City subsidies a balancing act

Councilors want to give BATA more money but would have to find cuts

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BROOKINGS – The Brookings City Council discussed the city’s finances in the second work session Aug. 13 for the proposed 2020 budget.

There were some minor changes from what was presented on July 23, but most of the talk centered around how to give Brookings Area Transit Authority more money and still keep the budget balanced.

The council set a third study session at 5 p.m. Aug. 27 before the next regular meeting for more talk on where they might make cuts.

2020 budget 

The total 2020 budget is $55,146,680, which is a 3.7% or $1.9 million increase from 2019, according to the graphic presented Aug. 13 by City Manager Paul Briseno; Jake Meshke, assistant to the city manager; and Erick Rangel, chief financial officer.

They explained changes to the 2020 budget from 2019, like positions being eliminated or combined, and where positions were added.

Meshke gave a summary of the 2020 budget, which was laid out in three pages of colorful graphics.

The largest chunk of the total budget is the general fund, which is 42.9% of the total budget. The general fund is balanced at $23,669,065, Meshke said.

He explained 82% of the general fund comes from three sources: local sales tax, transfers, and property tax. This money funds about 90% of the employees and “many of the core services that make Brookings a welcoming and safe community,” with strong neighborhoods, parks, entertainment, recreation, arts and culture, and helping sustain businesses, Meshke said.

That includes the police and fire services, street maintenance, library, solid waste and the golf course, to name some.

Council discussion

Councilor Holly Tilton Byrne asked where the budget information would be made available.

Once it’s finalized, it will be on the city’s website, Briseno said.

Briseno said Rangel and Meshke have been going over the budget items and found some that had been “turned off … went and turned ’em back on.” They also found some savings “because we overbudgeted engineering.”

“At the end of the day, it all equals out,” Briseno said.

Councilor Leah Brink asked why there was “literally nothing budgeted for 10 years” in the CIP master plan and trail maintenance, and what will the city do in the meantime?

Briseno said there was money budgeted for resurfacing and maintenance of all the trails, as well as signage.

“We just don’t have money for new trails,” he said, adding they will go after grants whenever possible.

Briseno explained how some other items are funded and how the transfers and subsidies worked.

Outside funding

Councilor Dan Hansen mentioned as they moved through the process, they will get more inquiries about outside funding “than any other item in this entire budget.” He asked Briseno to go over the Outside Agency Funding Comparison budget, which includes the 3B or Pillow Tax and the Care Council. 

The 3B or Pillow Tax includes the convention and visitor bureau, South Dakota State University’s Oscar Larson Performing Arts Center, Downtown at Sundown and the health system, among others, for a total requested amount of $985,135. The recommended amount for 2020 is $871,513.

The Care Council is a new program. It recommended funding for different agencies, including BATA, the Boys & Girls Club, Brookings Regional Humane Society, Fourth of July fireworks, Brookings Area Community Band, Brookings Area Crime Stoppers and Drug Court, to name just a few, for a total requested amount of $1,761,635. The recommended amount for 2020 is $1,612,841.

It’s unsustainable to fund all the outside agencies, Briseno said, adding they usually transfer in money from the liquor store.

It’s a balancing act, he said, keeping track of which entities they will continue to fund or not fund in the future, how much money they have and where it can be distributed.

At the beginning of the budget process, there wasn’t enough money to fund all of these entities, Briseno said. They were about $1.2 million short.

“So we went to our department heads, and we cut and we cut and we cut. And finally, we got as low as we could and cut ourselves before we cut these outside agencies,” Briseno said, adding the Care Council recommended more funding for some agencies, but “I just couldn’t make that happen with the money that we had available.”

Mayor Keith Corbett thanked Councilors Patty Bacon and Tilton Byrne for serving on the Care Council.

Tilton Byrne said the Care Council did a lot of research and “didn’t come to these decisions lightly.”

Brink asked if the city could find sponsors for the Fourth of July fireworks.

The Swiftel Center operates that event for the city, Briseno said. They do the Uncle Sam Jam, as well.

Tom Richter, executive director of the Swiftel Center, gave some history of how the Swiftel Center came to run the Fourth of July fireworks. He said they raise $25,000 to $30,000 from local businesses to put on that event.

“That is about half of what we raise,” Richter said, adding it’s a free event and roughly 5,000 participate.

“It’s a great event for the community, and we would really like to keep it going, if possible,” Richter said.

Brink asked about the funding to the South Dakota State University Student Visitor Promotion, which requested $50,000 and has $10,000 in the 2020 budget. She wanted to know if the city could “zero that out if we wanted to increase in some other areas.”

Brink wanted to increase the amount the city gives to BATA to get them closer to the requested amount of $125,000. The city has committed $85,000 in 2020, an increase over last year’s $80,000.

Briseno reminded them the budget was balanced, so if they want to give more money to one entity, they can cut other outside agencies or make further cuts in the departments.

“A lot of these agencies, when you start seeing that large dollar amount, it’s a significant amount of their operations,” Briseno said.

Bacon pointed out BATA has faced funding shortfalls and “it’s a critical service in our community.” She wants to find a way to give BATA more money because the organization’s recent raise in rates won’t cover what they need.

Brink asked about the $40,000 being given to the Humane Society.

Traditionally, the city gave the Humane Society about $10,000 a year, Briseno said. The shelter has been accepting more animals from the city’s animal control, and an agreement is being negotiated. The problem is the shelter is running out of room at the facility. The $40,000 is for the shelter to pick up animals and cover the fees and fines, Briseno said.

“So you don’t see that as an area that we could modify at this point in time?” Brink asked.

Yes, but it could affect the contract they’re working on, Briseno said.

Tilton Byrne said she was on the task force that put together the proposal on that number, which is about what the city would owe based on the services provided by the Humane Society. The task force took a “very in-depth look” into the expenses and “the Humane Society came up with a really strong plan,” including independent fundraising.

“I think the $40,000 is a fair number to continue to give them,” Tilton Byrne said.

She suggested reducing the funding for the Fourth of July fireworks display and giving it to BATA. While the fireworks event is a “wonderful leisure activity,” the city has to consider BATA, which is a “crucial need.”

“Our funds should always first go to things that are needed versus leisure activities,” Tilton Byrne said. 

Meshke said BATA has 9,750 one-way rides per month.

Cutting anything is not easy or popular, Brink acknowledged, adding it will take a “significant chunk” to make up the approximately $40,000 difference in BATA’s request compared to what the city has budgeted.

Hansen stressed the councilors should bring ideas of what cuts they want.

“I don’t think it’s fair to city staff to say, ‘you need to figure it out,’” Hansen said. “If you’re gonna make the motion to increase the budget, I think you should also do the work to figure out what needs to be cut so we do keep a balanced budget.”

Contact Jodelle Greiner at jgreiner@brookingsregister.com.