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7.1. HRSR 09-07-2021 Request for Action Cir•ci Elk - River= To Item Number Housing and Redevelo ment Authority 7.1 Agenda Section Meeting Date Prepared by General Business September 7, 2021 Brent O'Neil, ED Director Item Description Reviewed by 2022 Budget and Goals Lori Ziemer,Finance Director Reviewed by Cal Portner, City Administrator Action Requested Approve,by motion,the 2022 HRA Budget and attached resolution establishing the HRA Tax Levy of$331,600 for collection in year 2022. Background/Discussion The 2022 HRA Budget addresses several of the goals outlined in the strategic plan,anticipated updates to the Comprehensive Plan,the city's vision worksheet, and discussions at the budget workshop on August 2,2021. HRA bylaws require budget approval and a Council recommendation at the September meeting for inclusion into the preliminary levy. The proposed budget for 2022 is $338,100 and includes similar expenses to the 2021 budget. Notable changes between 2021 and 2022 budgets are as follows: ■ An item for $25,000 has been added to account for hanging flowers and maintenance in downtown. ■ Any loans made from the Residential Loan Rehabilitation Program would be sourced from the HRA's existing fund balance rather than as a budgeted operational expense. ■ Maintenance costs on HRA property are reduced by 50 percent from $4,000 to $2,000. The proposed property tax levy of$331,600 and projected interest income of$6,500 would balance revenue and expenses.Also of note,the HRA operating levy is capped by state statute at 0.0185% of estimated market value of property in Elk River. A maximum levy would be in excess of$500,000. For reference,the approved levy for 2021 was $321,450. Following approval of the budget by the HRA, the budget will be presented to the City Council at its September 20, 2021, meeting to approve the levy and certify to the county auditor. Financial Impact Proposed expenditures for 2022 total$338,100. Mission/Policy/Goal HRA Bylaws require the Executive Director to prepare a budget and present it to the Commissioners of the Authority for consideration each year. The Elk River Vision P O N E R E o R Y A welcoming community avith revolutionary and spirited resourcefulness, exceptional JNAfUR service, and community engagement that encourages and inspires prosperity. Updated.August 2020 Attachments ■ Proposed HRA Budget for 2022 ■ Proposed HRA Goals for 2022 ■ Resolution Establishing the HRA Levy for Collection in 2022 City of Elk River Resolution 21- A Resolution of the City of Elk River Housing and Redevelopment Authority Establishing the Tax Levy for the Elk River Housing and Redevelopment Authority for the City of Elk River, Minnesota WHEREAS, Minnesota Statutes, Section 469.033, Subdivision 6, authorizes the Housing 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 redevelopment purposes; and, WHEREAS, the Elk River Housing and Redevelopment Authority anticipates expenditures in 2022 for various housing and redevelopment activities. NOW, THEREFORE, BE IT RESOLVED: That the Elk River Housing and Redevelopment Authority requests the City Council for the City of Elk River to levy a tax in the amount of$331,600 for the benefit of the Authority to be used as provided by Minnesota Statutes. Passed and adopted this 7th day of September,2021. Larry Toth, Chair ATTEST: Brent O'Neil, HRA Executive Director PowIR19 ® r NATURE 2022 BUDGET DETAIL Dept: Housing&Redevelopment Authority Acct. Explanation/Detail of Supplies or Services 2018 2019 2020 2021 2022 No. Actual Actual Actual BUDGET BUDGET REVENUES: 3111 Property Taxes 290,054 315,352 369,901 321,450 331,600 3322 MV Credit 152 163 177 - - 3414 Development Fee - 589 - - - 3621 Interest Income 10,200 11,608 8,825 5,500 6,500 3629 Miscellaneous Revenue - 35 10,167 - - TOTAL HRA REVENUES 300,406 327,747 389,070 326,950 338,100 EXPENDITURES: PERSONAL SERVICES 4101 Regular Pay 65,184 67,200 68,173 74,950 75,400 4104 PERA 4,889 5,040 4,733 4,650 5,650 4105 FICA 4,035 4,168 4,232 4,650 4,700 4107 Medicare 944 975 990 1,100 1,100 4108 Insurance 10,292 10,637 9,816 11,750 12,300 4109 Workers Comp 315 302 293 350 350 TOTAL PERSONAL SERVICES 85,659 88,322 88,237 97,450 99,500 SUPPLIES 4219 Operating Supplies - 4,420 5,938 5,000 5,000 Downtown permanent fixtures 5,000 5,000 TOTAL SUPPLIES - 4,420 5,938 5,000 5,000 SERVICES&CHARGES 4304 Legal Fees 3,394 5,523 6,380 6,000 6,000 Misc. 6,000 6,000 4319 Professional Services 23,016 13,024 10,734 - - 4322 Postage 20 11 6 100 100 Postage 100 100 4331 Travel,Conferences&Schools 596 44 - 200 200 MREJ-Housing Seminars 200 200 4349 Advertising/Marketing 10,512 10,430 11,160 11,200 10,400 Housing Program Marketing Materials 2,500 2,500 Holiday Cards-Expanded Area 1,800 1,000 HRA/EDA Shared Website 5,700 5,700 Lead Forensics-Split between HRA/EDA 1,200 1,200 4359 Publishing 637 312 72 300 300 Public hearing notices 300 300 4361 Insurance 924 2,682 4,534 - - Property insurance 4389 Utilities 243 68 21 - - 4401 Building Maint.Services 3,930 5,380 6,360 4,000 2,000 Lawn/snow removal 4,000 2,000 4409 Contractual Services 11,675 4,021 127,919 157,000 30,800 Elk River HRA Rehab Program 150,000 CEE Administrative Fee 7,000 5,800 Hanging planters/downtown maintenance 25,000 4433 Dues&Subscriptions 237 236 247 300 300 Downtown Spotlight 300 300 4437 Property Taxes 5,761 4,746 6,564 - - 4440 Miscellaneous 354,197 156,501 286,941 145,500 145,000 Property acquisition 145,500 145,000 TOTAL SERVICES&CHARGES 415,142 202,978 460,938 324,600 195,100 TRANSFERS OUT 45,400 38,500 4721 General Fund 30,000 31,500 32,700 33,700 35,000 General Fund-plant maintenance - - 8,000 8,200 - 4735 Economic Development Authority(shared expenses) 3,500 3,500 3,500 3,500 3,500 TOTAL HRA EXPENDITURES 534,301 330,720 599,313 472,450 338,100 A A REVENUES OVER/(UNDER)EXPENDITURES (233,895) (2,973) (210,243) (145,500) - 9/3/2021 Performance Measures & Goals for 2022 Division: Housing and Redevelopment Completed by: Colleen Eddy, Brent O'Neil Date: TA-ugust 31, 2021 Performance Measure 2019 Actual 2020 Actual 2021 Estimated 2021 YTD 2022 Projected Number of HRA Rehab Loan applications approved 2 0 2 0 6 Rehab Loan Funds Outstanding (year-end) $220,000 160,000 $120,000 $100,000 $200,000 Residential Property Re- investment(by permit value) $1,330,000 $4,870,000 $3,000,000 $2,500,000 $3,000,000 Number of Multi-family Units Added 8 0 60 0 180 Blighted Properties Residential and Commercial/Industrial Forgivable Loan Program 0 0 1 0 1 Division Goal Goal Objective/Task Promote Preservation of HRA Housing Stock Promote investment in residential properites within Elk River and target individuals interested in the blighted properties program and the HRA Rehab Loan Program.Work with Sherburne County to identify tax forfeited properties.Protect and strengthen rental properties. Participate in the Downtown Rivers Edge meetings.Work with the Downtown Elk River Business Association to develop a beautification plan for the Main Street Corridor.Continue Promote a Vital Downtown to promote the permanent fixture policy on behalf of the HRA to install and maintain permanent public fixtures downtown.Promote the Downtown Facade Improvement microloan program. Pursue strategic acquisition and sale of downtown redevelopment property. Target business owners interested in redevelopment blighted C/I properties.Work with the Enhance redevelopment opportunities for C/I properties building department to identify properties eligible for the blighted properties C/I program. Hold quarterly worksessions with various departments(police,building,and planning)to discuss potential redevelopment opportunities. Implement housing and development goals in the new With the planned adoption of the new comprehensive plan in Fall 2021,work to achieve the comprehensive plan goals and benchmarks set out in the plan,specifically those in the housing and economic development sections.