Informational Meeting

MINUTES Informational Meeting Monday, October 18, 2021 at 4:00 PM Carnegie Town Hall, 235 West 10th St., Sioux Falls, SD 57104 1. Call To Order Council Members Present: Greg Neitzert (arr. 4:11 p.m.), Marshall Selberg, Pat Starr (via Telecom), Janet Brekke, Christine M. Erickson (arr. 4:04 p.m.), Alex Jensen, Rick Kiley Council Members Absent: Curt Soehl Council Vice Chair Alex Jensen called the meeting to order at 4 p.m. 2. Committee/Commission Reports A. Siouxland Heritage Museum Board: Thursday, October 14, 2021 (Council Member Starr) Council Member Pat Starr reported that the Mountain-Plains Conference was held and there were more than 100 people in attendance. They visited museums in the southeast region of South Dakota. Also, the process has begun to replace 61 leaded stained glass windows at The Old Courthouse Museum. Starr said an artisan from Lincoln, NE, who grew up in the Sioux Falls area will be doing the work. Rentals are picking up at the museum. The rental funds are placed in the Enterprise Fund, which is used for educational purposes. 3. Councilor Remarks There was none. 4. Presentations A. September 2021 Financial Results by Shawn Pritchett, Finance Director Presentation: Approximately 10 minutes followed by discussion Pritchett began his presentation by stating that there has been an upward pattern for Labor Force & Employment. Unemployment was at 2.4%, up slightly from 2.2%. The State is doing well overall compared to the national average of 5.3%. Inflation continues to be elevated at 5.4%, which is consistent with the past couple of months. Pritchett said there is no real change when you look at Inflation on an industry-wide basis. Energy continues to lead inflationary tendencies, by being up 24.8%; food remains elevated at 4.6%; and all other goods, minus energy and food,  are at 4%. He spoke briefly about shortages for the City and the private sector in regards to raw materials and supplies; cost escalation for some materials; continued labor shortages experienced by manufacturers; and high transportation costs. Building Permits YTD Building Valuations continue to be outstanding and reached almost $870M building permits issued in September, which is $390M or 82% ahead of last year. New commercial and multi-family are the driving factors for the building permits. Sioux Falls YTD Residential Permits (Units) show 697 for single family, which is up 140 from last year; and multi-family was 1,592, which was up almost 700 from last year. Sales Tax Collections w/out Audits, which continues to be robust and strong at 23%, is down 3.4% from 2020. The rolling rate is at 13.3%. Entertainment Tax Collections w/out Audits was at 25%, with a rolling rate of 15.3%. Pritchett credits the increase to the restaurant and lodging industries. Industry Taxable Sales Data is up across the board, although wholesale trade took a dip. Lodging Tax Receipts were at 65.4%, with a rolling rate of 26.1%. Lodging BID Tax Receipts were at 29.7%, with a rolling rate of 17.4%. General Fund - Revenues YTD are consistent and 71% of the funds have been collected, compared to 69% in 2019. General Fund - Expenditures YTD have 67% of the funds expended, which is driven by the Fire, Police and Parks Departments wages. There was no discussion. B. Southeast Sanitary Sewer Study Update by Mark Cotter, Director of Public Works; and Ryan Johnson, Utility Administrator Presentation: Approximately 10 minutes followed by discussion Cotter explained that this was an opportunity to take a look at two large sanitary sewer service areas that are being studied. The Southeast plan is completed and the Westside plan is still being worked on. He then introduced Johnson to the Council. Johnson replaces Trent Lubbers, who retired, as the Utility Administrator. Johnson began by explaining this study has been going on for the past 20 years, in some fashion. He showed a map of the Southeast area being discussed. It is described as a Tier 3 (16-25 years) growth area. Johnson provided a brief review on the featured location. It began with a 2002 Master Plan on how they were going to grow the area; and support the City's growth with a sanitary sewer. The focus was on the east side of Sioux Falls, closer to the Big Sioux River; and the area to the south. As the plans came together, the focus was to build the infrastructure on the east side, to support the area in the South. As the studies are being completed, the next steps are to develop a more detailed plan, develop a schedule, place it in the Capital Program, and then start executing those plans. Johnson spoke about the Metropolitan Planning Organization and how they review sewer basins and how they are going to be served. He reviewed a map of the Metropolitan Planning Area and the different counties involved in the planning process. The next map he showed, featured the City of Sioux Falls and the buy-out or service boundary area. Johnson explained that as the City grows into those areas those customers will be bought off of rural water to make them whole for the infrastructure that they have supported. This map, which includes sanitary sewer, water and roads, was established in 2008. Next Johnson reviewed maps of the Southeast Sewer Study Areas, including the boundaries and pump stations. He then spoke about the things that had to be done to build up the area for the sewer. He concluded by showing a map and briefly discussing the Westside Sanitary Sewer Study Area in comparison to the Southeast Study Area.  Discussion followed regarding: Johnson's promotion; the Westside Study Area and Basin 15; when construction will start; work still being done; and how pump stations work. 5. Public Comment There was none. 6. Executive Session A. Consulting with legal counsel or reviewing communications from legal counsel about proposed or pending litigation or contractual matters pursuant to SDCL 1-25- 2(3) A motion was made by Council Member Erickson and seconded by Council Member Kiley to enter Executive Session at 4:31 p.m. for Consulting with legal counsel or reviewing communications from legal counsel about proposed or pending litigation or contractual matters pursuant to SDCL 1-25-2(3). Roll call vote to enter Executive Session. 6 Yes: Neitzert, Selberg, Brekke, Erickson, Jensen, Kiley; 0 No: (None). Motion Passed. A motion was made by Council Member Selberg and seconded by Council Member Kiley to exit Executive Session at 4:55 p.m. Roll call vote to exit Executive Session. 7 Yes: Neitzert, Selberg, Starr, Brekke, Erickson, Jensen, Kiley; 0 No: (None). Motion Passed. B. Discussing the qualifications, competence, performance, character or fitness of any public officer or employee or prospective public officer or employee. The term "employee" does not include any independent contractor pursuant to SDCL 1-25- 2(1) This item was cancelled. 7. Adjournment The meeting adjourned at 4:55 p.m. Denise D. Tucker, MMC, Assistant City Clerk