Informational Meeting

MINUTES Informational Meeting Tuesday, November 16, 2021 at 4:00 PM Carnegie Town Hall, 235 West 10th St., Sioux Falls, SD 57104 1. Call To Order Council Members Present: Pat Starr, Janet Brekke, Christine M. Erickson (arr. 4:08 p.m.), Alex Jensen, Rick Kiley, Greg Neitzert, Marshall Selberg, Curt Soehl Council Members Absent: None Council Chair Curt Soehl called the meeting to order at 4 p.m. 2. Committee/Commission Reports A. Sioux Falls Development Foundation: Wednesday, November 10, 2021 (Council Member Erickson) Council Member Christine M. Erickson said she was not present for the meeting, but noted that a couple of other Council Members were at the meeting. She said there are a few meetings left for the remainder of the year. Erickson will become an ex-officio member next year. She said the Development Foundation has been in front of the group to discuss the TIF at the Amazon site and other things. 3. Councilor Remarks There was none. 4. Presentations A. October 2021 Financial Results by Shawn Pritchett, Finance Director Presentation: Approximately 10 minutes followed by discussion Pritchett began by speaking about the retraction in labor force, which he said isn't uncommon in the months of August and September in years past. The reduction in the labor force is also happening on a national level. Unemployment was at 1.9% in September. The last time that mark was hit was 21 years ago. Inflation is up at 6.2% in October, which is being driven primarily by the energy sector. Pritchett said if you remove the food and energy inflation it would be at 4.6% overall. Robust growth overall continues to be seen with building permits. The Building Permits YTD Building Valuations at the end of October was $917.8M, which is $345M or 60% ahead of last year, and 32% ahead of two years ago at this time. New residential values continue to increase and are up $60M or about 41% over the last two years.  New commercial values are up $139M. Pritchett said new additions and remodels are up significantly. He said through October there have been 782 permits for single family houses, up about 23% from last year. Multi-Family totals are currently at 1,595, which is also up dramatically. Total residential units are short of 2,800 units through October, which is up 38% from last year at this time. Sales Tax Collections w/out Audits were up 21.4% in October; and up 23% over a two year period. Entertainment Tax Collections w/out Audits is up 28.4% over last year; and more than 17%, from two years ago. Growth is contributed to the restaurant and hospitality industries. The Industry Taxable Sales Data shows all areas remained positive. Lodging Tax Receipts reached 58% in October, after declining to 26.3% last October. Compared to two years ago, it is up 16%. Lodging BID Tax Receipts is up 28%, compared to last year. It is 3% higher than two years ago. General Fund - Revenues YTD, approximately 78% of the budget has been generated. General Fund - Expenditures YTD, 74% of the budget has been expended. Pritchett said we are about $11M ahead of last year, in terms of expenditures, and that is being primarily driven by payroll in Parks, Fire and Police. He said year-end anticipations are that we'll end up with $9M or 5% over the original General Fund budget; and expect to come in at 94% to 97% of the expenditures budget. Pritchett said they remain optimistic in regards to revenues. He noted some things that could impact costs for projects, etc. Discussion followed regarding predictions on inflation; and remote (internet) retail sales figures. B. 2022 Legislative Priorities by Jim David, Chief of Legislation & Policy Presentation: Approximately 10 minutes followed by discussion David began by stating that the 2022 Legislative Session will begin with the Governor's State of the State Address on January 11, 2022. He noted that two Special Sessions have been held for a special investigative committee and the adoption of a new legislative map. The map was named Sparrow. David said following the 2022 Mid-Term elections, Sioux Falls will be represented by 10 Legislative Districts, which is almost 30% of the Legislature. Legislative maps from 2011 and 2021 were compared and changes were discussed. David spoke about a Joint Legislative Statement, which was compiled by representatives from the cities of Sioux Falls, Brandon, Dell Rapids, and Minnehaha County. He then spoke about the state of the housing market in the Sioux Falls area. In October 2019, the average price of a home was $243,000; and in October 2021, it was $302,000. David said the average price is a 24% increase in two years; and almost twice the average sale price from a decade ago. The housing inventory is down 33.5%, compared to 2019. In October, there were a little more than 1,000 homes on the market. In light of the historically high housing costs, the group supports having a legislative review of the Disabled and Senior Citizen Assessment Freeze Program. David said, in addition to income eligibility requirements the program stipulations the property value cannot exceed $202,943, unless the applicant has previously qualified. A review of the maximum value is being requested, due to housing being under the maximum value is becoming rare. The group also worked with the Public Works Department to come up with legislation to help with infrastructure and housing. They would support legislation that directs American Rescue Plan Act (ARPA) funds to "finance grants and/or principal forgiveness for high priority infrastructure projects through the South Dakota Department of Agriculture & Natural Resources (SDDANR)". This would allow for a decrease of local costs  associated with infrastructure expansion, which would be able to provide for incentives for new housing stock and a reduction in the cost to build new homes in the state. Minnehaha County brought forward an item that would provide support for a diversion program for low-level offenders. This program would reduce the pressure on county jails and cost to taxpayers. Council Member Janet Brekke brought forth a request to create a Culturally Competent Care Act. The Act would: (1) Build networking capacity through a Veteran and Military Family Navigator at Helpline 211; (2) Develop culturally competent communities of support throughout South Dakota, and (3) Create an educational component for community partners based on best practices around a health and wellness model of care. This program would be a cost share with partner organizations. A draft resolution with these items was provided. Discussion followed regarding redistricting and the number of legislators there will be for Rapid City. 5. Public Comment Mike Zitterich spoke about items he would like the City Council to bring forward to the State Legislature. 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 Jensen and seconded by Council Member Kiley to enter Executive Session at 4:24 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. 8 Yes: Starr, Brekke, Erickson, Jensen, Kiley, Neitzert, Selberg, Soehl; 0 No: (None). Motion Passed. A motion was made by Council Member Jensen and seconded by Council Member Erickson to exit Executive Session at 5:07 p.m. Roll call vote to exit Executive Session. 8 Yes: Starr, Brekke, Erickson, Jensen, Kiley, Neitzert, Selberg, Soehl; 0 No: (None). Motion Passed. 7. Adjournment The meeting adjourned at 5:07 p.m. Denise D. Tucker, MMC, Assistant City Clerk