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writing and administering). The HRA will always consider applying for grants for projects that meet the funder's objective and achieve the H R,A's goals. Bonding: The HRA has the ability to berg for projects as long as there is a revenue stream available to payback the bonds. Some communities have bonded for their programs and used the levy revenue as the guarantee payback. Tax Increment Financing is a possible funding source for HRA A projects provided that the City council is interested in providing it to the HRA. The use of TiF for any project must be approved by the City council. The city council, in turn, could allocate the TI F revenue to the HRA by a contract to be approved annually. Therefore, it is net a guaranteed funding source. The HRA has requested that a portion of the TIF revenue from the Arona project be issued to the HRA to fund housing programs and specifically to reimburse for their costs associated with the development of the 5 single family horses ` in Arena. Budget Summar3r. The attached proposed FII A budget includes the estimated maximum levy for 2004. The following are highlights of the budget that will be presented at the Council meeting on August 11, o Revenue: Existing unrestricted cash is very limited for the HRA estimated at approximately $120,000. This cash includes the payback of funds currently spent on the Arona project. Therefore} if payback for Arena costs were not provided and levy funds were not approved, the HRA would be left with very little funds for administration in 2004. Other restricted avenue includes the local development corporation funds and CDBG funds transferred to the HRA this gear. These funds are restricted to be used for projects that provide a benefit to low — moderate income residents These funds can not be used for administration. Expenses: The programs outlined 'in the HRA budget are not that different from previous housing fund budgets. These programs were evaluated over a series of strategy meetings as part of the development of the HRA Housing 'Plan. The lr-IIA Housing Plan was approved at the July 15, 2003 HRA meeting along with the request for an HRA levy after holding a public hearing. Programs include the Home & Garden Fain Housing Replacement Program, Rental Rehabilitation Program,, Ownership Rehab Program and Neighborhood Improvement Program. In addition, theme are general administrative costs such as cost for staff, fiscal fee-, legal and overhead. Generally, many of these costs carne back to the City to reduce the general fund and community development budget. Bo om line: If a levy is not approved the HRA will have very limited funds to run existing programs and support the administrative costs of having an HRA. Attachments: 2004 proposed HRA Budget, Levy Resolution* HRA Housing Plan k1VicbnalcommDev\Hi ll Vng ReportMemo to final on HRA hudet "08,1' 03.doc 0 Page 4