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7.2 HRSR 08-07-2017Request for Action ToItem Number Housing and Redevelopment Authority7.2 Agenda Section Meeting DatePrepared by General BusinessAugust7, 2017Amanda Othoudt, EDD Item Description Reviewed by 2018 HRA Budget and Resolution Establishing Cal Portner, City Administrator HRA Levy Reviewed by Action Requested Review and approve the 2018 HRA Budget and attached Resolution establishing the HRA Tax Levy for collection in year 2018. Following the HRAs action, the City Council must approve and levy to Sherburne County by September 30, 2017. Background/Discussion The Economic Development Division consists of two separate budge Economic Development Authority Housing & Redevelopment Authority Revenues The budget proposes a balanced budget of the operating levy at 0.0140%. The state caps an HRA operating levy at 0.0185%. Revenues generated from the HRA tax levy for the 2018 budget are estimated based on an Estimated Market Value of $2,119,094,900 as provided by the Sherburne County Assessor. This will generat revenue of $297,650 plus an additional $5,500 in interest income. Expenditures The proposed 2018 budget was developed with the goals and action17-2020 HRA/EDA Strategic Plan, the Mississippi Connections Downtown Plan, and the City Vision & Goals. Major initiatives from these documents include: Rehabilitating at least 5 properties by utilizing the HRA Housing Rehabilitation Loan Pr Allocating $75,000 to rehabilitate target areas of the city which will be developed through coordination of the HRA and Central Minnesota Housing Partnershi Budgeting $80,600 for acquisition of real estate for redevelopment projects in conjunction with the Mississippi Connections Plan within the city. Major Changes Direction from the budget workshop included the following change At the July 10, 2017, HRA budget workshop, it was decided to maintain the previous and balanced rateof (0.0140%) to reduce drawing down on the reserves for the 2018 budget a loan programs out of reserves. Direction from the commission included allocatingthe $80,600 in the 2018 budget for Property Acquisition funding. Any non-spent funds remaining at the end of the year stay in the redevelopment purposes/projects. If a non-budget item comes up iwe can use the fund balance and make a budget amendment. As of July 31, 2017, the HRA has a cash balance available for Housing and Redevelopment purposes of $1,244,765. Financial Impact The expenditure budget is $303,150, which is consistent with the previous year. Attachments Resolution Establishing the HRA Levy for Collection in Year 2018 2018 HRA Goals and Performance Measures Proposed 2018 Budget Detail Spreadsheet July 10, 2017, HRA Budget Workshop Packet Resolution 17-03 A Resolution of the City of Elk River Housing and Redevelopment Authority, Establishing the Tax Levy for the Elk River Housing and Redevelo Authority for the City of Elk River, Minnesota WHEREAS, Minnesota Statutes, Section 469.033, Subdivision 6, authorizes t and Redevelopment Authority to levy an amount not to exceed .0185 percent of the estimated market value within the city to be used for housing and redevel and, WHEREAS, the Elk River Housing and Redevelopment Authority anticipates expenditures in 2018 for various housing and redevelopment activ NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk : River, Minnesota, as follows The Housing and Redevelopment Authority requests the City Council of the City of Elk River, levy a tax in the amount of 0.0140 percent of the estimated market value of the city for the benefit of the Authority to be used as provided by Statutes. Passed and adopted this 7th day of August, 2017. Larry Toth, Chair ATTEST: Amanda Othoudt, HRA Executive Director Division Performance Measures & Goals for 2018 Division:Economic Development\HRA Completed by:Amanda Othoudt, EDD Date:July 10, 2017 Performance Measure 2016 Actual2017 Estimated2018 Projected 500 Direct Mailings Sent. Four 500 Direct Mailings will be sent to Promote new applications for the Elk projects were completed in 2017. residential homeowners and one River HRA Rehabilitation Program 500 Direct Mailings Sent. Four projects Four more applications are educational meeting will be by identifying the percentage of were completed in 2016 resulting in a .8% estimated to be submitted by conducted . Estimating Five projects response from direct mailings and response rate. December 2017. Resulting in a 1.6% to begin in 2017 resulting in a educational meetings response rate.projected 1% response rate. Promote new applications for the 1 property is estimated to be Blighted Properties 1 property has been rehabilitated rehabilitated through the Commercial/Industrial Forgivable through the Commercial/Industrial Commercial/Industrial Loan Loan Program. Identify Response Loan Program. Program. rate. Related Vision Statement Division Goal Goal/ObjectiveComments Work with Sherburne County staff to identify Tax Forefieted properties that could utilize the newly created Blighted Properties Residential Forgivable Targeting individuals that maybe interested Promote Preservation of HRA Loan program. Collaborating with Building Inspections to create a Point of in the blighted properties program and the Housing Stock Sale program. Protection of rental properties. Strengthen rental properties HRA Housing Rehab program. program. Promote a vital downtownMississippi ConnectionsResearch redeveloping downtown north of Hwy 10. Enhance Redevelopment Targeting business owners that maybe Work with the building department staff to identify properties that could Opportunities for interested in redeveloping blighted utilize the newly created blighted properties commercial/industrial program. Commercial/Industrial Propertiescommercial/industrial properties. 2018 BUDGET DETAIL SHEET Dept:Housing & Redevelopment Authority 2017 BUDGET2018 BUDGET Acct. 201420152016 Explanation/Detail of Supplies or Services No.DetailTotalDetailTotal ActualActualActual PERSONAL SERVICES 4101Regular Pay39,02346,21356,38159,85063,250 4103Part Time Pay3,209653 4104PERA2,6473,4844,2924,5004,750 4105FICA2,2652,9383,5453,7003,900 4107Medicare530687829850900 4108Insurance4,9755,7477,1577,7008,400 4109Workers Comp209202278300300 4110Re-employment Comp252 TOTAL PERSONAL SERVICES53,11059,92472,48276,90081,500 SUPPLIES 4201Office Supplies18749-- (shared with EDA) TOTAL SUPPLIES18749 OTHER SERVICES & CHARGES 4304Legal Fees7,8071,0231,9785,0003,000 Misc.5,0003,000 4319Other Professional Services7,61822,41020,05010,050 Downtown Plan implementation20,00010,000 Solid Waste fee (downtown parking lot)5050 4322Postage646201,2501,250500500 4331Travel, Conferences & Schools1,3502,0217,5001,000 Misc. Training (Housing courses-Colleen)1,500 NDC Training (Housing Finance Prof. - Colleen)2,500 NDC Travel3,500 MREJ - Housing Seminars1,000 4349Advertising/Marketing4001,8286,32811,45013,900 Housing program brochures - marketing/printing5,0006,500 Holiday Cards750500 HRA/EDA Shared Website5,7005,700 Lead Forensics - Split between HRA/EDA1,200 4359Publishing893721252,500150 Public hearing notices2,500150 4361Insurance1,200 Property insurance - 426 Main St-1,200 4389Utilities - 426 Main St-600600 4401Building Repair/Maint. Services-1,900 Lawn/snow removal - 426 Main St.1,900 4409Contractual Services18,76327,9317,952150,00075,000 Blighted Properties Program Funding50,00075,000 Elk River HRA Rehab Program100,000 4433Dues & Subscriptions191237250250 Downtown Spotlight250250 4440Miscellaneous75,311-80,600 Acquisition of Property80,600 TOTAL OTHER SERVICES & CHARGES35,48754,85193,972198,000188,150 TRANSFERS OUT28,25033,500 4721General Fund22,85023,25024,75024,75030,000 4735Economic Development Authority (shared expenses)3,5003,5003,5003,5003,500 TOTAL HOUSING & REDEVELOPMENT AUTHORITY115,134141,525194,753303,150303,150 8/3/2017