Taxes

Charter Revision meeting was very entertaining

It is rare I watch an entire city meeting and am thoroughly entertained throughout. I highly recommend it.

The first thing I will say is it seems the chair of the meeting, Anne Hajek was the only one who knew what was going on as she had to tamp down the rhetoric from the city attorney and Rick Kiley and as other members said things that made no sense.

Right out of the gate, Kiley decides to take on Anne, um . . . mistake. But he is so arrogant he really took a go at it. First he thot he could just propose crap on the fly since he is a member of the CRC (he thinks the mayor should get paid $200K and councilors $40K. Zylstra thinks the mayor should get $250K, we will discuss in a moment).

Hajek reminded him that he needed to bring his proposal forward like the public and the attorneys office by sending a written proposal in advance of the meeting. Kiley realizing he couldn’t win the argument tried to get Fiddle-Faddle to defend him, he tried and also failed. Then Kiley pulled the ‘former councilor’ card and said ‘well this is how we did it when I was on council.’ and Anne quickly quipped ‘The council and commission have different procedures and duties.’ I always knew that Kiley wasn’t the sharpest knife in the drawer and he didn’t disappoint tonight.

CRC DOESN’T EVEN BRING A FLOOR VOTE ON TWO CITIZEN PROPOSALS

To add insult to injury the two proposals by citizens didn’t even get a second motion for a floor vote. I’m sure it had to do with Fiddle’s tired old advice he gave again today that basically proposals from citizens that make major changes to the charter should be voted down by the CRC. Yet Fiddle is proposing a change in the charter (next meeting) to eliminate the mayor’s salary from the charter which is a parlor trick that gives the council and mayor the ability to give themselves raises without citizen approval. Kind of sounds like a major change Fiddle? He basically said only UNELECTED staff can put proposals on the ballot.

The two proposals that were voted down were removing the mayor from council meetings and advanced TIF rules. I supported both of them, but I told Zitterich on his TIF proposal it may be a little early since the legislature is probably going to implement new TIF rules this session, then we can fine tune them to Sioux Falls next year and that was the exact reason the CRC voted down the proposal. But I will give props to Mike, all of rule changes are in line with what the legislature is proposing. It wouldn’t eliminate TIFs but they would only be for very specific projects like affordable housing and not 5-star hotel parking ramps.

CRC APPROVES CITY ATTORNEY PROPOSALS w/A FUTURE MEETING ON SALARIES

There was some language changes to the charter that have to do with budgeting and election dates due to the change in state law.

But Fiddle has another proposal, he wants to take the Mayor’s salary off of the charter. Like I said above, this will let them decide their salary instead of the folks who pay them. There are also other proposals. Joe Kirby proposed a 20% increase as a course correction, Kiley wants to pay even more as does Zylstra. I told Anne tonight after the meeting they should just do a COLA that matches the COLA of the city employees (non-public safety). Problem solved.

I also told Anne that in the middle of a recession this is HORRIBLE time to ask voters to approve raises, it will fail miserably like it did last time. They really are that TONE DEAF! If you don’t think council and the mayor get paid enough then why did you run for office? You knew what it paid, it was clear in the charter.

Zylstra brought up the argument of the CEO running the city. So tired of that stupid f’ing argument. The city is NOT a for profit business that designs over-priced square space websites or a predatory credit card company, it is non-profit, taxes in, taxes out in services. It’s NOT hard accounting. He felt that the mayor (elected) should be paid like a CEO or the School District Super (they are extremely overpaid BTW). Here’s why his argument is silly. When we elect a graphic designer to be mayor, he doesn’t have the expertise of a public administrator. This is WHY hired administrators like city managers or supers get paid more, they likely have a PHD in public administration. They get the job and that is why they get the salary they do. Since an elected mayor doesn’t have the knowledge or experience of a Public Administrator they rely heavily on staff and directors, which is fine. In other words, delegating the work instead of actually doing it. I think the mayor’s salary is just fine where it is at. The financial opportunities the mayor receives thru business relationships make him more coin then a silly salary ever would (you know, like getting $1 millon over appraisal on a building you sold). I also think we need to move to a city manager form of government and have a professional run a town of this size while the council is free to form policy with the cooperation of the city manager instead constantly fighting the mayor.

I also find the argument for a raise tone deaf because of this chart;

If you recieved those kind of scores in your yearly review do you think your boss would give you a raise? They would probably sh!t can you on the spot.

Are peeps shopping local? No.

I have been enjoying my almost weekly response to Jodi’s Journal. For full disclosure Jodi and I have a ‘news’ relationship. We talk when we see each other in public and we email frequently about things going on in the community and if you ever have a chance to speak with her in person, you are fortunate, because she is a loaded with information about our community, business and the economics of it all. So I found her article about shopping local intriguing, but the same old tired holiday journalism. I guess I am of the opinion that I would shop local if I could get what I wanted. I can’t. And most agree with me, just look at the latest financial report from the city;

The only retail sales that have weathered the storm is online remote retail in Sioux Falls (which I am thankful for). If this part of sales tax collection was NOT this strong in town, we would be so under water right now, it would be silly.

So why is this? Like I said, finding certain products at local retailers is a challenge, but it is NOT just that. There is the convenience of online shopping, also the speed of delivery is insane. Had a friend recently order a gadget he needed from Amazon and it was in stock at the SF warehouse. He had the piece in 45 minutes. There is also the cost factor. I have bought stuff on Amazon (same quality and brand) for a third of the price of a local retailer.

This is plain and simple economics. People are going to find the best deal. And if I can buy a case of Ramen noodles for a third of the cost of buying the same product at HyVee, which will I choose?

I think local retailers should specialize in unique items you can only get here and stop chasing some Little House on the Prairie merchantile.

But the article gets more juicy when our mayor, who is apparently a Metro-Yeti (c) says this (when talking about participation at the new refrigerated ice rink);

The numbers are “good but not great,” TenHaken said. “And it’s South Dakota. We expect this.”

Well, we should expect it. We also maybe need to be a bit better at powering through it. I’ll acknowledge it’s more convenient for me to sit inside, do phone interviews and write on days like we’ve had lately. But I also criss-crossed the town several times on our snowier days recently and was reminded it’s really not that difficult to go about the day more or less like normal.

“I grew up in Minnesota, and Minnesota learned to embrace winter. It’s in their culture. It’s in their DNA,” TenHaken added. “They have snow vests and Surly Brewing tasting events out in the snow. I think Jacobson Plaza is our first attempt to really embrace winter, and we need to go outside in the winter, whether it’s Great Bear or Jacobson Plaza or the downtown Holiday Plaza. You don’t have to stay inside.”

I know it is rare, but I agree with Paul 1,000%! When it comes to outdoor winter rec in Sux, peeps are gigantic p……………..!!!! GRAND CANYON SIZED!!!!

But, knowing that, why would you dump $16 million into a facility that would rarely get used? I think an indoor/outdoor ice facility would have been a better route and you could have ditched the playground, piss park, dog toilet and hamburger shop for a facility that people would actually use. But that takes vision. Doesn’t it?

The ‘Shop Local’ mantra makes me chuckle, because there is only a handful of developer welfare queens that run this town while stealing your money and making your lives miserable with low wages and crappy taxpayer services.

When I hear the mayor, any mayor, say ‘Shop Local’ in Sioux Falls, I just feel like saying, ‘DUH’ then look for my Amazon login.

Libertyland TIF should go to a vote of the entire state!

While the petitioners did the right thing by putting this to a vote of the people of the affected area, the TIF should really be voted on by the entire state. Why?

So this is how TIFs work in SD; The developer’s property is valued at a new higher rate once the project is completed, this rate is used to fund city, school and county government, except that new valued tax revenue goes back to the developer for improvements (in other words he gets a tax refund to build his personal project). So while these values are up, the money isn’t coming in so the county and school district must make that revenue up by taking it from the state which is funded by sales taxes paid for by the entire public body of the state. So while there may be a TIF in Pennington County, Minnehaha County residents are funding this TIF thru sales taxes to make up for the lack of school and county funding. TIFs are not only BAD for the effected communities but they hurt every resident in this state! Some would argue we pay these taxes anyway, and you are correct, but instead of bailing out school districts and counties we could use the revenue to improve state infrastructure. What a f’ing concept!!!!!!

Screenshot

Sioux Falls has had ZERO sales tax growth over the past 7 months

I have not learned much from Shawn ‘Fireball’ Pritchett’s finance reports over the years, and yesterday’s wasn’t much different. Before he started his presentation he said he was presenting them finance numbers from September instead of October because the state hasn’t released the October numbers yet because of the government shutdown. Not sure why our state revenue department would have trouble creating financial reports about state collected taxes during a Federal shutdown? It would be like our state DMV shutting down due to the government shutdown, which didn’t happen because it is a state agency. Either way, they did release the October numbers, yesterday.

A local economist, Mark Weber, comes to the finance report meetings every couple of months and gives the council his version of the financial report he puts together by using the state data. He included the October numbers in his report (FF: 57:45). The council was so intrigued by his report they let him go almost a minute over his time (tsk, tsk – don’t let Poops catch you giving away free seconds).

While there was a lot of bad news in both Fireball’s report and Weber’s report, the part that shocked me was when Weber said that retail sales tax growth has been flat for the last 7 months and some sectors are negative in Sioux Falls. So where does the 2% growth come from? Internet sales. If it were not for them we would have negative sales tax growth right now. You almost have to thank god we have a diversification of services in Sioux Falls to prop up our sales tax collection. I have often thought sales taxes and tariffs are regressive and we should tax income only because of the volatility of the tax and no guarantees or expectations. Or better yet, start taxing advertising.

Weber said he hasn’t seen this kind of negative sales tax growth for this long in Sioux Falls.

Here are some screenshots of Weber’s report;