Informational Meeting

MINUTES Informational Meeting Tuesday, June 23, 2020 at 4:00 PM Carnegie Town Hall, 235 West 10th St., Sioux Falls, SD 57104 1. Call To Order Council Members Present: Christine M. Erickson, Rick Kiley, Greg Neitzert, Marshall Selberg, Curt Soehl, Pat Starr, Theresa Stehly Council Members Absent: Janet Brekke Council Chair Marshall Selberg called the meeting to order at 4:00 p.m. 2. City Council Open Discussion Council Member Christine M. Erickson spoke about attending the Municipal League Board Meeting via Zoom today. The September conference will be cancelled. The Municipal League is looking for direction from cities regarding the marijuana initiatives. Also, SPARK met this morning and reviewed a webinar regarding health and biotech industries. Newsletters are being sent out wherein other communities are looking to Sioux Falls for opportunities. There are new businesses coming to Sioux Falls and South Dakota because of our successful work environments. 3. Presentations A. 2021-2025 Presentation of Capital Program by Mayor Paul TenHaken Presentation: Approximately 30 minutes followed by discussion Mayor Paul TenHaken presented his administration’s proposed 2021–2025 Capital Program to the Sioux Falls City Council and public. The total proposed budget for the five-year Capital Program is $736.2 million, of which $196.1 million is programmed for use in 2021. The five-year program balances the demands of maintaining the City’s existing assets and developing new infrastructure that serves as a foundation for growth, including investments in a Public Safety Training Facility and a continued emphasis on the City’s street rehabilitation program and roadway expansion. While the past several months have presented significant challenges for our community and the nation,TenHaken discussed how the City is able to continue investing in forward-looking capital projects, due to decades of wise planning and decision-making. TenHaken stressed that the program reflects the One Sioux Falls framework, which he established early on in his administration to guide the prioritization of projects.  The Mayor shared an overview of Community Bond 2020 to be brought forward later this summer, which includes investments in the Public Safety Training Facility, fulfilling a critical need in the community to provide training to the City’s frontline public safety personnel. The investment into the River Greenway improvements will provide greater connectivity to our city’s namesake park and regional tourism hub. This public sector investment will serve as a catalyst to the long-awaited redevelopment of the Sioux Steel property and demonstrates the importance of the public and private sectors working together. Street infrastructure and the condition of the City’s streets has been a priority of his administration from the start and will continue moving forward. This Capital Program invests a higher portion of the sales and use tax to street construction and maintenance than it did on average over the last decade. TenHaken outlined several roadway expansion projects that will open doors for further development and allow Sioux Falls to keep pace with projected traffic increases.This includes a proposed new interchange at 85th Street and I-29, improvements to Arrowhead Parkway, and the conversion of the 41st Street and I- 29 interchange to a diverging diamond interchange to help improve the safety and mobility of traffic. The program also allocates investments in quality of life amenities, including starting an initial phase of expanding the Sioux Falls bike network in northwest Sioux Falls in the Cherry Creek trail corridor. B. 2020 Capital Program Update by Shawn Pritchett, Director of Finance; Mark Cotter, Director of Public Works; and Don Kearney, Director of Parks and Recreation Presentation: Approximately 20 minutes followed by discussion Shawn Pritchett, Director of Finance; Mark Cotter, Director of Public Works; and Don Kearney, Director of Parks and Recreation provided an update on the following 2020 Capital Programs: Pritchett reviewed the following slides and updates: Current Capital Program Year; Budget Overview of the current budget capital programs covering the expensed, encumbered and budget balance information; Sales/Use Tax Fund: Adaption covering the sales tax balances and sales tax collections; Project Set Asides showing the breakdown of amounts between capital projects for Public Works, Parks and Recreation and OCEP Projects; Market Status showing 2020 Monthly Sales Tax Increases and Decreases by month from January through May; Released Projects for Public Works and Parks and Recreation; an update on the Bidding Environment showing 71 bids open year to date; a graph showing the 2020 Construction Projects; and three Projects Recently Bid. Cotter reviewed the following slides and updates and a review of 17 Projects in Design in preparation for the construction program for 2021. Kearney reviewed the following slides and updates: Kirby Dog Park at Fort Sod and Six Major Projects Still To Bid. Discussion followed regarding: funding for the Great Bear Chair Lift project; the status of the redesigning of the Japanese Garden; the monthly sales tax numbers;  Community Bond numbers and projections; and the status of the Sioux Steel project. C. May Monthly Financials Presentation by Shawn Pritchett, Director of Finance Presentation: Approximately 15 minutes followed by discussion Pritchett provided the presentation covering the following topics: Labor Force and Employment; Unemployment; Insured Unemployment; Percentage of Small Businesses Receiving Loans; PPP Loans Are Not Correlated to Unemployment Claims; Inflation; Building Permits YTD Building Valuations; Sioux Falls YTD Residential Permits (Units); Sales Tax Collections w/out Audits; Industry Taxable Sales Data; Entertainment Tax Collections w/out Audits; Current YTD Property Tax Revenues; Lodging Tax Receipts; Lodging BID Tax Receipts; General Fund – Revenues YTD; General Fund – Expenditures YTD; Forward Outlook; Cares Act Funds; and Cares Act – Eligible Expenses. Discussion followed regarding: the funding impact on the Social Security Administration from surplus checks; the insurance coverage level in South Dakota; the Federal Government stating they would not raise interest rates for two years; the percentage of restaurants that would be re-opening; the audit process for reviewing federal grants; and the impact on schools and housing programs. 4. Public Comment There was none. 5. Adjournment The meeting was adjourned at 5:44 p.m. Tamara Jorgensen, MMC, Assistant City Clerk