Informational Meeting

MINUTES Informational Meeting Tuesday, April 19, 2022 at 4:00 PM Carnegie Town Hall, 235 West 10th St., Sioux Falls, SD 57104 1. Call To Order Council Members Present: Janet Brekke, Christine M. Erickson (via telecom, arr. 4:03 p.m.), Alex Jensen, Rick Kiley, Greg Neitzert (arr. 4:17 p.m.), Curt Soehl, Pat Starr Council Members Absent: Marshall Selberg Council Chair Curt Soehl called the meeting to order at 4 p.m. 2. Councilor Remarks Soehl thanked all of the Election workers, the City Clerk's Office, staff, and volunteers for their work with the recent City Election. 3. Presentations A. 2021 Financial Results by Shawn Pritchett, Director of Finance Presentation: Approximately 10 minutes followed by discussion Pritchett spoke about the City's end of year financials. He said the Audit Committee has wrapped up and approved their review of the City's finances; and the numbers will match what is presented in the Annual Consolidated Financial Report, which is posted on the City's website. Pritchett thanked his staff for their work. The recent audit took 82 days to complete. Over the past few years, the City has ranked first or second nationally for the speed and quality of its audits. Also, for the past 40+ years, the City has received the highest accolades, from the Finance Officers Association, for their work. Pritchett began by reviewing the 2021 General Fund Revenues, of which $181.1M was budgeted; and $191.6M was received. The largest generator of revenue was sales taxes, which were budgeted for $70.1M and generated $79.6M. Sales Tax Collections w/out Audits were up by 19.3% for the year, compared to 2020 when it was a flat 0%. Pritchett said that they had budgeted for 4% in 2021.Due to the boost in sales taxes, an additional $9.5M in revenue was received. The 2021 General Fund Expenditures were budgeted for $207.1M and the actual results were $197.7M. He cited a variety of reasons for the savings. The 2021 General Fund Available Fund Balance began at $85.1M and ended at $77.7M. He attributed the difference to the expenditure from some CARES ACT (the Coronavirus Aid, Relief, and Economic Security Act) and ARPA (American Rescue Plan Act) funds, from the General Fund. The updated forecast for the 2022 General Fund Available Fund Balance is $77.7M. The original forecast was $64M.  The update was generated by sales tax and liquor license revenue. The General Fund Available Fund Balance is budgeted at $63.3M or 31.6%. Pritchett said this will stay above the 25% goal. For 2021 Capital Investments, the City reached $131.2M in Capital Investments. The 2021 Sales Tax Remaining Available Balance will carry forward $11.7M. There was a significant increase in Entertainment Tax Collections w/out Audits, with a cumulative 12-month Rolling Growth Rate of 28.9%. Pritchett said it was a positive year for the Entertainment Tax Available Fund Balance. In 2021, there was $5.7M budgeted for the available fund balance, with $3.1M being held by the Events Complex Manager. The year ended with an available fund balance of $11.5M and $3.7M being held by the Events Complex Manager. The 2021 Enterprise Funds Overview showed available cash for the following departments: Lights ($8.3M), Parking ($1.3M), Landfill ($14.5M), Water ($18.8M), and Water Rec ($48.2M). For Outstanding Debt, the City's year-end balance was $283.7M compared to 2020's year-end balance of $288.8M, which was a $5.1M decrease. Per Capita Debt was $1,400, which is lower compared to Des Moines, IA, which is $4,487 for Per Capita Debt. Pritchett said a lot of positive things are happening in the City. In looking forward, the following are being considered: revenue expectations; cost escalations/supply constraints; and scaling for growth. Discussion followed regarding: obtaining more detailed information for highway and streets; anticipating a bump in the Entertainment Tax with the Snoop Dogg concert; and development. B. Eat Well, Sioux Falls Grant Program by Dr. Charles Chima, Director of Public Health; and Mary Michaels, Live Well Sioux Falls Public Health Prevention Coordinator Presentation: Approximately 10 minutes followed by discussion Michaels spoke about the Eat Well, Sioux Falls program, which is being funded through a grant from repurposed ARPA funds. This program is designed for access to healthy foods by Sioux Falls residents. Michaels said that one of the things that has been learned through the City's health assessments is that food access is a social determinant of health. It is a community need based on people's ability to access healthy, affordable, and fresh foods near places where they live. She added that a person's environment has more of an impact on them than their genetic code. Michaels' cited, when looking at food especially, in the United States seven out of every 10 deaths are related to preventable chronic disease, for example: heart disease, cancer, diabetes, and obesity. The current community health assessments indicates that heart disease and cancer are the leading causes of death in our area, she said. Diet is a risk factor in getting one of the chronic diseases. The assessment also shows low consumption for fruits and vegetables in the Sioux Falls area. Michaels said by making healthier foods available it's easier for people to adopt those healthier behaviors. She then spoke about the number of eight census tracts classified as "Low Income and Low Food Access" areas in Sioux Falls. The goal of the Eat Well, Sioux Falls program is to spur innovation in the area of helping people access healthy foods. The program will provide one-time monetary award(s) to incentivize intervention(s) from private or community organizations. The goals are too: Incentivize provision of healthy grocery options to Food Access Priority Areas and populations; Strengthen the local food system; and Promote healthy eating behaviors among Sioux Falls residents. Those eligible for the program are existing or new for-profit, nonprofit or cooperative entities. Eligible projects are those that:  establish a grocery store or supermarket in a food access priority area; or implement an innovative program to increase access to healthy foods in a sustainable and equitable manner for residents in a food access priority area. Michaels said the funds could also cover delivery cost. She said that she is excited to think about what ideas might be out there. A review was given regarding: assessment criteria; allowable use of funds; and what is not allowable. Michaels said they are open to a wide array of ideas. Discussion followed regarding: who might apply to the program; urban gardening; a qualifying location; the program must serve residents living in the area; the $400,000 grant amount and the possibility of it being divided amongst the applicants; who might be interested in the program; who will evaluate the program applications and including a Council member on the committee; the likelihood of success for the program; sustainability; and the possibility of using some of the funds to purchase land or a building. 4. Public Comment Mark Weber spoke about the City's finances. 5. 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 4:54 p.m. Roll call vote to enter Executive Session. 7 Yes: Brekke, Erickson, Jensen, Kiley, Neitzert, Soehl, Starr; 0 No: (None). Motion Passed. A motion was made by Council Member Jensen and seconded by Council Member Starr to exit Executive Session at 5:27 p.m. Voice vote to exit Executive Session. 7 Yes: Brekke, Erickson, Jensen, Kiley, Neitzert, Soehl, Starr; 0 No: (None). Motion Passed. 6. Adjournment The meeting was adjourned at 5:27 p.m. Denise D. Tucker, MMC, Assistant City Clerk