Budget Hearings

MINUTES Budget Hearing Tuesday, August 10, 2021 at 3:00 PM Carnegie Town Hall, 235 West 10th St., Sioux Falls, SD 57104 1. Call to Order Council Members Present: Janet Brekke (Via telecom), Christine M. Erickson, Alex Jensen, Rick Kiley, Greg Neitzert, Marshall Selberg, Curt Soehl, Pat Starr Council Members Absent: None Council Chair Curt Soehl called the meeting to order at 4 p.m. Due to technical difficulties, there is no audio on the video recording for the first 10 minutes and 23 seconds of the meeting. 2. Budget Hearings A. Parks and Recreation Don Kearney, Director of Parks and Recreation, presented the budget. The proposed 2022 Parks budget focuses on engaging people and workforce through three key areas: 1) Scaling for growth; 2) Connecting People with Community; and 3) Investing in Today for a Better Tomorrow. The total budget as proposed is $29.1M with $22.9M supporting the operating budget and $6.2M supporting capital improvements and capital equipment investments. Parks is requesting one additional Full-Time Equivalent (FTE) for the MIDCO Aquatic Center. There is also a continued reliance on part-time/seasonal staff with 149 full time equivalents. When Parks’ programs are combined with their partners’ programs (where tracked), it is estimated that 2.7 million people use our park system, which likely represents a small fraction of the total actual use that occurs on a daily basis throughout the year. Parks has two primary initiatives that will allow the department to scale for growth: 1) the budget includes an entry level Recreation Program Specialist. Currently there are two full-time staff members supporting the MIDCO Aquatic Center programming and staffing (in addition to the 6 outdoor aquatic facilities); and ,2) the second initiative is to continue with the seasonal wage increases. Kearney thanked the Council for the wage increases that allowed Parks to offer more competitive wages for staff through the supplemental appropriation this past spring. One of the keys to the seasonal wage increases going forward will be to provide a wage increase to keep these staff members coming back year after year. Hiring challenges are not just with lifeguards as several park operations positions went unfilled this summer. Kearney then spoke about land acquisition as the foundation for parks growth. In 2022, there is $800K for land acquisition, much of which is targeted for the homes in the Rose/Lotta area which will become an expansion of Tomar Park. There is also additional funding for opportune land acquisition for parks and trails in 2022 and beyond. Scaling for growth also includes providing additional trails to connect neighborhoods to the main trail loop. In addition to the first phase of the Cherry Creek Corridor, Kearney announced that in 2022, Parks proposes to design Phase I of the Big Sioux River Greenway Trail Corridor, which will extend the trail 1.5 miles from Lien Park to Bahnson Avenue with construction to follow in 2023. Future phases of both corridors are also in the 5 year plan for continued expansion due to the high priority placed on these corridors in the Bicycle Master Plan. A project that will connect people with community will be the Falls Park Design Competition. There are currently five firms working on designs for the competition with the scoring of those proposals to occur in September. Following the selection of the winning design firm, the design team will be engaging the community during the master planning process prior to finalizing the master plan in 2022. This master plan will create opportunities for more public private/partnerships and help inform future capital plans to take Falls Park to yet another level. One of the most interactive ways that the Parks and Recreation Department connects people with community is through diverse indoor and outdoor recreational opportunities and volunteer efforts. Volunteers and the use of inmates has been a focus area in recent years. Working with businesses on painting projects, river clean ups, etc. create opportunities to connect people with community while allowing these organizations to give back to their community. One volunteer project included the Spring tree planting project where more than 364 trees in 22 parks were planted with the help of hundreds of volunteers. The 2022 budget includes a sizable investment in the McKennan Band Shell in the repair and maintenance budget. The total cost to renovate the band shell is estimated at $610,000 of which half is budgeted in revenue that would come in the form of a donation from the McKennan Park Neighborhood. In the 5-year plan, there are three new build-outs of neighborhood parks: 1) Majestic Meadows Park adjacent to Inspiration Elementary; 2) Willow Ridge Park adjacent to Fred Assam Elementary; and, 3) Whispering Woods South Park adjacent to Horizon Elementary near 68th Street and Bahnson Ave. Kearney then highlighted the Rotary Park and Tuthill Park improvements planned for 2022. The Tuthill Park Improvements project replaces the upper park restroom and existing shop, both of which have reached the end of their useful life. This project will consolidate them into a single facility that will be ADA compliant and provide adequate storage for the equipment and materials needed to operate the park. The project also removes the existing overhead power lines and replaces them with underground power. The Rotary Park Fitness Court will be the first of its kind in the park system. There is also a plan to address aging pools. The first Aquatic Facility Master Plan completed in 2013 called for the need to have a plan to replace aging facilities; the  Quality of Life Bond III will address them. McKennan, Frank Olson and Kuehn Park are the oldest and last of the traditional or tank type pools in the Parks Department inventory. Parks also plans to make some enhancements to Terrace and Laurel Oak as part of this bond. Pool replacement projects will affect the surrounding park amenities, therefore Parks will be looking at the entirety of the park. Once these park master plans are completed, there will not only be a pool design, but a park design and a cost estimate that will assist with the sizing of the Quality of Life bond. Since the fire at Elmwood in 2019, Parks has worked with the Landscapes Management team to discuss what a new facility should provide for at Elmwood. The primary short-coming of the current club house is that it’s significantly undersized to support golf events and non-golf events at Elmwood. Additional space and upgraded experience provided by a new club house and cart storage facility will allow Landscapes to continue to grow rounds and revenues at Elmwood. Parks plans to start design in 2023 as well to advance the design of these new structures so that a replacement facility can be underway by 2024. The City is closing in on three years of implementing the 10 year EAB management plan. The 2022 budget continues to invest in that plan. The City continues to maintain or exceed our pace of removals at 2,200 street trees per year; EAB is here and we must continue with our plan and not get complacent; signs of EAB are starting to show up with declining ash tree health; and, it is important that homeowners start planning now for how they will address their private trees through treatment or proactive removal. Discussion followed about: boulevard tree replacement; kayak and canoe launches; a recently-issued facilities report; use of the prison workforce; and the City’s Emerald Ash Borer strategy. B. Planning and Development Services Jeff Eckhoff, Director of Planning and Development Services (PDS), began by reviewing year-to-date building permit valuations. Presently, the City exceeds past years by over $205M, showing significant growth and increased demands on the department. The proposed budget is $40.4M and will be used for operating and capital programs in the Planning, Building Services, Transit, and Housing divisions. Eckhoff reviewed in detail the role of each division and explained how the department’s organization has changed in response to priorities and needs. To date this year, over 61,000 inspections were conducted, over 7,000 permits were issued, and the use of the online customer service portal was up significantly. The budget includes one full-time equivalent request for a commercial plans examiner and one for a Transit Program manager, as well as funding for the continued planned and orderly growth of the City. The department capitalizes on numerous partnerships to ensure this planning and orderly growth. Eckhoff concluded by reviewing major community projects and the development relationships the City maintains. Discussion followed about the City’s partnerships and future projects. C. Transit Sam Trebilcock, Senior Planner, stated that the proposed Transit budget is $16.9M. The budget includes one additional full-time equivalent (Transit Program Coordinator) and investments in a Transit Headquarters remodel, fixed route bus  replacements, bus shelter replacements, and SAM on Demand. He explained the specific needs associated with the remodel, bus replacements, and bus shelters. He also showed how these proposed expenditures impact the transit fund over the next several years. Ridership continues to increase when compared to the same time last year. As means to further improve ridership, SAM on Demand will see continued service enhancements such as Saturday service area expansion, paratransit integration, and weekday service. Discussion followed about: the Transit Headquarters location; the impact of new schools on ridership; and current and proposed routes, if any. D. Entertainment Tax Shawn Pritchett, Director of Finance, began by reviewing Entertainment Tax collection to-date compared to 2019 (omitted 2020 due to the pandemic). Overall, he anticipates collections will be up by 15% compared to 2019 if trends continue. He then reviewed major work done at various entertainment venues in the City and described how “down time” during the pandemic was used across all venues for maintenance and other tasks. Proposed capital investments include cornice replacement and café renovations at the Washington Pavilion, along with cooling system upgrades and front lobby renovations at the Orpheum Theatre. Projects for the Events Center include a Building Automation System and Floor Chair Replacements; and, HVAC upgrades and installation of a generator for the Convention Center. Discussion followed about: events scheduling at the Premier Center; Zoo funding; the Events Center Master Plan; the State Theatre; ASM Global’s position on vaccination; table and chair funding; and trends in scheduling at the Convention Center. 3. Public Comment There was none. 4. Adjournment Council Chair Curt Soehl adjourned the meeting at 5 p.m. Thomas M. Greco, City Clerk