A Message from Mayor Chris Bogenrief Planning for 2027: More Than Numbers

As we move through September, the City is in the process of working through and approving its 2027 budget. It is one of the most important planning exercises we take on each year because the decisions made now help shape how we provide services, maintain infrastructure and prepare for the needs of the community in the year ahead.

The budget brings together a wide range of priorities. Some are part of the everyday work of the City, including public safety, streets, utilities, parks and the library. Others involve infrastructure projects and improvements that may require planning well in advance.

Just as important as deciding where resources are needed is understanding where City revenue comes from. A good place to start is the General Fund, which supports many of the City’s everyday services. In the proposed 2027 General Fund budget, approximately 74% of revenue is expected to come from general sales and use tax, compared with about 14% from property taxes. The remaining 12% comes from a mix of smaller sources, including licenses and permits. Water, sewer and garbage are accounted for separately through their own funds.

Those numbers illustrate something especially important to North Sioux City: we benefit greatly from a strong local sales tax base. Total sales tax collections for 2026 are currently projected at about $5.8 million, compared with approximately $4.6 million in 2025. Local businesses, visitors and economic activity throughout the community all contribute to that strength. Continued residential and commercial development is also important because it can help sustain sales tax revenue while expanding the City’s property tax base. As that tax base grows, it helps reduce pressure on existing taxpayers. Even with strong sales tax performance, the proposed 2027 budget takes a conservative approach by budgeting General Fund sales tax revenue at 90% of the current 2026 projection rather than assuming this year’s pace will continue.

On the expense side, much of the General Fund supports the services residents see and rely on every day. Under the proposed 2027 budget, the Police Department represents about 39% of General Fund operating expenses, followed by streets at roughly 12%, finance at 9%, the library at 8%, City Administration at 7% and Planning at about 7%. The remainder supports parks, the Senior Center, City Hall and a number of other City responsibilities.

Larger investments are also part of the picture. Several significant infrastructure projects are included in the proposed 2027 budget, including the River Drive and Centennial Drive lift stations, the Northshore

Bypass and the Highway 105 overlay. Many of these projects also have dedicated funding sources. For example, the two lift station projects are expected to be funded almost entirely through grants, while the Northshore Bypass is also expected to be funded through federal and CDBG-DR grant dollars.

For North Sioux City, planning for 2027 comes as we continue building on the progress made over the past year. We have come a long way in our flood recovery efforts, while infrastructure improvements, development and the everyday needs of a growing community continue to require thoughtful planning.

The City Commission’s responsibility is to weigh those priorities carefully and make responsible decisions with the resources available to us. Over the upcoming weeks, we will continue working through the proposed budget before it is formally adopted.

The final document may be filled with numbers, but ultimately those numbers reflect the services we provide, the investments we make and the priorities we set for North Sioux City’s future.

Warmly, Mayor Chris Bogenrief