Sioux Falls, South Dakota, issues financial advisor RFP

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 in 2020 in a competitive deal.

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.