The Audit Committee of Sioux Falls meets tomorrow, and they have some precarious recommendations about the Parking Enterprise Funds.
As you can see our debt service is extremely high (mostly due to an ill-advised Bunker Ramp). There is even suggestions that parking employees work in other departments.
This is what happens when supposed leaders make very bad decisions. Will we ever learn?
SCENARIO 4: TRACKDOWN HUETHER
I will know more when I receive my copy of the 2020 C.A.F.R in a few days; but 2020 began with $5,639,807 million in cash in the bank; after the 2019 Fiscal Season generated $3,171,000 million that year.
I think we all knew that 2020 was going to generate less funds due to your Covid Fear/Panic;
But the Parking Enterprise has a total $32,362,936 million in total assets.
After ‘we’ pay off all annual expenses, liabilities, debts, future employee obligations – the Parking Enterprise has a Net Position of $14,291,869 million ($75 per resident)
I am interested to see these #’s updated when I obtain the 2020 C.A.F.R which will show the amount of ‘cash’ in the bank on Dec 31, 2020 as well as last years total revenues.
On December 31, 2020 “WE” had 5 Parking Ramps and 11 Surface Lots + the Street Parking.
In 2019 – we had a total number of 3303 Parking Spaces while it was reported that we leased 94% of them; while we generated $3,171,168 in total revenues. That means 3,105 spaces were occupied at one time or another averaging $1,021.31 annually per space.
We charge out parking spaces 5 days a week or 260 days a year, so that means 1 space would generate $3.93 per day or $0.49 per hour or $0.12 per 15 minutes.
The new “Parking Ramp” opened in April of 2021 – lets see what the numbers will be after 12 Complete Months.
Lets also keep in mind, the goal as a “State” in 1961 having passed a resolution to move all “motor vehicles” from on-street parking to parking ramps in order to manage public safety, manage traffic flow on city streets, and to remove motor vehicles off public streets;
The CITY can increase its “CASH IN BANK” by reducing the # of On-Street Parking, let alone selling off land and of course “Surface Lots” of which it holds roughly $4,644,187 million in “Land” which makes up 2.5% of our total “land ownership”.
What can ‘we’ gain if we were to sell off all of our Surface Lots, while as a city, we redevelop that land into ‘commercial property’ which then increases the amount of property tax dollars collected, while also assuming we collect additional ‘sales tax’ from new business, let alone, future residential gains.
By selling off surface lots which “I” predicted we would do, I made that prediction in 2019 actually, what would our net gain be as we collect future ‘tax’ revenues from the former land ownership (surface lots)?
“WE” got to maintain the increased ability to attract people to down town for citywide shopping, events, activities over a course of 7 days, while keeping our parking ramps and garages full.
Also keep in mind, we seem to have increased interest by a few parties of building a retail center next to the “ramp” which will help soon enough.
IT is not all doom and gloom.
– Mike Zitterich
96% occupancy? It’s time for a refresher on that count. The bunker was a bad idea from the get go. Period.
Check out this article from Argus Leader:
Need downtown Sioux Falls parking? Hundreds of spots go unused daily.
https://www.argusleader.com/story/news/city/2019/07/11/where-to-park-downtown-sioux-falls-public-parking-spots-open/1658993001/
Just using the City’s own C.A.F.R data collected based on the 2019 Audit Report done by the very same company mentioned above.
The term used was not occupancy, but in fact they use the term “leased”. Just cause you see a parking space left empty, may not mean it is not paid for.
As I also stated above, I am quite interested to get my hands on the 2020 C.A.F.R which you can also purchase for a mere $20 dollars. I tend to buy 2-3 copies, then provide copies to others whom chooses to review them.
I do not believe a damn thing said by the Argus Leader nor Kelo-Land as they love to slant the facts in a direction they choose to push an agenda.
You can learn tons of information by studying the “C.A.F.R” which is public knowledge, and open to anyone whom choose to read and review them.
Truth is – the Parking Enterprise is full of “ASSETS” that have value, and has a net gain of $14,291,000 million.
– Mike Zitterich
– Mike Zitterich
Mike, if you would take off your Greg and Paul blinders for a moment you would realize that this ramp was one of the worst financial decisions the council has ever made. And when Paul has the opportunity to fix it, he did nothing. The ramp decision is a prime example of how this city government is in cruise control.
Well, I like being reminded how ignorant and corrupt city hall has become. Driving by there is healthy for citizens, especially newcomers. We’ve made stupid mistakes but this makes us feel genius.
Call it a Mayan Ruins and circle the block with tourist buses?
Scott, I simply spoke on the “financial statement” of the 2019 C.A.F.R regarding the Parking Enterprise. All I have are the numbers. Whether or not I supported the building of the parking ramp was/is another topic.
I do know this, we cant go back, we can only go forward. Were we duped into agreeing to build the Parking Ramp. I am not going to go down that road. “WE” were giving a detailed plan that included both a construction plan and a financial plan, based on the financial reports of the Enterprise Fund.
It has nothing to do with whether I support Greg Neitzert or Paul Tenhaken or not.
Fact is – I was simply showing actual financials as noted in our C.A.F.R. All the reports above are saying is that we must maintain no less than $3,000,000 a year with no additional costs, and no additional debts.
Just Saying, Mike
It was one of many Huether mistakes. I don’t think TenHaken should be blamed. However, this mayor or the next must decide what to do about it. Downtown is becoming a remarkable renewal. It would be a shame to demolish this new construction. Rapid City has an alley with artfully done wall graphics. Sioux Falls needs something. Perhaps the inside could become individual spaces leased for art, craft, and flea market area. The slow slope trafficway is handicapped access. There could be designated inside and outside walls for street artists. It’s covered for inclement weather times. The open air makes it a place where the pandemic can’t thrive. The Crap and debt Huether caused can be made into fertilizer and financial liquidity.
Ramp will be fine,
A few items.
1. Parking had somewhat of a dip during the worst of COVID but it wasn’t bad. Leased parking dropped by I think 12% or so but has been recovering. Parking meters dropped more but it is recovering.
2. Cost cutting measures were put into place to help offset that. With less parking enforcement, they were able to put employees to work in parks temporarily and save on wages and benefits, as an example.
3. We have no need to sell parking lots to raise cash. We aren’t in that bad of a condition. The reason for selling lots is the same as it has always been, parking lots downtown decrease walkability, and where you replace parking lots with buildings you get more people downtown, which drives parking revenue. If you get rid of a parking lot, you aren’t going to lose that revenue, the people parking there will move to other lots and ramps, so the revenue isn’t necessarily going to go down at all.
4. Revenue from the sale of any lots would go back into the enterprise. It would just increase the cash position in the fund. There is no need to sell just to raise cash, it would be for the wider policy reason that has been in place well before the latest ramp project, walkability and downtown density.
5. The parking analysis we got from Eide Bailly which we will review today shows that even if we do no cost cutting measures, and even if we have 5 years of depressed revenue in a COVID like atmosphere, we still won’t run out of cash. It would get low, but we wouldn’t run out. That’s good news.
You all are jumping to way to many conclusions…
– Mike Zitterich
there is an easy, and obvious conclusion. it was always a bad idea tied to a sketchy developer and it cost way too much money for what were left with. a parking ramp that costs about 5 times waht it should have and only netted us a relatively small number of increased spots.
by the way, i could give a rat’s ass about how healthy the parking enterprise fund is.
Yikes Too Much Information –> I am sorry you feel that way. You definatly do not understand the numbers.
mr. z, i do understand the numbers and this parking ramp debacle is a big piece of number 2.
I know Rainman “definitely” understood the numbers.