HomeMy WebLinkAboutCCMinutes_2009_08_11 413
Brookings City Cour�cil
August 11, 2009
The Brookings City Council held a meeting on Tuesday,August 11, 2009 at 4:00 p.m., at City Hall
with the following members present: Mayor Tim Reed, Council Members Julie Whaley,John Kubal,
Mike McClemans,Jael Trieb and Tom Bezdichek. Council Member Mike Bartley was absent. City
Manager Jeff Weidon, Deputy City Attorney Dick Smith, and City Clerk Shari Thornes were also
present.
Presentation of"Building on our Successes and Stren_gths" b�Mayor Tim Reed.
Mayor Tim Reed shaxed his vision for the city over the next three yeaxs, and some short-term goals
over the course of the next year.
He said Brookings is coming from a pretty good place; everything in front of us is opportunities.
The City will see a little tougher time with the economy and sales ta.x revenue,but in gene�al we
really are building on our successes and strengths.
Citv o Brooking.r Mi.r�ion Statement.• `The City of Brooking.r i.r comrnitted to providing a high qsrality of life for at.r
cititien.c and fo.ctering a diverse economic ba,re through innovative thinkin� .rtrategic plannin� and proactive fz.rcally
re.rpon.riGle municipal management." Reed said the City needs to ta.ke a look at the Mission Sta.tement as
we look at what we want to do moving forward. When looking at the mission,Reed stated the
things that really pop out to him are `high quality of life', `diverse economic base' and how do we get
thYOUgh those two issues. We have to do it with some `innovative thinking' and good `strategic
planning'.
Reed commented that our house is in order, and credits that to curxent and previous Councils. 1)
We are doing a good job with open government by broadcasting Council meetings on TV and the
web, and looking at purchasing Granicus software to name a couple. 2) The City Manager/Council
form of Government is maturing with a better understanding of roles. Reed has received many
comments on the Council and how they seem to get along quite well, and credits that to the Council
members themselves. 3) Though there are disagreements among the Council members at times,
they are able to move on and go to the next issue and that is always app�eciated. 4) Our fiscal
responsibility has allowed us to invest;we look at where we can invest versus what can we do to
increase our revenue. 5) Council's willingness to invest their time to improve their knowledge and
skills. He sees the Council's attendance at the National League of Cities Confexence as very
important. 6) City Manager Jeff Weldon has done a great job. Reed appreciates his communication
style. Reed gave an example that occurred at the last Council meeting: the Council had to woxk
through a difficult/complicated issue of doing some land swapping. The Council didn't have a lot
of questions, and a lot of that was due to Jeff's great communication style and filling the Council in
on what is going on and what needs to get done.
Reed stated a quote by Yogi Berra"You've got to be very careful if you don't know where you're
going because you might not get there." Reed said he believes we need to continue to have the best
plan possible,in order to know where we are going. Resources are limited, and will feel the effects
of that over the course of the next year,unless sales tax rebounds quickly. Linear decision making
needs to be avoided. We need to look out and gather everything we may want to do in order to pick
the best out of that group of items. We need to manage change instead of reacting to it;be a step
ahead of it as much as possible. Change is coming. We need to continue to look outside of our
environment;what sort of changes do we see coming that will change the way the city operates. It is
important to understand our strengths and weaknesses. What are we really good at? What can we
capitalize on? Where are we weak? How can we change that? How can we make ourselves bettex?
We need to understand who we want to be and where we want to be as a community. That is all
done through strategic planning.
With Strategic Planning, Reed stated you are looking to hit the "Sweet Spot." Reed adapted this
from PYactical Strategic Planning for Local Governments, a NLC LTI Seminar by Dr. David Van
Slyke on 3/8/2008. We need to look at what we would like to accomplish;that is our mission.
What should a city be doing and what is feasible are Oppoxtunities and Obstacles. We ha.ve to
understand what opportunities are out there that we need to capitalize on,but then also understand
what could be in the way. We have to realize that we can't do everything,but we have to do what is
feasible. We also need to understand what we are capable of doing and we have to make sure we
understand our assets and strengths and what resources there are. If you take a look at all three of
41 �
those (Mission, Opportunities & Obstacles,Resources &Assets &Strengths), that is where you hit
the Sweet Spot.
Reed proposed some changes to the planning retreat for next year. We have gotten linear in our
way of thinking, always seeing a list. Is there anything on that list from last yeax that we would want
to add, change, or reprioritize? We need to step back and look at the whole environment and what
we may want to do that is not on that list. What do we, as the current Council,want to be known
for five ... ten years from now? What axe the issues facing us into the far futu�e? Those are the
environmental changes happening around us.
Now is the time to invest in the future. Our previous fiscal restraint has pYOVided the opportunity
to have money available to invest in the city. The 2°d Penny budgeting process;the idea of taking
that 2°d penny out and budgeting it separately. Not putting it into the general fund has served well
and allowed the ability to make some pretty good investments. In going forward,we need to look
for investments that have economic and quality of life returns;where can we get the most bang from
our buck. And today,more than evex,we have to hit that sweet spot with our projects.
A great job has been done with 2°d Penny Investments. 1) The Swiftel Center contributes to
economic benefits and also quality of life. It brings people into the city,but also hosts events for
residents; concert venues,Uncle Sam Jam,Wing Fest, etc. Reed stated he has always looked at
Pioneer Park and how that was a gathering place years ago, and how now we need a bigger venue
with a bigger parking lot. 2) Brookings Public Library. Reed stressed it is always good to be
investing in the public library. 3&4) The Performing Arts Centex and SDSU Wellness Center have
been two very successful investments. 5) The Larson Ice Arena has been a fantastic venue and has
brought a lot of people into town. 6) Brookings has one of the better Water Parks in the state. �
The Innovation Campus. This is the newest 2"d Penny Investment,which is a risky one. But,we
have cominitted to moving onto the knowledge economy and axe going to see and hear more and
more. We have to capitali.ze on that by bringing talented people to Brookings to fill the Innovation
Campus. 8) Dxainage improvements. City staff has done a texrific job on bringing this fonuaxd, and
are really leading the Council through the decisions that need to be made.
Reed shared a story from the book"The College On The Hill"written by Amy Dunkle and V J.
Smith. In 1881,John Scobey was a Brookings legislator. He brought forth legislation to have the
South Dakota.Land Grant College based in Brookings. Governor Ordway signed off on it,but just
like today,no funds were appropriated. The community had to purchase no less than 80 acxes.
$602 was donated by the community and the land was purchased. Scobey went to the Legislature
and asked for a$25,000 bonding bill in order to build on the campus. Politics were involved,but
Governor Ordway supported the bonding bill because all the other communities that wanted to
have a school were looking for pure `giveaways'. The legislatute liked the idea that Brookings was
also investing in the school. We've done a lot of great investments and it started back with a$602
Investment in this community by the community.
Reed stated four different areas in moving forwaxd with investments that axe important: 1)
Uniqueness. 2)Today's race is for Talent. 3) Invest in and Protect our Assets. 4) Be ready when
opportunity knocks.
Urai�uene.r.r. A more unique strategy is needed with oux investments; capitalize on what our strengths
are today. In regards to the Swiftel Center expansion study, there was an article in Prairie Bu.rine.r,r
Magatiine in July 2009 entitled"Building Boom." This article talked about conventions as a zero-sum
market and that currendy there is more convention space than demand. This would put us in a
place where we would always be chasing the market,becoming more of an investment foY us,and
also spending more attraction dollars. There needs to be some uniqueness to draw people to
Brookings, otherwise,we are going to continually have to invest and try to one-up everyone else in
other communities. Reed questioned if an investment in a McCrory Gardens Visitors Center made
more sense to capitalize on something special we have, or do we chase or find something different
that we can do with our investments.
Todav'.r race i.r=for Talent. This is based on the Cxeative Class Theory,which argues that the knowledge
and ideas for economic growth axe embodied in occupations moving high levels of creativity,which
is a source for the knowledge economy. The idea of stealing companies fxom other towns is ovex.
We need to find a talent. We need to attract the cxeative class. If you look at studies,Brookings is
considered a creative class county...having twice the job growth as other axeas. What is im.portant is
that the creative class tends to seek a high quality of life. This goes back to our mission and is one
thing we know we have to do is to have a high quality of life: cultutal dive�sity,active street scenes,
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and recreational opportunities. We need to invest in economic development at the same time as
quality of life. Quality of life is an investtnent in economic development.
Inve.rt in and Protect ourA.r.ret.r. We have done such a great job and we can't forget about some of the
places we have invested: 1)�safe, beautiful, and clean tozvn. Beautiful and clean may sound like they
are the same, but it is about the way we clean our streets. That is one of the first things heard from
visitors...our streets are so clean. That's one of our uniquenesses, one of our niches that we have to
make suxe that we do. Beautiful speaks more as to what we do with our trees, our parks. 2) Good
,rtreets. When people come through town and see bad streets they think that town is not worth
investing in. We know that we are worth investing in and it is great to have these good streets. 3)
Park.r and Kecreation Facilitie.r. We have done a great job and we have to continue to do even better.
4)Inve.rt in the K-12 education.rystem�vith funding. That is something that we always have to make sure
that we capitalize on. Partnerships are really irnportant with the education system. S�SDSU. SDSU
is very important to our economic base and is really one of our jewels. We are Iucky to have the
state's largest univexsity in Brookings.
Be read avhen o��ortunitv knock.r. Our current financial strength is due to general fund expenditure
restraint duYing high sales tax gxowth. We have the ability to invest because we kept our growth in
expenses minimal and had surplus coming in from tax funds. The problem currendy is that sales tax
growth has been flat for the first si�c months of this year. We haven't had to deal with that for
several years. During low or no growth periods we need to rely on our second penny funds for our
investments. We are not going to be taking off the top this large sales tax growth for investments.
It is going to be very important that we save bonding capacity and second penny funds for those
unexpected opportunities that may come along. We should not bond completely up to our capacity.
We should always have some space there so we might be able to do some other investments.
Buildin�on ourEconomic and Communitv Stren�h.r. Much of this came from a NLC Municipal Action
Guide `Building on Your City'.r Economic Strengths'. Challenge and Strategie.r. A Sense of place is more
important than ever before in attracting businesses; even more so than tax bxeaks and incentives.
We need to have an attractive place to live and woxk. We need to focus on being the center of
knowledge,innovation, and ideas. This is where we are going to attract the companies to come
here, and may attract people to start companies here,because they know what we have for a talent
pool. We always need to be looking at what can we capitalize on or add to in order to imp�ove our
sense of place.
A very crucial aspect of quality of place is a vibrancy of cultuYe and community life. 1) It i.r important
to look at our creative art.r and culture activitie,r. The City Manager and staff axe working to have a
Recreational Facilities and Paxks Master Plan done by the next Council�etreat. We need to look 5-
10 years out so we can prioritize what needs to be done. It is important to take a good Iook at the
investment in the Performing Arts Center and McCrory Gaxdens. 2)Neighborhood j�reservation. It is
important that we have diverse neighborhoods;nice and appealing older neighborhoods with the
choices of newer neighborhoods. 3)Su.rtainability. Create a Sustainability Council over the course of
the next year. 'The Council wouldn't be just about changing light bulbs,windows, or enexgy savings,
but taking and tackling some laxger problems and partnering with SDSU. SDSU has a lot of good
resources and if there's something that the city could do that may add job growth; that is what the
Sustainability Council would be. We don't advertise enough about some of the great things we do
to be a green town: spring cleanup,recycling program going single-stream. Going single-stream with
oux recycling is huge ... many communities argue about going single-stream. 4)It isgoing to be very
important through thi.r Creative Cla,r.r and.cen.re of place that zve have a vibrant dosvntoum and more retail option.r.
Reed would like to see a greater powntown Plan created. We've done a great job with the
streetscape, now what can we do to bring more density,more businesses back downtown;not just
Main Street, but a block ox two off on either side. If this plan was in place while trying to figure out
where to put the counry administrative building, there would have been a general idea ahead of time
with some potential locations to look at. We need to get this done. The funding isn't there this pear
to hixe someone,but would like to add it to the list for the year after.
The City Manager has been working with the EDC on a Retail Attraction Plan. This is something
everybody needs to realize that it is being looked at,and is very important in quality of place.
Su�p�ort homegrosvn talent e�'busines.re.r. We need to capitalize on the knowledge town concept. 1) The
Children's Museuxn will play a role in Brookings being a knowledge town. If we can bring kids here
as early as possible,we have a better chance of getting them back as SDSU students. We have to
continue to work with the school system. 2) South Dakota is the only state in the nation that
doesn't have a Math&Science Academy. Brookings would be a gxeat pla.ce. It could be a long-
41 �
term goal. 3) SDSU. There is a lot of talent that walks across the stage �here, and we have to be
able to attract and retain them. 4) The Innovation Campus is where we are going to develop our
home-grown businesses. The concept is there for the I-Station,which is our only incubation a�ea
right now. We need to take a look at some build-out funds. They have the building,but we need to
take a look at some of the building out that needs to be done within the builcling for a business to fit
into the I-Station.
Identi build, andgroav bu�ine.r.r clu.rter.r. The I-29 study is in the process of getting set up. This needs to
be done before the next Council planning retteat. The I-29 study will tell us what our regional assets
are. We need to understand what we should be looking at in talented people,what areas do we excel
in, and then figure out what is possible—what could we do with focus and investment. This is a
High-Level Regional Game Plan;we need to come back to being regional when building businesses.
This is going to be very ixnportant when we look at where we are going to invest.
Per�ormin�Art.r Center I�e�ue.rt(PAC). In looking at and attracting the creative class and what we can
capitalize on,what is something special that we do or have? The Performing Arts Center is
something that comes to mind. SDSU's President Chicoine has commented that clearly the strategic
plan for the University is an enrollment target of 13,600 by 2012. This cannot be achieved without
the PAC II Project being moved forward. If SDSU had a 1,600 student increase, that turns into
$14.4 million in economic development, or roughly$9,000 per student per year accoYding to a study
done by Dr. Shane in 2000-2001. This study was correlated xecently with a study done by DSU
looking at the value of a student in Lake County. That numbex has been qualified. The University
has embarked on a$190 million goal of private funds to be invested in SDSU of which the city will
benefit. How can we paxticipate in what SDSU is doing? We can't commit in the short-term or
even during this budget cycie,but it is something that we could do outside of the budget cycle.
However, there is still the uncertainty with the Airport; that could cost up to $12 million. Until it is
known what is going to occur with the Airport and its location,we really can't go forward with
something like the PFA Center or investing in convention space at the Swiftel Center. The airport
needs to first be resolved. We also have to decide what the amount is that we would invest and
what the conditions would be with that investtnent. Since 1881,Brookings has invested in SDSU,
beginning with that first$602. Theater patrons provide an economic return of$1.4 million. The
PAC with High School Music and Drama events could attract potentially 2,300 students and their
parents/family to SDSU/Bxookings. We have to continue to attract students to SDSU. We are
competing with Sioux Falls; the Universiry Center is there and their advertising is that it is equally
for full-time students and not just those that axe working. WE have to protect SDSU. SDSU fits
the quality of life enhancement with arts and culture. It fits into economic development as it is
Visitor Promotions and it helps attract and retain the creative class.
The Citv Council'.r l�ole in Economic and Communitv Develo�ment. What is specia,l about Brookings is that
we have a lot of different groups that are helping us along in this development process from the
Growth Paxtnership, the EDC, the Chamber, etc. We need to coordinate what is being done. A
good example is the Transportation Plan. BATA came to us with an opportunity to expand and
have a better facility. It was a quick request, there were extra funds,but it wasn't on our radar. Had
it been,we would have been more prepared. We need to put all of this in one place,like a 3-ring
notebook. Community Development,under the City Manager's leadership, could be responsible for
it. There are a variety of studies/plans out there: BEDC,Housing Study,Long-Terxn Health Cate
Study, Health Care Plan from the Hospital, School District Plan,Parks Plan, Regional Plan that we'd
like to get done, the Retail Plan we have,what does the chamber want to do with their action plan,
the I-29 Plan,the Promotion Plan,the University's Plan—both theix strategic and Maste�Physical
Plan, the Comprehensive 2020 Plan that we do here within the city, Innovation Campus plan,
Transportation Plan,BATA Plan, Safe Routes to School, and Council Goa1s to name a few. How
axe we going to keep track of all these? All of the information on these studies/plans needs to be
located in one place. He would like to have the City Manager's sta.ff put together a report stating
these are all the studies/plans and how they fit with the Council's goals. He would like to see this
done prior to the next Council planning retreat.
Mavor I�eed'r�ocu,r over the next�ear. 1) We need a more strategic planning process;including the 3-ring
notebook concept with all the studies/plans in the city and a summary of what would like to be
done. 2) Create a Sustainability Council. 3) The I-29 Cluster Report is very important. 4) Master
Plan for the Parks &Recreation Facilities. 5) Community& Campus Social Issue. Reed has an idea
for the Human Rights Committee. SDSU always has a social issue or a book that they promote for
the whole campus to read. He would like to take that aspect and do it through the whole
community and talk about one social issue that the whole town has read as well as the whole
417
university and help us make a connection to the university students also. He will be bringing this to
the Human Rights Committee in the next few weeks.
In the longer term,Reed would like to focus on: 1) Downtown Master Plan. This is something that
we'll have to find some money for to do in a year. 2)Administration &Public Safety Space Needs
Plan. 3) Math &Science Academy.
Items that are currendy on oux plate: 1) Airport. 2) Storm Drainage. 3) 34�' Street&20`h Ave.
overpass. This is a critical project for Brookings to grow and also for increased safety on US Hwy
14 Bypass and I-29, 4) industrial/retail land acquisition. This is something that we are always
looking at. 5) Bike Safe City. 6) Railxoad Safety. 7) Brookings Hospital expansion.
Reed has some concerns with sales tax growth. If revenues continue to fall,we need to not just
focus on cutting capital,but also focus on cutting expenditures. When Sioux Falls started realizing
that the revenue was not going to be what they expected, they cut capital. If we cut just capital, then
suddenly all of our machinery is in terrible shape. Reed would like to propose a scenaxio of
something that could be done: for example,let's say there was a 5%revenue drop of$682,119.
Right off the top we should decrease subsidies for the year by$68,000 or appxoxitnately 10%.
Everybody should have to feel the pain if there are more sales tax issues, and not only capital
expenditures. The rest of the cuts, 90%, could be split between capital expenditures and personnel
services/ expenditures categories. Reed didn't know if these percentages are the way it should be
done, but it is something to look at. Expenses don't decrease much. It seems as though we get into
a cycle where we are working on fixing capital for years, then thexe is an economic downturn and we
start pushing capital expenditures out again. This plan would stop any reserve spending. Reed
doesn't believe there should be any teserve spending if revenues fall. He feels this is something that
should be discussed following the budget, so there is a plan in place to give the City Manager some
direction on where we go if revenues begin to fall.
Reed thanked city staff for the terrific job they do each and every day, the City Manager, the City
Clerk and their departments for all the work they do for the Council, and his fellow Council
members for their time.
2010 Budget Message from Jeffrey W. Weldon, City Manager. 'I'he following is the City
Manager's written 2010 budget message in its entirety followed by his detailed comments made
during the budget session.
"July 30, 2009 -Dear Mayor Reed, City Council Members, and Citizens of Brookings: Pursuant to
state law,local ordinance,and our Governance and Ends Policy,it is my pleasure to pxesent to you
the proposed budgets for operations and capital investment for the City of Brookings for fiscal year
2010. This is my second budget that I have prepared for the City and represents ali fiscal budgets
for City operations exclusive of Brookings Municipal Utilities and Brookings Health System.
The purpose of this document is to augment the numbers and statistical analysis of the proposed
budget with a narrative that describes my budgetary recommendations and public policy
considerations that comprise the budget. I believe this is a responsible budget that fairly and
accurately provides for the xequired basic services as well as the desired services by the citizens of
Brookings. The proposed budgetary expenditures accomplishes this within the context of my
. recommendations in a prioritized ordex to the extent there is revenue availa.ble to finance them.
'The approach used by staff was to re-evaluate departmental services and programs,prioritize them,
and assign conservative but realistic estimates of expenditures to each item. As part of that process,
staff developed their respective departmental budgets within our goals of pexformance
measutements and in accoxdance with the Council's duly-adopted Governance and Ends Policy.
Given the uncertainty of the economy this year, this process was extremely challenging when
speculating about the next 18 months.
The General Fund is the pri.mary fund which runs the day-to-day operations of the City and is
balanced with $13,642,392 in xevenues and$13,642,392 in expenditutes. This represents a decrease
ovex 2009 of three percent, or$448,720,in revenues and expenditures respectively.
41 �
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We are transferring$2 tnillion out of the General Fund reserves,which was set aside in a reserve for
the purchase of the DOT property. This money will be used to provide interim financing for the
infrastructure of the SDSU Innovation Campus. The balance of the DOT property reserve is still
preserved for property acquisition. The total expenditures for all funds of the City are $30,538,636,
a decrease of two percent from 2009 primarily due to less capital projects. I Yeduced total
department head requests for all funds by approximately $2 nvllion.
Above all, this budget,with very few exceptions, represents a continuation of the same level of
services as the past year. The only increases in resources are due to meeting the needs of a growing
community with the same services. Over the past two fiscal years,we have been attempting to
recover ground lost during the economic downturn of 2000 when Brookings laid off staff and went
into a substantial but necessary mode of deferred maintenance on much-needed capital items. We
are emerging fxom that now with xesources incrementally and strategically increasing for a variety of
departments where they are needed.
Now,we are faced with more economic uncertainty. While Brookings is much better positioned
that much of the nation or even the State of South Dakota,we are feeling the effect of the
nationwide recession. For this reason,we have essentially "flat lined" many of our anricipated
revenues and expenditures for the coming year. What's more,we have again deferred the
replacement of some much-needed capital items sunply because we do not believe the revenue will
be available to pay for them. We have not dipped into our reserves because now more than ever,we
need adequate reserve fund balances to brace against a significant unexpected drop in sales tax that
could materialize from a calamitous event of one of our major employers. For these deferred capital
items,we will hold them in a "reserve" list and consider purchasing them if revenue rebounds
during the year. Until then, they will be deferred foY re-consideration to the 2011 budget.
Let's take a closer examination of the budget.
Revenues: Various sources of revenue finance different budgetary funds. The City propery tax levy
accounts for appro�nately 12 percent of a property owners' total levy with the Brookings School
District receiving the majoriry of this revenue source followed by Brookings County. The property
tax consritutes appro�mately seven percent (7%) of the total city revenue base. The property tax
Yevenue is expected to be$2,352,000 according to the County Finance Officer who makes this
calculation. This is an eight percent (8%) change from 2009 and is primarily based on assessed
valuation of property as well as new growth with an expanding tax base. Cities are under a property
tax freeze imposed by state law for
levies. The only growth seen is for � 40�� 10�% 7% ■ProperryTax
Su�� ■Sales&IiseTax
inflation and an expansion of the z�V'° tTransFerinOperations '
property tax base. 11°�� - -- � i
' „ ■TransferinCapital �
�;�` �+Licenses,pennits,ser•,ice charges,&fees �
The .rale.r and u.re tax is the rrimary ; ;
� Other Financing Soiuces
source of revenue for cities in South � ��y�
Dakota and accounts for 20'° `�;�� Goods&Ser�rices
approxirriately 31 percent of our i��ce�€o�•,e�„���e���r�
revenue base. The two peYCent sales � Niiscellaneaus,Fines
�__._._- ---____ _ _ _._ _ ___ _._. __— -_.____ ___
and use tax revenue is expected to
be $9,641,108, the same as what is anricipated to be Yeceived by year-end for 2009. By ordinance,
the first penny tax is dedicated to general operational expenditures primarily in the General Fund.
The second penny is divided into 25 percent of that total dedicated for streets,vehicles and
equipment; and 75 percent of that total dedicated for public improvements. Most of the second
419
penny sales and use tax is for capital projects and capital debt service. A third penny is also levied
on a na�roweY sales tax base of lodging, prepared food, on-sale alcohol sales, and admissions (BBB).
Use of the third penny is reserved for pYOmotional expenditures pursuant to state law.
Transfer.r in to the General Fund axe intergovernmental transfexs from public enterprise funds that
help finance the General Fund. They aYe as follows: Brookings Municipal Utilities $1,892,000;Solid
Waste Fund$440,000;Brookings Municipal Liquor Store $500,000 Research&Technology Center
$75,000. Part of the purpose of such trans£ers is to have the enterprise fund compensate the
Gene�al Fund for administrative services and support. This is the case for Liquor and Solid Waste
but not Utilities. Txansfers constitute appYO�mately nine percent (9%) of our revenue base.
Licen,re.r,j�ermit.r, .reruice charge.r d�'fee.r for.cerUice.r axe special benefit costs paid by users requesting specific
services fYOm the City for which there is a fee associated with pxoviding the service. Examples
include building permit fees, dog licenses,recreation program registrations,
and xequests for re-zoning. The total amount of service charges and fees for services is budgeted at
$6,580,886 and accounts for approximately 20 percent of our revenue base. For the 2009 budget,
we undertook a comprehensive analysis of the rates and types of services we charge. We made
several adjustments to the rate schedule to reflect the true cost of providing these special benefit
services. There are a few such services where rates will be adjusted for 2010 as well.
Other minor sources of revenue include: other financing revenue 11 percent;miscellaneous
including interest income and fines at ten percent (10%);goods &services at five percent (5%);and
intergovernmenta.l revenue such as grants and pass-through taxes and surcharges at four petcent
(4%).
Personnel: Providing city services is a very labor-intensive business so it should be no surprise that
peYSOnnel and related costs constitute a substantial part of the budget. You will note the line-item
budgets do not include a specific base adjustment increase for 2010. The reason is both contracts
for the collective bargaining units expixes the end of 2009 and it would not be appropriate to budget
a line-item amount pri.or to the conclusion of
replacement contracts with the unions. However,we � �
have set an aggregate amount of funds aside in one 2009 2010
lump-sum fund so we can properly budget for salaries Ma or&Council 7 7
that will be determuied by the final contract without Ci Clerk 3 3
compromising the negotiation process. Ci Mana er 1 1
Human Resources 2 2
Beyond the union contracts,we are anticipating the Finance 4 4
usual range advancements for applicable employees Information
moving through the progression of steps in their Technolo 1 1
respective salary range. Even in difficult economic Community
times,we need to maintain a progressive pay plan that Develo ment 4 4
effectively allows us to compete in the market place so � ott 2 2
we can attract and retain a qualified workforce. In En ' eer 6 6
addition,we are anticipating a ten peYCent (10%) Police 30 32
incxease in the health insurance with the City and Fire 3 3
employees splitting the cost of the increase pursuant to Enhanced 911 7 7
past practice. Street 15 15
Animal Control 1 1
With regard to staffmg levels, I am proposing an Recreation 4 4
increase of 2.5 full-time employees affecting two Park 12 12
departments. This includes one full-time employee Fores 3 4
increase in the Forestry Division of the Department of �bra 11 11
Parks, Recreation and Forestry. This increases the Storm Draina e 0 0
Division sta.ffing from three to four. As part of this � uoY 6 6
change, seasonal and part-time staffing will be reduced. Solid Waste ,
Brookings can be rightfully proud of the beautification Collection 6 6
we have become known for primaxily due to our So]id Waste
forestry operation. Few communities have such a Dis osal 7 7
substantial investrnent in boulevaYd tree management Total 135 138
and re-forestation promotion as Brookings. I believe
this is a standard our residents expect us to maintain and expand. Our Forestry Division plays a
much more critical role than planting trees and overall beautification. Disease infestation threatens
to ravage the trees of our community. Diseases such as Dutch Elm, Oak Wilt,Ash Bore and many
others have, and will continue to lay claim to trees and we must be prepared to eradicate these
424�
diseased trees quickly and efficiendy to control their spYead. The growth of the community with
several new neighboYhood subdivisions exponentially added to the Forestry workload to the point
we cannot keep up with the growth at current levels. We simply need to add resources and we
believe one additional staff person will accomplish that for the next few years.
Second, I am proposing adding one patrol officer at the beginning of the year and a second patrol
officer mid-year. 'I'hat will take our staffing level of full-time sworn officers to 30. Like Forestry,
the growth of the community has required the addition of police officers�to help insure safety and
security of our community. As we constandy seek to promote this growth,we must xealize this
comes with a requirement to provide for the maintenance this growth causes. As communities
grow, so must the on-going resources to service and maintain that growth. Currently,we axe below
the average staffing ratio of officer-to-population for other first class cities in the state.
During the last ten years, thexe has been only one patrol officer added to the staffing level. During
that same time, our population, the calls-fox-service load, crime levels, and nvles of streets to be
patrolled have all increased. The increase in petty crimes has resulted in the need for more
investigative services to resolve cases. This has led to extensive overtime costs and shortages of
patrol officers for a service that must be provided 24 hours a day, seven days a week. We axe short
on patrol staffing and investigations so this increase will allow us to put more officers on the streets
during the shifts we need them the most. All-too-frequently,we are operating with min;mum
staffing of only three officers on the streets at critical times. The growth of the community and
increase in call load requires additional staffing for public safety. With the hiring of a new Chief,we
are undertaking a comprehensive overhaul of the Department and its various operations in an effort
to improve efficiencies and be more effective. In addition to patrol and investiga.tive services,
community-oriented-policing practices, Safety Town,DARE,Neighborhood Watch, SWAT, and
numerous other crime prevention initiatives are front-end strategies designed to proactively p�event
crimes instead of reacting to them. There will also be a correspondirig decrease in overtixne as a
result of higher permanent staffing levels.
Both Forestry and Police made these sta.ffing requests last year for the 2009 budget and I rejected
them due to budget constraints. Their need is now more critical than ever and these positions need
to be added.
All other staffing levels axe unchanged for 2010. However,I need to inform you staff has assembled
a long-range staffing plan that attempts to project the need for increased sta.ffing levels in the future.
This is a direct reflection of the expected growth of the community and the need to increase the
level of those services to xespond to growth. Sometime during 2011-2016, I anticipate the need to
add: Police officers (4); Code enforcement officer (1);Building inspector (1);Engineering tech (1)
(ne�v federal.rtorm svater requirement.r);Street Maintenance workers (2);Paxk Maintenance&Forestry
workers (2);Solid Waste Maintenance woxkers (2).
Finally, I would like to e�and our current employee Wellness Program. In an effort to be proactive
in controlling health care costs, I believe we need to undertake some initiatives that promote a
healthier workforce for less utilization of health insurance resulting in prexnium cost control. In this
day of managed caxe,insurance premiums axe dixecdy related to the extent health insurance is used.
Healthier employees mean more productive employees,less absenteeism,and less costs for the
employees and employex. As I previously indicated, the Ernployee Safety and Wellness Committee
has developed a program which I am currendy reviewing and would like to put into effect with this
budget in the amount of$10,000. Admittedly, there is some risk as to whether or not it will be
successful and I am prepared to modify provisions of the program based on performance but I
believe we must be bold and try something. Many similar prograxns have proven to be successful;
many have likewise failed while others have yielded mixed results.
Dis�atch/911 Communications budget: The budget pxovides for an integrated dispatch/911
communications budget which is a significant change from past years. For 2010,we are
consolidating the communication, dispatch, and E-911 budgets of the City and County since this is a
shared service. Since the City staffs the operations but the County xeceives the telephone tax
revenue that pays much of its expenditures, this new budget is incorporated into the City budget.
Revenues will be the state telephone tax and general funds from the City and County divided
proporti.onately based on call load. This will provide for much more efficiency and accountability in
this emergency service operation.
421
Capital improvements. Once
again we have an aggressive list of 6,000,000 - — --
5,000,000 2010 Capital by Type for Al)Funds
capital impYOVements that are - � --- - -
incorporated into this budget. The 4,000,000 - --- --- — -
total list of 2010 capital items for my 3,000,000 -
recommendarion is $10,493,081; 2,000,000 �
down from$11,060,048 in 2009. 1,000,000 -- -
The cuxnulative list submitted by _ �__. , _ , �.�.. ,
department heads for 2010 was
h 2
$12,154,157. These are all essential �o°�� Qa� ��.J� ��c•°'�
items. Unfortunately,we do not 5� 5� �,'��J �`�
.�e ,�.e �a O
expect revenue from our three r`` i?� ��� e�
primary souxces; the genexal fund, Je �a �.y'a�
25 percent second penny,and 75 5°
percent second penny;to finance
such an ambitious list. Please xefex to the CAPITAL OUTLAY section of the budget to see an
itemized list of requested and recommended capital items. Primarily,much of the capital items for
2010 are small equipment and upgrades to keep our technology current. Some of the larger items of
note include our annual rotation of two police cars,xeplacement of one fire pumper, completion of
the bike trail project, three projects associated with implementing our storm water master plan,
automated irrigation of the front nine at Edgebrook Golf Course, the Nature Paxk,conczete flooring
at Larson Holding Barn, and an increase in the book purchase for the library. We will continue our
aggressive plan for street maintenance totaling$516,000 for stteet, sidewalk repair and our seven-
year plan for chip-sealing/sealcoating. This year's capital pla.n includes $500,000 for the sanitary
sewex trunk line extension south of Main Avenue to facilitate growth in this area. Pending your
adoption of a proposed assessment plan for this project,it will be repaid when development occurs
through a connection charge. In addition,we will continue our annual fund set-aside program for
fire truck replacement and railroad safety crossings. Finally,2010 represents the la,st year of our
capital commitment of$100,000 to the Boys and Girls Club.
The airport will again dominate our capital projects list. Having made a final decision on location,
the 2010 budget yeax will involve extensive engineering and design on the selected alternative. This
involves an update or development of the Airport Layout Plan (ALP), a supplemental wildlife study
assessment,and acquiring the necessary property.
'The five-year Capital Improvement Pla.n (CIP) has also been updated as part of the budget
development process with the incorporation of 2010 items into this proposed budget,modifying
capital projects within the succeeding three years, and the addition of 2014. The CIP is not a
budget. �t is a financial pla.nning tool designed to identify expensive items over the span of a multi-
year period for which their financing can be properly anticipated and planned. Please refer to the 5-
YEAR CAPITAL tab section of the budget for the Capital Improvement Progratn.
Street development fund: As part of the capital improvement planning process,we currendy have
no means of financing major upcoming arterial street systems. If we are to continue to properly
plan and accommodate growth in Brookings,we need to provide fox extensions,upgrades,right-of-
way acquisition,and infrastructure unprovements to arterial streets that service adjacent residential
and commercial development. Typically, such street systems are major streets that cannot be
assessed to developers. In the past,we have used our annual state funding allocation through the
Statewide Transportation Improvement Plan (STIP) to fund these streets. However,with the
financial problems the Sta,te of South Dakota is experiencing, our municipal allocation will be
woefully inadequate to keep up with the demand for the needed street development in the coming
years. The criteria for such streets is that they be major or minor arterial streets in our ma,ster street
plan, and that they NOT be eligible for funding through developer costs or assessments. Future
STIP funding could be used to augment set-aside funds to pay for street development at the time we
need it. I am predicting we will need in excess of$7 million over the next ten years for such
projects.
I am proposing we annually deposit$750,000 to $1 million into a capital set-aside account from the
75 pexcent second penny (public improvement) revenue stream specifically to pay for major street
development. This would be similar to our curtent practice of setti,ng aside funds for fire truck
replacement and railxoad safety crossings. The 2010 allocation to this fund is budgeted at$1.3
nvllion dollars. Examples of future street developments anticipated are:
42 �
I-Yle.rt 20th Street South from lYle.rtern Avenue to Main Avenue. This is curYently County Road 16,built to
rural standards, has no storm drainage and is only two lanes. In the past several years, this has
become a major arterial with the adjacent subdivisions of Indian Hills, Esther Heights,Valley View,
and a new subdivision expected to be added at the corner of 2Q`�' and Main.This street will need to
be upgraded to match 20`t'Street east of Main Avenue with adequate lanes, curb and gutter, and a
storm dtainage system.
South Main Avenue from 20'�Street South to 32"`�Street. This is cutrendy County Road 77,which is
expected to see a significant increase in traffic due to adjacent development. The Pxaixie Hills
subdivision on the east as well as a new elementary school, a pending development project on the
west and future projects will gready add to the traffic on County Road 77. It likewise needs to be
upgraded to five lanes with storm drainage and curb and gutter to match the Main Avenue
configuration north of 20`�'Street.
The combined effect of the above two projects will likewise require the intersection of 20�' Street
and Main Avenue to be signalized.
Ea.rt 20`b Street South from 22"`'Avenue to the Interrtate. This will be a new street with an extension of
20�' Street south of the golf coutse to join a new overpass at I-29 and eventually meet with an
upgrade of 34`}'Avenue. This section will likely be required to be our local match as part of any
federal funding for the 34`''/20`�unprovement project which is part of your strategic plan.
Thexe are likely other street connections serving large areas and industrial parks in the future that are
not assessable but will need to be constructed to meet the needs of a growing community.
Outstanding indebtedness. The budget provides fox annual debt service payments of previously-
approved obligations. They are as follows:
Prn�ect Totad O/S Debt obligation Last vear Fund to�'inance
AquaticPark ,�' 308,000 20>1 7S%2"dpenny
Swiftel/Library ,�2,610,000 20>3 75%2"`�penny
LarronlceArena ,$ 135,000 20>3 7S%Zxdpenny
Ketaillncentive �'1,700,000 2015 75%2"`'penny
Fir�truck.r �' 790,725 2015 25%2"��ienny
Ice Arena/PAC ,�'7,720,000 2021 7S%2id penny
Innovation Campu.r* ,�`1,190,000 2025 TID #1
SielerAdd'n ,�' 475,000 2028 T7D#4
Tladley VietvAdd'n �' S35,000 2028 TID#3
Storm drainage* ,�'3,720,738 2031 Storm drainage fund
�These tivo project.r are through the State DE1V B for infra.rtrzrcture. Additional debt is anticipated for the.rtorm
drainage ma.rter plan ba.red on imj�lementation of pmject.r. TID #1 is the fir.rt revenue.rtr�am to�ay thi.r loan. In
the event available increment falls sh�rt of pmject need.c, 75%.recond penny will need to.ruj�plement a.r nvenue. TTD.r
3 and 4 are pa.cr-thrnugh debt ultimately oaved by the developer.r.
Many projects on our Capital Improvement Pla,n anticipate the issuance of debt as a means of
financing them. They include the airport, additional storm drainage projects,resolving our space
needs especially for the police department, the pending Swiftel Centex expansion,possibly a south
fire station,industrial land purchase and development,major street improvements, and others. A
major uncertainty is the financing plan for the Brookings Health System project. While the project
was initially intended to be phased over sevexal years and financed chiefly with reserves and revenue
from operations,the question of issuing debt has not been tota.11y dismissed. Any hospital debt
affects the City's overall debt capacity.
All of these items affect our bond credit rating which currently is A2. This is a very good credit
rating for a community of oux size and we should make no financial ox indebtedness decisions that
would jeopardize that rating. The result will be a tightening of credit for projects and an increase in
the interest rate cost of borrowing. Ideally,we could add new debt service as the old debt is retired
for better cash flow management Pursuant to our ordinance,most debt will likely be financed by
the 75 percent second penny revenue stream.
Future Ca�ital Projects. The coming year will see somewhat of a reduction in public construction
projects over the past few years. This is a welcome reprieve from the activity of this year highlighted
by the completion of the Main Avenue Downtown Streetscape Project. We have completed several
423
park unprovement projects and the development of a new Park System Master Plan will delineate
the next generation of park improvement activities. The only park item expected to be a carry-over
into 2010 is the completion of the bike trail exten.rion. This has been an extensive project complicated
by federal changes and delays by the state regarding the grants. We expect the project to be bid and
a significant amount of work done this yeaz with completion next year.
The Nature Park compxises the conversion of the old landfill and will be another major project for
the coming year. While we are budgeting for some construction over the next two years,we have
significant planning and design work which will consume most of the year. In close proxirnity to the
Nature PaYk, the do ark is also being planned and we expect that to be a park project next yeax as
well. The development of the Nature Paxk will supplant the cutrent�fZrearm.r traininp p� un�range which
will need to be replaced.
The ai ortwill also see significant work this coming year as we begin a $12-14 million investment in
one of the locations which will be determined by current years-end. Fedexal funding will be the
mainstay financing mechanism but it will be complicated due to pass-through allocations and draw-
down amounts associated with property acquisition, engineering and design of the pxoject.
The infrastructuxe installation and construction for the SDSU Xnnovation Cam�iu.r l�e.rearch Park is
e�ected to be 70 percent completed this year and finished in 2010. This p�ovides for the complete
build-out of the research park.
Having completed the storm water master plan,we will continue with.rtorm drainage im�irovements
pursuant to the priority deternuned by the City Council. Project#1 is the most expensive and
extensive and will take most of the year. Project#2 is quite small and arill overlap into next yeax
while Project#3 is more significant and will require more resources. Pursuant to your previous
action, the budget does anticipate a rate increase for debt service for these projects.
In anticipation of a final decision on whether or not to underta,ke the Ssvivi f�tel Center eac�an.rion, the
budget anticipates $300,000 in second penny funds to begin architectuYal work. I suggest keeping
this expenditure and any building associated with this project as a separate project fund from the
operations of the existing facility.
Finally,we have several, smaller capital street imt�rovement,�roiect.r slated for 2010. They are as follows:
LeFevre Drive czrl-de-sac
3"�Street mill and overlay 3'�Ave. to S`�Ave. (ex:Main Ave.)
Railroad St. replace concrete 1 S'Ave. to W/e.rtern Ave.
3'�Avenue mill and overlay 2"`�St. to S'�'St
34'�'Avenue dig-out.r/repair 6'�St. to Bypa.cr
34'�Avenue dig-out.r/repair 34'�'to landfzll
34`''Avenue re-con.rtruction, 6'�'St. to Price Dr. (STTP)
6`u St./Havy 14 Signalitie inter.rection.r at rarnp and 32"``
(done by SDDOT)
A significant capital project requested by the Engineering Departxnent that I deferred to future years
is $870,000 fo�the installation/connections of 7`''Avenue South and 15`'' Street South. These street
connections are in our master street plan and should be done at some point to make more private,
adjacent propexty available for development. Of this total pYOject cost,it would require $240,000
from the General Fund because city-owned open space near Pheasant Run Park would be assessable
for a significant share of this project. In addition, one adjacent property owner is not willing to
dedicate the necessary right-of-way for this project at this time. What's more, the ability to service
these with utilities is problematic and cannot be easily serviced with the necessary utilities by BMU
until the right-of-way is dedicated. Finally, this project has nevex been on the five-year CIP. For
these reasons, I deferred consideration of the project but it does appeax in the 5-yeax CIP.
Finally, a significant capital improvement is our need to identify and secure ownexship of suitable
land fox re-sale or as a means of incentivizing commercial and industrial development.The City
curxendy owns commercial/industrial acreage in the Svennes Industrial Park,Weise Business Park,
and two small lots in the Tellkamp Industrial Park. In addition,we have identified the former DOT
maintenance facility as one such site and have set aside approxirnately$2 nvllion for its purchase if
and when the seller is ready. The coming year could see another oppoYtunity to purchase pxoperty.
Most business expansion and re-location efforts require "shovel-ready" lots for their businesses to
grow. To position ourselves to take advantage of job creation opportunities,we must have a strong
inventory of lots ready to accommodate the demand for buildable lots. We need to remain vigilant
42 �
to ideal parcels that become available and be ready to purchase them to meet this important
economic development goal.
Enter�rise Fund O�erations. Enterprise fund activity is expected to see little change for the
coming budget year. The Solid Waste divisions of collection and disposal will operate as they have
with a general fund transfer fxom the disposal divisio� of$440,000, the same as the current year.
The Municipal Liquor Store has experienced increased sales although sales in wine have been
affected by the retail wine license awaxded to Hy-Vee. The override from such wine sales has not
been sufficient to make up for the retail loss in wines. We are implementing marketing measures to
compensate for this loss. The transfer from the combined operation at the liquor store of retail
sales and override is slated for$500,000,up from$420,000 this year.
The Research and Technology CenteY had been performing well until we received notice of a loss of
one business,TJ Technologies,which has moved to Watertown for their,expansion. In addition,
another tenant was slated to move at the end of the lease but will stay for a few extra months until
their new facility is ready. This gives us some time to find a replacement tenant. For both the
curxent and one pending vacancy,we are advertising for new tenants fox the space. The 2009
budget contained capital improvements of$34,000 for modifications to the HVAC external systems.
I have delayed this expenditure due to the reduced revenue stream resulting from the vacancies.
The R&T Center has been providing a transfer of$145,000 to the general fund to help subsidize
other City operations but the transfer is now slated for$75,000 in 2010.
Edgebxook Golf Course was established as an enterprise fund last year primarily for purposes of
having a stand-alone budget that was not comingled with the parks budget. This was an unportant
first-step to monitoring the finances of this entity and achieving our long-term goal of self-
sufficiency. Despite the poor weather at the start of the 2009 golf season,Younds and memberships
have increased;a reflection of our strategic improvements to the course and its operations.
Obviously,weather has a significant impact on the financial performance of this opetation. In 20Q8,
the general fund subsidy net of capital improvements for Edgebrook was $180,000;in 2009 it is
expected to fuush at$147,000; and in 2010,it is budgeted at$120,400. As you can see,we axe
definitely headed in the right direction. We did miss our goal of having some play available for the
new executive course; out resources were consumed by other projects.The only significant capital
unprovement to the golf course envisioned in 2010 is the automation of the irrigation system on the
fxont nine at$170,000. Future improvements include additional concrete cart paths and re-building
several of the sand bunkers.
Subsidy Rec�uests. We received the usual nutnber of requests for subsidies for the coming year.
Because of the extxeme challenges in matching revenues with e�enditures, and the continued
deferxnent of many necessary capital improvements, I am recommending we hold e�sting subsidies
to the cuxxent 20091eve1 and reject any increases and new requests. I found no case to be made for
new or expanded subsidy requests that carried a higher priority than the expenditures we have
deferred as a result of the economic recession,with the exception of the Visitor Promotion Board
(VI'B).
The VPB receives a BBB allocation of$225,OQ0 pursuant to a thxee-yeat agreement which expises
June, 2010. The VPB requested an increase of$25,000. The sole role of the VPB is to provide
funding as leverage to events,promotexs, and organizations that increase visitor spending, thus
growing the BBB revenue stream. In making their request, the VPB quantitatively demonstrated
they can have even more impact and further increase visitor spending with an additional annual
allocation of$25,000. They also hypothesized that additional funding beyond an additional$25,000
would be counter-productive because the cammunity does not have enough hotel xooms to service
the additional events, so any amount beyond an additional$25,000 would amount to "negative
levexage." Because of the expiration date being mid-yea.r,and in light of the quantitative analysis
they conducted, I am recommending an increase in the VPB of$12,500 foY the second half of the
year which provides for their xequested increase while still adhering to the existing agreement.
Most notably,we received two significant requests from SDSU. They are $1 million dollars for a
McCxory Gardens Visitor Center and$11.8 nvllion for an addition to the Performiug Arts Center.
While these ase truly wonderful projects for the community and the university, I cannot recommend
they be funded by the City for a wide variety of reasons. Most impoxtandy,we simply cannot afford
them without canceling several other vital projects from our capital improvement program. The
City has cleasly demonstrated a willing pa.rmership with $6 million for the initial PAC (debt service
continues uniil 2021), $500,000 for the Wellness Center,and$3.8 million for the SDSU Innovation
425
Campus infrastructure. I believe we have much higher priority capital projects in the years ahead
that will yield a much higheY investment�eturn for us.
Performance Measurernent and Management. An inherent part of the budget development
process is the imposition of performance measurement standards. Each department head
undeYtook this exercise as a means of developing and justifying budgetary requests. With the
current recession,it is more important than ever that we invoke the practice of performance
measurement. As I said in last year's Budget Message, "What gets measured,gets done!" That
mantra is truer now than a year ago. PeYformance measurement is a difficult and complex process,
and I am not yet satisfied that we have fully mastered it's principles in our budgetary or service-
delivery programs. It remains a work in progress.
Still,performance measurement is an incremental process; an attitude as much a practice. It is
neither stricdy an"art" nor a "science." Rather, I prefer to consider it a"craft" or a blending of the
two requiring a long-texm commitment of resources and perseverance to be successful. We will
continue to woYk on this issue with the goal of achieving as much efficiency and effectiveness as
possible.
Conclusion. The proposed budget for 2010 reflects the realities of the economic recession facing
all of us. Fortunately, the stsength and diversity of our community helps buffer us from the
calamitous situations facing states and cities across the country. While none of us can speculate how
long the recession will continue, ox how the impacts of a recovery will affect us,we must continue to
be conservative in our projections for both revenues and expenditures while still being committed to
our basic core services,remain optimistic, and continue planning for a prosperous future.
In an economic recession, discretionary spending is among the first cut-back measures by
consumers. This affects sales tax revenue which is our most significant revenue stream. For past
yeaYS,we have budgeted conservative revenue while experiencing actual revenue substantially
surpassing our budgeted estimates. During 2009,we are experiencing a change from previous yeaxs.
While actual sales tax revenue has met or slightly exceeded our budget,we expect that trend to
continue through 2010 and this budget reflects that new economic reality. We do not expect to see
actual revenues significantly surpassing out revenue estimates.
For the most part, this budget provides for a "maintenance mode"in light of"flat lined"revenues
and we axe xesponding with primaxily"flat lined" e�enditures. We are not providing for any new
"stretch"initiatives with the exception of a modest appropriation for an employee health and
wellness provision, only because the resources will not be available to finance them. The only
staffing increases are for Forestry and Police; a direct response to further protecting a growing
community.
Still, I believe this is a responsible budget and provides for the basic core services our constituents
e�ect. At the same time, I believe it furthers our goal of continually striving for excellence in
public service while fashioning outselves as a progxessive and entrepYeneurial community. We
should be satisfied with nothing less in our public stewardship.
I would like to thank you, the Mayor and Council Members, for your leac�ership on all issues policy
and fiscal for the City of Brookings. Clearly, tough decisions about priorities have been the
dominant theme of this budget and will continue into the future. I would also like to thank the
Department Heads and all city sta.ff for their service to the City. The budget development process
was paxticulaYly challenging this yeax and the dedication, expertise, and pragmatic approach by the
Depaxtment Heads toward theix�espective budgets is a hallmaxk of community leadership.
Even though we are considering this an austere budget due to financial and economic constraints,
we still must be true to our adopted strategic plan and I do not anticipate any undue complications
with fizlfilling those goals and even setting more ambitious goals for the community in the years
ahead.
Sincerely,Jeffrey W. Weldon, City Manager"
Weldon said this budget work session would provide an opportunity to walk through some aspects
of the proposed budget;working from general to specific. He thanked Rita Thompson, Finance
ManageY, for her effoYts in making all the numbers,budgets, and charts work.
42 � ,
He was pleased to tell the Council that the $33.3 million budget is balanced. For the most part
Brookings has been somewhat insulated from the impacts of the recession,but sales tax reports
have been somewhat volatile lately. He has every confidence the City will meet the budgeted
revenue for sales tax revenues this year, due to the fact we have been budgeting for less than what
the actuals have been.
The wild card with this budget is trying to look out 18 months, and there is no idea of what will
happen with the economy on a national level or more specifically at the state level and how it might
affect us. Being conservative,but being cautiously optimistic would be a good prescription for how
we proceed with this process.
Very few relative changes were made to the budget in terms of service levels. Weldon is asking for
an increase in staff levels for a total of 3 by the end of the coming year; 1 in the Forestry Dept. and 2
in the Police Dept. (one in January and a second in July). The community is growing and we need to
keep up. The Stteet Dept. added one employee last year with both the Street Dept. and Solid
Waste/Landfill needing additional employees in the future to keep up with the demand for services.
We need to respond with changes in the intensity of service levels to respond to the challenges of a
growing community.
The budget fairly and responsibly reflects the prioxities that the Council has set forth in the
Governance and Ends Policies. Weldon has tried to incorporate the Council's wants for the
community and assigned dollax amounts the best he could. In providing leverage fox use of the best
assets, they looked at where the best place for oux investment dollars would be,both in terms of
operations and capital.
Weldon has one major concern; some equipment capital costs and ma.intenance issues axe being
deferred. The Street and Park Department maintenance staff does an outstanding job of
maintaining our equipment,but there comes a time when it is more expensive with maintenance
costs and downtime costs, than it is to actually replace the equipxnent. Departments have been very
pragmatic in their request fox equipment replacement and he's tried to be as progressive as possible,
but there are a number of capital items that were pushed back because of the inability to fund them.
The budget presents a couple significant differences; 1) Emergency 911 budget. Previously operated
undex two budgets, they will be consolidated into one budget managed by the city. 2) Establish a
street development and street improvement fund. This would provide an adequate way of financing
necessary improvements to some major streets in the community. This would be a similar process
as done for setting aside funds for railroad safety crossings, as well as set�ing aside funds for Fire
Trucks.
Weldon has set aside$300,000 for axchitectural costs relative to the Swiftel Center project, even
though it has not been decided if this project will proceed or not. At some point debt would be
issued for the axchitectural fees,which would be rolled into the debt for the pxoject, but until debt is
issued, there are cash expenses upfront. He reminded the council of the RFP out now pursuant to
previous Council action to look at schematic design and some preliminary cost estimates.
Invitations were sent to 11 architects and are scheduled for responses to be in by the end of the
month.
Deferment.r on ca�ital im�irovement.r Most budgeted capital improvements a.re technical ixnprovements;
technology keeping up with infortnation systems. Much equipment has been deferred.
Five Year Ca�ital Plan. This is a tool used for forecasting major and planned purchases ovex the next
five years. Looking specifically at 2010,we need to assess how to plan and phase in projects for
cash flow purposes ovex the ensuing four-yeaxs. This is where the issue of the xelative ability to
place items in a specific year and push items out which may not be propexly prioritized to be
ftnanced at the present time.
Mayor Reed asked if some 2nd penny funds go through the general fund. Thompson responded if
it is marked general fund,she wouldn't transfer money out of the 25% or the 75% for that particular
item.
Weldon pointed out several items of importance in relation to the individual departments. They are
as follows:
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• Citv Clerk / Ci� Manager. Granicus equipment for $11,000. This is new technology
providing more user-friendly opportunities to search Council packets, meetings and agendas.
It meets the goal of open government.
• Human Re.rource.r. Annual software lease.
• Finance / IT.. Financial Accounting package Version 7 upgrade for$25,000. This provides
for improvements to the payroll system and human resource module financial suite.
Pictrometry for$52,000; this is being divided between several departments and in
paYtnership with the county and quite possibly BMU. Pictrometry is an engineering pYOperty
management GIS softwaxe used for public safety, code enforcement,planning and zoning,
dispatch, etc. This is a technology upgrade. Much of our technology has been consolidated
into one budget managed by Reed Walter, IT Specialist. This provides better coordination
and integration of department needs and eliminates departments looking at technology
improvements and purchases at varying times.
� General Government Builclinn.r. ADA access and improvements to the 3`�Avenue entrance to
City Hall.
• Fire De�artment. The budgeted$30,000 for modifying the current South Station for a training
facility will be pushed back to 2013,with a new South Fire Stated proposed foY 2014.
• Communitv Develol�ment/Indu.rtrial Park.r. The rental house on 22°d Avenue is in need of
shingles;a maintenance cost that needs to be incurred. TID #1 expense of$700,00 consists
of street and utility improvements from 25`"Avenue and 10�`Street towaxds the Innovation
Campus. With this in the TIF district and depending on what other new development may
occur in the balance of the TIF District, this could be financed by tax increment revenue.
This is dependent upon the level of interest from developers. This could also be a 75%2nd
penny project depending on the revenue streams. There will be a number of public policy
decisions to make if this issue comes forward. This is in the budget as a `place holdex', as it
is an important community development project that will be on a future agenda.
• Cit�ngineer. Vehicle replacement in 2011.
• Police De t. Annual rotation of squad vehicles. Expanding the inventory and use of ta.sers;a
more pxeferred method of officer safety. Relocating the firearms range to the new landfill;
the range is currendy located at the old landfill,which is being developed into a Nature Paxk.
There is also the possibility of partnering with the proposed YES Project;they would have a
firearms range, and could add an indoor shooting gallery or a firearxns training range. A
proposed new item is partnering with the Bxookings County Humane Society in 2011 for a
joint city/county animal control facility,which could be used as part of the city's animal
control operation. Pictrometry software and some haxdware upgrades for Dispatch/911,
jointly shared between the city and the county.
Mayor Reed asked if the increase in police vehicles numbers was due to the rotation of vehicles.
Weldon stated the rotation calls for a third vehicle in 2011 and some particular makes of vehicles axe
moxe expensive to outfit than others (e.g. SW vexsus Crown Victoria).
• Fire De t. The lease on the four-pack goes through 2015. Replacement of Engines #4 and
#5. Due to increased cost estimates, Engine #4 will be replaced in 2010, and Engine#5 will
have to be retained. Truck#2 will be replaced in 2013. Beyond that there would be rescue
gear adding to the compliment of rescue gear purchased this year.
• Street De t. Some equipment listed for replacement in 2011 is being pushed back due to the
Street Departments assessment that the equipment could be mainta.ined for one more year,
but will need to put a plan in action of what to do for replacement of this equipment. The
department has a request for$37,000 this yeaY and$607,000 next year,which will not work.
There will have to be significant changes to the 2011 list in order to keep some equipment
viable. Street and Sidewalk Improvements of$516,000;incorporate this into the Street
Development Fund. Funds are currendy being set aside for Railroad Traffic Safety Signals
and hope by 2013 to have accumulated$1.35 million to paq for signals at all intersections.
There is currendy an application with the state for the Main Avenue crossing,and another
application with Senatox Johnson's office at the federal level for some railroad crossing
technical assistance. Chip Sealing, done on a 7-year rotation for$205,000,uses 25%2°a
penny. This will have to increase as our streets age and there are more streets to maintain.
• Recreation De1�t. The payback of the Larson Loan for the Larson Ice Arena exterior woxk for
$150,000 will happen in 2012, not 2013 at written. This improvement was not budgeted,but
thanks to a generous gift,we were able to fast track this project. The$150,000 represents
the city's share of parking lot improvements at the Larson Ice Axena. This expense was
added on to the last year of the Water Park's debt repayment.
42 �
• Park.r Dei�t. There is $25,000 for equipment this year and$170,000 next year as a result of
pushing some items back;which are either general fund or 25% sales tax depending on the
piece of equipment and how it is prioritized. Capital improvements in the out yeaxs:
$200,000 for lights at Bob Sheldon Field in 2011, $190,000 for baseball field lighting at
Mickelson Middle School in 2012, $50,000/year for 4 years for the Nature Park project.
Weldon recommended adding a concrete floor in the Laxson Holding Barn,replacing the
current dirt floor. The Soccer Association has asked for consideration if the city installs a
concrete floor in the Larson Holding Barn, they would install artificial turf for winter soccer
activities,winter golf lessons, etc. Weldon does not recommend doing this until a
commitment is received from the Soccer Association. This could be a75% second penny
allocation.
• Fore.rtrv DT The Forestry Shop Addition for$50,000 has been pushed back. The new
aerial bucket truck will not fit in the existing building, and with looking at a new building in
the future, this truck will be stored in the Park Maintenance Facility or elsewhere.
• Libra . This is one department Weldon made an increase to the department heads request;
consisting primarily of materials for the patrons. Over the past years, the library has been
slighted in their budget allocations in terms of materials, and while a lot of time is spent
dealing with streets,infrastructure,buildings,parks and playgrounds...books,xeading
materials, periodicals, and learning opportunities at our library for adults and children is
something that is equally important. ,
• Szvi�tel Center. Axena lighring upgrade for$225,000 out of 75% sales tax. This includes the
last two years carry-over for the lighting project;a total of$60,000. Proposed expansion in
2013 at a maxirrium cost of$7 million. Pending council approval, $300,000 for architectural
fees. Spot light e�ense of$30,000;with many acts requiring more lighting, spotlights are
rented, and if they were on hand,it would save on operating expenses.
• �ecial Assessments. This fund is used by the City Engineer primarily as a holding place;
revenues for items subject to a special assessment. Items such as: South Main Sewer Line
extension for$500,000,paYt of the Mills Development p�oject (Prairie H�lls Subdivision)
south of 20`'' Street, the proposed new school, and other residential subdivisions to the West.
T'he plan is that these funds would be recovered because we would levy connection charges
to those benefitting parcels, but in the meantime we will have to finance upfront the initial
installation and the outlay of that project.
• Storm Drainape. The total Storm Drainage Master Plan costs $8 million. Projects #1 and#2
will be started in 2010 for a cost of$1 nvllion and will take two years to complete. Projects
#4, #5, #6, and#7 will follow as we progress through the Master Plan. This is subject to
change depending on the progress of various projects. Our financing mechanism is through
the Department of Environment and Natural Resources Revolving Loan Fund. We can only
draw down a certain amount at a time, so we've had to lump a couple of the initial projects
together and will have several different debt issuances as we progress and decide if we are
going to borrow the full amount.
• Innovation Cam�u.r—Pro,�ect Bud�t. This provides the revenue to pay the$3.8 million for the
Innovation Campus infrastructure. There axe three revenue streams: 1) $694,000 from Sales
&Use Tax, 2} $2 million drawing down from the general fund as a transfer,which was part
of the $4 million set aside for DOT Property purchase. When the Council approved the
financing for the project, they authorized the transfer of the$2 million from the DOT
property set aside for this project. 3) The balance of the project is the loan from the Dept.
of Environment and Natural Resources through the SRF Program for storm water and
storm drainage improvements to Phase II Construction of the Innovation Campus. Those
three revenue streams are the first call on cash. Since this is located in TID#1, over time we
will get xeimbursed with Tax Increment Revenue generated from development withixi the
District. It is important to have as much taxpaying development,not tax-exempt,but
taxpaying parcels developed within the Innovation Campus as well as development South of
the Innovation Campus towards 6`�' Street.
• Bike Trail. This is a capital construction project. This project has had a lot of changes and
starts as a result of changes in federal grant funding that occurred two years ago and delays
in state approvals. It will be worth the wait fox the 50%match gxant money. The Paxks
Master Plan will provide an idea of whexe to plan for future Bike Trails in Brookings.
• Li�uorStore. Security system and AED drinking fountain for$12,000. The secutity system is
significant and would be paid for out of liquor funds. ,
• Ai ort. This is a bit of a moving ta.rget. The Federal FA.A Funding will float in and go
through this budget. The shed foY$80,000 will house the new plow puxchased with fedexal
money. Weldon asked Airport Manager Mike Wilson if the shed was reimbursable under the
42g
FAA Program. Wilson stated we won't see reimbursement for this as we are spending
money on other pYOjects and this would not be high on the list. Weldon asked if it was part
of the d.iscretionary formula. Wilson stated it is not. The Wildlife Assessment was a result
of a federal Grant. Runway Improvements;we have to maintain the current runway even
though we are looking at runway changes. Airport replacement and engineering for
$250,000; this will start the airport layout plan funded by airport funds and a federal grant.
The council is set to make a decision on airport location in October. As a result of that
decision, an AOP will be required, and will consume a vast amount of time next year.
Betidichek a.rked zvhat the i�Y/ilctlife A.r.re.r.rment sva.c W/il.ron.rtated a zvildlife evaluation ava.r done for the
environmental asse,r.rment, but it sva.r ju.rt a site.ruruey shozving u�hat aarildlife sva.r�ire.rent. Nou�a zvildlife a.r.re.r.rment
and a hatiardou.r zvildlifeplan mu.rt beput inplace. Betidichek asked if that zva.r on to�i of the�'84,000. Wlil.ron
.rtated�'9,000-,�`10,000 zvas.pent on the original evaluation and avas 97%funded. Thi.r include,r aplan�iut inplace
svhich ivil!incorporate le.r.r crop ground and more gra.r.r to minimitie bird.r. There�arill be mo�ritoring program.r and it
zvillgive direction a.r zvhat to do to control zvildlife at the airport. Betidichek a.rked if this had to do zvith the�'12,500
.rpent earlier. 1Y>il.ron stated that zva.r an evalaration of the environmelatal a,r,re.r.rment. W>il.ron vi�ited aa�ith the FAA
and a.rked if they could use that information on thi.r and u�as told they are tzvo.reparate item.r, even though they do
overlap, that information cannot be u.ced. The prirnary airport con.rtrcrction zvill take place in 2013 for�vhichever
air�ort location option i.r.relected.
• Edgebrook Go�Course. Edgebrook Golf Course was pulled out of the Park Budget in 2009
assisting in evaluating its opexations. They are on course to total operation self-sufficiency,
however some capital improvements could skew that. One example is automatic irrigation
of the Front 9. Weldon recommends making this capital improvement, as irriga.tion is
extremely labor intensive. Adding additional concrete cart paths;2,500 feet has been done
and has contributed to the viability of the course and want to expand that into the next
phase. There is a change to the item listed as `greens on Holes 8 and 4' for$30,000; the
greens axe in good shape and should be left as they axe,with the exception the bunker needs
appro�mately$15,000 in improvements.
• Enter�ri.re Fund.r. The Solid Waste Disposal and Collection Operations are set to replace a
compactor for $650,000 next year and a crawler loader for$700,000 the yeax after paid from
Solid Waste Collection and Disposal operation revenues. This depaxtment is heavily la.den
with very expensive capital equipment,and fortunately we don't have to replace several of
these items quite as often. Bob McGrath,Dixector, does an excellent job of staging these
out over the years. There is an $800,000 expense listed for Trench #4 East. Bob McGrath
explained the trenches are built in half segments, called east and west, and they dig one about
every 5 years complete with the leachate collection system. There axe three complete
Trenches left to dig. McGrath stated these axe paid fox in advance, so the money is there
when they dig.
� Re,rearch d�'Technolog C� enter. Miscellaneous repairs and HVAC unit protection for$34,000 is
to be paid out of R&T Revenue. These need to be done,but is dependent upon rental
income.
• Street De t. In xegards to the Street Development Fund, $516,000 will be financed by 75%
second penny. Weldon is asking to set aside $784,000 in second penny money for future
stxeet impxovements.
Ca�itallm�rovement.r. This is the same infoxmation mentioned prior looking only at 2010. This shows
what the depattment heads requested and what City Manager Weldon is recommending.
Pursuant to Council direction a few years ago,the distinction was made when the council adopted
the ability of a levy on the second penny pursuant to state law that 25% of that xevenue stteam was
to be dedicated to street maintenance, certain types of improvements, as well as capital equipment,
and 75%was to be dedicated for public improvements. This allowed flexibility to respond to
changes from the year, and provided good physical policy and guidelines about how to spend public
investments.
2S%Second Pennv Sale,r Ta�c i�ork�'heet. Weldon shared a worksheet which showed how the city is
financing debt projects and paying for capital items out of the 25% of second penny. These axe the
obligations in expenditures for debt service of which many are in the form of leases;Edgebrook golf
cart lease,Motor GYader lease, and the Fire Trucks 4-pack lease. Cash projects a�e looked at
annually; street chip sealing,police public safety equipment, street equipment, E911, fire truck
facilities, and some park improvements. 2010 revenues total$1.2 million, $92,000 over expenses,
with an ending cash balance of$936,000. Cash flow is restricted to $151,000. Weldon asked
43 �
Thompson if the $151,000 is part of the $936,000. Thompson responded that it is not. Thompson
noted the Fire Trucks and equipment proposed to purchase this year changed due to the cost being
much higher than anticipated. Fire truck purchases are proposed for 2010,2013, 2015 and 2016, at
which time they will have to review a new plan for how to purchase the fire trucks.
Mayor Reed questioned if we were setting aside funds for the fire trucks. Weldon stated they are
continuing to do so,but the cash balance will go down next year with the replacement of Engine #4.
The set aside program will continue on an annua.l basis, and whenever a vehicle is sold, those
proceeds will go back into that fund.
75%Second Penn Fund. Weldon showed a chart that represented the current debt schedule aga.inst
the 75% second penny: the Swiftel and the libxary pxoject debt in 2003 goes out to 2013; the Larson
Ice Center and PAC I debt in 2001, originally issued in 1998,goes out to 2021;the Lowe's Project
retail incentive debt in 2005 goes out to 2015, the Aquatic Center debt in 2006 goes out to 2011; the
$135,000 advance on the Larson Ice Center represents the city's share of the parking lot agreement
which adds one mo�e yeax of debt service to the Aquatic Center Project; and the Innovation
Campus in 2011 will go past 2021. The debt from the State of South Dakota as part of the financing
package fox the SDSU Innovation Campus was deleted.
Mayor Reed asked how the retiu�n from the TIF funds will.be managed. Weldon clarified the first
call on cash for the Innovation Campus is tax increment and that would be repaid from the TIF. In
the event the tax increment falls short,the city will have to make it up with 75% second penny
which represents only the loan. Reed asked if the city has to repay the loan. Weldon said yes.
Weldon stated they are looking at the TIF to reimburse the balance of this project ($695,000) plus
the $2 nvllion from the DOT fund ttansfer. However,if revenues from tax increment in TID #1
do not materialize enough to pay, the city will have to pay for it and it needs to be decided how to
handle this in the future. The plan is to have the tax increment paid for. Reed asked how the return
on it is going to be measuxed. Weldon stated they will know that by how much development occurs
in the district. Reed asked if the city will have to manually calculate that or will it actually come
through as a special payment. Weldon stated it will come through the taxes paid. When propextp
develops in TID #1 and goes on the tax rolls, the county forwards the increment to the city. These
funds will be dedicated towards this repayment and is totally dependent upon how much
development occurs. The more private development that occurs in the Innovation Campus or any
place else in the district is to the city's advantage,because it will accelerate the reimbursement
opportunities for this outstanding debt as well as this inter loan transfer made to cover it.
Thompson added the County Auditor ea�ly on projected$38,000, and most recendy projected
$73,000 which is a]most enough to make the payment in 2011. If there is more development,it
would be applied to this first, and secondly toward the $694,000,and finally the general fund. The
Innovation Village Residential Project is the only thing currently in TID #1 that will be generating
tax increment when it comes on line paying taxes.
Potential debt�m,ject,r that have not vet been o ciall�a��T roved. 1) Swiftel Expansion. This is estimated at$7
million in principal and interest beginning in 2014. The best timing would be to replace the existing
deht service expiring in 2013,and xoll it ovex into 2014 with a new debt service schedule. 2) City
Hall and space needs. This is scheduled for a decision yet this yeax. The project would staxt with
debt service in 2013. 3) Airport. While this is 95% federal funding to a certain level,we have to
front all of the costs associated with this which is why it shows up on the debt schedule. Depending
on federal FAA approvals, 2014 is an estimate but it could be 2015.
TotalAnnual Debt Senrice. These axe 75% second penny projects;typically one-time expenses. These
projects consist of: Foxestry aerial truck, City Hall entrance,Laxson Holding Barn,Edgebrook
Irrigation System,Airport Expansion Plan, South Main Sewer Extension, and street
improvement/development projects. Weldon wanted to showed how that impacts future funding
for setting aside infrastructure investment for future development. Improvements will need to be
made to some major streets on relatively short notice, and if the cash isn't availa.ble,it will be
difficult to do.
In summary, even if there was a 3%growth in revenue, the�ee is restricted cash debt. This shows the
available cash in the 75% fund if these projects axe funded in this mannex. There axe some
problems with negative numbers appearing in 2015,which means there axe adjustments to be made
by cancelling some projects,moving things around, or looking at altemative financing.
� 431
Thompson shared a chart showing public improvement pxojects;with the largest project being the
Swiftel Center for $12 million in 2013. The chart showed debt payments, annual revenues, debt
pYOCeeds, and cash.
Thompson showed the same chart, except this chart included SDSU's requests for$1 million for the
McCrory Gardens Visitors CenteY and$11.8 million for the PAC II Project. By funding these two
SDSU projects, the negative numbers show up in 2011. This showed that cleaYly all of these
projects are not affordable, and there is going to have to be some decisions made on what are
prioriti.es and what is not.
Debt W/orksheet. As of 2009, the City has $18.5 milIion outstanding in sales tax bonds,which is the
issuances from 2001, 2003, and 2005. There are $4.98 million in debt in the tax increment regarding
Tax Increment Districts #1, #3, and#4,which will presumably be repaid. Districts #3 and#4 axe
being paid by the developexs,but the auditors say we have to carry it on oux books as debt. There
are equipment term leases for$1.1 million. Tota1 carrying debt today is $25,184,567.00. State law
provides for the city's ability to issue additional debt for utility purposes; BMU has $33.9 million in
additional debt that goes against the city as well. The amount of debt a city can carry is based on 5%
of the total assessed valuation of the community. Presently,Brookings is allowed to incur debt up
to $42,726,673. If we were to do all the projects on this list (a value total of$42.8 million),with our
current indebtedness of$25.1 million,we far surpass our eligible debt limit by$25 million. There
axe many projects that can be done; there are many projects that should be done. It is going to be a
challenge with how to proceed with these extremely large ticket items.
Weldon asked Toby Morris from Northland Securities, the city's financia.l advisor, to provide a
preliminary opinion on this issue. Moxris hasn't had time to do a compzehensive analysis, and
should do one at some point if we get serious about issuing more debt,but raised some red flags
about the city's security, about building reserves, about debt service capacity,about making sure a
good credit rating is maintained, and what the city would be faced with if we try to borrow too much
money.
In regards to the requests from SDSU; they are excellent ptojects. Weldon commended the
University for bringing them forwaxd;howeveY he has concerns about the ability to finance them.
While it is important to have good partnerships to make these things work,unfortunately
partnerships often times run into financial realities. Tough choices are going to have to be made as
to what is in the best interest of the community.
Weldon said he would be remise in his obliga.tion if he didn't tell the Council that first and foremost
his obligation is the best interest of the city, the best financial interest of outselves and what our
community priority projects should be. We have woYked long and hard on issues of storm drainage,
airport, space needs, and planning for growth of the community through strategic infrastructure
investments, and in terms of our priorities,we really need to remain true to those issues.
Council Membex Whaley stressed the south fi�e station should have been built a long time ago and
disapproves it not being built unti12014. Whaley said the Hospital Board has had considerable
discussion regarding partnering with the City and having the South Fire Station contain an
ambulance bay. The Hospital Board is trying to decide where to put the ambulances, and this would
be a good location. This fire station needs to be moved up on the project list, and she suggested if
at all possible,it be moved equivalent to the sewer line extension with the Mills Prairie Hills
development in 2011. Weldon responded that the sewer main project is on for 2010 and is part of a
pYOject recendy approved in regards to a land swap issue. Weldon sta.ted they can look at the fire
station issue anytime;however,with the possibility of a co-location with BHS,it is particularly
crucial to do now. Whaley said this needs to get this moved up to 2010 or 2011.
Mayor Reed asked in regards to the$12 million for the airport, of which 95%may be federally
funded,but there is still land to be acquired. If the airport stays on sight,it changes the amount of
money put into this formula. Weldon stated,yes it would, though he is not sure which end would
be more expensive. The AOP would likely tell us that. The property acquisition costs will be a lot
more if the airpoxt is relocated versus staying at the current sight. On the othex hand,there may be
some envixonmenta.l mitigation issues to be done that could be more expensive on the current sight.
Reed is correct; there will be some significant carrying costs if the airport is relocated to acquire the
necessary acreage needed.
Bezdichek asked what the$250,000 for airport design and engineering would be spent for. Mike
Wilson stated this is fox the airport layout plan, either on sight or a new location. This would
43 �
involve the design/layout of the entite airport,including instrument approaches. Bezdichek asked
who is doing the design. Wilson stated a consultant would be selected after this current project is
done. Bezdichek reminded the Council that when this airport project was started, a contract was bid
for engineering fees and that group has already come back once for additional fees, and there are
now additional fees of$250,000 for design.
Bezdichek thanked all the department heads and the City Manager for the outstanding job they have
done this yea.r. He thanked Rita Thompson for the debt worksheet as it is something he had often
times wanted to have. In addressing the public and Council, he reminded them the debt woxksheet
shows present debt and that does not take into consideration BMU and BHS. Neither Brookings
Municipal Utilities nor the Brookings Hospital can incur any debt. If there is debt occurred, they
have to come back to the City Council and we incur that debt. What we were shown is so that we
have some knowledge capacity of what's out there and the projects that have been brought before
us. What this doesn't show is that if either one of those entities need additional money, they have to
come back to the City Council to issue debt and the city doesn't have the ability to occur much more
debt the way it is. The work for us has now begun. There is some work to do in deciding what we
want to do and what we can do.
Weldon responded to Bezdichek's initial comment about the airport. The initial contract work was
for an environmental assessment to get to where we need to be in October;it was a limited scope
for those purposes. It wasn't intended to get into design and engineering of new runways and new
ta�ways and a new aitport layout. Bezdichek commented his point only is that though the expenses
continue to escalate,it becomes a very expensive project.
Reed stated the next work session should begin again at 4:00 p.m. This still gives the council the
September 8�'meeting if another work session is needed. Thompson sta,ted if changes a.�e made at
the work session preceding the first reading, the oxdinance wouldn't be ready fox the first reading as
there wouldn't be any time to make the changes. Weldon stated a first reading can be amended.
The budget ordinance could be introduced, and could consider an amendment at the first reading
and have it finalized for the second reading.
Reed asked the council if there were any concerns with time, and a special meeting could be held if
needed. Reed reminded the council much of the second penny issues do not deal with this budget.
Weldon sta.ted that is a good point;many of the second penny issues are important to talk about in
terms of long-range planning,but they do not have a direct impact on the 2010 budget.
Mayor Reed thanked City Managex Weldon for getting the council started and thanked city staff for
being present for any questions and appxeciated them spending some extra time.
6:00�.m. Meeting Review. Shari Thornes,Brookings City Clerk,noted changes to the 6:00 p.m.
agenda.
City Clerk Re�ort. Shari Thornes,Brookings City Clerk,provided a briefing on upcoming
invitations and obligations.
City Council Member Ex-Officio Re�orts.
Whaley said the Hospital Board discussed the expansion pxoject and the ambulance service. She
asked that the City Manager include the ambulance secondary location in the City's Capital
Improvement Plan.
Bezdichek said the Utiliry Board is currently in budget discussions that include rate increases. The
biggest issue they axe currendy working on is the video package. Kubal said he found the Utility
Boaxd meeting very interesting, complicated and long. One issue the Board addressed was turning
down a proposal to participate in a facility lease for Missouri Energy to increase their power supply.
6:00 P.M. REGULAR MEETING.
Consent A.genda. A motion was made by Whaley, seconded by McClemans,to approve the
consent agenda:
A. Action to approve the agenda.
B. Action to approve the July 23 Joint Hospital/Council Meeting and July 28 Council
Meeting Minutes.
433
C. Documentation of Police Car purchase pursuant to SDCL 5-18-9.1. On 7-17-09 and 7-
23-09, bids were advextised by the City of Bxookings for the purchase of two police package
vehicles as per our specificarions. No bids were Yeceived on the 7-28-09 bid letting.
According to SDCL 5-18-9.1 and 5-18-9.2,when no bids are received a municipality may
solicit a minimum of three competitive quotes under the original specifications. On 7-28-09,
four quotes were directly solicited for and two were received. Sioux Falls Ford provided a
quote of$24,900 per vehicle. EinspahY Ford provided a quote of$24,954. Watertown Ford
and Schoenhard Ford of Huron both declined to provide a quote. Einspahr Ford was
awarded the contract on two police package vehicles at a price of$24,954.
D. Action to appointment Michael Lee Kendall to the Visitor Promotions Committee
second student position for a term beginning 8/1/2009 through 1/1/2012.
E. Amendment to First Reading Policy pertaining to agenda packet documentation.
Brookings City Council Poliry
Firrt Keading of Ordinance.r
Brookings, South Dakota
Original Policy—September 2, 2003 '
Ordinance Adopted—May 9,2006
Policy Amended-August 11,2009
Ob�ective: The Brookings City Council wishes to establish a uniform procedure for handling
the first reading of all proposed ordinances.
Polic�on Council Meeting Procedure: Pursuant to City Ordinance No. 14-06, the purpose of
an ordinance first reading is to announce an issue to the public and the following procedure is
utilized fox the meeting.
Ordinance No. 14-06
An Ordinance Establishing a Policy for the First Reading of Ordinances in the City of
Brookings, South Dakota..
Be it Ordained and Adopted by the City Council of the City of Brookings, State of South
Dakota, as follows:
I.
Sec. 2-34. First Reading Policy for Ordinances.
The first reading of an ordinance shall follow the following procedure:
1. The full title of the ordinance change shall be read by the Mayor or the City
Clerk.
2. The date for the second reading of the oxdinance shall be announced
irrunediately following the first reading of the o�dinance.
3. Discussion by the City Council and public comment shall be pernzitted only
during the second reading and any subsequent readings of the ordinance.
4. No vote by the City Council shall be required to proceed to a second reading
of an ordinance.
Polic�on Agenda Packet Documentation. In order to better facilitate applicant requests,
the City Council agenda packet documentation fox fixst reading of ordinances will not
rec�uire the Planning Cominission minutes. All other documentation generally provided
in the second reading packets will continue to be provided in the fitst packet (i.e. staff
report, ordinance,legal notices, mailing list, zoning regulations,maps, site plans,
correspondence for opponents and proponents).
F. Action to cancel the November 10`� Council meeting.
G. Action on Resolution No. 76-09, awarding bids on Brookings Roof Replacement
Project.
Resolution No. 76-09
Resolution Awarding Bids on Brookings Roof Replacement Pxoject
43 �
Whereas, the City of Brookings held a bid letting at 1:30 pm on Tuesday,August 4, 2009; and
Whereas, the City of Brookings has received the following bids for the Brookings Roof
Replacement Project
Base Bid Addn. Item: Pol�styrene Alternate 1 Soffit
Insulation
BHI, Inc. Harrisburg, SD $35,373.00 $1.90/sf $5,571.00
Guaxantee Roofing&Sheet $35,899.00 $1.00/sf $9.30/sf
Meta1 of SD, Inc., Sioux Falls, SD
Architectural Roofing&Sheet $36,925.00 $0.85/sf $10,725.00
Meta1, Inc., Sioux Falls, SD
Pxo-Tec Roofing, Inc., $46,990.00 $0.48/sf $2,998.00
Watertown, SD
MJ Dalsin, Inc. $47,284.00 $0.51/sf $7,986.00
Sioux Falls, SD
Buysee Roofing Systems & $44,975.00 $0.80/sf $10,680.00
Sheet Metal, Inc.,Marshall,MN
Now Therefore,Be It Resolved that the low base bid of$35,373.00 with Additional Item:
Polystyrene Insulation for$1.90/sf and Alternate 1 of$5,571.00 of BHI, Inc., Harrisburg, SD be
accepted.
H. Action on Resolution No. 77-09,Authorizing Change Order (CCO#1) for Landfill
Electronics Storage Building.
Resolution No. 77-09
A Resolution Authorizing Change Order (CCO#1) For
Landfill Electronics Storage Building-Mills Construction, Inc.,Brookings, SD
Be It Resolved by the City Council that the following change order be allowed for the Landfill
Electronics Storage Building: Construction Change Order Number 1:Adjust contract price for
work to supply and install thermal tape between the siding and the red iron for a total incxease of
$572.00.
A. Action to approve an abatement request from Associates Housing Finance for 2008 taxes
in the amount of$634.80 for mobile home at Western Estates #801 (Assessor
Recommends Approval).
B. Action on Resolution No. 80-09,Authorizing Golf Cart Lease Agreement.
Resolution No. 80-09
Resolution Authorizing Golf Cart Lease Agreement
Whereas, rhe City of Brookings annually leases motorized golf carts fox use at Edgebrook Golf
Course, and
Whereas, the fleet of golf carts currendy being leased by the city,under terms of a lease expiring
in 2009,is available for one additional yeax of use, and � '
Whereas,it would be in the best intexest of the city to lease one additional year,at an annual cost
identical to that cuxrently in effect, $22,183.20,
Now,Thexefore,Be It Resolved by the City Council of the city of Brookings, South Dakota that
it authorizes the City Manager to sign such lease agreement for the calenda,Y year 2010.
On the motion, all pxesent voted yes; motio�carried.
Roger Oberg, Brookings Health Systems CEO. Roger Obexg, the new Brookings Health
Systems CEO,was introduced to the City Council.
43 �
1S` Reading— Ordinance No. 17-09. A first reading was held on Ordinance No. 18-09, an
OYdinance Amending Article V. of Chapter 26 of the Code of Ordinanc�s of the City of Brookings,
South Dakota and pertauung to Ta�cabs. PuGlic Hearing—Augu.rt 2S'�
Resolution No. 79-09. A public hearing was held on Resolution No. 79-09, awarding bids on Alley
Assessment Project 2009-04STA (Alley between 11`'' & 12`h Avenues and 1S`&2°`�Streets). Public
hearing: Emma Dimett.rpake in favor of the propo.ral, noting that pavement may be helpful for avater drainage.
Jackie Lannin� City Engineer, ,raid Leona Telkamp arad Gordon Harm.r, repre.renting 125; svere again.rt the project
(17.86%), Ezrgene Buckley and Emma Dimett, repre.renting 100; zvere in favor, and remaining had not re.rponded.
1'ublic Hearing Clo.red. A motion was made by McClemans, seconded by Bezdichek, to appxove. All
present voted yes;motion carried.
Resolution No. 79-09
Resolution Awarding Bids on Project 2009-04STA
Alley Assessment Project
Whexeas, the City of Brookings held a bid letting at 1:30 pm on Tuesday,August 4, 2009;and
Whereas, the City of Brookings has received the following bids for Project 2009-04STA Alley
Assessment Pxoject: Bozves Constrcrction, Inc., Brooking.c, SD �'26,699.50
Now Therefore,Be It Resolved that the low bid of Boive.r Construction, Inc., Brooking.r, SD of$26,699.50
be accepted.
Second Reading—Ordinance No. 18-09. A public hearing was held on Ordinance No. 18-09,an
ordinance pertaining to an application for a Conditional Use for a Kennel in the Business B-3
District. A motion was made by McClemans, seconded by Trieb, to approve Ordinance No. 18-09.
All present voted yes;motion carried.
Adjourn. A motion was made by McClemans, seconded by Whaley, to adjourn. All present voted
yes;motion caxried. Meeting adjourned at 6:35 p.m.
CITY OF BROOKINGS
C1TY OFB
��°o Tim Reed,Mayor
.�
Z; �qq �o:z
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9 •�
O :O s' /
Shari ornes, City Clerk