6. HRSR 08-01-2011 - Laserfiche WebLink

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REQUEST FOR ACTION To Item Number Housin & Redevelo ment Authori 6. Agenda Section Meeting Date Prepared by August 1, 2011 Annie Deckert, Director of Economic Develo ment Item Description Reviewed by Consider Year 2012 HRA Budget and Resolution Regarding Tim Simon, Finance Director HRA Levy Reviewed by Action Requested Staff recommends the HRA review and approves the Yeax 2012 HRA Budget as presented and approve the attached Resolution Establishing the HRA Tax Levy fox Collection in Year 2012. Following the HRA's action, the City Council must approve and certify the HRA levy to Sherburne County in September. Background/Discussion The Economic Development Division consists of two separate budgets including: ^ Economic Development Authority ^ Housing & Redevelopment Authority Revenues Since 2003, HRA levy has been sufficient to HRA without tapping City General Fund revenues. In 2008 the HRA acted to maintain the general operating levy at 0.0144% of taxable market value, despite a statutory increase allowing HRA's to levy a maximum of 0.0185%. The attached Budget Worksheet has been prepared using the 0.0144% levy as in previous years. Revenues generated from the HRA tax levy for 2012 budget purposes axe estimated based on a 6% decrease in taxable market value. Updated information will be available from the County Assessor in September. In the past the HRA revenues have included a transfer from TIF District #16 (Ding & Main) to reimburse the HRA .for eligible redevelopment expenses. Per recent HRA action, the final reimbursement will be deferred unti12012 in order to establish a special temporary TIF fund as authorized by recent legislation to be used to stimulate new construction or renovation by July 1, 2012. TIF District #16 will be paid off in 2012. The proposed 2012 revenue does not include any amount of rental income anticipated from the HRA buildings at 716 & 720 Main Street, however the Arts Alliance does reimburse the HRA for insurance. The lease with Arts Alliance runs through 2013 and therefore the 2012 budget assumes their continued occupancy of 716 Main Street. Discussion by the HRA regarding the long term intentions of the building indicated plans for future paxking. The Building Maintenance line item has been increased $75,000 for demolition should it be deemed necessary in 2012. 2012 HRA Budget Action Requested