Strong balance sheet masks softer Sioux Falls sales tax growth in 2025
City officials say fiscal targets were met, but warn of continued revenue pressure heading into new capital planning cycle
Sioux Falls finished 2025 in strong financial shape, hitting key fiscal benchmarks even as sales tax growth continued to lag expectations.
That’s according to the Sioux Falls Finance Department, which unveiled its 2025 year-end report to councilors Tuesday afternoon at Carnegie Town Hall.
The report shows the city met its core financial policy targets — including reserves, debt levels and self-supporting utilities — while continuing to invest heavily in infrastructure and services, even as revenue growth came in below projections.
