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FOUNDATION Experience, professionalism, expertise, dedication and services are the foundation of Dougherty & Company. For more than 40 years Dougherty & Company has served South Dakota local and state governments, school districts, counties and cities, underwriting over $6 billion in bonds for South Dakota public entities since 1990.

Tom Grimmond

Toby Morris

Sioux Falls, South Dakota | Phone 605.339.9800 | 800.339.1111 tgrimmond@doughertymarkets.com Pierre, South Dakota | Phone 605.224.5557 | 877.224.5557 tmorris@doughertymarkets.com

Official Monthly Publication

Member of National League of Cities

www.sdmunicipalleague.org

South Dakota MUNICIPALITIES

Managing Editor: Yvonne A. Taylor

PRESIDENT Pauline Sumption Finance Officer, Rapid City

1st VICE PRESIDENT Debbie Houseman Finance Officer, Lake Andes 2nd VICE PRESIDENT Steve Allender Mayor, Rapid City

TRUSTEES Fay Bueno Finance Officer, Sturgis

Editor: Sara M. Rankin

DISTRICT CHAIRS Dist. 1 - Mike Grosek Mayor, Webster

Dist. 2 - Jennifer Eimers Finance Officer, Madison Dist. 3 - Dawn Murphy Finance Officer, Tea

Dist. 4 - Becky Brunsing City Administrator, Wagner Dist. 5 - Renae Phinney President, Ree Heights

Karl Alberts Finance Officer, Aberdeen

Dist. 6 - Leland Treichel Mayor, Roscoe

Christine Erickson Councilmember, Sioux Falls

Dist. 8 - Harry Weller Mayor, Kadoka

Carolynn Anderson Finance Officer, Wall

Amy Leon City Manager, Yankton

Dist. 7 - Arnold Schott Mayor, McLaughlin

Dist. 9 - Carolynn Anderson Finance Officer, Wall

Features

Contents

2019 Municipal/School Election Workshops . . . . . . . .6

DENR Accepting Applications for Water Quality Projects . . . . . . . . . . . . . . . . . . . . . .7

Steering a Steady Budgeting Course . . . . . . . . . . . . .8

Leadership and Influence . . . . . . . . . . . . . . . . . . . . .14

SDMEA Hometown Power - Aurora . . . . . . . . . . . . .18

Payroll Problems When Paying Bonuses to Hourly Employees . . . . . . . . . . . . . . . . . .20

State of SD Fiscal Year 2018 Citizen-Centric Report . . . . . . . . . . . . . . . . . . . . . . . .22

SDML Proposed Statement of Policy . . . . . . . . . . . . .41

George Martin Tribute . . . . . . . . . . . . . . . . . . . . . . .65 SDML Annual Conference Information

Making the Most of the SDML Conference . . . . . . .30

Preliminary Conference Program . . . . . .Center Pullout Conference Registration . . . . . . . . . . . . . . . . . . . . . . .37

Golf Scramble Registration . . . . . . . . . . . . . . . . . . . .38 SDML Hall of Fame Nomination Form . . . . . . . . . . .39 Fun Walk/Run Registration . . . . . . . . . . . . . . . . . . . .40

Columns

Dist. 10 - Michelle DeNeui Finance Officer, Spearfish

Director’s Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4

LEAGUE STAFF 1-800-658-3633 Fax: 605-224-8655

Risk-Sharing News . . . . . . . . . . . . . . . . . . . . . . . . . .26

PAST PRESIDENT Mike Wendland City Administrator/Economic Development Director, Baltic

Yvonne Taylor Executive Director Sandi Larson Director of Risk Sharing Services Lori Martinec Director of Research and Training Chris Hill Director of Municipal Electric Services Sara Rankin Director of Marketing & Communications Lori Butler Director of Finance Carla McGregor Accounting Assistant Lisa Nold Office Manager SD Public Assurance Alliance: David Pfeifle Executive Director Kristina Peterson Director of Underwriting Ron Burmood Director of Member Services Paytra Nichols Underwriter Jerry Krambeck Member Services Representative Deb Corkill Executive Assistant

President’s Report . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 Washington Report: Senator Rounds . . . . . . . . . . . . .28

In Every Issue

SDML Events Calendar . . . . . . . . . . . . . . . . . . . . . . . .4

City Highlight - Mitchell . . . . . . . . . . . . . . . . . . . . .12 Hometown Happenings . . . . . . . . . . . . . . . . . . . . . . .60

Classifieds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .64

Municipal Calendar . . . . . . . . . . . . . . . . . . . . . . . . . .66

SOUTH DAKOTA MUNICIPALITIES (ISSN 0300-6182, USPS 503-120) is the official publication of the South Dakota Municipal League, published monthly at 208 Island Drive, Ft. Pierre, South Dakota 57532, phone 605-224-8654. This institution is an equal opportunity provider, and employer. Periodical postage paid at Pierre, South Dakota and additional mailing offices. Non-member subscriptions are available for $30.00 annually. The opinions expressed herein are not necessarily those of the South Dakota Municipal League. Postmaster: Send address changes to SOUTH DAKOTA MUNICIPALITIES, 208 Island Drive, Ft. Pierre, South Dakota 57532.

SEPTEMBER 2019

VOLUME 86, NUMBER 3

Director's Notes

Let’s talk about annexation. The topic is getting some attention because the rural electric coops want to stop municipalities with electric utilities from serving citizens in annexed areas. So what is annexation? In almost all cases, annexation happens because a landowner asks to be taken into city boundaries. In order to request this, the landowner has to have a petition signed by the owners of 3/4 of the property value, and 3/4 of the registered voters. The property must abut existing city boundaries. Because this process is voluntary, it can lead to city boundaries that look like a checkerboard – because the city accepts the property that wants to be in, and does not force the others in.

Some facts: we asked the 17 largest cities, which represent more than half of the state’s population, if they had done an involuntary (or forced) annexation within the last 10 years. The answer was almost always “No.” In fact, only 5 had attempted a total of 10 involuntary annexation in the last ten years – and of those, 3 were

2019 SDML Events Calendar

September 19

Municipal/School Election Workshop, Fort Pierre

October 8

8-11

SDML Board of Directors Meeting, Aberdeen

SDML Annual Conference, Aberdeen

November 20-23

NLC City Summit, San Antonio, TX

Joint SDML Board Meeting with County Association, Pierre

December

actually voluntary but the landowner needed to use the other process for some reason. Of the 7 that were truly involuntary, five were not even challenged. Two were referred to an election and failed.

On the immediate issue – the municipal utility’s need to serve all of its citizen’s equally, including with electric service – only 1 municipal electric had done an involuntary annexation – and it was an “island” – a small piece of land that had a couple of buildings on it that were completely surrounded by the municipality. It wasn’t challenged.

The rural electric coops are also throwing the word “taking” around, which is entirely misleading. Not only are almost all annexations at the request of the landowner, but when a city provides electric service in an annexed area, the city is required to pay the rural electric – even when the rural electric has no facilities or customers in the annexed area!

As one of our most vocal proponents, Watertown Senator Lee Shoenbeck said, “Under the law, the coop is paid for all of its physical assets. Since most of these are bare ground annexations, there’s little by way of assets. But, coops also get a percent of the cities income on the developed bare ground for seven years.”

It is important to know that municipalities don’t grow because the city decided to do so. They grow because they have developed a place that people want to live, work, and invest. People and businesses have come to the city and asked to be added to the city boundaries. One of the biggest reasons they do so is to receive city services – water, sewer, streets, and, in some cases, electricity. All utilities need to be able to grow with the city so we can provide all of our citizens with equal access to services.

We need to make sure no legislation passes that slows the municipal growth and development that is driving the South Dakota economy – and which is helping all of our citizens, including our rural friends and neighbors. Until next month, remember we are always available at 1-800-658-3633 or yvonne@sdmunicipalleague.org

We hope to see all of you in Aberdeen next month! Yvonne Taylor Executive Director

SOUTH DAKOTA MUNICIPALITIES

President's Report

And just like that, in the blink of an eye, summer is done...kids will be going back to school and fall will be upon us. How in the world can time go so quickly? I, for one, wish for time to slow down just a little bit – so I can make a conscious decision to enjoy the moment, to make lasting memories and to savor the time spent with family and friends.

September also brings the budget crunches for all of us, as municipal officials, so make sure to get both readings of your appropriations ordinance completed before monthend and get that tax levy request to your respective county auditors!

The Municipal League is also gearing up for its annual conference, to be held in Aberdeen in October. Make sure you have made your room reservations as well as submitted your registration forms and fees to the League! I encourage all of you to attend if possible. This is a relatively inexpensive education opportunity not only for elected officials, but also for your staff. It is time well spent learning about the various topics on the program

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SEPTEMBER 2019

For all of you golfers, there is a golf tournament on Tuesday, Oct 8th. This is always a fun time and you get to meet other people from throughout the state. Your SDML board meets that evening and you are always welcome to attend – we just ask that you give Yvonne a heads up so that we can make sure our room is adequate.

What other types of things can you look forward to this year? For all of you newbies, there is a first-timers session that will lay out the conference for you. Each of the SDML affiliates will be meeting throughout the conference and you do NOT have to be a member to attend. I oftentimes tell the story of my very first SDML Annual Conference – it was held in Sioux Falls. The only sessions I attended were for the Finance Officers’ Association – because I did not know that I could go to all of the sessions if I wanted to. So if you see something that interests you on their agenda, just show up! Take in what you can – you never know when you might learn something that you can use back home.

I’m not going to go over all of the sessions with you (I think you can read the program agenda in this month’s issue of SD Municipalities Magazine) but I DO want to point out that the social events, and the time spent in the hallways during breaks or over meals, can sometimes be the most beneficial to you. It is so VERY important that you create a circle of colleagues so that you don’t have to invent the wheel if you have an issue in your municipality. The added benefit is that you might just cultivate a friendship or two like I have. Please make plans to attend – and please encourage others to attend as well.

“When you focus on being a blessing, God makes sure that you are always blessed in abundance. “ – Joel Osteen So until next time, I hope you are blessed. Pauline

agenda in addition to networking with colleagues from all of the State.

0819 1405502

2019 Municipal/School Election Workshops Presented by: South Dakota Municipal League • Office of South Dakota Secretary of State Associated School Boards of South Dakota

One in-person workshop and five webinar workshops are scheduled to assist election officers in conducting elections. The Secretary of State’s office, Associated School Boards of South Dakota and the South Dakota Municipal League will again co-sponsor workshops covering all aspects of elections – from notices to the final canvass – including question-and-answer sessions.

Municipal finance officers and school business managers have statutory responsibility to conduct elections in their local jurisdictions. Properly conducted elections are an integral part of the democratic process. The many hours of diligent work on the part of the election officers enhances candidate and voter participation, and provides for accurate and consistent elections. In-person Workshop (there will be only one in-person workshop held): September 19th Fort Pierre, Drifters Event Center ($25 fee) 10:00 am-3:30 pm (CST) *New Finance Officers and Business Managers are encouraged to attend the in-person training. • Training covers all aspects of elections in one day (lunch is provided)

Webinar Workshops - All aspects of elections will be covered over six different webinar workshops December 5th Webinar*(estimated time 45+ min) 9:30 am or 2:30 pm (CST) • Election types and dates, combining elections vs. holding them the same day, Election Calendar, Precinct and Election Boards, Public Notices and more. December 11th Webinar* (estimated 80+ min) 9:30 am or 2:30 pm (CST) • Candidate eligibility requirements, petitions, financial interest statements, vacancies and campaign finance. January 8, 2020 Webinar* (estimated 40+ min) 9:30 am or 2:30 pm (CST) • Ballot preparation, voter registration and residency and absentee voting.

January 9, 2020 Webinar* (estimated 60+ min) 9:30 am or 2:30 pm (CST) • Absentee Voting - Application, Voting in-person or by mail, UOCAVA Voters

January 22, 2020 Webinar* (estimated 1.5 + hours) 9:30 am or 2:30 pm (CST) • Election Worker Training and a guide on “What to do on Election Day”

January 23, 2020 Webinar* (estimated 30+ min) 9:30 am or 2:30 pm (CST) • What to ask your County Auditor, what should you do on election day.

There is no registration fee for the webinars. Those who register to attend the webinar will be emailed the login and call-in information one week prior to the workshop date.

*Each webinar is limited to 100 participants, so please register early if you plan to attend via webinar.

Registration due by September 5, 2019 and can be found at www.sdmunicipalleague.org

DENR Accepting Applications for Water Quality Projects

The South Dakota Department of Environment and Natural Resources (DENR) is accepting applications through Oct. 1 for projects eligible for federal Clean Water Act, Section 319 nonpoint source control grants.

Eligible applicants include governmental agencies; state government subdivisions, such as conservation districts, water development districts, counties and municipalities; universities; certain nonprofit organizations; and federally recognized Indian tribes. Other groups may participate by applying through one of the eligible entities as a project partner.

Entities interested in applying for Section 319 grant funds by the Oct. 1 deadline are encouraged to contact DENR at (605) 773-4254 or obtain application guidance at http://denr.sd.gov/dfta/wp/319.aspx. The federal Environmental Protection Agency grants require 40 percent local match.

Section 319 of the federal Clean Water Act provides grants to reduce water pollution from nonpoint sources, such as polluted runoff from urban, agricultural and forest lands. DENR historically has used the Section 319 funds primarily to develop and implement projects designed to reduce nonpoint source pollution to meet Total Maximum Daily Loads (TMDLs). South Dakota water bodies in need of TMDLs are listed in the “2018 Integrated Report for Surface Water Quality Assessment.” A copy of the report is available from the DENR website at http://denr.sd.gov/documents/18irfinal.pdf.

Nonpoint source pollution originates from many sources, including heavily fertilized lawns, urban runoff that carries street and pet wastes, agricultural fields, small livestock operations and natural sources, such as highly erosive soils. The primary nonpoint source pollutants in South Dakota are sediment, phosphorus, nitrogen and E. coli bacteria.

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By Len Wood

Steering a Steady Budgeting Course

Can localities avoid the feast-or-famine cycle of expansive spending during good years and then, during bad years, of scrambling to make cuts or find more revenue? The short answer is yes, local governments can act to steel themselves, at least in part, against inevitable future economic declines.

Localities are most vulnerable when times are good. This is when big-ticket items are usually approved. Elected leaders are more apt to approve an expanded program, bend to generous employee compensation demands, or embark upon costly capital projects.

Perhaps the most critical period is when the economy starts to improve. At the first sign of recovery, elected officials are barraged with pent-up demands from powerful community groups, residents, and employee unions. Officials tend to forget that the good times will not last and the years of plenty are followed by economic downswings.

While constant vigilance is important at all times, it is especially important at this point. Before committing to a new program or increased expenditure, an agency needs to identify the total cost impacts (direct and indirect) of decisions and whether the department or agency can really afford them today and in the future.

Here are eight strategies local governments can pursue to avoid the pitfalls inherent in the feast-or-famine economic cycle.

1. Build and maintain adequate reserves. For many years, local governments were criticized for maintaining what were thought to be large general fund reserves (anything larger than 5 percent of expenditures). Yet, reserves play a significant role in maintaining financial stability.

A reserve equivalent to six months of general fund operating expenditures should be a minimum. Agencies must be vigilant in resisting raids on these reserves and in educating the public on the vital purpose of these monies.

2. Distinguish recurring from nonrecurring funds. It is absolutely critical that a local government identify which revenues are recurring (can be counted on each year for funding programs) and those that are nonrecurring (one time). For example, the property tax, which can be counted 8

on year after year, is recurring revenue. Typical federal grants are nonrecurring revenues that usually sunset after a few years. Other nonrecurring revenues are monies derived from building and engineering permits for a new housing tract. Building booms can create huge spikes in developmentrelated fees. These fees should not be used to finance such ongoing expenses as police and fire personnel. Only recurring revenues should be used to fund recurring expenditures. Nonrecurring revenues should be used for such priorities as building reserves, paying down debt, and improving infrastructure.

3. Require a structurally balanced budget. In the minds of many officials, a budget is considered balanced if revenues exceed expenditures, regardless of whether the revenues are recurring or nonrecurring. We now know that local governments can wind up with a real

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fiscal mess when guided by this mindset. At some point, monies run out and the agency is left with a huge general fund deficit.

Local governments need to strive for a structurally balanced budget that requires recurring revenues equaling or exceeding recurring expenditures. If cities and counties cannot achieve structural balance, they need to publicly identify how much is supported by one-time money and how they intend to bring the budget into structural balance.

4. Prepare long-range financial operating plans. Local government operating budgets cover a one- or two-year period. Often, they do not adequately reveal the information needed to evaluate the agencyâ€™s long-term financial condition. A budget can be

SEPTEMBER 2019

balanced during the good times but be out of balance 12 months later.

Long-term financial plans identify critical items often left out of annual budgets; these can include deferred costs, impacts of grants ending, future costs of salary and benefit agreements, and postretirement benefits. A longrange plan serves as an earlywarning system and allows localities to take corrective actions before the problems become unmanageable.

5. Staff for the minimum. Government workflow usually follows a peaks-and-valleys cycle. Some agencies staff for the peaks. A better approach is to staff for the minimum (the valleys) and use contracted services to meet peak demands.

6. Identify the true cost of employee salary and benefit packages. Public employee unions have been extremely successful at negotiating compensation packages during the past decade. Employee salaries and benefits can consume from 70 to 90 percent of a local government’s budget. Salaries are based on what the competition is paying.

The competition usually consists of neighboring local governments that recruit in the same market for the same skills and experience. Too often, this leads to escalating salaries and benefits. While this process will not be changed easily, local governments can do a better job of costing the full impact of both direct and indirect expenses before they approve negotiated salary packages.

Public employee benefit costs have been creeping upward, and in some cases, exceed more than 60 percent of salary costs. Localities should commission total-compensation studies that show the total cost of an employee compensation package, rather than just the salary portion.

It is still open to question whether many local governments can afford the retirement and post-retirement health benefits granted to employees. While not popular with unions, more places may have to resort to tiered-benefit structures, with newer employees receiving scaled-down health and retirement benefits. 7. Protect agency assets. Communities spend millions of dollars acquiring and developing capital assets—buildings, grounds, sewers, utilities, water facilities, and streets. Unfortunately, during periods of fiscal stress, infrastructure maintenance dollars are some of the first things cut or diverted in favor of other more visible programs.

The result of this diversion is not seen immediately. In some cases, it takes years before problems begin to appear, but eventually they show up in noticeable ways. Neglect of road maintenance leads to street deterioration. A simple asphalt overlay is not adequate anymore. Streets need to be totally rebuilt at a huge cost.

Or a water main replacement program is deferred. Shortly thereafter, water mains start bursting, causing thousands of dollars of damage and creating safety hazards. The multimillion-dollar lawsuits soon follow.

Good budgeting requires that a percentage of current revenues always be devoted to preserving an agency’s investment in its capital assets. Failing to protect assets not only costs more in the future, but also exacerbates community deterioration.

8. Avoid grant pitfalls. During periods of economic distress, the federal and state governments may offer grants. Paradoxically, these grants can undermine fiscal discipline. In 1994, the federal government began offering cities and counties a deal that could not be refused—federally funded police officers to fight crime through the Office of Community Oriented Policing Services (COPS).

This program comes with a huge balloon payment. Recipient agencies are expected to participate in the funding of these officers by increasing their contribution each year until they are responsible for the entire cost after the fourth year. Many agencies found that they could not afford the additional officers once the grants ran their course. As one police chief lamented, “I truly don’t believe that many cities, including ours, thought about how we were ever going to be able to afford the additional police officers after the grants ran out.” Before pursuing any grants, a local government should publicly review its plan for paying for the new program once grant funding ceases.

The above strategies should be formalized, adopted by the governing body, and included as fiscal policies in the annual budget. During budget review, the manager or elected officials should report on these policies, indicating whether they have been complied with, and, if not, when and how compliance will be achieved. Len Wood is interim city manager, Hemet, California (lwood@cityofhemet.org). Reprinted with permission from PM Magazine. 10

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Provided by: Mitchell Chamber of Commerce and Mitchell Area Development Corporation

SOUTH DAKOTA MUNICIPALITIES

State Historical Society Announces Fall Deadwood Fund Grant Applications

The South Dakota State Historical Society announces that the applications for the next round of the Deadwood Fund grant program should be postmarked no later than Oct. 1 for work beginning no sooner than Jan. 1, 2020.

In 2018, $117,000 was distributed among 10 projects, which had matching funds of $580,106. This resulted in a total public-private investment of $697,106.

The program is designed to encourage large-scale restoration or rehabilitation of historic properties by individuals, organizations or public agencies, according to Jay D. Vogt, director of the State Historical Society, whose historic preservation office administers the program.

The first round of 2020 applications will be due Feb. 1, 2020.

Grant forms are available online at https://history.sd.gov/preservation/fundingopportunities.as px.

Grants will be awarded in amounts ranging from $1,000 to $25,000. The grant amount must be matched on a dollarfor-dollar basis from nonfederal and non-state sources. Nonprofit organizations will be allowed to use in-kind services for one-half of their match.

Funding for the program is from Deadwood gaming revenue earmarked by state law for historic preservation projects throughout the state and distributed by the State Historical Society.

For more information on the South Dakota State Historical Societyâ€™s Deadwood Fund grant program, contact the State Historic Preservation Office at the Cultural Heritage Center, 900 Governors Drive, Pierre, SD 57501-2217; telephone 605-773-3458; e-mail shpo@state.sd.us.

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SEPTEMBER 2019

Leadership and Influence

By Ronald Wilde, ICMA-CM, and Phillip Messina

Although one of the most powerful forces on earth, influence often works in subtle ways. Much like the ripples created by tossing a rock into a still pool, influence invigorates an organization. The right kind can be felt by everyone and move entities forward. The same can be said for the way the wrong kind can lead them awry. The following is an example of how influence works, in both ways.

With a population of nearly two million, Vienna, Austria, in the early 1900s was one of the most dynamic cities on earth. The city was the major cultural, economic, and political center of central Europe. Yet it was a cauldron of conflicting social forces. With one of the most diverse populations of its time, it was a kaleidoscope of ethnic groups.

As part of the declining Austro-Hungarian Empire, Vienna shared in the difficulties of governing the 12 ethnic groups in the empire. The ancient monarchy was losing its grip as

the feudal system was finally coming to an end. Liberal political ideologies were developing and fostering revolutions against the more traditional, conservative systems that favored the status quo and protected the wealthy classes. The diversity of Vienna provided a fertile home to a dazzling array of artists, thinkers, and future leaders, including Sigmund Freud, composer Gustav Mahler, philosopher Ludwig Wittgenstein, Communist leader Leon Trotsky, painter Gustav Klimt, and composer Arnold Schoenberg.

However, without mature institutions to ensure tolerance for divergent cultures, political factions began to arise. These factions were known for their virulent rhetoric, antiSemitism, and an inability to forge compromises with opposing viewpoints.

In this remarkable setting, a young aspiring artist moved from the Austrian countryside to Vienna in 1907. His name was Adolph Hitler. No one knows for sure how much

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Vienna influenced Hitler; however, one telling fact is that there is little evidence of his anti-Semitic views prior to arriving.1

Leadership Influence According to many experts, leadership is closely tied to influence. “Virtually all definitions of leadership share the view that leadership involves the process of influence.”2 The dictionary defines influence as the capacity or power of persons or things to be a compelling force on, or produce effects on the actions, behavior, opinions, etc., of others. Leadership is the application of influence in a manner that propels organizations forward. It has been the driving force for both human achievement and catastrophes.

It takes a certain kind of leadership influence to become a compelling force that affects action, behavior, and opinion in a long-term, positive manner. This type of influence has these essential characteristics: it must be positive, it must be both individual and collective, and it must be both direct and indirect. Positive leadership influence moves an organization toward ends that are beneficial not only for the

SEPTEMBER 2019

organization, but for employees and society at large. It works to overcome the negative aspects of human nature.

Negative influence does just the opposite. It preys upon the weaknesses of human nature and primarily serves the interests of autocrats. History is replete with stories of leaders who exercised overt force in a negative way. Adolph Hitler is just one example in a long list. However, there are also examples of positive leaders with a subtle, indirect approach. Nelson Mandela is one. In the book Mandela’s Way is a passage where Nelson taught an important lesson to the author Richard Stengel.

“He turned to me and said, “You have never herded cattle, have you, Richard?” I said I had not. He nodded. As a young boy—as early as eight or nine years old—Mandela had spent long afternoons herding cattle. His mother owned some cattle of her own, but there was a collective herd belonging to the village that he and other boys would look after. He then explained to me the rudiments of herding cattle. “You know, when you want to get the cattle to move in a certain direction, you stand at the back with a stick, and then you get a few of the cleverer cattle to go to the front and move in the direction that you want them to

go. The rest of the cattle follow the few more energetic cattle in the front, but you are really guiding them from the back.” He paused, “That is how a leader should do his work.”

The story is a parable, but the idea is that leadership at its most fundamental level is about moving people in a certain direction . . . and the way to do that is not necessarily by charging out front and saying, “Follow me,” but by empowering or pushing others to move forward ahead of you. It is through empowering others that we impart our own leadership or ideas.”3

Positive leadership is mostly exerted through methods that are based upon internal motivation techniques. It works through developing the potential of others. In this manner, results can benefit everyone.

This is in contrast to Negative Leadership Influence that relies on external motivation, is exclusive, and depresses others. It relies only upon the attributes and capabilities of those at the top. Individual Leadership Influence Much of what has been written about leadership is about the attributes of individuals. Former ICMA Executive Director Bob O’Neill put it this way: “While leadership can be the catalyst for responsive and innovative action in government, we too often refer to an outdated and ineffective view of leadership based upon a “cult of personality” and constructed around charismatic leaders.”4

Relying on any single individual is not a true reflection of the leadership fabric in any organization. Especially in today’s complex environment, everyone exercises a degree of leadership. It may be that this is just more obvious now. Back in 1962, J. E. McGrath stated that “anyone who fulfills critical system functions, or who arranges for them to be fulfilled, is exhibiting leadership.”5

J. Richard Hackman and Ruth Wageman in a more recent article stated, “Although people who occupy leadership roles certainly have more latitude to lead than do followers, one does not have to be in a leadership position to be in a position to provide leadership. Indeed, among the most interesting, and inspiring, varieties of leadership we have observed is that provided by followers, especially followers who are unlikely ever to be selected for formal leadership positions.”6

Collective Leadership Influence (CLI) Collective leadership influence, or CLI, strives to capture collective human resources to bring about new ways of thinking, acting, and learning. It involves everyone, thrives on diversity, and is process oriented. It knows that the organization is stronger and makes better decisions when many ideas are generated and considered.

CLI seeks out individuals with diverse backgrounds and viewpoints. It brings them together in productive ways. According to Jonathan Haidt, “. . . if you put individuals together in the right way, such that some individuals can use their reasoning powers to disconfirm the claims of others, and all individuals feel some common bond or shared fate that allows them to interact civilly, you can create a group that ends up producing good reasoning as an emergent property of the social system.”7

Finally, CLI is process oriented. It brings people into the decision-making process by engaging them in different forums in which their ideas and observations can be heard and discussed. When done well, CLI can generate buy-in and ownership as a result of inclusion and involvement.

Growing Collective Leadership Influence Growing leadership influence begins with a Collective Leadership Philosophy. In his recent book, Chris Edmonds described a leadership philosophy: “(It) is a statement of

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Stephen R. Covey in The 8th Habit identifies leadership as a “choice rather than a position.” By this he means everyone can play a leadership role. 16

SOUTH DAKOTA MUNICIPALITIES

your beliefs about leading others, your intentions when leading others, and what others can expect of you in your leadership capacity.”8

A collective leadership philosophy is a statement of what the organization believes about leadership and what can be expected of those who act as leaders. It can permeate an organization and influence the actions of employees in an indirect, but powerful manner.

Collective leadership influence grows and further develops through Collective Leadership Processes. Victor Vroom and Arthur Jago state that “Leadership is a process, not a property of a person.”9

Leadership processes can be designed to capture collective knowledge and wisdom. When executed according to a carefully considered plan, they can accomplish multiple goals. They foster discussion and thought while bringing people together for a common purpose.

Finally, leadership influence matures in an organization through Collective Leadership Judgement. Recent research has identified cognitive biases in humans that can affect judgement. CLI can help overcome these through improved decision making, better planning, and more ethical behavior.

Leadership Influencers Influence cannot happen without influencers. There must be agents that propel influence. In an organization, there are three primary agents: the individual, the team, and the culture.

Individuals have characteristics, specific styles, and actions that are important for propelling Leadership Influence. Although dissimilar, every employee has a leadership role to play.

So much of what gets done in today’s organizations is through formal or informal groups of employees often referred to as teams. Each may have different responsibilities, but all must function effectively in order to be a positive influence.

The third influencer is culture. While not as tangible as the others, it is a considerable force. Because it largely develops outside of intentional efforts, culture can be difficult to change. However, creating or changing one that supports positive Leadership Influence is vitally important.

Collective Leadership Influence in Local Government Collective Leadership is helpful in any organization but is particularly useful in local government. This is because of SEPTEMBER 2019

the broad scope of services, active involvement of citizens, and the reduced potential of single actors to effect change. In this environment, the goal of leadership is to find a just balance between the oft-competing values and goals of citizens. Collective leadership can help find that balance through more involvement, indirect influence, and building relationships.

Putting It All Together Our new book, Course Correction Leadership, is about CLI deployed through effective influencers. It is about how it can, when done correctly, improve organizations in multiple ways. Navigation is improved through empowering employees at all levels to execute the small and constant course corrections essential to keeping an organization on track. Accountability grows when everyone realizes they have an important role to play. Finally, organizations can use CLI to overcome prejudices and biases, balance competition and cooperation, and bring together strong, diverse individuals for a common purpose.

Ronald Wilde, ICMA-CM, is city administrator, Jonestown, Texas (ronaldwilde@outlook.com). Phillip Messina, Duvall, Washington (p38messina@msn.com) has served as a manager in Oregon and Washington. Wilde and Messina’s book, Course Correction Leadership, can be purchased on Amazon or excerpts viewed at www.teamCCL.com.

Endnotes and Resources 1 “Dancing Over the Edge: Vienna in 1914,” Bethany Bell, BBC News, Jan. 6, 2014. 2 Victor H. Vroom and Arthur G. Jago, “The Role of the Situation in Leadership,” American Psychologist, Jan. 2007. 3 Richard Stengel, Mandela’s Way, Crown Publishers, 2010, p.76-77. 4 Robert O’Neill, “Why the Cult of Personality is the Wrong Leadership Model for Government,” Governing, April 2014. 5 J. E. McGrath, Leadership Behavior: Some Requirements for Leadership Training, Washington D.C.: U.S. Civil Service Commission. 1962. 6 J. Richard Hackman and Ruth Wageman, “Asking the Right Questions about Leadership,” American Psychologist, Jan. 2007, p.46. 7 Jonathan Haidt, The Righteous Mind, Vintage Books, New York, 2012, p.105. 8 S. Chris Edmonds, The Culture Engine, Wiley, 2014, p.56. 9 Vroom & Jago, p.18. Reprinted with permission from PM Magazine.

Aurora

By Chris Hill, Director of Municipal Electric Services

Aurora is a great little community just to the east of Brookings. While visiting with Utility Manager John Muller, who is originally from Aurora, he mentioned that since he graduated high school there has been one hundred and ninety new homes move into the community. One hundred and forty of those new homes have been added since he became the Utility Manager in 2014. The new homes are located in two developments in the city. One is on the northeast side of town and still has available lots for sale. There is also a development on the southwest side that also has lots available.

Development on Southwest side of Aurora

The City has been installing AMR meters and is down to about 20 water accounts left to change out. All of the electric meters have been changed out as well. Aurora also built a new substation in 2014 to help alleviate wheeling charges. Other fairly recent projects include continuing to bury distribution lines. The underground project began around 2004 and continues as the developments continue to grow.

Development on Northeast side of Aurora Prior to working with the City of Aurora, John was a heavy equipment operator and knows city infrastructure. He has worked with the installation of water and sewer lines, building roads, and other projects that have made him the perfect fit for this position. He enjoys learning how things work and has done his research when it comes to city utilities. John seems dedicated to making sure that the electrical system is reliable and available to handle new potential loads.

Aurora Main Street

John also informed me that the high reliability will continue as they have a looped electrical system. Some areas are not completely looped at this time as they are still SOUTH DAKOTA MUNICIPALITIES

waiting for some of the developments to finalize. John also informed me that Brookings Municipal Utilities comes and helps out with some hot work and has been very helpful in assisting when needed.

Aurora has two full time employees, Finance OfficerShannon Freng, and Utility Manager John Muller. There is also one part time employee, Joe Mersch.

Joe Mersch, Shannon Freng and John Muller

If you havenâ€™t been to Aurora, I encourage you to drive around and check out how the town is growing. Stop in on main street to visit with the city staff and find out exactly what makes their HOMETOWN great.

Questions? Comments? Email me at Chris@sdmunicipalleague.org Call Chris: 605-770-6299.

SEPTEMBER 2019

Payroll Problems When Paying Bonuses to Hourly Employees

by Aaron Clark, McGrath North

When employers pay bonuses to hourly employees, they often overlook payroll issues relating to the calculation of overtime. For example, employers may pay nondiscretionary bonuses to hourly employees based on production, quality of work, attendance or longevity. In many cases, the employer simply pays the bonus without considering how this could impact the employee from a payroll standpoint with respect to overtime.

Non-exempt employees working more than 40 hours a week, must be paid 1.5 times their “regular rate” for all overtime hours under the Fair Labor Standards Act (FLSA). When nondiscretionary bonuses and other payments are made to an hourly employee, this can have an impact on the calculation of overtime. Under the FLSA, the “regular rate” used to calculate overtime must include “all remuneration for employment.” Failing to include certain payments or bonuses when calculating overtime may violate the FLSA and give rise to overtime liability.

Some bonuses do not have to be included when calculating overtime. For example, discretionary bonuses do not have to be included. Generally, a bonus is discretionary if the employer has the sole discretion to determine whether the payment will be made and the amount of the payment. Such payments are not made pursuant to any promise or contract. Nondiscretionary bonuses, on the other hand, are generally promised and expected to be paid if the underlying conditions are met (e.g., the employee meets the criteria to earn the bonus based on production, work quality, attendance or longevity).

The FLSA requires that nondiscretionary bonuses must be included in the regular rate for purposes of determining overtime. There are a variety of ways in which the bonus can be allocated to comply with the FLSA. Here is one example that may help clarify the issue:

Example: Suppose a non-exempt employee earns $10 an hour and works 50 hours during the workweek. The employee also receives a $20 production bonus from the Company. Many employers overlook the overtime issue and simply pay the employee as follows: $500 for the employee’s 50-hour workweek ($10 an hour x 50 hours) $50 for overtime pay ($10.00 an hour x .5 = $5.00 x 10 hours) $20 for the production bonus $570 total weekly compensation

SOUTH DAKOTA MUNICIPALITIES

Under the FLSA, the production bonus must be considered in determining the “regular rate” for of calculating overtime. To calculate the overtime during the workweek the production bonus is earned, the employer must first calculate the new “regular rate” for the workweek, given the impact of the bonus. To do so, the employer would add the production bonus to the total regular pay received by the employee for the week and divide that amount by the total number of hours worked. The resulting pay rate (known as the new regular rate) is then halved and multiplied by the number of overtime hours worked to calculate the overtime due.

Using the above example, the employee’s total pay with the production bonus would be $520 ($10 an hour x 50 hours + $20 production bonus). The employee’s new hourly rate for overtime purposes would be $10.40 ($520 ÷ 50 hours = $10.40). Therefore, the employee’s compensation under the FLSA would be calculated as follows: $500 for working a 50 hour work week ($10 x 50 hours)

$52 for overtime pay ($10.40 an hour x .5 = $5.20 x 10 hours). The new hourly rate ($10.40) is halved and multiplied by the number of overtime hours worked to calculate the overtime compensation due. $20 for the production bonus $572 total weekly compensation

Therefore, the employee receives $2 more by including the production bonus as part of the new regular rate. Although this seems like an insignificant amount, it can really add up when applied to multiple employees over an extended period of time.

The Department of Labor (DOL) has been cracking down on this issue. If the employer is ever audited or a claim is pursued by an employee, the DOL could require the employer to go back and pay all employees over the previous 2 years (or 3 years if determined to be willful) plus interest and possible penalties. If you are paying nondiscretionary bonuses to hourly employees, it is always a good idea to check with legal counsel to ensure that you are calculating overtime consistent with the FLSA regulations.

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SEPTEMBER 2019

SOUTH DAKOTA MUNICIPALITIES

SEPTEMBER 2019

SOUTH DAKOTA MUNICIPALITIES

SEPTEMBER 2019

Risk-Sharing

SD DENR has approved several of these courses for contact hours that can be used for water and wastewater recertification. MSHA also recognizes online training that qualifies towards the 24 hours of new miner training that is required before a new employee can work in a gravel pit unsupervised. There are several online training courses that are available that will qualify towards this requirement.

The Importance of Safety Training

Workers may not always recognize the importance of safety training or they may think of it as unnecessary because they have “been doing it for years”. But an important benefit of periodic safety training is a reminder that a danger can exist and that no one is immune to accidents. Therefore, it is important for workers to understand the purpose of the training session, why it will be useful to them and what can result from not following safety rules and procedures.

According to the Bureau of Labor Statistics, there were 5,147 workers killed on the job in 2017, 30 were from South Dakota. It is estimated that a worker is injured every 7 seconds on-the-job. Improved safety training and awareness can help save lives and reduce injury. The safety of your employees is of paramount importance, but you also need to be concerned with protecting the financial assets of your entity. We are living in a litigious society where more and more people seem less willing to take responsibility for their own actions. As a result, lawsuits filed against local governmental entities is not uncommon. Periodic training of your employees can help ensure that they are properly performing their duties by following your written policies and procedures.

The SDML Workers’ Compensation Fund and the South Dakota Public Assurance Alliance recognize the importance of employee training. They also recognize that your supervisors and employees are extremely busy. Accordingly, both pools have allocated resources to assist your entity in delivering training to your employees at no cost to you. To access these training resources go to www.sdmlwcfund.com or www.sdpaaonline.org.

Online Training Through services provided by FirstNet Learning, members have access to online training on several different topics. These courses can be accessed through the pools’ websites. Once a course has been completed, employees can print a certificate of completion. Members can grant certain employees with administrative rights, so they can assign and track the progress employees are making on various courses. 26

Streaming Safety Videos Through an agreement with Aurora Pictures, members have immediate free access to over 1,000 safety and human resources streaming videos. All a member needs is a computer and internet access. To sign up for this service, go to the pools’ websites and follow the instructions.

DVD Library The pools maintain a DVD library on various safety and risk management topics. Titles for the DVDs can be found on their websites. Each year new and updated titles are added to the library.

“Take Time for Safety” This is a series of 39 different training topics that can be used for “tailgate” or “toolbox” safety meetings. These sessions are designed to take 10 to 15 minutes each. Each course comes with a trainer outline, a handout, a quiz, a registration roster and a certificate. Mobile Classroom (SDML Workers’ Compensation Fund Members Only) Members can receive classroom and “hands-on” training on confined space entry and excavation safety using a mobile classroom. Instructors will come on-site and provide training on these 2 high-risk tasks using some of the latest equipment that is available today for employee safety.

Legal & Liability Risk Management Institute (LLRMI) Online Training (South Dakota Public Assurance Alliance Members Only) The SDPAA has entered into an agreement with LLRMI to provide their law enforcement members with model policies and procedures for road operations and jails. These are designed specifically for SD law enforcement. Additionally, they provide an update service in case there is a change in legislation or court case law that requires a policy to be changed. LLRMI has recently completed a review of existing policies and procedures. They have updated and added several new policies for road operations and jails.

There are online training courses available, so members can train their staff on these model policies and procedures. South Dakota Law Enforcement Training will give recertification hours for these training sessions. The model policies and procedures and the online training courses can be accessed through the SDPAA’s website. SOUTH DAKOTA MUNICIPALITIES

On-Site Training This past year we presented just over 130 regional on-site instructor led training classes for members on over 25 different training topics. The following are some of the most requested on-site training sessions.

Defensive Driving Did you know that motor vehicle crashes are the #1 cause of death in the workplace? Over 40,000 people die in motor vehicle crashes each year. In a typical day, that’s more than 100 people. Not only are these incidents devastating to employees, their co-workers and families, but they can have a significant impact on your bottom line. According to the National Safety Council, the average cost of a motor vehicle disabling injury is over $93,000 and skyrockets to about $1.6 million per fatality.

The NSC 4-hour DDC course is designed to decrease motor vehicle collisions and traffic violations, minimize exposure to liability risks and associated legal expenses, lower vehicle repair bills and fleet replacement costs and reduce contributions for coverage for both auto liability and workers’ compensation.

Harassment Prevention Harassment in the workplace continues to occur. Legal experts recommend that your harassment prevention policy be regularly communicated to employees. This can be done through employee meetings, online and video training or our onsite training sessions. We offer instructor led sessions for both employees and supervisors.

Annual Safety Training Sessions Each year between January and April, we offer 40 on-site regional training sessions throughout the State. These 7hour training sessions qualify towards MSHA’s annual refresher training requirements and SD DENR gives 5 contact hours towards the recertification requirements for water and wastewater operators.

Well documented, often-presented training helps reinforce correct behaviors in the workplace. You cannot make any employee work safely, but you can train and document that they have been taught over and over the correct procedures and processes to work safely. The reality is training is never finished no matter how tired everyone gets of it. Your employees deserve the best training available, so don’t forget to take advantage of the many training resources that the risk-sharing pools offer.

Doug Kirkus Loss Control Consultant South Dakota Public Assurance Alliance SDML Workers’ Compensation Fund dkirkus@safety-benefits.com

SEPTEMBER 2019

Washington Report: By U.S. Sen. Mike Rounds

When President Trump was elected, he promised to fight for American workers by putting into place strong, fair trade deals. He has worked hard to deliver on that promise. Like many South Dakotans, I support the president’s goal of strengthening our trade deals to make certain we are on a level playing field. South Dakota’s producers and manufacturers can compete with anyone in the world given a fair opportunity.

Trade has become such a hot topic in our state because of our large agriculture industry, which has suffered due to the ongoing trade disputes. We also have a manufacturing industry that has been hit hard by trade instability. Our manufacturers, farmers and ranchers continue to be at the tip of the spear in trade negotiations, and we must work quickly to finalize these deals.

One important deal that is ready for action is the U.S.Mexico-Canada (USMCA) trade agreement, which the president signed last year to replace the North American Free Trade Agreement. The Mexican government ratified the agreement this year, and Canada has repeatedly shown support for it. Now it’s time for Congress to vote to ratify the agreement, but it is currently awaiting action in the House of Representatives. I urge Speaker Pelosi to take a vote on the USMCA, which is supported by a majority of Americans. Supporting farmers, ranchers, manufacturers, small businesses and other industries in every state across

Time for Congress to Pass the U.S.-Mexico-Canada Trade Agreement

the country is not a partisan issue. We should all want these businesses to succeed.

Canada and Mexico are South Dakota’s top two trading partners. Trade with the two countries supports 37,700 jobs in South Dakota and we exported $1.1 billion in goods to Canada and Mexico in 2017. Increasing trade with our North American neighbors and other global allies is extremely important, especially at a time of economic downturn in the agricultural sector and trade uncertainty in markets around the world. Once implemented, it is estimated the USMCA will boost the U.S. economy by $68 billion and add nearly 200,000 new jobs. It is time for Congress to take action and at the same time urge the administration to quickly finalize other trade deals for our ag community.

To help alleviate some of the pain producers are feeling due to ongoing trade disputes, the U.S. Department of Agriculture recently released a new round of financial assistance for farmers called the Market Facilitation Program (MFP). Details of the MFP were just announced. $16 billion has been authorized to provide support to American ag producers who have been disproportionately impacted while the administration works to finalize free and fair trade deals. More information on the MFP, including how to apply for assistance, can be found on my website, www.rounds.senate.gov.

While trade assistance helps, what South Dakotans really want is access to markets to sell their products. The USMCA is a step toward improving trade for our producers. We must act to ratify the USMCA so South Dakota producers and manufacturers can have access to lucrative markets in our neighboring countries and our economy can continue to soar.

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Making the Most of the SDML Conference

Before you go Bring a good idea from home to share and a supply of business cards. If your city has promotional stickers or pins, bring a supply to share to make your hometown visible and help you make connections.

Make a plan When you arrive, review the full program of sessions. Map out the sessions you will attend. If others from your community are attending, decide together who will go to what. Your municipality will gain the most when attendees divide and conquer. ALL MEETINGS ARE OPEN TO ALL ATTENDEES.

Orientation If you are a first time attendee, plan on going to the “Orientation for New Attendees” session on Wednesday morning so you can learn more about the conference and the League, as well as meet other first-timers.

Attend the sessions All sessions listed on the conference program are open to ALL conference attendees – you do not have to be a member of the affiliate group to attend their meeting.

Take notes Good session notes – complete with notations of who you want to share the information with after the conference and ideas the information generates – will be invaluable when you prepare a summary. Plan to share it with other municipal officials, citizens and appropriate staff.

Daily review Each evening as you wind down from the day of sensory overload, review your session notes and jot down the top three discoveries. What were the most important, pertinent, useful or amazing discoveries that day? How are they significant to your municipality? Write them down. And –

All SDML Annual Conference information can be found at www.sdmunicipalleague.org. 30

on a specific day in your calendar – note an idea you want to pursue.

Network Make it a habit to introduce yourself to others around you at session and events. Have plenty of business cards to share. You can start conversations by asking questions. What part of the conference have they enjoyed most so far? How long has he/she held his/her position? What are the biggest issues the community faces? You may have common concerns to explore, or solutions that your community has developed.

Visit the exhibits Exhibitors have a lot of experience with municipalities and are experts in their field. They can be great sources of information and solutions for municipal concerns. Exhibits are open 8 a.m. to 4 p.m. on Wednesday, 8 a.m. to 11 a.m. on Thursday, and Friday from 8 a.m. to 10 a.m.

Policy Committees If you serve on a Policy Committee, those meet on Wednesday afternoon. If you are not on a policy committee, this is an excellent opportunity to sit in on one that is of interest to you. Policy Committees shape the Statement of Policy that guides the League’s legislative agenda for the coming session.

Vote Make sure your municipality has a voting delegate at the business meeting on Friday morning so your voice is counted in the election of League board members and the adoption of the Policy Statement.

Cost/Benefit Know what it costs your municipality to send you to the conference and be prepared to talk about the benefits your local government receives as a result. Municipal government is a lot like parenthood. It is impossible to know all about it until you are in the thick of it. There is a lot of on-the-job learning – and the SDML Conference is the single best forum for learning about municipal governance in South Dakota.

Relax Relax and enjoy the sights and delights of Aberdeen. Take time to renew yourself every evening to be refreshed the SOUTH DAKOTA MUNICIPALITIES

next day. Return home with your notes, contacts, resources, ideas, and dreams – and the commitment to make a difference with what you have learned!

2019 Topics at a Glance

The Economic Impact of Municipalities in South Dakota SDML Board and Staff The SDML Board of Directors commissioned a study of the impact of municipalities on the South Dakota economy.

Social Media, the First Amendment, and Municipalities/Social Media Panel Chris Balch, Attorney, Atlanta, GA; Javier Hernandez, Politics and Government Outreach, Facebook; Lisa Marso, City Attorney, Sioux Falls; Diane Best, City Attorney Emeritus Business Retention, Expansion, and Marketing Hometown America Kenny Sherin, SDSU Extension Services

Other Sessions Include: • Exploring Engagement and Making Motivation a Part of Your Day • Art of Leadership • City Ordinance and Policies for Small Cell Attachment to Utility Poles • Airport Lease Reversionary Rights • What's Driving Your Airport Project Cost? • Hiring the Right Person for Job - What About the Physical Aspects? • Aramid Fibers for HMA: Why, Results and Performance • Historic Preservation Law • Planning and Zoning 101: Conflict of Interest/Ex-Parte Contracts, Making a Decision/Findings, Citizen Planning Academy, Ask a Planner • Fire Retardent Treated Wood and Today's Model Code • DLA and GASB Updates • How to be a Good Defendant (or Avoid it Altogether)

SEPTEMBER 2019

First-Time Attendees

City employees and elected officials who have not previously attended an annual conference are invited to attend the Orientation for New Attendees meeting in Aberdeen on Wednesday, October 9, 2019 at 9:00 a.m. This is an opportunity to learn more about the South Dakota Municipal League (SDML), get a chance to meet the Municipal League staff and Board Members and get a better understanding of what the League does for the municipalities in South Dakota.

This meeting will be hosted by SDML President Pauline Sumption, who is also the Finance Officer for Rapid City, and other members of the SDML Board of Directors and Staff. They will review the conference agenda, share some of the success stories of the SDML and explain the purpose of the policy committees. Other Board members and League staff will be introduced and have an opportunity to share some of their thoughts.

Past Orientation for New Attendees meeting goers have spoken very highly of attending this gathering and learning more about the SDML.

If this is your first conference, you are encouraged to attend this meeting. See you in Aberdeen!

SDML Committees

2019 Nominating Committee

Al Cerny, City Administrator/ Finance Officer, Gregory, Chair Meri Jo Anderson, Finance Officer, New Underwood Becky Brunsing, City Administrator, Wagner

2019 Auditing Committee

Karl Alberts, Finance Officer, Aberdeen, Chair Becky Brunsing, City Administrator, Wagner Michelle De Neui, Finance Officer, Spearfish Tracy Davis, Deputy Finance Officer, Rapid City

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Preliminary Agenda Subject to Change

Tuesday, October 8, 2019 2:00 p.m.

SDML Golf Tournament Pre-registration required. Lee Park Golf Course, Aberdeen Hosted by: City of Aberdeen South Dakota Municipal League

7:00 p.m.

SDML Board of Directors Meeting

Wednesday, October 9, 2019 8:00 a.m.

Registration

8:00 a.m.

Exhibits Open

9:00 a.m.

Orientation for New Attendees

8:30 a.m. to 4:00 p.m.

SD City Management Association Presiding: Daniel Ainslie, SDCMA President, Sturgis 1. Exploring Engagement and Making Motivation A Part of Your Day Karen Daly, ICMA Mountain Plains Regional Director 2. Art of Leadership Karen Daly, ICMA Mountain Plains Regional Director 3. ICMA Update James Jayne, ICMA Vice President 4. Business Meeting and Election

9:00 a.m.

SD Municipal Electric Association Presiding: Russell Halgerson, SDMEA President, Brookings Municipal Utilities 1. Missouri River Energy Services Update 2. Heartland Consumers Power District Update 3. WAPA Update 4. City Ordinance and policies for small cell attachment to utility poles 5. Business Meeting and Election

10:00 a.m.

SDML Pooling Meetings x 6'0/ :RUNHUVÂ¶ &RPSHQVDWLRQ )XQG x Health Pool of South Dakota x South Dakota Public Assurance Alliance

11:00 a.m.

Pooling Connect 4 Want to Connect with your risk-sharing pools? Join us for a fun and interactive game of Pooling Connect 4! %UDG :LOVRQ $GPLQLVWUDWRU 6'0/ :RUNHUVÂ¶ &RPSHQVDWLRQ )XQG DQG 3UHVLGHQW RI ,QVXUDQFH %HQHILWV ,QF Lynn Bren, Director of Member Services, SDPAA Jerry Krambeck, Member Services Representative, SDPAA *DU\ 'UHZHV 0DUNHWLQJ 5HSUHVHQWDWLYH 6'0/ :RUNHUVÂ¶ &RPSHQVDWLRQ )XQG ,QVXUDQFH %HQHILWV ,QF /DGHQH %DFKWHOO $FFRXQW ([HFXWLYH 6'0/ :RUNHUVÂ¶ &RPSHQVDWLRQ )Xnd/Insurance Benefits, Inc.

Noon

Safety Awards Luncheon Presiding: Doug Kirkus, Safety Benefits, Inc. Hosted by: 6'0/ :RUNHUVÂ¶ &RPSHQVDWLRQ )XQG South Dakota Public Assurance Alliance

1:00 p.m.

Elected Officials Workshop Elected Officials may participate in the affiliate meeting of their choice

1:00 p.m.

SD Airport Management Association Presiding: Patrick Dame, SDAMA President, Rapid City 1. Business Meeting and Election 2. Airport Lease Reversionary Rights Bryan Johnson, A.A.E., Aviation Management Consulting Group :KDW¶V 'ULYLQJ <RXU $LUSRUW 3URMHFW &RVW" Tom Schauer, Senior Aviation Advisor, KLJ Engineering

1:00 p.m.

SD Governmental Human Resource Association Presiding: Brittany Smith, SDGHRA President, Philip 1. Business Meeting and Election 2. Hiring the Right Person for the Job ± What about the Physical Aspects? Doug Kirkus, Safety Benefits, Inc. Brad Wilson, CIC, AIC, SDWCS, Administrator, SDML Work Comp Fund

1:00 p.m.

SD Municipal Street Maintenance Association Presiding: Terry Johnson, SDMSMA President, Mitchell 1. Business Meeting and Election 2. Aramid Fibers for HMA: Why, Results and Performance Kevin Ageton, Highway Products Manager, Brock White Company 3. Round Table Discussion -Neighborhood Drainage Concerns -Short Duration Traffic Control Christina Bennett, Operations Traffic Engineer, SDDOT 4. Drug and Alcohol Training and Awareness Doug Kirkus, Safety Benefits, Inc. Jeff Lanning, Safety Benefits, Inc.

1:00 p.m.

SD Association of Code Enforcement Presiding: Geoff Fillingsness, SoDACE President, Wagner 1. Business Meeting 2. Historic Preservation Law Kate Nelson, Restoration Specialist & West-Central Historic Preservation Specialist, State Historic Preservation Office 3. Open Discussion on Nuisance Problems and Solutions

1:00 p.m.

Guided Tours - Repeated at 2:30 p.m. - Sign up at Registration Desk x Wylie Park & Storybook Land Tour The tour will take you around Wylie Park to point out all the recreational activities available. A ride on the Storybook Land Express miniature train will take you around Storybook Land and the Land of Oz. x Northern State University Campus Tour 1RUWKHUQ 6WDWH 8QLYHUVLW\¶V FDPSXV KDV XQGHUJRQH DQ XQSUHFHGHQWHG OHYHO RI FKDQJH. Learn about the successful fundraising activities that have made this all possible. x Historic Downtown Aberdeen (walking tour) Walk down Main Street and hear about the different styles of architecture and how big names have grown and developed the area to what it is today.

4:00 p.m.

SDML Policy Committee Meetings General Government Presiding: Stephanie Ellwein, City Administrator, Mitchell Public Health, Safety, and Welfare Presiding: Tom Paisley, Building Official, Spearfish, Chair Public Works Presiding: Robin Bobzien, Public Works Director, Aberdeen, Chair Taxation and Revenue Presiding: Daniel Ainslie, City Manager, Sturgis, Chair

4:00 p.m.

SDML Auditing Committee Presiding: Karl Alberts, Finance Officer, Aberdeen, Chair

4:00 p.m.

SDML Nominating Committee Presiding: Al Cerny, City Administrator, Gregory, Chair

5:00 p.m.

Exhibit Area Social

6:00 p.m.

A Night at the Races! Ladies show off your hats and gentleman grab your bowties! Join us for an evening filled with horse races, games of chance, cocktails, fantastic fare and fabulous prizes!

Thursday, October 10, 2019 7:00 a.m.

SDML 16th Annual Walk/Run Pre-registration required. Starts at Ramkota Hotel lobby at 6:30 a.m. Hosted by: Health Pool of SD 6'0/ :RUNHUV¶ &RPSHQVDWLRQ )XQG South Dakota Public Assurance Alliance

7:45 a.m.

Breakfast

7:45 a.m.

SDML Past 3UHVLGHQWV¶ %UHDNIDVW

8:00 a.m.

Registration

8:00 a.m.

Exhibits Open

8:00 a.m.

Resolutions Committee Presiding: Debbie Houseman, Finance Officer, Lake Andes

9:00 a.m.

Elected Officials Workshop 1. Planning and Zoning 101: Conflict of Interest/Ex-Parte Contracts, Making a Decision/Findings, Citizen Planning Academy, Ask a Planner Todd Kays, Executive Director, First District Association of Local Governments Luke Muller, Senior Planner, First District Association of Local Governments Sam Trebilcock, Transportation Planner, City of Sioux Falls Jack Hieb, Attorney, Richardson Law Firm Zachary Peterson, Attorney, Richardson Law Firm 2. Information Technology in Municipalities - What you need to know James Fry, Enterprise Solutions Architect, RTI

9:00 a.m.

6' %XLOGLQJ 2IILFLDOV¶ $VVRFLDWLRQ Presiding: Brett Bill, SDBOA President, Aberdeen 1. Business Meeting 2. Fire-Retardant-7UHDWHG :RRG DQG 7RGD\¶V 0RGHO &RGHV Mike Eckhoff, Marketing Representative, Hoover Treated Wood Products, Inc.

9:00 a.m.

6' *RYHUQPHQWDO )LQDQFH 2IILFHUV¶ $VVRFLDWLRQ Presiding: Mike Carlson, SDGFOA President, Vermillion 1. Business Meeting and Election 2. DLA and GASB Updates Rod Fortin, Director of Local Government Assistance, SD Department of Legislative Audit

9:00 a.m.

6' 0XQLFLSDO $WWRUQH\V¶ $VVRFLDWLRQ Presiding: Jeff Banks, SDMAA President, Huron 1. Business Meeting and Election 2. Roundtable Discussion ± Bring a Topic

9:00 a.m.

SD 3ROLFH &KLHIV¶ $VVRFLDWLRQ Presiding: Dave McNeil, SDPCA President, Aberdeen 1. Business Meeting 2. Presentations: Jason Ravnsborg, SD Attorney General David Natvig, SD Department of Criminal Investigation Rick Miller, SD Highway Patrol Paul Niedringhaus, SD Fusion Center Jeff Pierce, SD Bureau of Information & Telecommunications Mike Waldner, SD Bureau of Information & Telecommunications Taya Runyan, SD Dept. of Agriculture Doug Kirkus, SDPAA, Safety Benefits Inc. Marty Link, Director of EMS and Trauma, SD Department of Health Kiley Hump, Office of Chronic Disease Prevention and Health Promotion, SD Department of Health Jill Munger, Infant Death Review Coordinator, SD Department of Health

Noon

Excellence in SD Municipal Government Award Luncheon Featured Speaker: Governor Kristi Noem (Invited) Presentation of the 2019 Excellence in SD Municipal Government Award SDML Hall of Fame Induction ± Honoring 20 years and more of municipal service.

1:30 p.m.

SD Chapter, American Public Works Association Presiding: Jackie Lanning, President, SD Chapter APWA 1. Ken Justice, National Ready Mix Concrete Association 2. Round Table Discussion or Tour 3. Business Meeting & Elections

1:30 p.m.

South Dakota Fire Chiefs Association Presiding: Tom Kurtenbach, President, SDFCA 1. Updates on Current Issues 2. Updates from State Agencies 3. New Business

1:30 p.m.

General Session 1. The Economic Impact of Municipalities in South Dakota SDML Board and Staff The SDML Board of Directors commissioned a study of the impact of municipalities on the SD economy. Results of the study will be presented at this meeting. 2. Social Media, the First Amendment, and Municipalities Chris Balch, Attorney, Atlanta, Georgia 3. Social Media Panel Discussion Chris Balch, Attorney, Atlanta, Georgia Javier Hernandez, Politics and Government Outreach, Facebook Lisa Marso, City Attorney, Brandon Diane Best, City Attorney Emeritus 4. Business Retention, Expansion, and Marketing Hometown America Kenny Sherin, SDSU Extension Services

5:30 p.m.

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6:30 p.m.

Dinner Hosted by: Dinner Music: David Pfeifle Entertainment: Comedian Rex Havens Rex Havens takes the very heart of the world around each of us, applies his own gentle combination of logic, bemusement and insanity, and offers it back to his audience in a way that is engaging, thoughtful and hilarious. A former college professor who made the unusual transition to the stand-XS FRPHG\ VWDJH LQ WKH Âś ÂśV 5H[ KDV always believed that laughter is the best defense against a confusing and challenging world. He has performed in all 50 states and around the world, including London, Hong Kong, Amsterdam, Bermuda, Montreal, Barcelona, Copenhagen, Aruba, Rome and Cannes.

Friday, October 11, 2019

8:00 a.m.

Registration

8:00 a.m.

Breakfast

8:00 a.m.

Exhibits Open

8:30 a.m.

General Sessions 1. Lightening Rounds A fast look at a variety of topics from the experts in each field.

9:30 a.m.

2. How to be a Good Defendant (or Avoid it Altogether!) David Pfeifle, Executive Director, SDPAA David Pfiefle will talk about how to not become a defendant, but ZKHQ \RX FDQÂśW DYRLG LW WKLV SUHVHQWDWLRQ ZLOO give you ideas for the best way to defend yourself.

10:30 a.m.

SDML Annual Business Meeting and Election 1. Auditing Committee Report 2. ExecutivH 'LUHFWRUÂśV 5HSRUW 3. Resolutions Committee Report 4. Discussion and Adoption of 2019 Statement of Policy 5. 3UHVLGHQWÂśV 5HSRUW 6. Nominating Committee Report 7. Annual Election of Officers 8. Other Business 9. Prize Drawing Âą Must be Present to Win!

ANNUAL CONFERENCE REGISTRATION FORM Aberdeen ~ October 8-11, 2019 Municipality Represented: ___________________________________________________________

Please TYPE OR PRINT your information as you would like it to appear on the name tag. For each attendee, check the box(s) of the days they will be attending. Registration Fee Schedule is below. FIRST TIME CONFERENCE ATTENDEES: Please check the box next to your name and include your email. This only applies to SDML Members that are attending the Annual Conference for the first time. Name Title Email *If you are a First Time Attendee, please check the box next to your name.

*If you are a First Time Attendee, please list your email to receive additional information.

Wed Thurs Fri 9th 10th 11th

Amt Paid

TOTAL AMOUNT ENCLOSED: $ Please Return Registration By September 20, 2019 to: *No Refunds After 5:00 p.m. September 27, 2019

South Dakota Municipal League 208 Island Drive Fort Pierre, SD 57532

Payment Must Accompany Registration CONFERENCE REGISTRATION FEES SDML Members* SDML Members* Non-member/Government/Non-Profit Company Representative** Spouse/Guest Single Day Attendee

Pre-Registration for multiple day attendance ʹ must be postmarked or received by 9/20/19 Registration for multiple day attendance ʹ received after 9/20/19 Registration for multiple day attendance ʹ received at any time Registration ʹ received at any time Registration ʹ received at any time Registration for only a single day of attendance ʹ received at any time for only a single day of attendance **Does not apply to Company Representatives

$100.00 $115.00 $200.00 $500.00 $65.00 $65.00

*Members are officials and employees of a municipality that pay annual dues to the SD Municipal League. **Company representatives are individuals representing a company or business that are not participating in the exhibitor program. If you are unsure which category you should register under, please contact the League at 1-800-658-3633 or info@sdmunicipalleague.org.

S DM L O FF IC E U S E ON LY :

SEPTEMBER 2019

DATE: _____________________ CHECK #:____________________ AMOUNT:__________________

2019 SDM ML GOLF SCRAMBLE D DATE/TIME

Sponsored By: South Dakota Municipal League

TTuesday, October 8, 2019 S Sign in at 1:00 p.m. 7HH RII DW 2:00 p.m.

L LOCATION LLee Park Golf Course 1 1028 8th Ave. NW Aberdeen, SD ( (605) 626-7072 http://www.aberdeen.sd.us/14 48/Lee-Park-GolfC Course

F FORMAT

and the

C Competition will be 9 holes, 4 person scramble,, shotgun start.

City of Aberdeen

* *Teams will be paired up after signing in at golf cours rse and not before.*

ELIGIBILITY E Any individual attending the SDML Conference A e and their guests.

FFEES $ $24/person (includes green fee and cart). To av void delays, everry e yone will be required to ride carts.

Novice and Adv vanced Players Welcome! Prizes will be Awarded! 2019 SDML G Golf Scramble Registration Form Name : _______ _____________________________ ___ ______ _ ____ Email: __ ______ _______________________________ ___________ Municipality/Organization: ________________ ___ ___________________ _______________________ __ ________ ___________ Nine hole handicap p or average: g ___ _______ ______ ____________ Nine hole score: ______ ____ __ __ __________ __ _ Return by September 20, 2019 to:

South Dakota Municipal League 208 Island Drive Ft. Pierre, SD 57532

Please enclose your $24/person fe ee with the registration form.

*Only Pers rsonal Checks ks orr Cash C willl b be e accepted.* SDML OFFICE USE ONLY :

DATE:_____ _______ _______ _______ ______ ____ CHECK #:___________ _______ _______ ____ AMOUNT:_________ ______ ________ ____

SOUTH DAKOTA MUNICIPALITIES

1 th Annual

Fun Walk/Run

Just for the Health of It

Free To All Registered Delegates and Guests

Thursday, O ctober th x Rout

Hosted By SDML Sponsored Risk Sharing Pools: x SDML WorkersÂ¶ Compensation Fund x South Dakota Public Assurance Alliance x Health Pool of South Dakota

e begins and ends at :\OLH 3DU N x Meet in the Ra Hotel lobby mkota at 6:30 am x Starts at 7:00 am x 5K Rout e

Registration Due to the SDML Office by September th 1 Entry Form Per Participant - Make additional copies as needed. (Please Print) Name_____________________________ City_______________________________ Adult T-Shirt Size:

___S ___M ___L ___XL ___XXL

RELEASE AND WAIVER OF LIABILITY, ASSUMPTION OF THE RISK AND INDEMNITY AGREEMENT AND CONSENT TO MEDICAL TREATMENT By my signature below, I acknowledge that I am aware of, appreciate the character of, and voluntarily assume the risks involved in participating in the 201 1 th Annual Walk/Run at the 201 South Dakota Municipal League Annual Conference in Pierre. By my signature below, on behalf of myself, my heirs, next of kin, successors in interest, assigns, personal representatives, and agents, I hereby: 1. Waive any claim or cause of action against and release from liability the South Dakota Municipal League, SDPAA, SDML WC Fund and the HPSD, its officers, employees, and agents for any liability for injuries to my person or property resulting from my participation in the activity listed above; 2. Agree to indemnify and hold harmless the South Dakota Municipal League, SDPAA, SDML WC Fund and the HPSD, its officers, employees, and agents for any claims, causes of action, or liability to any other person arising from my participation in the activity listed above; and 3. Consent to receive any medical treatment deemed advisable during my participation in the activity listed above. I HAVE READ THIS RELEASE AND WAIVER OF LIABILITY, ASSUMPTION OF THE RISK AND INDEMNITY AGREEMENT AND CONSENT TO MEDICAL TREATMENT, FULLY UNDERSTAND ITS TERMS, UNDERSTAND THAT I HAVE GIVEN UP SUBSTANTIAL RIGHTS BY SIGNING IT, AND HAVE SIGNED IT FREELY AND VOLUNTARILY WITHOUT ANY INDUCEMENT, ASSURANCE, OR GUARANTEE BEING MADE TO ME AND INTEND MY SIGNATURE TO BE A COMPLETE AND UNCONDITIONAL RELEASE OF ALL LIABILITY TO THE GREATEST EXTENT ALLOWED BY LAW. Name ____________________________________________________________ Date of Birth _______________________ Address ___________________________ Signature __________________________________________________________ I HAVE READ THIS RELEASE. Signature of Guardian if under the age of 18 ___________________________________________________________________

I HAVE READ THIS RELEASE.

South Dakota Municipal League Proposed Statement of Policy

The following are the policies as suggested by the four Policy Committees, which met August 14 and 15 in Fort Pierre. During the Annual Conference, to be held October 8-11 in Aberdeen, there will be several important steps taken before any of these policies become the official Statement of Policy of the Municipal League. First, the Policy Committees will meet again on Wednesday afternoon, October 9 to review these changes, and to consider any new information or suggestions from members. The Policies will then be submitted to the Resolutions Committee, which will meet Thursday morning, October 10, and will recommend the final set of policies for a vote of the membership at the Annual Business Meeting on Friday, October 11.

General Government Committee POLICIES

MUNICIPAL EMPLOYEES 1. The SDML supports an amendment to restrict or repeal the presumptions included in SDCL 9-1645 pertaining to circulatory or respiratory disease as “occupational” in firefighters, and opposes any amendment to expand the disease presumption regarding occupational diseases affecting volunteer and active paid firefighters. (GG – 2000; CB7)

2. 3.

8. 9.

10.

The SDML supports allowing the municipal finance officer to check the residence and voter registrations of candidates for municipal office and voter registration of petition signatures. (GG – 2018; 2019)

The SDML supports clarifying the initial election of officers in a newly incorporated municipality. (GG – 2016)

The SDML supports amending SDCL 9-19-13 to provide that all administrative resolutions would be effective upon passage and publication. (T&R – 2004) (Referred from T&R 2018)

The SDML supports amending state law to clarify residence requirements for municipal elected officials. (GG – 2014)

The SDML supports legislation authorizing municipal access to federal background checks for licensees. (GG – 2008; 2009)

The SDML supports legislation to make municipal laws consistent as to the use of the term “finance officer” rather than “clerk/treasurer.” (GG – 2010)

GOVERNMENT ETHICS AND OPERATIONS 4. The SDML supports legislation that would exempt municipalities from the regulations of the unclaimed property laws. (GG – 2000; 12)

5. 6.

The SDML supports amending SDCL 12-1-5 to include municipal election officials on the State Board of Elections. (GG – 2000; 13)

The SDML supports clarifying signature requirements all municipal election petitions. (GG – 2016)

SEPTEMBER 2019

11. A. 12. 13. B. C.

Proposed Statement of Policy

The SDML supports efforts by the Secretary of State to provide consistency in election statutes. (GG – 2017)

The SDML supports making the language on “secondary” or “run-off” elections consistent. (GG – 2019)

The SDML supports working cooperatively with other state entities to clarify residence for voter registration. (GG – 2015) The SDML supports making provisions for supplementing municipal budgets consistent with provisions found in county law. (GG – 2015)

The SDML supports increasing the bid limit for public improvement projects. (GG – 2010). The SDML supports updating the surplus property laws. (GG – 2019)

14.

15.

16. 17. 18.

The SDML supports amending state law to continue to provide the tax levy request to the county by October 1 each year, but to allow more time to develop the annual municipal budget. (GG – 2018)

The SDML supports cooperative activities between county and municipal governments, the protection of existing joint activities, and elimination of barriers that hinder the creation of such arrangements. (added by SDML Board of Directors, Dec. 9, 2015) (GG – 2016)

The SDML supports increasing the audit “trigger” to $750,000. (GG – 2014)

The SDML supports increasing the Internal Control Review range to between $100,000 and $750,000. (GG – 2014) The SDML supports changing the makeup of the local board of equalization to more appropriately

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SOUTH DAKOTA MUNICIPALITIES

Proposed Statement of Policy

19.

20. 21. 22.

23.

24. 25.

26. 27. 28.

29.

reflect the distribution of property tax revenues. (GG – 2008)

The SDML would support county efforts to impose a penalty of up to $250 for failure to appear at a requested property tax assessment appeal to the Office of Hearing Examiners. (GG – 2017)

The SDML supports allowing citizens to vote on their preferred method of receiving public notices. (GG – 2017)

The SDML supports allowing alternative publication options for local governments. (GG – 2003; 2018)

The SDML supports a safe harbor provision for publication errors made by newspapers when legible, timely information has been submitted by the local government for elections. (GG – 2018)

30.

31.

32.

33.

The SDML supports amending statutes regarding designation of official newspapers to require the newspaper submit the circulation density by local government jurisdiction. (GG – 2011; 2013)

34.

The SDML supports legislation to allow publication of bond resolutions, bond ordinances, and franchise ordinances by reference. (GG – 2003)

36.

The SDML supports legislation to allow a local option for resolutions to be published by title and abbreviated explanation only. (GG – 2006)

The SDML supports simplifying and clarifying the provisions of SDCL 1-25-1 (open meetings law). (GG – 2018)

The SDML supports allowing security issues to be discussed during executive session. (GG – 2018)

The SDML supports clarifying state law to allow municipalities to purchase brokered and negotiated CD’s that meet FDIC requirements. (Resolutions Committee 2018)

The SDML supports reviewing open meeting laws in conjunction with any Open Government Task Force so long as the SDML is adequately represented. (GG – 2009; 2012)

SEPTEMBER 2019

35.

37. 38.

The SDML opposes state regulation of the Health Pool of South Dakota, the South Dakota Public Assurance Alliance, or the SDML Workers’ Compensation Fund. (GG – 2003)

The SDML supports legislation amending SDCL 34A-6-29 to make the collection of delinquent garbage collection fees consistent with the collection of other delinquent municipal utility fees. (GG – 2006)

The SDML supports allowing counties to add a processing fee of up to 5%, or a minimum of $15.00, for the collection of delinquent municipal utility and other service fees and charges and for nuisance actions. (GG – 2016) The SDML supports legislation to allow funds to be deposited directly to municipalities from the state, rather than going first through the counties. (GG – 2006)

The SDML supports changing the vote to create a hospital district to a simple majority. (GG – 2007)

The SDML supports equal treatment of all government facilities which serve as the official office of elected officials or any buildings where governing bodies officially meet on a regular basis. (GG – 2012) The SDML supports making special assessments for sidewalks consistent with all other special assessment procedures. (GG – 2013)

The SDML supports clarifying that nuisance assessments may be made by local resolution. (GG – 2013)

The SDML supports amending SDCL 21-10-6 to distinguish between an “assessment” and a “special assessment.” (GG – 2016)

COMMUNITY AND ECONOMIC DEVELOPMENT 39. The SDML supports allowing a separate and additional class of on-sale liquor licenses for golf courses. (GG – 2003; 2007; 2008) 40.

The SDML opposes any change to the requirement that alcoholic beverage licenses be given only to a single legal description. (GG – 2000; 21) 43

41.

42. 43.

Proposed Statement of Policy

The SDML supports the valuation of platted land based on use, rather than zoning designation, and urges cities and counties to work cooperatively to develop legislation. (GG – 2014) The SDML supports the public financing toolbox for local governments. (GG – 2014)

The SDML supports a reduced rate for ballot publications. (GG – 2009)

LOCAL CONTROL AND HOME RULE 44. The SDML supports legislation that would exclude club licenses (class M licenses) from the limitation on the total number of liquor licenses allowed within a municipality. (GG – 2000; 23) 45.

The SDML supports permissive legislation granting municipalities the power to control the number and the fees for on-sale and off-sale liquor licenses to be granted within the municipality. (GG – 2000; 24)

46.

47. 48.

The SDML supports local control of the sale, use, distribution, marketing, and promotion of tobacco products that are more restrictive than those provided by the Legislature. (GG – 2003)

The SDML strongly supports legislation to distance state laws from Dillon’s Rule. (GG – 2005) The SDML supports the ability to use drones for any local government purpose. (Resolutions – 2014) CORE BELIEFS

Municipal Employees CB1. The SDML endorses the retention of the existing state constitutional right to work law and opposes any state or federal legislation that interferes with or affects that right. While recognizing the right of employees to organize, it is fundamental that each employee be guaranteed individual freedom

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SOUTH DAKOTA MUNICIPALITIES

Proposed Statement of Policy

CB2.

CB3. CB4.

CB5.

CB6. CB7.

of choice in joining or not joining a union or other employee organization. (GG – 2000; CB1)

The SDML advocates that the cities continue to review and upgrade job safety and health standards for all municipal employees and require the use of safety equipment by municipal employees while on duty. (GG – 2000; CB2)

CB8.

The SDML supports legislation that prohibits violence in the workplace. (GG – 2000; CB3)

The SDML urges local governing bodies to adopt those portions of the Municipal League Personnel Manual that meet their local needs. (GG – 2000; CB4)

The SDML encourages member municipalities to allot funding and paid time for employee and officials training and educational opportunities so that municipal service is made more effective and at the same time employees may become qualified for promotion to higher level positions. The SDML encourages municipal employees and officials to join and participate in professional associations, job related organizations, and other continuing education activities and urges cities to allot funding and paid time for such membership and participation. (GG – 2000; CB5)

The SDML urges municipalities to prepare and adopt Equal Employment Opportunity policies that comply with law. (GG – 2000; CB6; 2013)

The SDML is opposed to any legislation or

CB9.

CB10.

CB11. CB12.

administrative rules adopting binding arbitration. (GG – 2000; 2007; CB10)

The SDML opposes repeal of Article III, Section 26 of the South Dakota Constitution relating to municipal powers denied to private organizations. The SDML opposes any further changes in SDCL 3-18-3 providing for the voting procedure for determination of bargaining unit representation. The SDML supports SDCL 3-1810 which prohibits strikes by public employees. (GG – 2000; CB11)

The SDML supports local consideration of “equal pay for equal work” but opposes the development of comparable worth pay systems through DOL rulemaking that advances the notion that government should dictate an organization’s compensation program. (GG – 2000; CB12; 2013) The SDML urges cities who do not have a retirement system to join the South Dakota Retirement System after careful fiscal review. (GG – 2000; CB13) The SDML recommends that municipalities make available health and life insurance coverage for their employees. (GG – 2000; CB14)

The SDML urges municipalities and other units of local government to consider joining the SDML Workers’ Compensation Fund, the South Dakota Public Assurance Alliance, the South Dakota Public Funds Investment Trust, the

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SEPTEMBER 2019

Proposed Statement of Policy

CB13. CB14.

Health Pool of South Dakota, and SDML Municipal Government Software; and to review other services available through the SDML. (GG – 2000; CB15)

The SDML opposes any investment of the assets of the South Dakota Retirement System in “social investing” or “venture capital.” (GG – 2000; 5)

The SDML opposes any legislative action allowing a participating entity or group of members being removed from the South Dakota Retirement System. (GG – 2000; 6)

Community and Economic Development CB15. The SDML urges all municipalities to adopt a fair housing policy. (GG – 2000; CB16) CB16.

CB17.

CB18.

The SDML opposes bills similar to the “Bradley Bill” because of the potential environmental, social and economic impacts on the people and governments of South Dakota. (GG – 2000; 20)

The SDML encourages the Governor and the Legislature and the Ellsworth Authority to assist in the efforts to retain Ellsworth Air Force Base as a viable military facility. (GG – 2003; 15)

The SDML urges federal and state support for alternative transportation programs that take into account new technologies, mobility, community quality of life, and demographic trends as well as maintenance of traditional modes of transportation. (GG – 2015; 2016) (Moved from General Policy)

Government Ethics and Operations CB19. The SDML endorses the Core Beliefs espoused by the National League of Cities.1 (GG – 2000; CB18) !"#$%&'(&)*$+,'-'.$/!0"+1$*$"+$+,' 2+$*34'5)/*34'6&/7$8&4'-'9+3*)%%)*$"+'

CB20.

CB21. CB22.

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!!!!!

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The SDML strongly supports municipal elections remaining non-partisan. (GG – 2003)

The SDML supports efforts to review and update state statutes related to municipal government provided the South Dakota Municipal League has appropriate representation in that process. (GG – 2000)

Local Control and Home Rule CB23. The SDML encourages federal, state, and local government leaders to continue to work with American Indian tribes to resolve taxation, regulatory, environmental and infrastructure issues, and law enforcement concerns. Such efforts should address concerns resulting from the federal government placing land into trust on behalf of American Indian tribes without such tribes having entered into a binding agreement with state and local entities on the collection of taxes, law enforcement, infrastructure and environmental concerns, and regulations. (GG – 2000; CB20)

CB24.

CB25.

CB26.

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The SDML encourages municipalities to initiate policies to oppose racial profiling in any municipal activity. (GG – 2000; CB19)

CB27.

The SDML encourages consolidation of the Boards of Equalization with the cooperation of all entities of local government in order to relieve taxpayers of unnecessary burdens and encourages legislation to require counties to consolidate Boards of Equalization when requested by a municipality. (GG – 2000; CB21) The SDML opposes any legislation expanding the power and authority of special districts, subdistricts, cooperatives, and sanitary districts to render services without allowing municipalities the same options. (GG – 2000; CB22) The SDML proactively opposes the mandatory OSHA requirements being applied to municipalities. (GG – 2000; 2)

The SDML opposes any legislation which would inhibit municipalities from providing services requested by citizens in whatever form the citizens approve. (GG – 2006)

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SOUTH DAKOTA MUNICIPALITIES

Proposed Statement of Policy

1 Core Beliefs of the National League of Cities We Believe in... • Representative, participatory local government • Local government as the cornerstone of government in the United States • The value of public service • The value of diversity throughout our organization and our communities • Municipal authority over municipal issues • A commitment to the highest ethical standards among all public officials • Civility and mutual respect • Anticipating the needs of communities and developing strategies to meet those needs and improve the quality of life • Partnerships, coalitions, and collaborations to strengthen cities and our advocacy efforts

Public Health, Safety, and Welfare Committee POLICIES

PUBLIC HEALTH AND SAFETY 1. The SDML supports legislation to expand affordable and workforce housing opportunities in South Dakota. (PHSW – 2014; 2018) 2.

The SDML supports making affordable public and private health care coverage available to all South Dakotans and strongly encourages efforts to expand Medicaid. (PHSW – 2014; 2015; 2016)

The SDML supports a statewide task force to review access and resources for the treatment of alcoholism, drug addiction, tobacco addiction, and gambling addiction. The SDML calls for the State of South Dakota to assume increased responsibility for funding of detoxification and alcoholic, drug addiction, tobacco addiction, and gambling treatment facilities from state alcohol beverage taxes, tobacco taxes, and gaming revenues. (PHSW – 2000; 2014 CB2; 2015; 2018) (Amended and moved from Core Beliefs)

The SDML supports a mechanism for blighted, vacant, or nuisance properties to assist in the costs of their own remediation, including any asbestos testing and removal. (PHSW – 2014; 2016; 2018) The SDML supports legislation to provide stronger penalties and increase requirements for

SEPTEMBER 2019

7. 8.

10. 11.

mandatory vehicle insurance. (PHSW – 2007)

The SDML supports legislation to remove restrictions which prohibit municipalities from prohibiting the use of phosphates in lawn fertilizers within city limits. (PHSW – 2010)

The SDML supports continued efforts to reduce distracted driving. (PHSW – 2012; 2014)

The SDML supports adoption of the most recent edition of the International Codes, with the option of local amendments. (PHSW – 2013; 2014; 2017)

The SDML strongly supports a statewide task force to review access and resources for the treatment of mental healthcare and increased funding for services and programs. (PHSW – 2015)

The SDML supports legislation that eliminates any regulatory barriers within state law that prevent or stifle the creation of triage centers, which provide detoxification services to those seeking treatment for substance abuse and crisis stabilization for mental health issues. (PHSW – 2019) The SDML supports making seatbelt violations a primary offense. (PHSW – 2016)

The SDML opposes any effort to weaken the statewide smoking ban, and will support legislation that strengthens state and local efforts to enforce this prohibition. (PHSW – 2016) The SDML supports measures to keep public safety entities viable. (PHSW – 2019)

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12.

13.

14.

Proposed Statement of Policy

The SDML supports a reliable statewide emergency radio system that allows users across the state to communicate within and outside of their agencies. In order to sustain this capability and enhance operations locally, statewide, amongst other states, and with federal agencies, the SDML supports state funding initiatives to upgrade the statewide system to the national standard for public safety communications utilized by both federal and state governments known as Project 25 (P25). (PHSW – 2017; 2018)

The SDML supports a state funding initiative to mitigate the emerald ash borer infestation, similar to the state’s successful response to the pine beetle infestation, and supports a statewide ban on the sale of ash trees or untreated firewood from ash trees. (PHSW 2018) The SDML supports legislation and funding to prevent sex trafficking. (PHSW 2018)

MUNICIPAL FINANCE 15. The SDML supports efforts to increase Medicaid reimbursement rates for ambulance and emergency medical services. (PHSW – 2016)

The SDML supports amending state law to allow municipalities to establish policies on accepting donations. (PHSW – 2019)

LOCAL CONTROL AND HOME RULE 16. The SDML opposes state legislation limiting municipalities from adopting whichever portions of the International Codes deemed necessary. (PHSW – 2009; 2016)

CORE BELIEFS Public Health and Safety CB1. The SDML believes that the main emphasis of environmental protection should be information and assistance to municipalities and education of the general public. The League urges the State and Federal Government to fully fund programs and provide technical assistance for planning and

SOUTH DAKOTA MUNICIPALITIES

Proposed Statement of Policy

CB2.

CB3.

CB4.

CB5.

CB6.

CB7.

implementing programs and regulations established by state and federal laws. The League urges continued research and pilot studies in the fields of pollution control, flood control, water and conservation, river siltation, forest management and waste management. (PHSW – 2000; CB1)

The SDML recognizes the costs associated with maintaining and training regional emergency response teams in South Dakota and supports continued funding from the State of South Dakota. (PHSW – 2006; 2007; 2010) (Amended and moved from General Policy)

The SDML supports legislation that requires that users of private telephone switches or services be provided capabilities of the same level of 911 services as is available to other residents of the jurisdiction. (PHSW – 2000; 1) (Moved from General Policy)

The SDML supports legislation that continues to maintain compliance with the Juvenile Justice and Delinquency Act of 1974 and supports legislation for funding compliance. (PHSW – 2000; 2007; 3) (Moved from General Policy)

The SDML supports the right of local jurisdictions to establish firefighting standards. The SDML does not oppose fire standards such as those issued by the National Fire Protection Association (NFPA) as long as such standards allow municipalities real and substantial flexibility for the way municipalities provide fire and emergency medical services. (PHSW – 2002; 7; 2016) (Moved from General Policy)

The SDML encourages the local units of government to use the funds available from the State of SD to combat West Nile and other mosquito-borne diseases and encourages the State of SD to increase these funds. (PHSW – 2007; 2016) (Amended and moved from General Policy)

The SDML urges cities to continue weekly testing of pools and public bodies of water as previously required by the Department of Environment and Natural Resources. (PHSW – 2011; 2016) (Moved from General Policy)

SEPTEMBER 2019

CB8.

The SDML encourages the licensing of building contractors by local units of government to ensure that contractors comply with minimum standards to protect the consumer. (PHSW – 2004) (Moved from main policy statement 2018)

Municipal Finance CB9. The SDML encourages local governments to install 911 and maintain 911 systems using the Funding Surcharge allowed by SDCL 34-45 (Emergency Reporting Telephone) and encourages legislation to increase this surcharge to fully fund the system. (PHSW – 2000; 2007; 2010; CB3)

Local Control and Home Rule CB10. The SDML opposes any state environmental laws and regulations that are more stringent than existing federal environmental laws, standards and regulations. (PHSW – 2000; CB4)

CB11.

The SDML encourages standards be developed to provide equal 911 service to all citizens and visitors, and encourages cooperative efforts to improve 911 services and efficiency. The SDML opposes mandated consolidation of 911 service centers. (Adopted at Joint Board Meeting between SDML and SDACC, December, 1999; 8; Amended by SDML Board, December, 2006; PHSW – 2016) (Moved from General Policy)

Community and Economic Development CB12. The SDML supports ensuring K-12 education is at the highest academically competitive levels as well as the teaching of basic life skills and responsibilities. (PHSW – 2003) CB13.

CB14.

CB15.

The SDML supports the use of public and private colleges and universities in producing labor studies and other studies on local needs and resources, and in the development of a statewide master plan for economic development. (PHSW – 2003)

The SDML encourages general education cost forgiveness for South Dakota university and technical school graduates who stay in-state for a specified length of time. (PHSW – 2003; 2010) The SDML supports the creation of a long-range technology master plan for South Dakota. (PHSW – 2003) 49

CB16.

CB17.

CB18.

CB19.

CB20.

Proposed Statement of Policy

The SDML urges investment in research and development and intellectual property using research triangles and incubator programs to promote these endeavors. (PHSW – 2003)

The SDML recognizes that any mismanagement of the Black Hills National Forest is a health, safety and economic development issue for residents of South Dakota. The SDML supports policies that prioritize quality of life and economic development in the Black Hills National Forest. (PHSW – 2003; 2016)

The SDML urges the SD Department of Environment and Natural Resources to recognize that environmental regulations cost municipalities an immense amount of money, which could otherwise be spent on economic development and quality of life improvements. The SDML urges DENR to keep environmental regulation as reasonable and affordable as possible for municipalities in South Dakota. (PHSW – 2003) The SDML recognizes the importance of maintaining the National Science Lab, and strongly supports its continued scientific efforts at the former Homestake mine. (PHSW – 2005; 14) (Moved from General Policy)

The SDML encourages the development of a state-wide economic development policy in South Dakota -recognizing that quality of life in communities is a major factor. (PHSW – 2002) (Moved from General Policy)

LOCAL CONTROL AND HOME RULE 1. The SDML recommends that the Department of Transportation, the Legislature, and any county affected, carefully review the financial impact of the transfer of any roads, bridges or highways to the municipality. The SDML supports legislation to require counties and the state to provide to municipalities all maintenance records and bridge inspections prior to the negotiation of a transfer. (PW – 2000; 2010; 1)

The SDML strongly supports legislation affirming the authority of municipal government

The SDML opposes any regulation by others of any service provided by or regulated by a municipality. However, the SDML strongly feels that municipalities should be included in any discussion on restructuring of the energy and telecommunication industries. (PW – 2000; 3)

PUBLIC HEALTH AND SAFETY 4. The SDML recommends that the State Department of Transportation analyze and make recommendations to the legislature regarding the adverse effects of state load and length limits on municipal streets, bridges, and traffic patterns regarding state load limits, issuing of permits, or truck lengths. (PW – 2000; 2010; 6)

Public Works Committee POLICIES

to control activities and charge for the use by utilities within public rights-of-way within municipal jurisdiction. (PW – 2000; 2)

The SDML strongly urges the Department of Environment and Natural Resources and the South Dakota State Legislature to adopt rules, regulations and appropriate legislation to designate the entire Big Sioux River Basin as a water source protection area and to establish a management plan for the allocation of water in the Big Sioux River Basin (the river and associated aquifers.) (PW – 2000; 7)

The SDML supports the Safe Drinking Water Act Amendments of 1996; however, the SDML opposes federally mandated drinking water standards unless based upon proven human health risks substantiated by scientific data. The SDML continues to support monetary assistance to public water systems based upon flexible and reasonable incentives. (PW – 2000; 2008; 8; 2019) The SDML opposes the any US Corps of Engineers’ proposal to levy fees on the storage of water in the Missouri River reservoirs to recover costs of constructing the Missouri River dams. The policy as these fees would pose severe economic impacts to municipal and rural water systems in the state. (PW – 2011; 2019)

COMMUNITY AND ECONOMIC DEVELOPMENT A. The SDML recognizes the importance of water, sewer, electric, and other utilities to the economic development of South Dakota. The SDML strongly opposes any measure that would hinder SOUTH DAKOTA MUNICIPALITIES

Proposed Statement of Policy

10.

11. 12.

the growth and development of municipal public utilities. (PW – 2019)

The SDML supports planning and zoning legislation that will encourage continuity between city and county planning and zoning procedures and reduce ambiguities within the adoption process, enabling municipalities to more effectively adopt and administer their comprehensive plan, zoning regulations, and subdivision regulations. (PW – 2000; 10)

The SDML would strongly oppose any legislation to overrule local zoning or building codes pertaining to mobile homes, manufactured houses or trailer houses. (PW – 2000; 11)

The SDML supports the right and authority of municipalities to have at least an equal voice in platting, zoning, planning, code enforcement, and flood management control in the extraterritorial area. The SDML also supports legislation to enhance municipalities’ ability to gain extraterritorial jurisdiction, and permissive legislation allowing cities and counties to enter into intergovernmental agreements for Urban Growth Areas. (PW – 2000; 12)

The SDML supports amendments to annexation laws that increase local authority. (PW – 2000; 9)

The SDML supports legislation to amend SDCL 9-4-1 to exclude “registered voters” from the petition process for annexation of contiguous territory. (Transferred from GG – 2000; 13)

SEPTEMBER 2019

13.

14.

15.

16.

The SDML supports opposes any legislation which would hinder municipal to ensure that municipalities control of planning, zoning, and development issues within the corporate limits or municipal growth areas. (PW – 2003; 2019) The SDML believes municipal governments should be notified of and participate in economic development efforts within their jurisdiction. (PW – 2014)

The SDML supports state and federal funding for the Lewis and Clark Regional Water System to complete services to South Dakota communities. (PW – 2014)

The SDML would support legislation to prohibit creation of any entity with municipal powers within five miles of any existing municipal boundaries. (PW – 2015)

MUNICIPAL UTILITIES 17. The SDML opposes forced transfer or sale of ownership of state or federally owned dams and power marketing administrations. (PW – 2000; 2010; 15) (Deleted portion moved to Core Beliefs)

18.

The SDML opposes the practice of the federal government threatening the loss of funding to ensure compliance with federal guidelines. The SDML requests the Department of Environment and Natural Resources to allow flexibility to water systems to meet water certification requirements and urges the Department of

Proposed Statement of Policy

19.

20.

21.

22.

23.

Environment and Natural Resources to continue monetary assistance and free training for water certification. (PW – 2000; 2008; 16)

The SDML opposes any legislative and regulatory barriers to the creation of municipal electric utilities and supports the fundamental principle of public power and the right of municipalities to provide any utility service desired by their citizens. (PW – 2004) The SDML opposes legislation that removes the ability of municipalities to determine responsibility for service lines between the homeowner and the city. (PW – 2005; 2016)

The SDML supports the right and authority of municipalities to retain local control over all aspects of placement and use of individual alternative power systems. (PW – 2008)

The SDML encourages policymakers in Congress, the FCC, and the USDA to understand the importance of robust broadband deployment in rural America and how the National Broadband Plan needs to be dramatically altered to avoid a digital divide between rural and urban citizens. (PW – 2010)

The SDML supports legislation to require that all aviation funds, grants, revenues, taxes or monies from any other source collected previously and in the future be dedicated for aviation use only. (Moved from Taxation and Revenue Committee; 31; 2019) CORE BELIEFS

Public Health and Safety CB1. The SDML urges municipalities to develop ordinances that establish water and energy priorities within the municipality to conserve these resources. Further, the SDML urges municipalities to develop and implement public education programs designated to encourage water and energy conservation methods. (PW – 2000; CB1)

CB2.

The SDML endorses the wise use of energy and urges local officials to be able to provide

The SDML supports amending annexation laws to ensure non-contiguous municipal utility facilities, specifically wastewater treatment plants and landfills, be considered to be within municipal boundaries. (PW – 2012)

MUNICIPAL FINANCE 24. The SDML supports continuation, reinstatement, or new state and federal grants and loans, at sustained levels, including State Revolving Fund monies, to local governments to facilitate construction and upgrading of sewer, stormwater utility, water, and solid waste facilities as mandated by state and federal regulations. (PW – 2000; 2007; 19)

25.

The SDML supports state funding to restore the funds transferred from the Aeronautics Trust Fund in order to allow South Dakota airports to continue to comply with safety regulations and to provide needed infrastructure improvements. (PW – 2016)

SOUTH DAKOTA MUNICIPALITIES

Proposed Statement of Policy

CB3.

CB4.

adequate input into any energy management or energy standards plan or regulation that affects local government. (PW – 2000; CB2)

The SDML feels strongly that a concerted effort should be made by the state, counties, and cities of this state to eliminate traffic hazards and provide uniform traffic control devices and signing for streets and highways. (PW – 2000; CB3)

The SDML supports the Department of Environment and Natural Resources establishing water quality standards that protect public health and the environment, but opposes EPA mandates that establish national one-size-fits-all standards that do not fit South Dakota because they are overly protective, have negligible environmental benefit, and have a dramatic economic impact to publicly owned wastewater treatment works. (PW – 2011; 2016) (Moved from General Policy)

SEPTEMBER 2019

Local Control and Home Rule CB5. The SDML recommends that streets and highways constructed with state/federal funds be based upon consultation and coordination with the local government. (PW – 2000; CB4)

CB6.

CB7.

The SDML urges the Transportation Commission, with input from municipal government, to develop and adhere to an adequate transportation plan and supports the development of an access management model. Further, municipalities must be offered participation in any change affecting their area. (PW – 2000; CB5)

The SDML opposes any state mandated prohibition against the cities’ right to construct with their own crews. (PW – 2003)

Community and Economic Development CB8. The SDML believes that municipal and county governments should formulate and control all

Proposed Statement of Policy

CB9.

local planning and zoning programs. (PW – 2000; CB7)

The SDML supports enhanced state and federal funding for water supply and wastewater systems. (PW – 2014; 2018)

Municipal Utilities CB10. The SDML supports the rights of municipalities to establish electric utility systems to provide service within their corporate limits and adjacent urban growth areas. (PW – 2006)

CB11.

CB12.

CB13. CB14.

The SDML opposes any legislation limiting or eliminating a municipal electric utility’s right to serve customers facilitated by annexation and/or condemnation. (PW – 2006)

The SDML encourages the state and federal government to maintain dams in a safe and usable condition. (PW – 2010) (Partially moved from General Policy)

COMMUNITY AND ECONOMIC DEVELOPMENT 1. The SDML supports revising the business improvement district statutes to allow municipalities and counties to enter into joint projects and to locally determine all rates. (T&R – 2003)

The SDML supports the continued training and certification of landfill operators. (PW – 2000; 2004; 2010; 17) (Moved from General Policy)

The SDML opposes any changes to the Power Marketing Administrations and specifically the Western Area Power Administration which deviate from the principles of beneficiary pays and cost-based rates. (PW – 2012)

Taxation and Revenue Committee POLICIES

The SDML supports making REDI funds available for infrastructure and infrastructure master planning. There is plenty of raw land, but it needs infrastructure before it can be sold to prospects or developed in a timely manner. (T&R – 2003)

The SDML supports allowing maximum local control of tax increment financing (TIF) districts, an economic development tool that has led to millions of dollars in increased property value, benefitting both the state as a whole and the local entities sponsoring the districts, while at the same time maintaining the integrity of the process. (T&R – 2017) The SDML supports legislation allowing a local vote on up to an additional one cent temporary municipal sales tax to be used for infrastructure projects. (T&R – 2014)

MUNICIPAL FINANCE 6. The SDML supports cooperative efforts to return a portion of the video lottery revenues to municipalities. (T&R – 2000; 2) 7.

The SDML supports creating incentives within the REDI fund for investment, not just job creation. (T&R – 2003)

The SDML supports legislation to increase the license fee that municipalities may charge on video lottery machines. (T&R – 2000; 3) The SDML supports amending SDCL 6-3-3 to return the required percentage of the vote to pass a joint bond issue to a simple majority. (T&R – 2000; 4)

SOUTH DAKOTA MUNICIPALITIES

10.

11.

Proposed Statement of Policy

The SDML strongly supports legislation to amend SDCL 10-52A-2 to allow up to 2 percent “bed, booze, and board” tax. (T&R – 2005)

The SDML supports legislation requiring counties to notify municipalities of any changes to road and bridge reserve fund levies. (T&R – 2015)

The SDML supports legislation to make provisions for taxing all products and services, such as electronic amusement devices, consistent between the state and municipalities. (T&R – 2017) The SDML supports the option to change the Business Improvement District room fee to a percentage basis. (T&R 2019)

Sales Tax 12. The SDML opposes any legislation that would reduce, remove, repeal or reallocate the municipal sales tax, liquor tax reversion or any other municipal revenues to any other unit of government or that would expand the power to impose a sales or use tax to any other unit of government. (T&R – 2000; 9)

13. 14.

15.

16.

17.

18.

19.

20.

21.

The SDML strongly opposes any formula-driven redistribution of sales and use tax revenues. The SDML strongly supports maintaining the current system of returning revenues based on sales actually attributed to that point of delivery. (T&R – 2002; 15)

The SDML supports allowing broad, local-option authority to municipalities that would enable the return of any potential tax revenue increases to entities or persons deemed appropriate by the municipality. (T&R – 2002; 20) The SDML supports a requirement that all prior debt obligations be covered regardless of any potential initiative, referendum, or legislative action. (T&R – 2002; 22)

The SDML is opposed to de minimus exceptions. (The exceptions do not serve to level the playing

The SDML opposes any further exemptions from the sales tax laws. (T&R – 2000; 10) The SDML opposes the repeal of the sales tax on groceries. (T&R – 2004)

The SDML supports legislation to allow municipalities to impose an additional tax on the leases or rentals of hotel, motel, campsites, or other lodging accommodations within the municipality. (T&R – 2000; 11)

The SDML opposes any attempt by the state to extend their authority over the collection, administration, and redistribution of the municipal sales tax for any purpose. (T&R – 2000; 12)

The SDML supports a sales tax on all catalog and Internet sales. (T&R – 2000; 14)

SEPTEMBER 2019

Proposed Statement of Policy

22.

23.

24.

25.

field and the collection allowance will reimburse sellers for the costs of collecting the taxes.) (T&R – 2002; 23)

The SDML opposes any municipal funding of a sales tax collection allowance for all sellers, whether in or out of state. (T&R – 2002; 2004; 2012; 2013)

The SDML supports continued local control over local rates and opposes weighted averaging or a state-imposed single rate. (T&R – 2002; 25)

The SDML supports retaining the ability of municipalities to impose, adjust, and determine local rates, protect current revenues, prevent loss of revenue, and to account for any future growth. (T&R – 2002; 26) The SDML supports reinstatement of the ability to tax Internet services. (T&R – 2002; 2010; 27)

State/Federal Funding 26. The SDML supports repeal of state taxation on alternative fuels used by local governments and supports federal tax incentives for government purchases of alternative fuel vehicles. (T&R – 2007)

27.

28.

29.

30.

31.

32.

The SDML supports legislation to require that all aviation funds, grants, revenues, taxes, or monies from any other source collected previously and in the future be dedicated for aviation use only. (T&R – 2000; 2010; CB6) (Moved from Core Beliefs) (Moved to Public Works) The SDML opposes removing or reducing tax exemptions for municipal bonds. (T&R – 2013)

Property Tax 33. The SDML supports legislation to allow, at local option, the creation of library districts to allow for the equitable funding for libraries that provide service to municipalities, counties, and other overlapping entities. (T&R – 2000; 31) 34.

35.

The SDML opposes any legislation that would shift more of the current property tax levy from ag to non-ag property. (T&R – 2000; 32) The SDML opposes attempts to amend the Constitution to cap the growth of property values and base the value on the acquisition value of property. (T&R – 2005)

The SDML supports exempting government projects from the contractors’ excise tax. (T&R – 2004; 2015)

The SDML supports exempting government owned and provided materials from the contractors’ excise tax. (T&R – 2015)

The SDML supports legislation to allow a local option, gross receipts tax on alcoholic beverages for the counties to fund public-safety related items. (T&R – 2015)

The SDML supports exempting all municipal projects, facilities, and equipment from sales and use taxes, so long as the municipality retains ownership and control, regardless of who installs or operates the facility or equipment. (T&R – 2011)

SOUTH DAKOTA MUNICIPALITIES

36.

37.

38.

Proposed Statement of Policy

The SDML supports continuing liens and encumbrances on property purchased through a tax deed. (T&R – 2013)

The SDML supports legislation to amend SDCL 10-13-35 to set the property tax cap at 3% or the rate of inflation, whichever is greater. (T&R – 2015)

The SDML supports enhancing and streamlining the information provided by the county director of equalization to the local board of equalization regarding reassessment plans, growth, and listing of properties inspected during the prior year. (T&R 2018)

User Fees 39. The SDML supports the concept of user fees for public service calls, including but not limited to law enforcement and fire protection for all taxexempt properties. (T&R – 2000; 2008; 2010; 33; 2015)

SEPTEMBER 2019

40.

The SDML opposes discriminatory charges on county taxpayers living within municipal boundaries for services, including but not limited to 911 emergency services. (T&R – 2012)

PUBLIC HEALTH AND SAFETY 41. The SDML supports efforts to hold telecom wireless companies accountable for all surcharge remittance on wireless services provided. The SDML also supports legislation allowing inflationary increase in the surcharge to keep pace with continued growing costs and inflation. (T&R – 2017)

42. 43.

The SDML supports expanding the base for the 911 surcharge to include all means of communicating with a 911 system. (T&R – 2005) The SDML supports enhanced revenue from the state and federal governments to implement heightened security standards necessitated by any state or federal Homeland Security requirements.

(T&R – 2002; 36)

Proposed Statement of Policy

CORE BELIEFS

Municipal Finance State/Federal Funding CB1. The SDML strongly supports the federal government honoring all of its funding obligations, including but not limited to federal highway funding and airport funding. The SDML also strongly supports the continued assistance of the SD Department of Transportation in assuming the local matching portion of federal highway monies. (T&R – 2000; 2010; 2011; CB1)

CB2.

CB3.

The SDML supports periodic evaluation and increases in state motor vehicle license fees for the funding of streets and highways and supports exploring other revenue to fund the highway transportation needs of the state. (T&R – 2000; CB2)

The SDML will support legislation to repeal the reduction in license fees for commercial vehicles, based on age of the vehicle. (T&R – 2000; CB3)

CB4.

CB5. CB6.

CB7.

The SDML would oppose any redistribution of the motor fuel taxation that would violate the accord reached by the State and local governments in 1985. (T&R – 2000; CB4)

The SDML supports funding of the South Dakota Local Technical Assistance Program. (T&R – 2000; CB5)

The SDML recognizes that the US Army Corps of Engineers is responsible for the operation and maintenance of dams on the Missouri River, which due to design deficiencies, have caused stream bank erosion, channel sedimentation, and riverbed degradation. Therefore, the cost to operate and maintain the Missouri River system as envisioned in the Flood Control Act of 1944 (Pick-Sloan) should be borne by the Federal Government. (T&R – 2000; CB7)

The SDML supports legislation for state general funds for training programs at the local level required by the state for firefighters and EMS workers and especially including funds to

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Proposed Statement of Policy

CB8.

CB9.

CB10. CB11.

CB12.

CB13.

CB14.

reimburse volunteers for expenses incurred in training. (T&R – 2000; CB8)

The SDML requests that the state financially underwrite the full costs of all law enforcement training that is required by the state. Funds levied for training should be used only for training. Adequate funding of the law enforcement academy is essential to the provision of law enforcement officer training. (T&R – 2000; CB9; 2015)

The SDML supports the provisions of SDCL 615-1 and 6-15-2, relating to unfunded mandates, and believes that any new federal or state program, fee, legislation, rule, or regulation imposed upon municipalities must be federally or state funded. (T&R – 2000; CB10)

The SDML supports repeal of state taxation on fuels used by local governments. (T&R – 2003; 31)

The SDML believes that whenever possible and proper, additional local government costs should not be funded through increased real estate taxes, but through appropriate user fees or user tax systems or any other non-ad valorem revenue sources. (T&R – 2000; 33)

CB16.

SDML encourages municipalities to work individually and with other local governments to inform citizens of the negative impact of tax and spending limitation measures. (T&R – 2000; CB11)

The SDML opposes any attempt to impose a tax or regulation on self-insured local government pools or individual self-insured local government entities. (T&R – 2000; CB12)

Community and Economic Development CB17. The SDML encourages the Legislature and the Governor to review all laws as they pertain to economic development, and to work with municipalities to develop opportunities and remove impediments to development of our communities. (T&R – 2002; 1)

Municipal Utilities CB18. The SDML opposes the imposition of any federal or state taxes, or fees, or regulations that would have an effect upon municipally owned enterprises or utilities. (T&R – 2000; 2016; 37; 2019) (Moved from General Policy)

The SDML supports continued state and federal financing at sustained levels to local governments for projects rehabilitating and preserving water quality in South Dakota streams, rivers, lakes and aquifers. (T&R – 2000; 29) (Moved from General Policy)

The SDML supports developing an open, stronger, more cooperative working relationship with the SD Department of Revenue. (T&R – 2010; 2012) (Moved from General Policy)

The SDML supports federal funding, including the “state-side” share of the Land and Water Conservation Fund, on the condition that the state continues its practice of sharing those funds with municipalities. (T&R – 2000; 2016; 30) (Amended and moved from General Policy)

Local Control and Home Rule CB15. The SDML opposes any measure that restricts local control over taxation and spending and urges the defeat of any such measure. Further, the SEPTEMBER 2019

October 3 - 6 SD Festival of Books Brookings

OCTOBER Hometown Happenings

October 4 - 5 Oktoberfest Deadwood

Paranormal Investigations of the Adams House Deadwood

October 5 - 6 Run Crazy Horse Marathon and Races Crazy Horse October 5 Prairie Village Hobo Marlin Pumpkin Train Madison Bierborse Rapid City

Candlelight Walk Canton

October 10 - 12 Wild West Songwriters Festival Deadwood October 11 - 12 Black Hills Horse Expo Rapid City

Paranormal Investigations of the Adams House Deadwood

October 11 - 13 Black Hills Powwow Rapid City

October 12 Strawbale Winery Harvest Festival Renner

October 14 Native American Day at Crazy Horse Memorial Crazy Horse

October 18 - 19 Paranormal Investigations of the Adams House Deadwood

October 18 - January 5, 2020 Opening Pheasant Hunting Weekend Pierre

October 19 45th Annual Arts and Crafts Festival, Faulkton

October 25 -27 Autumn Festival, An Arts & Crafts Affair Sioux Falls October 25 -26 ZooBoo Sioux Falls

Yankton's Harvest Halloween Yankton Deadweird Deadwood

October 26 Scare in the Square Rapid City

For details on each event visit www.travelsouthdakota.com.

SOUTH DAKOTA MUNICIPALITIES

DENR Accepting Applications for EPA Clean Diesel Grant Porgram

The South Dakota Department of Environment and Natural Resources (DENR) is accepting applications for the EPA Clean Diesel Grant Program. The program provides rebates for purchasing new buses to replace old, high-emitting diesel buses. The goal is to reduce school childrenâ€™s exposure to fine particulate and smog-forming pollution and to facilitate improvement and protection of ambient air quality throughout South Dakota.

Eligible applicants include public schools, non-public schools, state special schools, approved educational programs, shuttle or transit system providers, and school bus contractors.

The initial application deadline for the EPA Clean Diesel Grant Program is Dec. 14, 2018. Interested parties are encouraged to contact DENR at 605-773-3151 or obtain application guidance at https://denr.sd.gov/des/aq/aadera.aspx.

Total rebate per replacement bus will be up to 25% of the purchase price of a 2018 engine model year or newer engine certified to EPA emission standards, 35% of the purchase price for engines meeting the California Air Resources Board Low-NOx standards, or 45% of the purchase price of an all-electric bus. DENR will award funds to as many eligible applicants as possible. Initially, there will be approximately $280,000 from the federal Diesel Emissions Reduction Act available for the program in South Dakota. If the 2019 state Legislature approves spending authority for the Volkswagen Mitigation Trust, an additional $837,000 will be available for bus replacement.

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CLASSIFIEDS

CLASSIFIED ADS POLICY: Member municipalities receive free insertions and free postings on the League website. Non-member advertisers are billed $50 per insertion. All ads are subject to editing if necessary. The next deadline is September 10 for the October 2019 issue. Email ads to sara@sdmunicipalleague.org or fax to 605224-8655. Visit www.sdmunicipalleague.org for more classifieds.

FINANCE OFFICER: Hermosa, SD - The Town of Hermosa is looking for a Finance Officer to oversee all aspects of Town finances and assure State and Federal regulatory compliance. Responsible for all fiscal management of Town funds including annual financial report & budget, insurance administration, licensing, elections, budgets, equalization/assessments, ordinance and resolutions. Interested candidates must have be a graduate from an accredited college or university with a degree in accounting, finance, business, or public administration, or a closely related field; and/or five (5) years’ progressively responsible accounting work or any equivalent combination of experience, education and training which provides the desired knowledge, skills and abilities. Prior experience in municipal government and fund accounting preferred. Salary depends on experience. Open until filled. To apply, submit cover letter and resume to: Vicki Henrichsen, Board of Trustees President, PO Box 298, Hermosa, SD 57744. For full job description, see www.hermosasd.com or request my email at twnhrmsa@custercountysd.com. The Town of Hermosa is an EOE.

METER READER/EQUIPMENT OPERATOR: Sturgis, SD - The City of Sturgis is seeking applications for a Meter Reader/Equipment Operator in the Public Works Department. This position handles the monthly commercial & residential meter reading cycles, identifies meter reading problems, participates in snow removal duties, helps with PWD summer maintenance programs, and assists with event set-up and breakdown. Must have (or get within 6 months) a Class A CDL. (Year-round, full-time position, full benefits package, non-exempt wage DOEQ $13.05 to $16.82) For more information, please contact PWD Director Rick Bush at 605-347-3619.

POLICE OFFICER: Flandreau, SD - The Flandreau Police Department is accepting applications for a full time police officer. Starting pay is $18.86 per hour for a certified officer. Benefits include SDRS, health vision and dental insurance. Officers work 12 hr. shifts with every other weekend off. Requirements include passing score on written exam, interview and background investigation. Applicants must be a U.S. citizen, possess a valid driver’s 64

license, have a high school diploma or GED equivalent, and be 21 years old at time of hire. Applications can be obtained at the Flandreau Police Department or submitted using the SD Law Enforcement Officer Standards applications. The Flandreau Police Department is an EOE.

SENIOR ACCOUNTANT: Sturgis, SD - The City of Sturgis is seeking applications for a Senior Accountant to join our Finance Office. This position handles all monthly and annual reconciliations, monthly journal entries, financial reporting, P&Ls, internal controls, expense tracking, and other accounting functions. Must have a very strong accounting background (Full-time, full benefits package, non-exempt wage DOEQ $38,500 to $41,500) For more information, please contact Finance Officer Fay Bueno at 605-347-4422.

WATER DISTRIBUTION/WASTEWATER COLLECTION SUPERINTENDENT: Yankton, SD - The City of Yankton is seeking qualified applicants for Water Distribution/Wastewater Collection Superintendent in the Environmental Services Department. An employee in this position provides administrative direction and technical assistance to ensure the proper maintenance and repair of the water distribution and collection systems. The qualifications for this position are an Associates degree in a related field or equivalent work experience and a Class II Certification in Water Distribution and Wastewater Collection or the ability to obtain in one year; and experience equivalent to five years full time water distribution and/or wastewater collection system work. The salary range for this position is $59,553 to $75,394 annually. Applications are available from the Human Resources Office at 416 Walnut Street, Yankton, SD 57078, or by phone at 605-668-5222, or on the City website at www.cityofyankton.org. Persons needing accommodation in order to apply for this position should contact 605-668-5222.

NOTICE TO BIDDERS: Tyndall, SD - The Tyndall City Council has declared certain city vehicles as surplus and will be taking sealed bids until 6:30 p.m., Wednesday, September 4, 2019 for a 1995 Ford E350 Diesel Ambulance. Bids are to be submitted in a sealed envelope marked “1995 Ford E350 Diesel Ambulance” by 6:30 p.m. Wednesday, September 4, 2019 to the Tyndall City Finance Officer, PO Box 29, Tyndall, SD 57066. Bids will be opened and read aloud at 6:30 p.m. during the regular meeting of the Tyndall City Council in the council’s meeting room located at 110 East 17th Ave., Tyndall, SD. The vehicle will be sold in “as is” condition. Minimum bid is $500.00. The Tyndall City Council reserves the right to reject any and all bids and reserves the right to waive informalities. Visit www.sdmunicipalleague.org for additional classifieds. SOUTH DAKOTA MUNICIPALITIES

Spearfish Mourns Loss of Ward 2 City Councilman George Martin

Martin also volunteered on the Spearfish Fire Department, Spearfish Emergency Ambulance Service, and Spearfish Optimist Club.

In 2018, Martin ran for and was elected to a seat on the Spearfish City Council, representing Ward 2, and he was sworn in and took his seat on the council in May 2018. Martin married Sue Hall in 1980, and they have two grown children, Molly and Jordan.

By Kaija Swisher Black Hills Pioneer

The city of Spearfish has lost a longtime resident who served his community throughout his life: Ward 2 City Councilman George Martin, 74, passed away Sunday at Rapid City Regional Hospital, following cancer recurrence after three years in remission.

“He was passionate about our community and came back after being (a city) employee … to be on the city council, not with an agenda, but to truly just serve a community he loved,” Mayor Dana Boke remembered Monday.

“There was no one he didn’t consider a friend,” she added, describing that Martin was a “true social butterfly” who wanted to get to know everyone.

“He just loved people, and he loved telling stories, that’s for sure,” Boke said. “I will remember his passion and dedication to serving.”

Martin, born in Spearfish on April 12, 1945, saw many changes to the community during his life. He attended Black Hills State College (now University) from 1963-69 and then taught chemistry and biology in Platte for a year before switching careers and working construction.

He worked for more than two decades for the city and described on his 2018 candidate questionnaire that his first job with the city was in 1958-59 at the city campground and cabins. During college, he worked part-time, and then became a full-time employee with the city in 1971-72. He then took a hiatus, working for a local underground utility contractor installing water, sewer, power, gas, and telephone lines, and dug several basements for local homebuilders. In 1987, he returned to work for the city of Spearfish as street superintendent, until his retirement in December 2011. SEPTEMBER 2019

In 2012, Martin was one of the “elders” honored during the annual Elder’s Wisdom, Children’s Song program. He was paired with Mrs. Gillespie’s fifth-grade class, who with musician Marianne Fridel, wrote the following chorus to a song titled, “Laid Back and Relaxed,” about Martin: “The places I like best, no one’s in a hurry. Laid back and relaxed, and very few worries. When you run into trouble, just keep on moving. Turn the corner, don’t say woe is me.”

The class also wrote a biography about Martin, based on their conversations with him, and in it, they describe that “He’s a friendly man who loves to visit. He’ll tell you about rocketry, airplanes, science, gardening, travel, and of course, his amazing children. He has many friends because he’s a good man. George gave us some good advice: don’t smoke and abuse alcohol, don’t give up, go around the corner, go to college when you are ready, and stay positive.”

Martin was elected to a three-year term, which expires in 2021, and according to city code, a special election takes place to fill a vacant council seat. Spearfish City Code Sec. 2-146.a. describes that “Any vacancy in the governing body of the City of Spearfish or the office of mayor shall be filled by a special election called for that purpose as provided by (state law),” unless it is less than six months before the annual municipal election, at which time an appointment would be made.

City Attorney Ashley McDonald said via email Tuesday that city staff would put together a timeframe based on the requirements in state law and city ordinance and present it to city council at the second meeting in August regarding the process moving forward. This article was reprinted with permission from Black Hills Pioneer and was originally printed July 30, 2019. 65

Municipal Calendar

electronic means or registered mail. Municipalities shall also provide any changes and additions to streets and addresses. (SDCL 10-52-13; See Hdbk., sec. 14.172)

S 1 8 15 22 29

On or before October 1 – The tax levies for the ensuing year must be certified to the county auditor. (SDCL 10-127; See Hdbk. Sec. 12.066)

M 2 9 16 23 30

September 2019 T W T 3 4 5 10 11 12 17 18 19 24 25 26

F 6 13 20 27

S 7 14 21 28

6 13 20 27

M 1 7 14 21 28

September

October 2019 T W T F 1 2 3 4 8 9 10 11 15 16 17 18 22 23 24 25 29 30 31

S 5 12 19 26

On or before September 1 – The finance officer must report annually to the governing body an estimate of the expenses of the municipality and likewise the revenue necessary to be raised for the current year in budget form similar to that recommended by the municipal accounting manual as provided in SDCL 4-11-6. (SDCL 9-22-23; See Hdbk., sec. 12.065)

Before September 2 – If the number of on-sale and offsale liquor licenses is not fixed by ordinance, the governing body may determine by resolution the number of on-sale and off-sale liquor licenses and the fees to be charged for each. (SDCL 35-4-11; See Hdbk., sec. 11.205) First Monday of September – Labor Day – State holiday (SDCL 1-5-1)

At the first regular meeting in September, or within ten days thereafter – The annual appropriation ordinance for the ensuing year must be introduced. (SDCL 9-21-2; See Hdbk., sec. 12.066)

On or before October 1 – The governing board of any municipality may, on or before the first of October preceding the annual municipal election, approve an ordinance requiring a secondary election as found in SDCL 9-13-27.1 and SDCL 9-13-26.1 (SDCL 9-13-25; See Hdbk., sec. 7.600)

On or before October 1 – Immediately upon passage and publication of the annual appropriation ordinance, the auditor or clerk must certify the tax levies contained therein to the county auditor on or before October first in the following form: For general purposes________________________________ For interest and debt service fund_____________________ (SDCL 9-21-20 and SDCL 10-12-7; See Hdbk., sec. 12.066)

October

In October – The State Department of Revenue mails out liquor license application forms to all licensees to be completed and submitted to the local authorities for initial action at the first regular meeting of the governing body in November. (NOTE: This is an administrative determination so no statutory citation is possible.) Second Monday of October – Native Americans’ Day – State holiday (SDCL 1-5-1)

By October 15 – The secretary of revenue shall apportion the money in the local government highway and bridge fund. (SDCL 32-11-35; See Hdbk., sec. 12.255(6))

No later than November 1 – The special assessment roll for all assessments payable under the Plan One option must be delivered to the county auditor. (SDCL 9-43-105; See Hdbk., sec. 12.160) No later than November 1 – Delinquent special assessment installments which are payable under the Plan Two option must be certified to the county auditor. (SDCL 9-43-106; See Hdbk., sec. 12.160)

No later than second Tuesday in November – Governing boards wishing to consolidate boards of equalization must approve a resolution outlining consolidated board membership no later than the second Tuesday in November. (SDCL 10-11-66; See Hdbk., sec. 12.120)

Boundary changes – Municipalities must notify the Department of Revenue of any resolution or amendment enacted which changes the boundaries of the municipality. Notification shall be in written form, shall contain a copy of the resolution or amendment, and may be sent by electronic means or registered mail. Municipalities shall also provide any changes and additions to streets and addresses. (SDCL 10-52-13; See Hdbk., sec. 14.172)

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