Informational Meeting

MINUTES Informational Meeting Tuesday, December 14, 2021 at 4:00 PM Carnegie Town Hall, 235 West 10th St., Sioux Falls, SD 57104 1. Call To Order Council Members Present: Janet Brekke, Alex Jensen, Rick Kiley, Greg Neitzert, Marshall Selberg, Curt Soehl, Pat Starr Council Members Absent: Christine M. Erickson Council Chair Curt Soehl called the meeting to order at 4 p.m. 2. Committee/Commission Reports A. South Eastern Council of Governments (SECOG): Wednesday, December 8, 2021 (Council Members Soehl and Starr) Soehl provided an update stating that this meeting was followed by the Annual Review. He stated that SECOG is currently looking for two staff members, contact Lynne Keller Forbes if you are interested. The financial information was reviewed for the last year and they are in good shape. B. South Dakota Municipal League Board of Directors: Wednesday, December 8, 2021 (Council Member Erickson) This update will be provided at the Informational Meeting on Tuesday, December 21, 2021. 3. Councilor Remarks There were none. 4. Presentations A. November 2021 Financial Results by Shawn Pritchett, Director of Finance Presentation: Approximately 10 minutes followed by discussion Pritchett began by stating there have not been a lot of changes in the city from an economic standpoint from previous presentations. There has been a slight reduction in the labor force which is not uncommon during this time of year, in a non-COVID year. Unemployment was at 2.0% in October, the second lowest it has been in the last 20 years, with the average in the state being at 2.3% and the  national average is a 4.3%. Inflation is up at 6.8% in November, the second highest it has been in the last 20 years. Inflation was at 6.2% in October and 5.4% in September, 2021. The wholesale inflation rate was 9.6%. Pritchett said we are watching these numbers as projects could escalate in terms of total cost for us as we go into our bidding cycle. The energy sector is again driving the inflation numbers which are at 33%. Pritchett said if you remove the food and energy sectors, inflation would be at 4.9% overall. The Building Permits YTD Building Valuations at the end of November was $1.015B, which is $345M over last year. New residential values continue to increase and are up $57M or about 41% over the last two years. New commercial values are up $140M, mostly driven by apartments. Pritchett said commercial additions and remodels are also up by $140M. He said through November, there have been 819 permits for single family houses, up about 127 from last year. Multi-Family totals are currently at 1,739, which is up from 1,555 from last year. Total residential units are 3,009. through November, 380 more than last year at this time. Sales Tax Collections w/out Audits were up 38% in November and up 18% over a year period. Entertainment Tax Collections w/out Audits is up 35.8% over last year; and more than 16%, from two years ago. Growth is contributed to the restaurant and hospitality industries. The Industry Taxable Sales Data shows all areas remained positive and had continued growth. Lodging Tax Receipts reached 48.3% in November, compared to two years ago, it is up 23%. Lodging BID Tax Receipts is up 35%, compared to last year. General Fund - Revenues YTD, approximately 97% of the budget has been generated; last year at this time was at 92%. General Fund - Expenditures YTD, 80% of the budget has been expended, last year we were at 79%. Pritchett said the costs are primarily driven by payroll in Parks, Fire and Police and added that the highway/street departments are under budget having no major snow events through November. Pritchett opened the presentation for questions and discussions. There were no questions asked. B. Accessible Housing Update by Kevin Smith, Assistant Director of Planning Presentation: Approximately 20 minutes followed by discussion Kevin Smith, Assistant Director of Planning and Development Services, provided opening remarks regarding the Accessible Housing statistics for this year and the 2026 Housing Action Plan. Lynne Keller Forbes, Executive Director for the South Eastern Development Foundation, gave an update on the existing housing plans for 2022. Forbes provided background infromation on being an accessible housing partner in regards to the development and sale of Governor's Houses to the Public and relocation and rehabilitation of existing houses. The Governor's House program is affordable housing being constructed by inmates at the Mike Durfee State Prison in Springfield; and they are sold for $200K in 11 counties by SECOG. Photographs were shown of the homes interior and exterior. The Housing Opportunity Funds are at $200,000 which incorporates a $15,000, 0% no-payment loan from SDHDA that will be converted to a grant over the first five years of ownership. A diagram was shown of house relocation areas and additional photographs were displayed of homes that had been relocated. An update was provided regarding the purchase of the land at the former Boys & Girls Club at 700 S. Sneve Avenue. The property was  purchased by funds given to the South Eastern Development Foundation by the City of Sioux Falls and this resulted in making 24 lots available. Forbes reiterated that they can use more land to provide accessible housing to the citizens. She spoke about the impact the housing has on individuals. Forbe introduced a member of her staff who shared her personal story about the accessible housing experience and the positive impacts it has had on her and her family's life. Discussion followed regarding: thanking the SEDF for their hard work; thanking the staff member for sharing her story; the costs of the homes and what their sales prices were; how to obtain more needed land within the core of the city; the challenges of obtaining land in a reasonable price range that already has water and sewer access; recent tours of the Governor's Homes; how this program helps fill a critical need in this city; how refurbishing a house encourages the neighbors to include their property also; and the city waiving fees for non-profit organizations. 5. Public Comment Mark Weber spoke about and reviewed his financial charts regarding Sales Tax Collections, 2021 2% Muni Rolling Growth Rates, 2021 2% Retail Sectors Rolling Growth Rates, 2021 2% Service Sectors Rolling Growth Rates, and 2019 Retail Trade with and without Non-Store Retail (SIC 596). Scott Ehrisman spoke about previous requests he has made to Finance asking that building permit information be broken down by percentage for public projects vs. private projects; the need for developing the core of the city and having affordable housing; and the great assistance he has received in the past from the Community Development department. 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 Kiley and seconded by Council Member Neitzert to enter Executive Session at 4:54 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: Brekke, Kiley, Neitzert, Selberg, Soehl, Starr; 0 No: (None). Motion Passed. A motion was made by Council Member Starr and seconded by Council Member Brekke to exit Executive Session at 5:35 p.m. Voice vote to exit Executive Session. 7 Yes: Brekke, Jensen, Kiley, Neitzert, Selberg, Soehl, Starr; 0 No: (None). Motion Passed. 7. Adjournment The meeting adjourned at 5:35 p.m. Tamara Jorgensen, MMC, Assistant City Clerk