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<br />Request for Action <br />To Item Number <br />Housing and Redevelopment Authority 2.0 <br />Agenda Section Meeting Date Prepared by <br />Budget Discussion August 1, 2022 Brent O’Neil, Economic Development Director <br />Item Description Reviewed by <br />Discuss 2023 HRA Budget & Budget Goals Cal Portner, City Administrator <br />Reviewed by <br /> <br /> <br />Action Requested <br />Review the draft HRA budget for 2023 and provide direction for inclusion in the September 6, 2022, <br />Preliminary Levy. <br /> <br />Background/Discussion <br />HRA bylaws require budget adoption and a recommendation to the City Council at the September meeting <br />for inclusion into the preliminary levy. This workshop allows for open discussion on the budget and goals for <br />2023 ahead of the September meeting. <br /> <br />The draft 2023 budget prepared by staff is similar to 2022 with many line items remaining flat or with slight <br />increases over the 2022 baseline. For the Commission’s discussion and consideration, there are two notable <br />initiatives highlighted in the draft budget: an increase of $55,000 in the property acquisition line as well as <br />$50,000 in new funds to support current and future loan or grant programs. These two items essentially <br />increase the fund balance of the HRA, allowing the HRA to draw from the fund balance as potential property <br />acquisitions are considered or new programs are developed. <br /> <br />The draft budget increases the core items from $338,100 in 2022 to $341,000 proposed for 2023. By <br />including the two initiatives stated above the budget request for 2023 would be $446,000. In consideration of <br />HRA levy options, and in anticipation of interest income of $6,500, a levy of $334,500 would balance <br />expenditures and revenues for the core items. Other considerations would be a levy of $439,500 to also <br />include the two initiatives stated above, or the maximum levy not to exceed 0.0185 percent of the Elk River’s <br />Estimated Market Value (EMV). The EMV has not yet been provided by Sherburne County; however, <br />preliminary projections of EMV would provide a maximum levy of approximately $600,000. <br /> <br />Financial Impact <br />N/A <br /> <br />Mission/Policy/Goal <br />HRA Bylaws require the Executive Director to prepare a budget and present it to the Commissioners of the <br />Authority for consideration in August of each year. <br /> <br />Attachments <br /> Draft HRA 2023 Budget Worksheet <br /> Draft HRA 2023 Goals <br /> <br />The Elk River Vision <br />A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community <br />engagement that encourages and inspires prosperity <br />