2003_0811_packet - Laserfiche WebLink

Home

City Manager's Recommendations Regarding City Use of the Proceeds from the Arona Project and the Amount of an HRA Tax Levy valuation but less actual revenue, in part because of the size and typo of projects. This mismatch between current operating expenses and current operat- ing revenues in the Community Development Department probably needs attention. It is beyond the scope of this particular memo to try to resolve that issue here. Suffice it to say here that I don't thinly anyone wants to see 1 million of the Arona land sale proceeds he used simply to cover future operating deficits in the Community Development Department. If building permit revenue picks up, or the Community Development De- partment reduces its staffing, or the City Council chooses to find the Community Development Department in whole or in part from the City's General Find, then the Community Development Department would not need the 1 million from the sale of the Arona property to support the Department's operating costs. The 1 million could be used instead for the type of special economic development programs touched on above - i.e.. Twin Cafes incentives. Housing Redevelopment Authority? Some part of the $1.3 million in Arona land sale proceeds could be transferred to the Roseville Mousing and Redevelopment Authority (HRA). That could help offset HRA operat- ing oasts, could help fund HRA program initiatives (such as affordable housing), or could lessen the HRA's potential tax levy. But, the H1 A is just starting its work. They are developing their first budget, their first strategic plan, and their first work plan. They are in- experienced. I suggest the Council not transfer any more City funds to the HRA -- such as a portion of the Arona land sale proceeds -- until the HA has a fair opportunity to develop more of a track record. Remember, this Spring you transferred the entire City Housing Fund to the HRA. A, The transfer of the City's lousing Fund to the HRA included about $500,000 in loan assets and $160,000 in cash. 'those resources, and perhaps a first HRA levy of $200,000 (see pp g. -7 of this memo), ought to he sufficient to support the HRA's progress at this point. As for economic development projects within the Community Develop- ment Department, those are certainly worthy purposes. However, con- struction. and operation of a Community Center is, in my judgment, a higher priority and higher need for the community right now for the fol- lowing reasons.