SIOUX FALLS, S.D. (KELO.com) — Sioux Falls plans to cut its budget during the coronavirus-fueled economic downturn, but it will still go ahead with building a new fire station.
City finance director Shawn Pritchett told the city council at Tuesday night’s meeting the economic implications of COVID-19 will be severe, but the fire station project is too important to push back.
“If anything brings certain awareness over the last several weeks, it’s the importance of public safety to our community,” Pritchett said.
The city is spending $3.3 million of extra sales tax money from 2019 to build a new station in the southeast part of town, where response times are slower than the rest of the city.
“We owe it to this part of the city to have the same service as the rest of the parts of the city,” said Councilor Curt Soehl, a former Sioux Falls Fire Department captain.
Soehl said putting the project off would probably mean a spike in insurance premiums for homeowners and businesses.
Pritchett said the city has picked out roughly $9 million worth of projects to cancel or delay to save money during the pandemic. He said the first two months of 2020 exceeded expectations for tax revenue, softening the blow somewhat.
Pritchett said the city could handle about a 40% drop in sales tax revenue during the pandemic, with the hope that things will improve before the end of the year.
