7. HRSR 08-06-2007 - Laserfiche WebLink

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ITEM # 7. ~~.~.~-~ ~~ ever MEMORANDUM TO: Housing & Redevelopment Authority FROM: Catherine Mehelich, Director of Economic Development/~~~ DATE: August 6, 2007 SUBJECT: Consider Year 2008 HRA Budget and Resolution Regarding HRA Levy Attachments Budget Worksheet -Proposed 2008 HRA Revenue & Expenditures Services, Goals, Measures and Budget Summary Resolution Establishing the HRA Tax Levy for Collection in Year 2008 Summary The Economic Development Division consists of two separate budgets including: • Economic Development Authority • Housing & Redevelopment Authority Since 2003, the EDA and HRA levies have been enough to balance the Economic Development Division without General Fund revenues. HRA revenues are estimated at 7% growth in market value for the year 2008. In addition, 2008 revenues include a transfer in from TIF District 16 in the estimated amount of $52,500 to repay the HRA for eligible expenditures related to the King & Main TIF Project. The proposed revenues also included rental income in the amount of $7,800 derived from the existing lease with First National Bank of Elk River for the 716 Main Street. At its May 2007 meeting it was the consensus of the HRA to rent the building space to temporary uses in order to 1) maintain an active, viable image for downtown and 2) retain flexibility to remove the buildings when parking demand warrants the need for more supply. In 2004 the Personal Services costs (salaries and benefits) were adjusted from 70/30 percent EDA and HRA respectively, to 60/40 percent due to staff time allotted to the Downtown Revitalization Project. It is proposed that this continue in 2008. Other common administrative expenses axe proposed to be shared by the EDA and the HRA. As in previous years, the HRA would make a one time transfer to the EDA in the amount of $3,500 to cover approximately 40% of the shared expenses. The shared expenses