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HomeMy WebLinkAbout2021_11_09 CC Mtg PresentationCITY OF BROOKINGS |Meeting Agenda | CITY COUNCIL "We are an inclusive, diverse, connected community that fuels the creative class, embraces sustainability and pursues a complete lifestyle. We are committed to building a bright future through dedication, generosity and authenticity. Bring your dreams!" Tuesday, November 9, 2021| 6:00 p.m. | City & County Government Center The City of Brookings is committed to providing a high quality of life for its citizens and fostering a diverse economic base through innovative thinking, strategic planning, and proactive, fiscally responsible municipal management. Brookings City & County Government Center –520 3rd St. –Brookings, SD 57006 –Phone: (605) 692-6281 6:00 PM REGULAR MEETING 1. CALL TO ORDER PLEDGE OF ALLEGIANCE- 2. RECORD OF COUNCIL ATTENDANCE - 3. CONSENT AGENDA -Action: Motion to Approve, Request Public Comment, Roll Call Matters appearing on the Consent Agenda are expected to be non-controversial and will be acted upon by the Council at one time, without discussion, unless a member of the Council or City Manager requests an opportunity to address any given item. Items removed from the Consent Agenda will be discussed at the beginning of the formal items. Approval by the Council of the Consent Agenda items means that the recommendation of the City Manager is approved along with the terms and conditions described in the agenda supporting documentation. CONSENT AGENDA A. Approve the agenda. B. Approve the October 26 City Council minutes. C. Resolution 21-088: Wine Operating Agreement renewal for Schoon’s Pump N Pak South. D. Resolution 21-089: Wine Operating Agreement renewal for Wooden Legs Brewing Co. E. Resolution 21-090: Wine Operating Agreement renewal for McCrory Gardens Visitors Center. F. Resolution 21-092: declaring surplus property. G. Resolution 21-093: sunset various committees and task forces. H. Resolution 21-095: removing uncollectible delinquent accounts from the records. I. Relocation, Displacement, and Acquisition Plan for the Community Development Block Grant. 4. ITEMS REMOVED FROM CONSENT AGENDA -Action: Motion to Approve, Request Public Comment, Roll Call 5. OPEN FORUM -PRESENTATIONS -REPORTS 5.A. PROCLAMATION -Small Business Saturday November 27, 2021 5.B. PROCLAMATION -Stephanie Ballard Day 5.C. SDSU Student Association Report -Anna Shane -SDSU Student’s Association Government Affairs Chair 5.D. OPEN FORUM -At this time, any member of the public may request time on the agenda for an item not listed. Items are typically scheduled for the end of the meeting; however, very brief announcements or invitations will be allowed at this time. 5.E. REPORT -3rd Quarter Chief Financial Officer Report CFO’s Report Q3 2021 City of Brookings REVENUES FY2021 B Prorated YTD 2021 B 2021 YTD A Δ $ F/(U)Δ% Sales Tax: 1st Penny $6,904,449 $5,142,843 $5,639,129 $496,286 9.7% 2nd Penny $6,904,449 $5,142,934 $5,639,128 $496,194 9.6% 3rd Penny $825,000 $591,782 $726,506 $134,724 22.8% BID (Pillow Tax)$170,000 $125,908 $170,700 $44,792 35.6% Total $14,803,898 $11,003,467 $12,175,463 $1,171,996 10.7% Property Tax:$3,513,073 $1,870,067 $2,010,493 $140,426 7.5% Grand Total $18,316,971 $12,873,534 $14,185,956 $1,312,422 10.2% 15 2021 Jan –Sep Tax Revenue Revenue Tax Collected vs LY vs Budget Total tax collected is 10.2% above budget or $1.3M Sales driven tax revenue is 7.8% higher than last year and 10.7% above budget or $1.17M Last year’s figures include COVID-19 related impact, thus year over year comparison seem materially favorable Our current budget has the following growth revenue factors vs last year —1st & 2nd Penny + 5.3% —3rd Penny or “Tourism” + 17.5% —BID or “Hotel” + 25% A Actuals Δ Variance B Budget 2021 3Q Tax Revenue & Other Income Notes -Proration of tax revenue is based on average monthly historical timing of collections -The sales tax reported period is for the previous month’s actual activity; thus, the reported numbers represent December’20 to August’21 economic activity +10.7%+7.8% Year over Year (YoY) declines in the Construction, Manufacturing and Transportation industries have been offset by gains in the Wholesale Trade, Retail Trade, Services and Finance, Insurance and Real Estate sectors 16 2021 Jan –Sep Sales Tax Revenue by Industry Category YTD YoY A Agriculture, Forestry and Fishing 136,111 11.1% C Construction 225,496 -26.0% D Manufacturing 536,913 -13.1% E Transportation, Communications, Electric, Gas, and Sanitary Services 867,772 -12.3% F Wholesale Trade 1,169,447 12.1% G Retail Trade 7,273,943 10.9% H Finance, Insurance & Real Estate 196,130 19.7% I Services 1,712,775 8.1% O Other 2,505 -69.9% T Total 12,121,093 6.4% Additional sales tax information can be found in the City’s Performance Management Dashboard through the following link —City of Brookings, SD -Performance Analytics -Envisio 17 2021 Remote Sellers* Tax Update This year, Remote Sellers Tax has accounted for 7.5% of total Sales Tax on average The remote sellers tax revenues has ranged between $76K and $113K 7.0%7.6% 9.7% 6.0% 7.0% 7.6% 8.3% 5.8% 7.0% % Remote Sellers Tax as a percent of Sales Tax *A remote seller is a business located in another state that lacks a physical presence in South Dakota but makes sales to South Dakota. This tax was formally implemented in South Dakota in November 2018 6.0% 6.7% 7.9% EXPENDITURES:FY2021 B Prorated YTD 2021 B 2021YTD A Δ $ F/(U)% Used Δ Revenue $ F/(U) Animal Control $168,660 114,537$ $73,055 $41,482 43.3%($3,630) Aquatic Center $402,731 355,989$ $303,363 $52,626 75.3%$43,948 City Attorney $111,000 83,250$ $82,007 $1,243 73.9%$0 City Clerk $256,523 202,212$ $200,460 $1,752 78.1%$5,093 City Manager $643,745 473,420$ $436,574 $36,847 67.8%$8 Community Development $858,237 640,276$ $589,866 $50,410 68.7%$63,435 County Reimbursement $387,400 290,550$ $180,429 $110,121 46.6%($51,942) Finance $659,960 490,815$ $454,183 $36,632 68.8%$440 Fire Department $797,643 605,347$ $559,827 $45,520 70.2%$48,652 Forestry $396,943 298,674$ $253,320 $45,355 63.8%($2,355) Government Buildings $180,521 135,391$ $104,608 $30,783 57.9%$0 Human Resources $468,931 318,654$ $292,466 $26,188 62.4%$3,475 Hydrant Rental $102,000 68,000$ $66,940 $1,060 65.6%$0 Ice Arena $504,727 325,736$ $337,669 ($11,933)66.9%($18,214) IT $381,010 254,160$ $293,668 ($39,508)77.1%$0 Library $1,166,490 845,913$ $748,736 $97,177 64.2%($1,973) Mayor & Council $113,447 71,233$ $72,469 ($1,236)63.9%$0 Parks Department $1,524,603 1,174,433$ $1,123,992 $50,441 73.7%$331 Police Department $4,015,465 2,834,334$ $2,680,578 $153,755 66.8%($33,744) Public Works $503,163 374,204$ $323,881 $50,323 64.4%$0 Recreation Department $476,509 354,905$ $293,289 $61,615 61.5%($15,786) Street Department $2,452,572 1,790,479$ $1,545,990 $244,489 63.0%($3,604) Subsidies/Appropriation $999,880 913,925$ $731,644 $182,281 73.2%$20,000 Non Departamental $2,647,336 1,633,452$ $2,333,186 ($699,735)88.1%$2,129,901 Total $20,219,499 $14,649,890 $14,082,200 $567,690 69.6%$2,184,036 General Fund 18 2021 Jan –Sep Budget vs Actuals –General Fund Total General Fund expense is at 70% of total budget, which represents a $568K surplus vs budget A large part of this surplus is attributed to timing of expenses and staff vacancies Departments that show a current deficit vs historical spend are expected to close the year under or at budget Total revenues are $2.1 K higher mainly driven by the American Rescue Plan Grant Funds received in Q3 A Actuals Δ Variance B Budget Notes -Proration of expenses and revenue are based on a 2yr monthly historical timing average EXPENDITURES:FY2021 B Prorated YTD 2021 B 2021YTD A Δ $ F/(U)% Used CIP $12,513,869 $6,165,621 $3,392,144 $2,773,477 27.1% All Other*$28,063,518 $18,858,913 $11,662,570 $7,196,343 41.6% Grand Total $60,796,886 $39,674,424 $29,136,914 $10,537,511 47.9% 19 2021 Jan –Sep CIP and Other Funds Budget vs Actuals Excluding all non capital project expenses1, CIP fund is at 37% of budget with a total spend of $2.7M. —Main initiatives funded to date are the Debt Payments, Street work, Fire Department truck, Parks & Rec Improvements and Equipment and Vehicles for the Streets, Police and Parks & Rec Departments Overall City spending is at 48% of budget A Actuals Δ Variance B Budget Capital Improvement Projects & Other *All Other –Other Government , Special, Capital Projects and Enterprise Funds managed by the City. Excludes Swiftel Center 3Q Capital and Operational Expenses Capital Improvement Spend by Project 1 Non Capital project expenses include transfers, debt payments and sinking fund Debt Payments, $2,382,789 , 36% Street & Sidewalk Improvements, $2,946,396 , 45% Fire Dep , $542,062 , Police Dep , $242,204 , 4% Parks & Rec Improvements, $237,032 , 4% Vehicles and Equip Capital Exp, $170,723 , 3% 20 City Council Priority Project List General Fund Reserves Current Estimated Unassigned Liquid Assets Balance 14,080,969$ General Fund Reserve Balance of 15% 2,685,261$ Budget Stabilization Reserve of 5%895,087$ City Council Priority Funding Available Balance 10,500,621$ City Council Approved Projects*Cost 2021 Facility Improvements (Budget appropriation)1,400,000$ Public Safety Center - PM, Design & Engineering 522,200$ Housing Study 35,000$ Total CC Approved Projects 1,957,200$ *Formally Adopted Priority Funding Available Balance After Approved 8,543,421$ Primary Projects (IN priority order)Cost 2022 Facility Improvements 1,100,000$ FD Training Tower 440,000$ Public Safety Center 6,477,800$ Food Bank 300,000$ Downtown Master Plan 35,000$ Indoor Rec 850,000$ Total Unapproved Primary Projects 9,202,800$ Priority Funding after Unapproved Primary Projects (659,379)$ Secondary Projects (IN priority order)Cost 2023 Facility Improvements 1,442,050$ 2024 Facility Improvements 1,756,957$ 2025 Facility Improvements 2,318,312$ Parks - Bike Trails 3,460,000$ Pay Down Debt -$ Total Unapproved Secondary Projects 8,977,319$ Priority Funding after Unapproved Secondary Project (9,636,698)$ Desired Projects (NOT in priority order)Cost PD - Training Simulator 300,000$ PD - K9 Vehicle 65,000$ PD - Marked Vehicle 62,000$ PD - Charget 52,000$ Streets - 3rd Street Sweeper 215,000$ Parks - Pickle ball Court 250,000$ Parks - Splashpark 250,000$ Parks - Outdoor Offices 30,000$ Parks - Larson Park Shelter 200,000$ Parks - Blue Rink Dehumidification (LIA)160,000$ Parks - Floor Replacement (LIA)96,000$ Parks - Parks Maintenance Addition 600,000$ Parks - Larson Park Fountain 100,000$ Parks - Bridge to East Pond - Dakota Nature Park 30,000$ Parks - Shop Addition 600,000$ Swiftel - Outdoor Marquee (22nd Ave)41,500$ Parks - Re-Build East Lot - Larson Ice Arena 270,000$ Swiftel - East Lot - Swiftel Center 320,000$ Parks - Larson Park Pavilion 200,000$ Total Unapproved Desired Projects 3,841,500$ 21 2021 Economic Update The Conference Board forecasts that annual US Real GDP growth will come in at 5.7%. Looking further ahead, they forecast 3.8% of economic growth in 2022 and 3% in 2023 —Growth drivers: consumer spending and in-person services in the final months of 2021 —Concerns about inflation risks remain high until early 2022 Locally, we believe that the forecasted US economic trend is likely to be as strong given current sales tax trends, however South Dakota is also experiencing similar high inflation levels (5.7% in sept vs last year) —We also remain cautious of our region’s economic outlook growth due to three main factors: tight labor market, supply chain constrains and a potential COVID wave Sources: https://www.conference-board.org/research/us-forecast PCE (Personal Consumption Expenses, includes food and Energy) https://www.bea.gov/data/gdp THE CONFERENCE BOARD US ECONOMIC OUTLOOK Percentage Change Annual Rates 2020 2021 2022 2023 Real GDP -3.5 5.7 3.8 3.0 Unemployment Rate (%)8.1 5.5 4.1 3.4 PCE Inflation (%Y/Y)1.2 3.6 3.0 2.0 22 American Rescue Plan (ARP) –City of Brookings Allocation: $4.37M Sep ’21 First Deposit $2.18M Sep ’22 Dec ’24 Deadline to obligate funds Second Deposit $2.18M Dec ’26 Deadline to expend funds Eligible Funds Usage To respond to the public health emergency (COVID–19) or its negative economic impacts including: •COVID-19 mitigation and prevention, medical expenses, behavioral health care, design and execution of health programs Premium Pay to workers performing essential work during the COVID–19 public health emergency Revenue replacement (excluding utilities) To make necessary investments in water, sewer, or broadband infrastructure Cannot be used to match other Federal Grants Mar ’21 Eligible costs have to incur after March 3, 2021 City Leadership is designing a community engagement process to help prioritize funds usage based on current and long term community needs 23 Questions or Comments? Erick Rangel CFO 605-697-8640 erangel@cityofbrookings-sd.gov https://cityofbrookings-sd.gov/200/Finance-Department Please contact the City of Brooking’s Chief Financial Officer : 24 Appendix 25 City Council Priority Project List –Facility Improvements Detail 2021 Facility Improvements -$1.4M Library Repairs (HVAC, Cabinet Heater, Doors, Juice Bar Cabinet Removal and Wall Repair) -$765k Police Emergency Repairs (HVAC) -$200k Larson Park Parking Lot -$175k Larson Ice Arena (HVAC, Flooring) -$100k Southbrook Restrooms -$100k Activity Center (Windows, Fire System –ADA Compliance) -$50k HAC Pool Heater -$38k 2022 Facility Improvements -$1.1M Library (Air Chiller, Windows, Ceiling Tiles) -$525k PD (Carpeting, Electrical Upgrade, Lighting (may be reduced)) -$210k Activity Center (Electrical Upgrades) -$145k Fire (East Station Remodel, Lighting (may go away with LED conversion energy savings project)) -$110k Swiftel (Doors, Restroom Upgrades), Nature Park (Resealing Building), Airport (Shed Doors/Frames) -$110k 26 American Rescue Plan (ARP) -Program Overview $4.37 M Allocation to the City of Brookings Allocation distribution will be managed by the State Distribution will be made in two tranches at least 12 months apart Eligible costs have to incur from March 3, 2021 until December 31, 2024 (expendable by December 31, 2026) Early guidance allows for the following uses : •Revenue loss •Premium pay •Investments in Water, Sewer, and Broadband •Public Health/Negative Economic Impact Program Highlights 6. CONTRACTS -CHANGE ORDERS 6.A. Resolution 21-094 -Professional Services Agreement with RESPEC Company, LLC, for the Six-Mile Creek Feasibility Project. Action: Motion to Approve, Request Public Comment, Roll Call Six-Mile Creek Study Area 7. ORDINANCE FIRST READINGS -The title of the Ordinance is read. No vote is required on the first reading of an Ordinance. Public Comment and Council discussion is permitted. The date for the second reading or public hearing is announced. 7.A. Ordinance 21-036 Repealing Sections 2-261 through 2-272 of the Code of Ordinances pertaining to the University Community Coalition. Second Reading: November 23, 2021- 8. PUBLIC HEARINGS and SECOND READINGS - 8.A. Ordinance 21-037 An Ordinance for the 2022 Budget Appropriation. Action: Motion to Approve, Request Public Comment, Roll Call- 8.B. Ordinance 21-039 An Ordinance Authorizing Supplemental Appropriation No. 5 to the 2021 Budget. Action: Motion to Approve, Request Public Comment, Roll Call- American Rescue Plan Funds Brookings County Food Pantry City of Brookings Photo Library Brookings Arts Council Elevator City/County Building Air Conditioner Ordinance 21-039 –Supplemental Appropriation No.5 Ordinance 21-039 –Supplemental Appropriation No.5 Part Amount Description 2021 Budget Impact 1(a) -ARPA Grant Funds $2,183,026.04 Recognize 1st half of City’s allocation Incremental 1(b) –ARPA Grant Expenditures $250,000 Additional budget authority for ARPA -related Expenditures Incremental 2 –Brookings County Food Pantry $300,000 Transfer from CCPPF to Capital Project Fund for Consulting & Engineering and Furniture & Equipment Incremental 3 –City Photo Library $5,000 Additional budget authority to develop City of Brookings photo library Incremental 4 –Brookings Arts Council Elevator Replacement $68,260 Transfer from CIP “Sinking” Fund to General Fund Rec.Department Not Incremental 5 –City/County Building Air Conditioning $25,000 Transfer from CIP “Sinking Fund to General Fund City/County Building Department for A/C breakdown costs Not Incremental 8.C . Ordinance 21-038 An Ordinance to Rezone Lots 2-5 of Block 5 in Pheasant Nest Addition from Business B-2 District to Residence R-3 Apartment District. Action: Open & Close Public Hearing, Motion to Approve, Roll Call- Pheasant Nest Rezone: Area Map Pheasant Nest Rezone: Zoning Map 8.D. Ordinance 21-032 TABLED ITEM: Rezoning a portion of Arbor Hill Addition from Residence R-3 Apartment District to Business B-2 District. Action: Motion to remove from the table, Roll Call Action: Open & Close Public Hearing, Motion to Approve, Roll Call- ArArbor Hill Addition Rezone Request – Future Land Use Arbor Hill Addition Rezone Request 9. OTHER BUSINESS - Adopting the Consolidated Fee Schedule. Action: Motion to Approve, Request Public Comment, Roll Call 9.A. Resolution 21-091 - Fee Changes Effective January 1,2022 Fee Description Current Fee Fee as of January 1,2022 Residential Building Permit Fees Finished habitable space per square foot $85.00 $90.00 Finished basements per square foot $40.00 $45.00 Landfill –240 Pound Material Minimum (Plus Sales Tax and $1 per Ton State Fee) Commercial $43.00 $44.00 Compost/Leaves/Grass $43.00 $44.00 Demolition $43.00 $44.00 Domestic $43.00 $44.00 Industrial $43.00 $44.00 Metal $43.00 $44.00 Asbestos $43.00 $44.00 Fee Removals/Clarifications Removals: Half-day Picnic Shelter Rental Option at Pioneer Park and Hillcrest Park –Full Day Only Commercial Solid Waste Collection and Dumpster Charges –No longer providing these services Clarifications: Sales Tax charged on refrigerators/air conditioners,mobile homes,and tires brought to Landfill Non-Commercial clean wood/lumber,trees/branches,compost,and recycled compost generated within the service area -Waived Adopting the 10-Year Capital Improvement Plan. Action: Motion to Approve, Request Public Comment, Roll Call 9.B. 10-Year CIP - 10. CITY COUNCIL MEMBER INTRODUCTION OF TOPICS FOR FUTURE DISCUSSION.-Any Council Member may request discussion of any issue at a future meeting only. Items cannot be added for action at this meeting. A motion and second is required stating the issue, requested outcome, and time. A majority vote is required. 11. ADJOURN -Brookings City Council Oepke Niemeyer, Mayor | Nick Wendell, Deputy Mayor | Council Members Leah Brink, Joey Collins, Holly Tilton Byrne, Patty Bacon, and Wayne Avery Council Staff Paul M. Briseno, City Manager | Steven Britzman, City Attorney | Bonnie Foster, City Clerk | View the City Council Meeting Live on the City Government Access Channel 9. Rebroadcast Schedule: Wednesday 1:00pm/Thursday 7:00pm/Friday 9:00pm/Saturday 1:00pm The complete City Council agenda packet is available on the city website: www.cityofbrookings-sd.gov Assisted Listening Systems (ALS) are available upon request by contacting (605) 692-6281. If you require additional assistance, alternative formats, and/or accessible locations consistent with the Americans with Disabilities Act, please contact Susan Rotert, City Human Resources Director and ADA Coordinator at (605) 692-6281 at least three working days prior to the meeting.