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City of Sioux Falls Receives Initial Payment of $9.8 Million

Sioux Falls, S.D. (KELO AM) - Earlier this week, the City of Sioux Falls received a check in the amount of $9,769,414 from the U.S. Army Corps of Engineers as partial reimbursement for work on the City’s flood control levee system. The Corps of Engineers announced last month that the payment would be forthcoming to reimburse the City for a majority of the funds advanced by the City to the federal government for the levee improvements, which are nearing completion.

Beginning in 2009, after several years of little federal funding, the City advanced approximately $10 million to the Corps of Engineers to ensure the project was completed in a more timely manner. The levee improvements will provide significantly better flood protection to our citizens and will provide the basis for future positive changes to the flood insurance rate maps, which will benefit many local businesses and homeowners.

The combined cost of the project will total approximately $62 million with the federal share being 75 percent. The nonfederal share of 25 percent is split equally between the state of South Dakota and the City of Sioux Falls. When all work is complete and all costs have been finalized by the Corps of Engineers, any additional amount due will also be reimbursed to the City.

The City Finance team continues to evaluate options for the nearly $10 million. The City Council will ultimately approve the allocation of how these funds will be utilized to best serve the citizens of Sioux Falls.