Sioux Falls, South Dakota, has put out a request for competitive sealed proposals from financial advisory firms as it gears up for several major capital projects.
The RFP aims to forge a multi-year, multi-issuance agreement for services around debt issuance, debt refinancing, debt reporting and other financial market-related work.
Proposals are due no later than 2 p.m. CST on Feb. 1. The city asks that candidates submit their proposals electronically through
Finance Department Business Analyst Matthew Newman said the city will base its selection on the firm's applicable experience, background, fee structure, key leadership and the assigned team's experience.
"With several large projects under consideration which will require debt financing, the city is seeking a financial advisory firm to provide comprehensive financial advisory services," he said.
Sioux Falls is looking to replace two outdoor pools – Kuehn Park and Frank Olson Park – with indoor/outdoor pool/multi-purpose facilities. It is now in the master planning and design stages of the project after fielding complaints about overcrowding, lack of shade and lack of recreational or fitness equipment at the spartan rectangular pools it has today.
A third pool, McKennan Park, is also in the master planning and design stages, but the city will pay for those renovations in cash.
The city wants to issue $70 million in bonds to fund construction and upgrades to the pools. The costs of issuance will be paid from a mix of city cash, bond proceeds and third-party contributions, with bond proceeds being the primary source. Bond payments will come from the city's sales and use tax.
The deadline for questions is Wednesday by 6 p.m. CST. The city will review the proposals from Feb. 5 to Feb. 9. It intends to award the contract sometime in February, and plans to execute the contract in March.
PFM Financial Advisors was advisor when the city
Moody's assigns Sioux Falls its Aa1 issuer rating and a Aa2 rating on its outstanding sales tax revenue bonds. The city of 200,000, South Dakota's largest, had around $293 million in total outstanding debt across governmental and business type activities, Moody's said when it affirmed its ratings in September.
The agency said its issuer rating reflects Sioux Falls' status as the state's top economic center and its strong fund balance and liquidity, low fixed costs and "moderate" long-term liabilities.
Sioux Falls' sales tax revenue bond rating reflects the expansive sales tax set aside for debt service, a legal framework which includes a debt service reserve sized at a standard three prong test and an additional bonds test of 1.5x, Moody's said.
It added that with booming development and an expanding population, sales tax revenues look to be headed in a positive direction. The state's sales tax revenues barely dipped (-0.4%) amid the pandemic and bounced back a robust 12% in 2022.
S&P Global Ratings rates Sioux Falls sales tax revenue bonds AA-minus, outlook stable.
