- Associated Press - Sunday, May 21, 2017

SIOUX FALLS, S.D. (AP) - Sioux Falls sales tax growth hit its lowest point since 2009 last month.

The Sioux Falls Finance Office says sale tax revenue grew by 1.9 percent in April, continuing a yearlong trend of declining growth, the Argus Leader (http://argusne.ws/2pWg3zN) reported. Sioux Falls finance director Tracy Turbak said the growth a year ago was at about 4.5 percent.

Trubak told City Council last month that the city may face a budget shortfall of about $1.2 million if the sales tax growth doesn’t increase by the end of the year.

Mayor Mike Huether said the city is limiting overtime hours and out-of-state travel to help manage expenses.

“As long as I am the mayor, we will manage the numbers and make the tough choices, and we can do it and still hit our reserve goals,” Huether said. “Families and businesses do it and government should too.”

Despite the slow sales tax growth, sales tax revenues collected are up $3 million through the first quarter of the year, compared with 2016, said council Chairman Rex Rolfing.

Entertainment tax collections have been growing at about 4 percent each month, a sign that the financial situation isn’t dire, he said.

“That says there’s disposable income, jobs are out there, and there are a lot of things happening that are very, very positive for the economy of Sioux Falls, South Dakota,” Rolfing said. “We need to look at that while also being prepared.”

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Information from: Argus Leader, http://www.argusleader.com

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