7. HRSR 08-02-2010ITEM # 7.
REQUEST FOR ACTION
To Item Number
Housin & Redevelo went Authori
Agenda Section Meeting Date Prepared by
August 2, 2010 Catherine Mehelich, Director of
Economic Develo ment
Item Description Reviewed by
Consider Year 2011 HRA Budget and Resolution Regarding
HRA Levy Reviewed by
Action Requested
Staff recommends the HRA review and approves the Year 2011 HRA Budget as presented and approve
the attached Resolution Establishing the HRA Tax Levy for Collection in Year 2011. Following the
HRA's action, the City Council must approve and certify the EDA and HRA levies to Sherburne County
in September.
Background/Discussion
The Economic Development Division consists of two separate budgets including:
^ Economic Development Authority
^ Housing & Redevelopment Authority
Revenues
Since 2003, the EDA and HRA levies have been sufficient to balance the Economic Development
Division without tapping City General Fund revenues.
In 2008 the HRA acted to maintain the general operating levy at 0.0144% of taxable market value, despite
a statutory increase allowing HRA's to levy a maximum of 0.0185%. The attached Budget Worksheet has
been prepared using the 0.0144% levy as in previous years. Revenues generated from the HRA tax levy
fox 2011 budget purposes are estimated based on a 3% decrease in taxable market value.
In the past the HRA revenues have included a transfer from TIF District #16 (King & Main) to
reimburse the HRA for eligible redevelopment expenses. Per recent HRA action, the final
reimbursement will be deferred unti12012 in order to establish a special temporary TIF fund as
authorized by recent legislation to be used to stimulate new construction or renovation by July 1, 2011.
The proposed 2011 revenue does not include any amount of rental income anticipated from the HRA
buildings at 716 & 720 Main Street, however the Arts Alliance does reimburse the HRA for insurance.
The lease with Arts Alliance runs through 2012 and therefore the 2011 budget assumes their continued
occupancy of 716 Main Street.
2011 HRA Budget Action Requested
Expenditures
There are no significant changes in the proposed HRA expenditures for 2011 as indicated on the attached
Budget Worksheet. The budget was developed with the following 2011 HRA Goals in mind:
^ Resume planning process for the comprehensive Downtown Redevelopment Plan, including public
communication efforts (following authorization to proceed from City Council)
^ Provide information to residents on housing rehabilitation/energy efficiency financing resources.
^ Continue foreclosure recovery initiatives including NSP grant, monitoring, and resource referral.
^ Monitor the City's housing market, inventory and condition to identify needs.
In 2004 the Personal Services costs were adjusted from 70/30 percent EDA and HRA respectively, to
60/40 percent due to staff time allotted to the Downtown Revitalization Project and Redevelopment
Planning. It is proposed that this continue in 2011 due to the anticipated Downtown Redevelopment
Plan.
The proposed budget worksheet assumes the HRA's prepayment of the Main Street building occurs in
2010 so there is no amount for debt service in 2011. The other significant change to the 2011 budget is
an increase in Professional Services. This would include consulting services to facilitate and complete the
Downtown Redevelopment Plan ($60,000) and to complete an updated Housing Market Study ($5,000).
Since public communications is a critical component of redevelopment planning, an amount of $16,000 is
proposed for the development and distribution of consistent and timely communication materials during
the planning process.
Other common administrative expenses are proposed to be shared by the EDA and HRA. As in
previous years the HRA makes a one time transfer to the EDA in the amount of $3500 to cover
approximately 40% of the shared expenses, which include office supplies, fuels, telephone and
travel/training.
In 2008 the HRA adopted a Fund Balance Policy to designate a percentage of its fund balance at the end
of each year toward an HRA Redevelopment Project Account. This account may be used for future
redevelopment activities such as property acquisition, demolition/remediation, and related improvement
costs for converting the HRA buildings into a parking lot.
Attachments
^ Budget Worksheet -Proposed 2011 HRA Revenue & Expenditures
^ Resolution Establishing the HRA Levy for Collection in Year 2011
Action Motion by Second by Vote
Follow Up
2011 HRA Budget Action Requested
7-29-2010 11:12 AM CITY OF ELK RIVER PAGE: 1
PROPOSED BUDGET WORKSHEET
AS OF: JUNE 30TH, 2010
910-HRA
I REVENUES
2007 2008
ACTUAL ACTUAL
(----------------- 2010 -----------------)(---------- 2011 ----------)
2009 APPROVED CURRENT Y-T-D REQUESTED CITY ADMIN
ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET
HRA
Taxes
910-3-0000-3111 Current Ad Valorem Taxes
TOTAL Taxes
Intergovernmental Rev
910-3-0000-3312 Federal grant
910-3-0000-3322 MV Credit
TOTAL Intergovernmental Rev
Charges for Services
910-3-0000-3475 Building Rent
TOTAL Charges for Services
Other Revenue
910-3-0000-3621 Interest Income
910-3-0000-3625 Refunds & Reimbursements
910-3-0000-3629 Miscellaneous Revenue
TOTAL Other Revenue
Other Financing Sources
910-3-0000-3910 Sale of Assets
910-3-0000-3917 Capital Lease
TOTAL Other Financing Sources
Transfers In
910-3-0000-3921 Transfers
910-3-0000-3947 Transfer - TIF
TOTAL Transfers in
TOTAL HRA
251,586 302,195 300,315 304,700 304,700 1 298,550 298,550
251,586 302,195 300,315 304,700 304,700 1 298,550 298,550
0 0 0 0 0 0 0 0
10,927 11,815 10,996 0 0 0 0 0
10,927 11,815 10,996 0 0 0 0 0
49,610 7,800 3,396 0 0 ( 146) 0 0
49,610 7,800 3,396 0 0 ( 146) 0 0
6,090 9,346 8,072 6,000 6,000 3,791 6,000 6,000
131,790 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
137,880 9,346 8,072 6,000 6,000 3,791 6,000 6,000
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 39,700 39,700 0 0 0
0 0 0 39,700 39,700 0 0 0
450,003 331,155 322,780 350,400 350,400 3,646 304,550 304,550
TOTAL REVENUES
450,003 331,155 322,780 350,400 350,400 3,646 304,550 304,550
7-29-2010 11:12 AM -
910-HRA
Housing & Redevelopment
EXPENDITURES
CITY OF ELK RIVER PAGE: 2
PROPOSED BUDGET WORKSHEET
AS OF: JUNE 30TH, 2010
(---- ----- 2010 -----------------)(---------- 2011 )
2007 2008 2009 APPROVED CURRENT Y-T-D REQUESTED CITY ADMIN
ACTUAL ACTUAL ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET
Personal Services
910-4-6100-4101 Regular Pay
910-4-6100-4102 Overtime Pay
910-4-6100-4103 Part-time Pay
910-4-6100-4104 PERA
910-4-6100-4105 FICA
910-4-6100-4107 Medicare
910-4-6100-4108 Insurance
910-4-6100-4109 Workers Comp
TOTAL Personal Services
Supplies
910-4-6100-4201 Office Supplies
TOTAL Supplies
Other Services & Charges
910-4-6100-4304 Legal Fees
Misc. legal fees 0
910-4-6100-4319 Other Professional Services
Downtown Plan 0
Housing Study 0
910-4-6100-4321 Telephone
910-4-6100-4322 Postage
910-4-6100-4331 Travel, Conferences & Schools
910-4-6100-4349 Advertising/Marketing
Hsg programs 0
910-4-6100-4359 Publishing
DT Plan 0
910-4-6100-4361 Insurance
910-4-6100-4389 Utilities
HRA bldgs 0
910-4-6100-4401 Bldg Repair/Maint Services
HRA bldgs 0
910-4-6100-4433 Dues & Subscriptions
Downtown Idea Exchange 0
910-4-6100-4437 Taxes & Licenses
910-4-6100-4440 Miscellaneous
TOTAL Other Services & Charges
Capital Outlay
910-4-6100-4510 Land
910-4-6100-4530 Improvement Project Contract
TOTAL Capita l Outlay
50,547 45,769 44,188 53,250 53,250 18,549 53,250 53,250
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
3,176 2,912 2,981 3,750 3,750 1,389 3,850 3,850
3,150 2,783 2,724 3,300 3,300 1,225 3,300 3,300
737 651 637 800 800 288 800 800
6,301 5,387 4,880 6,550 6,550 1,836 4,650 4,650
169 174 245 250 250 136 300 300
64,080 57,676 55,656 67,900 67,900 23,422 66,150 66,150
322 13 16 0 0 0 0 0
322 13 16 0 0 0 0 0
13,025 4,777 0 10,000 10,000 0 10,000 10,000
0.00 10,000
26,382 1,450 3,645 32,500 32,500 0 65,000 65,000
0.00 60,000
0.00 5,000
0 0 0 0 0 0 0 0
63 18 43 500 500 0 0 0
820 35 0 0 0 0 0 0
5,707 0 0 0 0 0 2,500 2,500
0.00 2,500
2,088 5,017 45 16,000 16,000 0 16,000 16,000
0.00 16,000
1,500 2,890 2,930 3,200 3,200 751 3,200 3,200
4,511 2,524 651 3,000 3,000 220 1,000 1,000
0.00 1,000
0 2,331 4,855 3,000 3,000 0 5,000 5,000
0.00 5,000
237 0 237 250 250 0 250 250
0.00 250
15,780 0 0 0 0 90 0 0
742 0 0 0 0 0 0 0
70,854 19,042 12,406 68,450 68,450 1,061 102,950 102,950
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
7-29-2010 11:12 AM CITY OF ELK RIVER PAGE.: - 3, _.
PROPOSED BUDGET WORKSHEET
AS OF: JUNE 30TH, 2010
910-HRA
Housing & Redevelopment
EXPENDITURES
(----------------- 2010 ---- -----)(---------- 2011 ------- - -)
2007 2008 2009 APPROVED CURRENT Y-T-D REQUESTED CITY ADMIN
ACTUAL ACTUAL ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET
Debt Service
910-4-6100-4601 Principal 43,964 91,925 97,523 103,500 103,500 50,967 0 0
910-4-6100-4611 Interest 15,120 26,244 20,645 14,700 14,700 8,118 0 0
TOTAL Debt Service 59,084 118,168 118,168 118,200 118,200 59,084 0 0
Transfers Out
910-4-6100-4720 Transfers 0 0 0 0 0 0 0 0
910-4-6100-4721 Transfer-General Fund 9,500 9,500 9,500 9,500 9,500 0 15,000 15,000
910-4-6100-4725 Transfer-Capital Outlay Reserv 0 0 0 0 0 0 0 0
910-4-6100-4735 Transfer-EDA 3,500 3,500 3,500 3,500 3,500 0 3,500 3,500
TOTAL Transfers Out 13,000 13,000 13,000 13,000 13,000 0 18,500 18,500
TOTAL Housing & Redevelopment 207,340 207,900 199,247 267,550 267,550 83,568 187,600 187,600
TOTAL EXPENDITURES 207,340 207,900 199,247 267,550 267,550 83,568 187,600 187,600
REVENUE OVER/(UNDER) EXPENDITURES 242,663 123,255 123,533 82,850 82,850 ( 79,922) 116,950 116,950
RESOLUTION 10 - 02
A RESOLUTION OF THE ELK RIVER
HOUSING AND REDEVELOPMENT AUTHORITY
A RESOLUTION ESTABLISHING THE TAX LEVY FOR THE
ELK RIVER HOUSING AND REDEVELOPMENT AUTHORITY
FOR COLLECTION IN YEAR 201 I
WHEREAS, Minnesota Statute Section 469.033, Subdivision 6, authorizes a Housing and
Redevelopment Authority to levy an amount not to exceed .01440 percent of the
taxable market value of property within the city to be used for housing and
redevelopment purposes; and,
WHEREAS, the Elk River Housing and Redevelopment Authority anticipates expenditures in
2011 fox various housing and redevelopment activities; and,
WHEREAS, the Housing and Redevelopment Authority will adopt and approve its budget before
a special tax can be levied.
NOW, THEREFORE, BE IT RESOLVED that the Housing and Redevelopment Authority
requests that the City Council of the City of Elk River, Minnesota, levy a special tax of .01440
percent of taxable market value of the city for the benefit of the Authority to be used for purposes
as provided in Minnesota Statutes.
Passed and adopted by the Elk River Housing and Redevelopment Authority this 2"d day of
August, 2010.
Stewart Wilson, Chair
ATTEST:
Catherine Mehelich, Executive Director
N:\Departments\Community Development\Economic Development\HRA to move\Resolutions\2010\10-02 HRA 2011 LEVY.DOC