Informational Meeting

MINUTES Informational Meeting Tuesday, June 21, 2022 at 4:00 PM Carnegie Town Hall, 235 West 10th St., Sioux Falls, SD 57104 1. Call To Order Council Members Present: David Barranco, Sarah Cole, Alex Jensen, Greg Neitzert (arr. 4:08 p.m.), Marshall Selberg, Curt Soehl Council Members Absent: Rich Merkouris, Pat Starr Council Chair Curt Soehl called the meeting to order at 4 p.m. 2. Committee/Commission Reports A. Multi-Cultural Center Board of Directors: June 15, 2022 (Council Member Starr) An update will be received at the June 28, 2022, Informational Meeting. B. South Dakota Municipal League Board of Directors: Thursday, June 15, 2022 (Council Member Jensen) Jensen stated the Board of Directors meeting was held in Rapid City, SD, on June 16. He stated that the next conference will be held in Watertown, SD in October and he encouraged the Council Members and the Staff to attend. Jensen noted that the current Municipal League Execurive Director, Yvonne Taylor, will be retiring. He expressed what a great job she has done and how her position will be difficult to fill. Jensen stated that former Council Member Chrisine Erickson was on the hiring committee for finding the replacement. While in Rapid City, the group toured "The Monument" (formerly known as the Rushmore Plaza Civic Center and Rushmore Plaza) exhibition center and he stated this was an outstanding facility. 3. Councilor Remarks There were none. 4. Presentations A. May 2022 Monthly Financial Statements by Shawn Pritchett, Director of Finance Presentation: Approximately 15 minutes followed by discussion Pritchett stated that unemployment is at 3.9%, the state unemployment is at 2.2% and the national average is at 2.3%. The labor force is up to 2.8% which indicates  that employment is growing faster than the labor force, meaning that people are returning to work. Inflation continues to be elevated at 8.6% which is the highest it has been since December, 1981. The Federal Reserve has increased interest rates to try and offset inflation (currently at a 40 year high) and the anticipation is that the interest rates will continue to rise. The largest increases have been in gasoline (50% over last year); natural gas (30%) and electricity (12%). Pritchett stated that the city’s fuel expense, so far this year, is at $1.7M – which means we have used 41% of the fuel budget for this year. Usage is heavier in the summer months so the possible overages will be monitored and there may be a need for a supplement in the fall to offset the costs of fuel. Pritchett stated that for every 50 cent increase in gas, it adds an expense of $135K to the General Fund. Building permits year to date are at 780.4M valuations, 97% over previous year; up over 235% over 2020. New commercial is driving the rate with office, institutional and educational building development. Pritchett also reviewed the residential permit increases. Pritchett reviewed the Industry Taxable Sales Data for the top ten industries experiencing grown/reductions as follows: 1) Department Stores and General Merchandise Stores; 2) Wholesale Trade of Durable and Non-Durable Goods; 3) Eating Establishments; 4) Business Services; 5) Lumber, Hardware, and Garden Supplies; 6) Grocery Stores, Meat and Other Food Stores; 7) Remote Retailer Sales 8) Home Furniture Furnishing and Equipment Stores; 9) Manufacturing; and 10) Construction. Lodging Tax Receipts are up 20% from last year, returning occupancy to the pre- pandemic levels. Sioux Falls is at 61% occupancy rate, making us #1 among our peer groups, those being: Bismarck, ND; Des Moines, IA; Fargo, ND; Rochester, MN; Milwaukee, WI; and t. Paul, MN. This denotes an increase in people coming to visit the City of Sioux Falls. General fund revenues – YTD – are at 47% total collected. Last year at this time it was at 46%. The sales taxes are driving the increases and this is consistent with what the expected expenses were going to be. Discussion was held regarding: whether or not there will be a supplement to the budget needed to offset the rising costs of fuel (this will be assessed and determined in the fall of this year); whether or not the city is going to move towards purchasing hybrid vehicles – this will be determined based on the availability of the vehicles – they are challenging to secure in this market as there is also a backlog of availability. B. Housing Plan Update by Jeff Eckhoff, Director of Planning and Development Services; Kevin Smith, Assistant Director of Planning and Development Services Presentation: Approximately 10 minutes followed by discussion Kevin Smith, Assistant Director of Planning and Development, reviewed the 2026 Housing Action Plan Goals in the following sections: Land: collaborate with Regional MSA communities; Maximize land availability and infrastructure by increasing density/upzoning; proactively assemble land for redevelopment and for moving existing homes; identify opportunities for infill development; leverage federal funds and public incentives to revitalize core neighborhoods. Design and Building  Standards: evaluate opportunities to less impact of 2021 Building Code Updates; Review current design standards such as rolled curbs and street width reduction; Evaluate and pilot low-impact development options; Evaluate sump pump collection requirements. Infrastructure: Evaluate developer coordination options for utility extension; Provide land absorption model; Complete two sanitary sewer basin studies Fall of 2021; Evaluation methodology to recover costs for future sewer basins; Jeff Eckhoff, Director of Planning and Development, reviewed the 2026 Housing Action Plan Goals in the following sections: Workforce: Communicate quality of life investments that benefit recruitment; Provide support for STI programming (carpentry certificate example); Promote SFDF Workforce Development Programing; Explore partnership opportunities. Public Incentives and Partnerships: Develop TIF guidelines to support housing development; Strategically leverage CCDGB and Home Fund programs; Create Housing Fund to provide flexible options for workforce housing; Evaluate partnership program for costs associated with moving existing homes; Develop opportunities to address market gaps identified through Housing Needs Assessment; Develop and/or expand programs that proactively preserve existing affordable housing. Discussion followed regarding a request for the updated engineering design standards information, sump pump collection updates, the availability of a grant application online, the ongoing land acquisition in the City of Sioux Falls for future development, affordable housing availability, representation at local housing committee meetings, the expenditure of grant money for sidewalk repairs. 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 Jensen and seconded by Council Member Selberg to enter Executive Session at 4:55 p.m. for the purpose of consulting with legal counsel or reviewing communications from legal counsel about propsed or pending litigation or contractual matters pursuant to SDCL 1-25-2(3). Roll call vote to enter Executive Session. 6 Yes: Barranco, Cole, Jensen, Neitzert, Selberg, Soehl; 0 No: (None). Motion Passed. A motion was made by Council Member Barranco and seconded by Council Member Jensen to exit Executive Session and adjourn the meeting at 5:27 p.m. Voice vote to exit Executive Session. 6 Yes: Barranco, Cole, Jensen, Neitzert, Selberg, Soehl; 0 No: (None). Motion Passed. 7. Adjournment The meeting was adjourned at 5:27 p.m. Tamara Jorgensen, MMC, Assistant City Clerk