HRSR MEMORANDUM 07-26-1999 ELK RIVER HOUSING AND REDEVELOPMENT AUTHORITY
MEMORANDUM
TO: Housing and Redevelopment Authority
( ROM: Paul T. Steinman, Director of Economic
Development
DATE: August 18, 1999
SUBJECT: Agenda Memo for August 23, 1999,
HRA Meeting
5. Discuss Recent Strategic Plan Modifications and CBD Action
Plan
Issue
• The purpose of this item is to update the HRA on discussions regarding
proposed modifications to the Economic Development Strategic Plan.
Background
A Strategic Plan Modification Committee consisting of the City Council,
EDA, and HRA, held two meetings with facilitator Jim Brimeyer to
undertake a review and modification process of the Strategic Plan. The
new issues and goals as proposed by this committee include the
following in order of priority:
• Grow industrial base
Goal develop West Business Park
• Business retention and growth
Goal —retain and grow existing industrial firms
• Marketing strategy
Goal -develop a marketing strategy
• Develop/redevelop east Highway 10
Goal redevelopment of east Highway 10
• Downtown redevelopment
Goal — carry out CBD plan and design process
13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330-1743 • (612) 441-7420•Fax: (612) 441-7425
Equal Opportunity Housing and Equal Opportunity Employment
• The issue of downtown attracted a great deal of attention for the
Strategic Plan Modification Committee. It was evident upon
prioritization of the issues that the downtown plan was moved down on
the priority list in favor of development of an external marketing
strategy and east Highway 10 redevelopment. Staff will be
implementing this modified Strategic Plan over the next 2-3 years, and
has interpreted this reprioritization as follows:
• Continue to complete activities assigned under the CBD Action
Plan
• Complete a design plan for the CBD
• Identify and market redevelopment areas in the CBD
Staff will continue to work on these issues, however, progress overall
may take somewhat longer than expected due to this reprioritization.
6. HRA Budget and Levy Resolution
Attached to this memo you will find the following information regarding
the year 2000 HRA budget:
. • Budget worksheet - HRA revenue projections
• Budget worksheet - HRA projected expenses
As in the past, there are three separate budgets for the Economic
Development Department including:
• General Fund
• Economic Development Authority
• Housing and Redevelopment Authority
Dollars from all three sources will be used again in the year 2000 to
balance the Economic Development Department's budget.
The only expenses proposed to be shared by all three categories include
full time and part time salaries and benefits - to be divided among the
three categories as follows:
• General Fund - 35 percent
• EDA - 50 percent
• HRA - 15 percent
•
. Other common administrative expenses are proposed only to be shared
by the EDA (75%) and the HRA (25%). These line item administrative
expenses are as follows:
• Office supplies
• Legal fees
• Telephone
• Postage
• Travel, conferences and schools
• Publishing
• Dues and subscriptions
• Miscellaneous
To make administration of these budgets easier, the HRA will simply
make a one time transfer to the EDA at the end of the year 2000 to
cover 25 percent of the actual expenses in the line item administration
categories listed above. Staff estimates these costs as follows:
• Total administrative expenses assigned to HRA $ 6,300
The following is a line item analysis of the other proposed year 2000
• expenditures for the HRA:
• Salaries/benefits $ 19,900
• Other professional services $ 10,000
- Hire design consultant for CBD project
• Advertising/Marketing $ 2,000
- King and Main materials
• Insurance $ 200
• Land $ 68,500
- King and Main loan payment
• Transfer - General Fund $ 1,000
• Transfer - EDA $ 6,300
Total HRA year 2000 proposed expenditures: $107,900
Total HRA year 2000 projected revenues: $100,000
The shortfall between projected expenses and revenues in the amount of
approximately $7,900 will be made up by using the HRA reserves.
Staff proposes to bring to the HRA a specific proposal for hiring a design
• consultant for the Central Business District, should that plan proceed.
It is staffs recommendation to approve the budget as presented with the
••• understanding that this issue will be brought back to the HRA for
specific authorization.
Recommendation
Staff recommends the HRA approve the year 2000 budget, with the
understanding that the line item for hiring a CBD designer will be
brought back for specific authorization, and approval of Resolution
99-_with a request that the City Council levy a tax in the amount of
.0131 percent of the taxable market value of the city less year 2000
HACA of$5,614 for the benefit of the HRA to be used for HRA purposes
as provided by the statute.
BUDGET WORKSHEET 'S "PAC .s
Date: 08/03/99
Time: 3:30pm
City of Elk River Page: 1
Prior Current Year
Year Original Amended Actual Thru Estimated
Mont 1/99 Actual Budget Budget July Total REQUESTED Recommended Adopted
Fund: 910 HRA
Revenues
TAX TAXES
3111 Current Ad Valorem Taxes 77,568 87,850 87,850 44,744 92,400
TAXES 77,568 87,850 87,850 44,744 92,400
GOVT INTERGOVERNMENTAL REVENUE
3322 Homestead Credit 5,634 5,600 5,600 2,806 5,600
INTERGOVERNMENTAL REVENUE 5,634 5,600 5,600 2,806 5,600
OREV OTHER REVENUE
3621 Interest Income 2,545 0 0 1,710 2,000
OTHER REVENUE 2,545 0 0 1,710 2,000
Total Revenues 85,747 93,450 93,450 49,260 100,000
/.
HRA 85,747 93,450 93,450 49,260 100,000
•
•
BUDGET WORKSHEET �(ler19
Date: 08/02/99
Time: 11:17am
City of Elk River Page: 2
Prior Current Year
Year Original Amended Actual Thru Estimated
7/31/99 Actual Budget Budget July Total REQUESTED Recommended Adopted
Fund: 910 HRA
Expenditures
Dept Group: 600 HOUSING & ECONOMIC DEVELOPMENT
Dept: 610.610 HOUSING & REDEVELOPMENT
PS PERSONAL SERVICES
4101 Regular Pay 2,669 25,150 25,150 7,983 16,350
4102 Overtime Pay 0 500 500 0
4103 Part-time Pay 0 250 250 0
4104 PERA 138 1,100 1,100 415 850
4105 FICA 165 1,300 1,300 495 1,050
4107 Medicare 39 300 300 116 250
4108 Insurance 204 2,200 2,200 597 1,400
4109 Workers Comp 0 100 100 83
PERSONAL SERVICES 3,215 30,900 30,900 9,689 19,900
SUPP SUPPLIES
4201 Office Supplies 0 300 300 226
SUPPLIES 0 300 300 226
OSC OTHER SERVICES 6 CHARGES
4304 Legal Fees 0 2,000 2,000 0
4319 Other Professional Services 2,210 10,000 10,000 1,816 20,000 10,000
•lephone 0 350 350 65
4322 Postage 275 500 500 337
4331 Travel, Conferences & Schools 0 1,000 1,000 876
4349 Advertising/Marketing 662 2,000 2,000 57 2,000 2,000
4359 Publishing 0 400 400 0
4361 Insurance 177 150 150 208 200 200
4433 Dues & Subscriptions 0 150 150 179
4440 Miscellaneous 21,565 1,000 1,000 580
OTHER SERVICES 6 CHARGES 24,889 17,550 17,550 4,118 22,200 12,200
CAP CAPITAL OUTLAY
4510 Land 0 37,000 37,000 0 68,500 68,500
4530 Improvement Project Contract 0 0 0 0
CAPITAL OUTLAY 0 37,000 37,000 0 68,500 68,500
TROU TRANSFERS OUT
4721 Transfer-General Fund 1,000 1,000 1,000 0 1,000
4735 Transfer-EDA 0 0 0 0 6,300
TRANSFERS OUT 1,000 1,000 1,000 0 7,300
HOUSING & REDEVELOPMENT
111/1
29,104 86,750 86,750 14,033 90,700 107,900
HOUSING & ECONOMIC DEVELOPMENT 29,104 86,750 86,750 14,033 90,700 107,900
BUDGET WORKSHEET
Date: 08/02/99
Time: 11:17am
City of Elk River Page: 3
Prior Current Year
Year Original Amended Actual Thru Estimated
7/31/99 Actual Budget Budget July Total REQUESTED Recommended Adopted
Fund: 910 HRA
Expenditures
Total Expenditures 29,104 86,750 86,750 14,033 90,700 107,900
HRA 56,643 6,700 6,700 35,227 -90,700 -7,900
•
•
RESOLUTION 99-
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 2000
WHEREAS, Minnesota Statute Section 469.033, Subdivision 6, authorizes
a Housing and Redevelopment Authority to levy an amount
not to exceed .0131 percent of the taxable market value of
property within the city to be used for redevelopment
purposes; and,
WHEREAS, the Elk River Housing and Redevelopment Authority
anticipates expenditures in 2000 for various 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 not to exceed the statutory limit of.0131
percent of taxable market value of the city, less 2000 HACA certified to be
$5,614 for the year 2000, 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 23rd day of August, 1999.
Duane Kropuenske, Chair
ATTEST:
Paul T. Steinman, Executive Director
S