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6.2. HRSR 09-06-2022Request for Action To Item Number Housing and Redevelopment Authority 6.2 Agenda Section Meeting Date Prepared by General Business September 6, 2022 Brent O’Neil, Economic Development Director Item Description Reviewed by 2023 Budget and Goals Cal Portner, City Administrator Reviewed by Action Requested Approve, by motion, the 2023 HRA budget and attached resolution establishing the HRA Tax Levy of $402,200 for collection in year 2023. Background/Discussion The 2023 HRA Budget addresses several of the goals and line items discussed at the budget workshop on August 1, 2022. HRA bylaws require budget approval and a Council recommendation at the September meeting for inclusion into the preliminary levy. The proposed budget for 2023 is $408,700 and includes similar expenses to the 2022 budget. Notable changes are increasing funding for property acquisition from $145,000 to $200,000, including $10,000 for professional services and including $7,500 for the HRA’s cost share of analytics software (Placer.ai). The proposed property tax levy of $402,200 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 is estimated to be in excess of $600,000. For reference, the approved levy for 2022 was $331,600. Following approval of the budget by the HRA, the budget will be presented to the City Council at its September 6, 2022, meeting to approve the levy and certify to the county auditor. Financial Impact Proposed expenditures for 2023 total $408,700. 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. Attachments  Resolution Establishing the HRA Levy for Collection in 2023  Proposed HRA Budget for 2023  Proposed HRA Goals for 2023 The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity. Updated: August 2020 Resolution 22-01 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 2023 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 $402,200 for the benefit of the Authority to be used as provided by Minnesota Statutes. th Passed and adopted this 6 day of September, 2022. Larry Toth, Chair ATTEST: Brent O’Neil, HRA Executive Director 2023 BUDGET DETAIL Sept. 6, 2022 Dept:910-6100 - Housing & Redevelopment Authority Acct.20222023 201920202021 Explanation/Detail of Supplies or Services No.BUDGETBUDGET ActualActualActual REVENUES: 3111Property Taxes 315,352 369,901 320,897 331,600 402,200 3322MV Credit 163 177 176 - - 3414Development Fee 589 - - - - 3621Interest Income 11,608 8,825 5,541 6,500 6,500 3629Miscellaneous Revenue 35 10,167 - - - TOTAL HRA REVENUES 327,747 389,070 326,614 338,100 408,700 EXPENDITURES: PERSONAL SERVICES 4101Regular Pay 67,200 68,173 55,741 75,400 75,600 4104PERA 5,040 4,733 3,678 5,650 5,650 4105FICA 4,168 4,232 3,456 4,700 4,700 4107Medicare 975 990 808 1,100 1,100 4108Insurance 10,637 9,816 3,421 12,300 16,200 4109Workers Comp 302 293 322 350 350 TOTAL PERSONAL SERVICES 88,322 88,237 67,426 99,500 103,600 SUPPLIES Operating Supplies 4219 4,420 5,938 4,931 5,000 500 Downtown permanent fixtures 5,000 500 TOTAL SUPPLIES 4,420 5,938 4,931 5,000 500 SERVICES & CHARGES Legal Fees 4304 5,523 6,380 8,451 6,000 6,000 Misc. 6,000 6,000 Professional Services 4319 13,024 10,734 18,096 - 10,000 - 10,000 Postage 4322 11 6 3 100 100 Postage 100 100 Travel, Conferences & Schools 4331 44 - 45 200 200 MREJ - Housing Seminars 200 200 Advertising/Marketing 4349 10,430 11,160 11,288 10,400 9,200 Housing Program Marketing Materials - printing 2,500 2,500 Seasonal Outreach 1,000 1,000 HRA/EDA Shared Website 5,700 5,700 Lead Forensics - Split between HRA/EDA 1,200 - Publishing 4359 312 72 624 300 350 Public hearing notices 300 350 Insurance 4361 2,682 4,534 2,670 - - Property insurance 9/2/2022 Sept. 6, 2022 Dept:910-6100 - Housing & Redevelopment Authority Acct.20222023 201920202021 Explanation/Detail of Supplies or Services No.BUDGETBUDGET ActualActualActual Utilities 4389 68 21 - - - Building Maint. Services 4401 5,380 6,360 3,308 2,000 3,000 Lawn/snow removal 2,000 3,000 Software Services 4404 - 7,200 Placer Analytics - 7,200 Contractual Services 4409 4,021 127,919 1,502 30,800 27,750 Elk River HRA Rehab Program - CEE Administrative Fee 5,800 5,000 Hanging planters/downtown maintenance 25,000 22,750 Dues & Subscriptions 4433 236 247 247 300 300 Downtown Spotlight 300 300 Property Taxes 4437 4,746 6,564 - - - Miscellaneous 4440 156,501 286,941 - 145,000 200,000 Property acquisition (and P.A. Fund) 145,000 200,000 TOTAL SERVICES & CHARGES 202,978 460,938 46,234 195,100 264,100 TRANSFERS OUT 38,500 40,500 4721General Fund 31,500 32,700 33,900 35,000 36,500 General Fund - plant maintenance - 8,000 8,000 - - 4735Economic Development Authority (shared expenses) 3,500 3,500 3,500 3,500 4,000 TOTAL HRA EXPENDITURES 330,720 599,313 163,991 338,100 408,700 ^^ REVENUES OVER/(UNDER) EXPENDITURES (2,973) (210,243) 162,623 - - 9/2/2022 Performance Measures & Goals for 2023    Division:Housing and Redevelopment   Completed by:Brent O'Neil Date:September 1, 2022        Performance Measure2020 Actual2021 Actual2022 Estimated2022 YTD2023 Projected Number of HRA Rehab Loan applications approved20605 Rehab Loan Funds Outstanding (year-end)$220,000 200,000$200,000 $70,000 $210,000 Permits Issued for Residential Reinvestment Projects (by value)$7,750,000 $8,000,000 $8,000,000 $4,750,000 $8,000,000 Number of Multi-family Units Added (completed)8701600150 Downtown Funding (new baskets program)$25,000 $20,000 $25,000      Division GoalGoal Objective/Task Promote investment in residential properites within Elk River and target individuals interested Promote Preservation of Housing Stockin the blighted properties program and the HRA Rehab Loan Program. Work with Sherburne County to identify tax forfeited properties. Protect and strengthen rental properties. Solicit interest from developers and/or business owners to develop the Main and Gates site. Redevelopment of Main and Gates SiteWork to identify a project that meets community goals and expectations for the property, while obtaining the best value in selling the property. 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 Promote a Vital Downtownpermanent 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 building department to identify properties eligible for the blighted properties C/I program. Enhance redevelopment opportunities for C/I properties Hold quarterly worksessions with various departments (police, building, and planning) to discuss potential redevelopment opportunities. With the adoption of the new comprehensive plan in Fall 2021, work to achieve the goals Implement housing and development goals in the new and benchmarks set out in the plan, specifically those in the housing and economic comprehensive plan and recent housing study. development sections. Continue to puruse goals in the City's 2019 housing study.