6. HRSR 08-01-2011REQUEST FOR ACTION
To Item Number
Housin & Redevelo ment Authori 6.
Agenda Section Meeting Date Prepared by
August 1, 2011 Annie Deckert, Director of Economic
Develo ment
Item Description Reviewed by
Consider Year 2012 HRA Budget and Resolution Regarding Tim Simon, Finance Director
HRA Levy Reviewed by
Action Requested
Staff recommends the HRA review and approves the Yeax 2012 HRA Budget as presented and approve
the attached Resolution Establishing the HRA Tax Levy fox Collection in Year 2012. Following the
HRA's action, the City Council must approve and certify the HRA levy 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, HRA levy has been sufficient to HRA 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
for 2012 budget purposes axe estimated based on a 6% decrease in taxable market value. Updated
information will be available from the County Assessor in September.
In the past the HRA revenues have included a transfer from TIF District #16 (Ding & 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, 2012.
TIF District #16 will be paid off in 2012.
The proposed 2012 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 2013 and therefore the 2012 budget assumes their continued
occupancy of 716 Main Street. Discussion by the HRA regarding the long term intentions of the building
indicated plans for future paxking. The Building Maintenance line item has been increased $75,000 for
demolition should it be deemed necessary in 2012.
2012 HRA Budget Action Requested
Expenditures
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)
o This goal was included in the 2011 Vision and Goals approved by the City Council in May
^ Provide information to residents on housing rehabilitation/energy efficiency financing resources
^ Continue foreclosure recovery initiatives
^ Monitor the City's housing market, inventory and condition to identify needs (housing study)
^ 716 & 720 Main Street management (identified as goal at the January 3, 2011 HRA meeting)
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 2012 due to the anticipated Downtown Redevelopment
Plan.
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 ($15,000). 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 HRA Redevelopment Projects. This amount 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. The current balance as of December 31, 2010 is
$613,576.
Attachments
^ Budget Worksheet -Proposed 2012 HRA Revenue & Expenditures
^ Resolution Establishing the HRA Levy for Collection in Year 2012
Action Motion by Second by Vote
Follow Up
2012 HRA Budget Action Requested
2012 BUDGET DETAIL SHEET
Deat: Housing 8 Redeveloament Authority
Acct. ExplanatioNDetail of Su
lies or Services 2010 2011 BUDGET 2012 BUDGET
No. pp Actual Detail Total Detail Total
4101 PERSONAL SERVICES
Re ular Pa
51,161
53,250
50,100
4104 PERA 3,394 3,850 3,650
4105 FICA 2,979 3,300 3,100
4107 Medicare 704 800 750
4108 Insurance 4,422 4,650 7,200
4109 Workers Com 284 300 350
4201 TOTAL PERSONAL SERVICES
SUPPLIES
Office Supplies 82,944 66,150 85,150
shared with EDA
4304 TOTAL SUPPLIES
OTHER SERVICES 8 CHARGES
Legal Fees
428
10,000
10000
Misc. 10,000 10,000
4319 Other Professional Services 1460 65,000 75 000
Downtown Plan 60,000 60,000
Housin Stud 5,000 15,000
4322 Postage 100 500 500
4331 Travel, Conferences & Schools
shared with EDA
4349 Advertising/Marketing 2,500 2500
Housin ro rams 2,500 2,500
4359 Publishing 572 16,000 18 000
Downtown Pro'ect Communications 4 times er ear 14,000 14,000
Redevelo ment Plan Printin 2,000 2,000
4361 Insurance 1527 3,200 3100
Insurance 3,100
Liabili - O en Meetin Law 300
Insurance - Houlton buildin 2,900
4389 Utilities 375 1,000
Water/electric - ERMU 1,000
4401 Building Repair 8 Maint 2 911 5,000 80 000
716 & 720 Main 5,000 80,000
4433 Dues/Subscriptions 250
Downtown Idea Exchan a 250
4437 Taxes 8 Licenses 21
4601 TOTAL OTHER SERVICES 8 CHARGES
DEBT SERVICE
Princi al 7,392
270 588 102,950 187,100
4611 Interest 17 382
4721 TRANSFERS OUT
General Fund
9,500 18 500
15,000 1$ 500
15,000
4735 Economic Develo ment Authori shared ex nses 3,500 3,500 3,500
TOTAL HOUSING 8i REDEVELOPMENT AUTHORITY 371,308 187,800 270,750
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RESOLUTION I I - 03
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 2012
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
2012 for 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 1°d day of
August, 2011.
Stewart Wilson, Chair
ATTEST:
Annie Deckert, Executive Director
N:\Departments\CommunityDevelopmem\Economic Developtnent\IIRt1to move\Resolutions\2011\11-03 HIZA2011 LEVY.doc