5. HRSR 08-04-2008 - Laserfiche WebLink

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Consider Year 2009 HRA Budget and Resolution Regarding HRA Levy August 4, 2008 HRA Meeting Page 2 of 2 In addition, 2009 revenues include a transfer in the from HRA related TIF Districts #16 (King & Main) and #22 (Bluffs & Jackson) in the estimated amount of $58,500 to repay the HRA for eligible expenditures related to the establishment of the TIF Districts. 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. Expenditures There are no significant changes in the proposed HRA expenditures for 2009 as indicated on the attached Budget Worksheet. The budget was developed with the following 2009 HRA Goals in mind: • Resume planning process for the comprehensive Downtown Redevelopment Plan (following authorization to proceed from City Council) • Provide consistent and ongoing communications to public regarding redevelopment planning activities. • Expand availability of housing rehabilitation programs for Elk River residents. • Identify areas of the city in need of focus area redevelopment plan and initiatives. 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 2009. Other common administrative expenses are 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 appear in the EDA budget and include the following line items -Office Supplies, Fuels, Telephone and Travel. As the HRA builds up a reserve balance for future HRA redevelopment we should review the idea of adopting a fund balance policy to designate funds to meet this goal. The HRA generally receives two tax settlements a year in July and December and in setting a fund balance policy we should maintain funds at year end for cash flow purposes and designate the remaining fox HRA redevelopment. Please see the attached draft policy which is consistent with the City's fund balance policy. Finance Director Tim Simon put together a draft policy for discussion purposes. Action Requested Following direction on the HRA's desired taxable levy fox year 2009, staff recommends that the HRA approve the Year 2009 HRA Budget as presented, and approve the attached Resolution Establishing the HRA Tax Levy for Collection in Year 2009. Following the HRA's action, the City Council must approve and certify its proposed levy, including EDA and HRA levies, to Sherburne County annually in September. S:\EDA\HRA\AGENDA\HRA Budget\09Budget.DOC