2.0 HRSR 08-01-2022
Request for Action
To Item Number
Housing and Redevelopment Authority 2.0
Agenda Section Meeting Date Prepared by
Budget Discussion August 1, 2022 Brent O’Neil, Economic Development Director
Item Description Reviewed by
Discuss 2023 HRA Budget & Budget Goals Cal Portner, City Administrator
Reviewed by
Action Requested
Review the draft HRA budget for 2023 and provide direction for inclusion in the September 6, 2022,
Preliminary Levy.
Background/Discussion
HRA bylaws require budget adoption and a recommendation to the City Council at the September meeting
for inclusion into the preliminary levy. This workshop allows for open discussion on the budget and goals for
2023 ahead of the September meeting.
The draft 2023 budget prepared by staff is similar to 2022 with many line items remaining flat or with slight
increases over the 2022 baseline. For the Commission’s discussion and consideration, there are two notable
initiatives highlighted in the draft budget: an increase of $55,000 in the property acquisition line as well as
$50,000 in new funds to support current and future loan or grant programs. These two items essentially
increase the fund balance of the HRA, allowing the HRA to draw from the fund balance as potential property
acquisitions are considered or new programs are developed.
The draft budget increases the core items from $338,100 in 2022 to $341,000 proposed for 2023. By
including the two initiatives stated above the budget request for 2023 would be $446,000. In consideration of
HRA levy options, and in anticipation of interest income of $6,500, a levy of $334,500 would balance
expenditures and revenues for the core items. Other considerations would be a levy of $439,500 to also
include the two initiatives stated above, or the maximum levy not to exceed 0.0185 percent of the Elk River’s
Estimated Market Value (EMV). The EMV has not yet been provided by Sherburne County; however,
preliminary projections of EMV would provide a maximum levy of approximately $600,000.
Financial Impact
N/A
Mission/Policy/Goal
HRA Bylaws require the Executive Director to prepare a budget and present it to the Commissioners of the
Authority for consideration in August of each year.
Attachments
Draft HRA 2023 Budget Worksheet
Draft HRA 2023 Goals
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
Division:
Completed by:
Date:
Performance Measure 2020 Actual 2021 Actual 2022 Estimated 2022 YTD 2023 Projected
Number of HRA Rehab Loan
applications approved 2 0 6 0 5
Rehab Loan Funds Outstanding
(year-end)$220,000 200,000 $200,000 $70,000 $210,000
Permits Issued for Residential
Reinvesment Projects (by value)$7,750,000 $8,000,000 3,000,000**$4,750,000 $8,000,000
Number of Multi-family Units
Added 8 70 250 approx. 10 150
Blighted Properties Residential
and Commercial/Industrial
Forgivable Loan Program 0 0 1 0 1
Performance Measures & Goals for 2023
Housing and Redevelopment
Brent O'Neil
July 1, 2022
Division Goal Goal Objective/Task
PRELIMINARY FOR WORKSHOP
Implement housing and development goals in the new
comprehensive plan
With the adoption of the new comprehensive plan in Fall 2021, work to achieve the goals
and benchmarks set out in the plan, specifically those in the housing and economic
development sections.
Promote Preservation of 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.
Promote a Vital Downtown
Work with the Downtown Elk River Business Association to develop programs and targeting
investment and overall advancement of the downtown area. Continue 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.
Enhance redevelopment opportunities for C/I properties
Target business owners interested in redevelopment blighted C/I properties. Work with the
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.
Redevelopment of Main and Gates Site
Solicit interest from developers and/or business owners to develop the Main and Gates site.
Work to identify a project that meets community goals and expectations for the property,
while obtaining the best value in selling the property.
Dept:910-6100 - Housing & Redevelopment Authority PRELIMINARY FOR WORKSHOP
Acct.2019 2020 2021 2022 2023
No.Actual Actual Actual BUDGET BUDGET Comments:
REVENUES:
3111 Property Taxes 315,352 369,901 320,897 331,600 334,500 439,500 with intiatives
3322 MV Credit 163 177 176 - -
3414 Development Fee 589 - - - -
3621 Interest Income 11,608 8,825 5,541 6,500 6,500
3629 Miscellaneous Revenue 35 10,167 - - -
TOTAL HRA REVENUES 327,747 389,070 326,614 338,100 341,000
EXPENDITURES:
PERSONAL SERVICES
4101 Regular Pay 67,200 68,173 55,741 75,400 75,600
4104 PERA 5,040 4,733 3,678 5,650 5,650
4105 FICA 4,168 4,232 3,456 4,700 4,700
4107 Medicare 975 990 808 1,100 1,100
4108 Insurance 10,637 9,816 3,421 12,300 16,200
4109 Workers Comp 302 293 322 350 350
TOTAL PERSONAL SERVICES 88,322 88,237 67,426 99,500 103,600
SUPPLIES
4219 Operating Supplies 4,420 5,938 4,931 5,000 -
Downtown permanent fixtures 5,000
TOTAL SUPPLIES 4,420 5,938 4,931 5,000 -
SERVICES & CHARGES
4304 Legal Fees 5,523 6,380 8,451 6,000 6,000
Misc.6,000 6,000
4319 Professional Services 13,024 10,734 18,096 - - To discuss
- -
4322 Postage 11 6 3 100 100
Postage 100 100
4331 Travel, Conferences & Schools 44 - 45 200 200
MREJ - Housing Seminars 200 200
4349 Advertising/Marketing 10,430 11,160 11,288 10,400 9,200
Housing Program Marketing Materials - printing 2,500 2,500
Holiday Cards - Expanded Area 1,000 1,000
HRA/EDA Shared Website 5,700 5,700
Lead Forensics - Split between HRA/EDA 1,200 -
4359 Publishing 312 72 624 300 350
Public hearing notices 300 350
4361 Insurance 2,682 4,534 2,670 - -
Property insurance
4389 Utilities 68 21 - - -
4401 Building Maint. Services 5,380 6,360 3,308 2,000 3,000
Lawn/snow removal 2,000 3,000
4409 Contractual Services 4,021 127,919 1,502 30,800 82,750
Elk River HRA Rehab Program - 50,000 discuss initiative $50,000
CEE Administrative Fee 5,800 10,000
Hanging planters/downtown maintenance 25,000 22,750
4433 Dues & Subscriptions 236 247 247 300 300
Downtown Spotlight 300 300
2023 BUDGET DETAIL
Explanation/Detail of Supplies or Services
7/29/2022
Dept:910-6100 - Housing & Redevelopment Authority PRELIMINARY FOR WORKSHOP
Acct.2019 2020 2021 2022 2023
No.Actual Actual Actual BUDGET BUDGET Comments:Explanation/Detail of Supplies or Services
4437 Property Taxes 4,746 6,564 - - -
4440 Miscellaneous 156,501 286,941 - 145,000 200,000 discuss initiative $55,000
Property acquisition (and P.A. Fund)145,000 200,000
TOTAL SERVICES & CHARGES 202,978 460,938 46,234 195,100 301,900
TRANSFERS OUT 38,500 40,500
4721 General Fund 31,500 32,700 33,900 35,000 36,500
General Fund - plant maintenance - 8,000 8,000 - -
4735 Economic Development Authority (shared expenses)3,500 3,500 3,500 3,500 4,000
TOTAL HRA EXPENDITURES 330,720 599,313 163,991 338,100 341,000 446,000 with initiatives
^FALSE
REVENUES OVER/(UNDER) EXPENDITURES (2,973) (210,243) 162,623 - -
7/29/2022