Budget Hearings

MINUTES Budget Hearing Tuesday, August 16, 2022 at 3:00 PM Carnegie Town Hall, 235 West 10th St., Sioux Falls, SD 57104 1. Call to Order Council Members Present: Rich Merkouris, Greg Neitzert, Marshall Selberg, Curt Soehl, Pat Starr, David Barranco, Sarah Cole, Alex Jensen Council Members Absent: None 2. Budget Hearings A. City Council David Bixler, Budget Analyst, explained that the City Council budget consists of the following updates: An increase of $38k for personnel; Professional Services has a decrease of $231k (election off year) and discontinuing the National Community Survey; Supplies/Materials were increased by $5.8K for meeting and office supplies; and Training had an increase of $10.6K for staff training. Discussion was held regarding finding a replacement for the National Community Survey. B. Health Dr. Charles Chima, Public Health Director, stated that the purposes of the Public Health Department are to Protect and promote health and well-being in Sioux Falls through the delivery of essential public health services. Those services include: Environmental health inspections and code enforcement; health promotion and disease prevention; ensuring equitable access to primary healthcare services; public health emergency preparedness and response; quality assurance for the local EMS system and control of disease vectors, especially mosquitoes. Chima explained the department’s focus is to expand health promotion and disease prevention efforts by working with partners to implement the 2022-2025 CHIP; to invest in clinical patient services experience and employee well-being through renovations; to develop the public health workforce through training and continuing education; and to sustain the delivery of high quality environmental health services. The proposed operating budget is a $1.1M increase for renovations (primarily grant- funded); $400K increase for Eat Well Sioux Falls grants (grant-funded); $233K increase for part-time/interim positions (grant-funded); $800K decrease in various expenses tied to expiring grants; $855K net decrease in revenues, including expiring grants and adjustments to charges. The proposed Capital Budget includes:  an X-Ray Machine/Tube; Analyzer (Hematology); Portable Dental X-Ray; and a Dental Vacuum System. Discussion followed regarding: food insecurity and retrofitting busses to transport groceries to communities that have difficulty getting to grocery stores; the two positions in two different departments incorporating workplace health initiatives and the differences between the two jobs and why they should be in two different departments. C. Planning Jeff Eckhoff, Director of Planning and Development Services, explained that Planning and Development manages the orderly development of Sioux Falls through the implementation of innovative plans, economic development policies, and land use requirements. Additional focus is to promote redevelopment and increased residential housing; support the continued economic growth and revitalization of downtown; continue commitment to growth management; coordinate ongoing efforts to scale for growth; promote greater regional coordination of land use and transportation planning efforts; support regional economic development efforts; expand public outreach efforts related to floodplain regulations; expand housing opportunities in select locations; and continue to address the changing needs of development. The proposed Operating Budget is a $272K increase for Our Team; a $260K increase for support of our partners, fees, and studies (offset by a $500K decrease for the one-time contribution to the USD Discovery District); and a $161K increase for BID & Lodging Tax due to growth and service demand. The proposed Capital budget is for the purchase of the People’s Choice Award Sculpture; and $3.1M in City Art, a total of 58 pieces. The TIF Budget for 2023 is $7.7M for13 Active TIFs. Discussion followed regarding: ACH payment software and processing; updates on the transit department; the Arts Coordinator position; transportation coordinator duties; the funding for the Bicycle Master Plan and Pedestrian Master Plan; and the long-term home of the Arts Coordinator position. D. Housing Kevin Smith, Assistant Director of Planning and Building Services, spoke about the purpose of Housing is to provide stable and accessible housing as a vital component in supporting our community’s growth; and to remain dedicated to connecting people with resources that help ensure safe and sustainable living conditions. The department’s focus is to build partnerships to increase access to workforce and affordable housing; to promote a housing first approach to support case management and a collaborative approach to housing people and families with barriers such as mental health, substance abuse, and justice involvement; to assist our housing partners in the strategic acquisition of land; to strategically leverage Federal and State funds; and to collaborate with partners to increase access to safe, stable housing. The proposed Operating budget has the following expense changes: $177K increase in Total Personnel; $143K increase in rehab and revitalization projects; and $50K increase for the MacArthur Grant project.  Discussion followed regarding: land acquisition prospects, the funding for Southeast Technical Institute; the use of public funds; partnerships with the City of Sioux Falls; recommendations for affordable housing vs. workforce housing; and the $50K increase for the MacArthur Grant project. E. Transit Sam Trebilcock, Senior Planner for Planning and Development Services, explained their purpose is to provide safe and reliable access to all citizens to critical destinations including jobs, grocery stores, health care, pharmacies, libraries, parks, and more, resulting in a positive social and economic impact on the community. Transit’s focus is to move transit forward as part of the infrastructure; develop and implement a new hybrid service model; enhance opportunities and access for kids and families; improve the efficiency of paratransit; balance the transit fleet; improve the transit garage and office facilities; develop a sustainable transit budget; improve transit service through technology; and take a proactive stance on transitioning to zero emissions vehicles. The proposed budget incorporates revenues of: General Fund Transfer $6.9M; Sales Tax Fund Transfer $0.9M; Intergovernmental Grants $14.6M; MFTA Grants $14.5M; and State Operating $0.07M. Expenses are: Fulltime Wages & Benefits $0.1M; Operating Support $11.4M; Outside Agency Support $1.3M; Transit HQ Remodel $1M; Capital $0.4M; and Other $0.6M. The operating support increases are for: the New Hybrid Service Model $1.7M; On- Demand Expansion: $2M; and Fixed Route Efficiencies: ($0.3M); Normal SAM Operating $0.5M; and decreased revenue $0.3M. Discussion followed regarding: the need for fixed route vs. on-demand service areas; the cost for transit shelters; expanding ridership and coverage; development and improvement in the downtown areas; funds received from bus fares; automatic passenger counts; the Capital budget and replacement busses in the future; review of the Transit Fund Snapshot; management of cameras in the busses; and the budget for the remodeling expansion. F. Public Works Mark Cotter, Director of Public Works, described their purpose as: ensuring an efficient, reliable and safe transportation network; Engineering manages the public right of way.and makes strategic decisions on street maintenance or expansion; Street Maintenance provides for year round safe and drivable streets. Traffic & Street Lights provides illumination and traffic control from your neighborhoods to destinations across the city; andtheir focus includes: Strategic planning for development and growth of the City; consistently investing in our streets with our various street maintenance programs, along with investing in new equipment for our mill and overlay program; efficient and effective snow and ice removal through the use of technology and liquids (such as salt brine). The street light LED conversion and pole improvement program will help support safe streets and reduce electric costs; investing in adaptive traffic systems to create reliable and efficient traffic control system. The proposed Operating budget is as follows: a $100K increase for consulting and Electric Vehicle Readiness; $143K increase for internal technology cyclic replacement, security & fleet repairs; $362K increase for fuel due to price adjustments; and a $1M increase for the Sidewalk Repair Program (offset with revenues). The proposed Capital budget includes: the 6th Street Bridge – Unity Bridge; Benson Road & I-229 – Diverging Diamond interchange; 57th Street from Veterans Parkway to 6 Mile Road; 6th Street from Veterans Parkway to Foss Ave; Cliff Avenue south from 85th Street; Veterans Parkway Expansion on or to Western, Minnesota & Cliff Avenues; Traffic Signals at 33rd Street & Veterans Parkway; 57th Street & Graystone Avenue; and 41st Street & Linedrive Avenue. Cotter provided updates on the following divisions: Storm Drainage: The purpose of the Storm Drainage team is to protect Sioux Falls by managing the systems that collect, hold and release storm water at a controlled rate. The focus is continued improvement of both Levee and Storm Drainage Systems with balancing the needs of having strong cyclic maintenance plans. The Storm Drainage team manages over 600 miles of storm sewer line. The team meets the challenges of growth by collaborating with developers to ensure the system performance begins with a plan for new and redeveloping properties. The proposed operating budget is a $157K increase in consulting to review and update levee and storm system standards to meet federal guidelines; and an $81,339 decrease for distribution and collection system general maintenance to align with trends. Fleet: The purpose and focus for the centralized fleet team is to manage the city- wide fleet operations and maximizes the uptime for departments by proactive maintenance plans. We encourage department collaboration with sharing of equipment to reduce city-wide costs and use technologies to provide data to make more informed and timely decisions. We strategically replace equipment, utilizing data driven decisions and aim to reduce environmental impacts and City costs by researching and piloting next generation vehicles (electric & hybrid). Our proposed budget is for Fleet Maintenance expenses of $40K increase for fleet vehicle repairs and a $856K increase to City-wide fuel price adjustments. Our proposed Capital budget is for: 42 pieces of equipment budgeted for 2023, which includes:a Compactor, Dozer, Excavator & Haul Truck; Tractor & Dump Truck; and Bucket Truck. Sanitary Landfill: The purpose and focus for the Sioux Falls Regional Landfill illustrates service to five counties and a population of over 290,000. We support our HHW programs, and also capture our landfill gas to convert and use as a renewable energy resource. We also divert waste from the landfill with programs such as, recycling, composting, and reuse programs. Our proposed Capital budget is for: a Scale house building; improving and expanding public drop off; Leachate Recirculation; flood plain alterations to Cherry Creek and wetlands construction. Power and Distribution: The purpose and focus illustrates that the Power and Distribution Division maintains a defined service area for providing power to around 2,900 residential, commercial and government customers. We provide power to three City locations Water Reclamation Plant; Public Safety Training Campus; New Traffic; Street Light and Power Campus. The Division is in the process of finalizing a 10 year master plan for the future of City provided power in Sioux Falls. The proposed budget is: $573K – a slight increase in revenue due to inflationary rate adjustments and consumption growth; $891K - Bulk power price increase driving the majority of the supplies expense increase; separation of power and distribution from Street Lights accounts for the decreases in various expense lines. The proposed Capital budget: $653K - Capital increase due to new northeast circuit and building improvements; and, a new transformer at Substation 74.  Water Purification: The purpose and focus for the Water Division is to operate the facilities and infrastructure that deliver potable water to our faucets on demand; continue to invest in maintaining existing infrastructure while supporting the need for expansion; ensure secured future water supply to meet capacity demand by maximizing our partnership with Lewis and Clark; expand underground collector water wells; and commit to cost effective management of our available water resources by promoting water conversation. The proposed budget is: Revenue - $997K - no rate increases since 2019; and $7.5M - SRF for source water improvements. The expenses are: $182K – for a new position of Lead Meter Tech and normal wage & benefit increases; $140K - additional resources for consulting and legal; $849K - inflationary price increases in repair and maintenance as well as supplies and materials; and $408K - bulk water purchase rate increase. The proposed Capital budget is for: Additional source water improvements to prepare for future growth and to continue planned replacement of infrastructure to ensure reliable water across the city; also, for an increase in meters due to inflation and replacement schedule. Water Reclamation: The purpose and focus for the Sioux Falls Regional Water Reclamation Facility and its employees is the dedication to conveying and treating wastewater from Sioux Falls and surrounding communities; to construct our largest plant expansion project that will assist with growth and development of Sioux Falls over the next 20 years; to design and construct infrastructure for new development basins related to growth demands; and to collaborate with other City Departments, County and State programs to ensure the system supports future growth. Our proposed budget is: Revenue $852K - minor increase in charges due to planned rate increase and rise in average demand; and ($63M) - large decrease in SRF due to timing of expansion project. Expenses are: $509K -1 new position Maintenance Mechanic and normal adjustments that are driving personnel increases; $656K - inflationary factors and planned maintenance driving up R&M and S&M; and $174K - increase in electricity rates driving up utilities. The proposed Capital budget is for the continued planned replacement of infrastructure to ensure reliable wastewater across the city; an increase in flow meters, pumps, and monitoring equipment that aligns with growth and expansion projects. Due to time constraints, questions and discussion on the Public Works section will be rescheduled. 3. Public Comment Tom Dempster spoke about the proposed Arts position and the value it will bring to the city. Art Holden, Falls Area Bicyclist, spoke about access to the bike trails around the city. 4. Adjournment The meeting was adjourned at 5:38 p.m. Tamara Jorgensen, MMC, Assistant City Clerk