economy

This is a good start, but can you fill in the blanks?

I guess the CVB has been listening to my requests for economic impact of the Events Center and other entertainment venues in the city;

“When there’s something big going on in town, people are at gas stations, filling up their cars to drive home.  They’re eating in the restaurants.  They’re shopping all over the town,” Schmidt said.

All of this made for a lucrative 2016.  Schmidt says concerts, plays, sporting events, conventions — you name it — brought nearly $500 million into the city.

Hey this is great, but without details, it’s just all fluff. I would like to see the formula the CVB used to come to these conclusions, I would also not only like to see the sales figures of the EC but of all the entertainment venues. We own, operate, take care of and pay the mortgages of these facilities, we have a right to see the numbers.

This story was just a teaser that leaves me with more questions.

Sales Tax Revenue down EVEN MORE than last year

Click to enlarge.

Finance Director Tracy Turbak will be making his monthly report at the informational meeting at 4 PM. So far, the sales tax growth is even more dismal than last year. For the first 3 months we are at 0% growth. Ouch.

Since I am not an economics major, I really can’t tell you why this downward spiral is happening. Obviously the farm economy isn’t doing well, but with Sioux Falls having so many residents, you would think this would not affect us this much. I still kind of wonder if we really didn’t recover from the last recession. Wages continue to be stagnant, and that is obvious with all the food banks growing and the lack of affordable housing.

2017 City Salaries; Economic Development

While there is only 6 employees in the Economic Development office, salaries add up to over $500K. Even the lowest paid employee of the department, the administrative assistant, makes over $49K a year. The department seems management heavy.

What surprises me about the department is how slim it is on office staff. I think the department has become very ‘tight’ or should I say ‘tight-lipped’ since Huether has become mayor. I guess the fewer people in the department, the less likely there are leaks.

Here is the full doc: 2017-Wages

What the HELL is a ‘Segregated Fund’?

Sometimes when city directors are sweating bullets trying to dig themselves out of a hole (FF: 1:10) they slip up and reveal ‘certain’ things the mayor’s administration is up to. Brent O’Neil, Economic Development Manager, called an account that is ‘holding’ money away from the city’s general fund or reserve fund a ‘Segregated Fund’ during his presentation Q & A portion at the informational meeting.

Funny, in the 11 years I have been following city politics I have never heard of such a practice of hiding money from the general fund and quite frankly from the public in a separate secret account.

Maybe Finance Director, Tracy Turbak would like to explain this practice? Is it a normal practice in municipal accounting to hide money from the General Fund or Reserve Fund by putting it in a separate secret account? If it was a private business, maybe I could see such a practice, but with public money?

Sounds a little fishy to me.

When will the City of Sioux Falls tell it’s citizens we are going broke?

City workers collecting their pay checks

You can’t rack up millions in record debt building structures we don’t need, turn around and give your directors atrocious corporate like raises then turn around and tell the minions, here are your crumbs;

The American Federation of State County and Municipal Employees, which represents hundreds of clerks, drivers, and maintenance workers, said Friday that members have rejected a contract offer from the city that would have offered 1.5 percent annual pay increases through 2018.

A spokesman for the union said the raises aren’t enough to cover the rising cost of health insurance paid by city employees. The union representing police officers in the city rejected a similar contract late last year, leaving firefighters as the only employee group with a new labor contract in place.

At the end of the day, the city council will be expected to do the heavy lifting without being let in on the negotiations, basically a shot in the dark;

Although not privy to the negotiations, the City Council will be asked in the coming weeks to approve  the new terms. If the unions declare an impasse, the Council can impose the contract without the consent of the employee groups. Asked by leadership and city attorneys to stay quiet on the topic as it could end up in litigation, councilors mostly have balked at questions surrounding the labor dispute.

“We were told not to comment,” Councilor Greg Neitzert said Thursday.

Councilor Theresa Stehly said it’s not her intention to complicate the process, but she shares the unions’ concerns about not prioritizing personnel.

The city in recent years has extended itself financially with more than $150-million worth of large-scale spending projects like the Midco Aquatic Center, the Denny Sanford Premier Center and the planned city administration building, yet can’t keep the labor force happy, she said.

“I can understand how these unions feel like things aren’t adding up when we’re extending ourselves with pools and administration building,” Stehly said. “It’s so very important in our personal lives and in city life that we take care of what we already have and support what we have before we go out and extend ourselves for these wants.”

While true, seems too little too late. People often tell me that Mayor Huether has accomplished a lot, he sure has, on the backs and debt of the citizenry. He has been anything BUT prudent with our money and now it is time to pay the piper on the bill of goods he sold us.