Informational Meeting

MINUTES Informational Meeting Monday, October 17, 2022 at 4:00 PM Carnegie Town Hall, 235 West 10th St., Sioux Falls, SD 57104 1. Call To Order Council Chair Curt Soehl called the meeting to order at 4 p.m. 2. Committee/Commission Reports A. Audit Committee: Thursday, October 13, 2022 (Council Members: Jensen (Chair), Barranco, Merkouris, Neitzert) Vice Chair Alex Jensen provided the update. Three audits and follow-ups to two audits were presented. The audits will be presented to the Council at an Informational Meeting in mid-November. Jensen said that there has been great progress made on the 2022 Audit Plan; and that the 2023 Audit Plan will likely have carryovers from the current plan. He also commended staff for the work being done. 3. Councilor Remarks Councilor David Barranco congratulated the South Dakota State University Jackrabbits football team on their win. 4. Presentations A. September 2022 Monthly Financial Statements by Shawn Pritchett, Finance Director Presentation: Approximately 15 minutes followed by discussion Pritchett began by talking about the Labor Force & Employment numbers. Employment is up 4.5% and labor force is up 3.7%, compared to this time last year. In August, the City's unemployment rate was 2%. The City's year-to-date unemployment average is 2.1%, which is the lowest annual unemployment rate in the last 22 years. Statewide the unemployment rate is 2.4%; and the national rate is 3.8%. The Inflation rate is down slightly to 8.2%, for September. Energy rates continue to be a factor with Inflation. Last month, the energy rate was 23.8% and now it has dropped to 19.8%. Pritchett said food rates continue to be a challenge. They are at 11.2%. He said all other items, excluding food and energy, have risen to 6.6%. A rate increase by the Federal Reserve is anticipated. Building Permits YTD Building Valuations continue to grow and is at $1.7B, which is 98% over last year and 261% over 2020. New commercial buildings continue to be the driving force. Of the $850M increase over last year, $752M is new commercial. Sioux Falls YTD Residential Permits (Units) include 3,255 units being permitted for multi-family  housing through September; and only 593 being permitted for single family homes. Overall, there have 4,200 units permitted to date, which is 1,500 more than last year. September was a strong month for Sales Tax Collections w/out Audits. The City was at 15.7%, compared to the previous month of 8.9%. Entertainment Tax Collections w/out Audits was 8.8%. The Industry Taxable Sales Date showed a strong month for consumers and businesses. Lodging Tax Receipts was stronger than last month and was up 16%. Lodging BID Tax Receipts were low at -1.5%. General Fund - Revenues YTD indicate that 75% have been collected. General Fund - Expenditures YTD show 66% has been expended. Pritchett said that expenses are up by $16M, among the reasons for the increase was wages and Employer of Choice incentives. Discussion followed regarding: alcohol and tobacco sales; supply chain issues regarding police cars; and if there are items for concerns in the near future. 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 Cole to enter Executive Session at 4:16 p.m. Roll call vote to enter Executive Session. 8 Yes: Barranco, Cole, Jensen, Merkouris, Neitzert, Selberg, Soehl, Starr; 0 No: (None). Motion Passed. A motion was made by Council Member Jensen and seconded by Council Member Selberg to exit Executive Session at 5:01 p.m.. Voice vote to exit Executive Session. 8 Yes: Barranco, Cole, Jensen, Merkouris, Neitzert, Selberg, Soehl, Starr; 0 No: (None). Motion Passed. 7. Adjournment The meeting was adjourned at 5:01 p.m. Denise D. Tucker, MMC, Assistant City Clerk