Minnesota Avenue
SIOUX FALLS, S.D. (KELO.com) — The Sioux Falls economy is doing well, particularly compared to last year during the pandemic.
However, officials are keeping an eye on inflation.
City finance director Shawn Pritchett told City Counselors at Tuesday afternoon’s Informational Meeting that the city’s labor market is growing slowly.
The labor force is up 8% over last year.
Unemployment is at 2.5%, which is half a point less than the state rate.
Pritchett says the June inflation rate was 5.4%, an increase from May’s rate of 5%.
He says 1% of that is from gasoline prices and another 1% is from used car prices.
Pritchett says used car prices are up 45% from last year at this time.
Other good news, according to Pritchett, is that building permits are on a record pace.
He also says there have been more residential permits in the first half of 2021 than there were in 2019 and 2020 combined.
Pritchett says sales tax collections are 28% greater than last year and 16% greater than 2019.
He says sales taxes from department stores is up 23%.
Sales taxes from restaurants are up 16%.
Pritchett says he thinks spending is up in part because of federal stimulus payments.
However, says the city’s entertainment tax revenues are up, but not near as much as the sales tax receipts.
He says the entertainment tax is up 8% from last year.
Pritchett says restaurants are up 15% in entertainment tax receipts.
Drinking establishments are up 9%.
On another matter, Pritchett says The City of Sioux Falls is looking to issue bonds for the new public safety training complex.
He says some things now cost more than when originally planned because of increases in construction materials.
