advice and let the private sector build this Convention Center. Seems hypocritical of your ‘values’ supporting a tax increase for essentially a white elephant we don’t need.

You will notice they will try to pass this saying that it is NOT a tax increase but an OPTION for voters. It would need a 60% passage by a citizen vote in the city that wants the increase. So how the city plan to have us vote on this? Will we vote first on a tax increase THEN vote on the CC or will we just put it in one package? I am hoping the Legislature kills this, but stranger things have happened. These taxes will also NOT go away when the CC is paid off. The entertainment tax was supposed to sunset after the CC and Pavilion bonds were paid off, guess what, still throwing money at it. The Municipal League has been lobbying for this for years. Please stop! It infuriates me that my tax dollars fund this lobbyist group and all they do is find ways to tax the living Sh!t out of us. Nobody wants to pay more in taxes for another play palace. They really need their heads examined in Pierre.

Update: Is the city planning on borrowing for NEEDED infrastructure?

Update: I guess I am not the only one that sees the scam taking place;

Sioux Falls, like most cities in the United States, is running a growth Ponzi scheme. A classic Ponzi scheme involves someone who promises investors a high return on their investment. But, if the investment is not generating revenue, they turn to signing up new investors and using that money to pay the original investors. This may work for awhile but eventually the scheme collapses and investors lose their money.

First off, you DO NOT want to go down that path as a city, once you get behind the 8-Ball there ain’t no coming back. Many cities across the country who have done this have bankrupt themselves.

On Tuesday at the informational meeting the finance director (even though lately he seems to be working for the Riverline investors and NO on Grocery Tax campaign) said the city achieved a new bond rating. After I talked to a few folks I found out they have been pursuing this rating for years so they can BORROW and BOND for NEEDED infrastructure, like ROADS.

Why would the city want to do that? Because it frees up the 2nd penny for bond payments on play palaces. Take the proposed Convention Center. The bond payments on that project will be $40 Million+ a year for 30 years. Thru August of this year the 2nd penny has only collected $60 million. Let’s say we hit $100 million for the year. That would leave us very little for road repairs. Not to mention all the other debt service.

There is another option, a 3rd penny, which is a hard sell.

You never ever want to borrow for road projects while spending money on crap we don’t need. If this Convention Center passes it will bankrupt this city without another special tax to cover it.

WE MUST STOP THIS INSANITY NOW!

There are options. Citizens or the City Council can refer an ordinance to voters in the next election that would require any bonds over a certain amount (let’s say $30 million for reference) would go to a LEGAL STATE BOND election which requires a 60%+1 passage and not this silly fake advisory vote that the councilors keep parroting. The citizens NEVER approved the Denty, the city council did.

This could work and I think citizens would have 6 months to collect the sigs. Let’s put a stop to this stupidity while we still can.