2014-08-19_HRA_Agenda_Packet - Laserfiche WebLink

Home

Request for HRA Action Date: 08-19-14 Item No: 9.b Director Approval: Agenda Section: Action Description: 2015 RHRA Budget Requested Action 1 2The RHRA needs to adopt a preliminary 2015 budget by resolution. The draft 2015 budget 3included in this report has been prepared by staff and reviewed/discussed by the RHRA Finance 4Subcommittee. The full RHRA needs to review and discuss the draft 2015 budget then advise 5staff of any modifications to the draft budget. Budget Process 6 7Per State Statute 469.033, subdivision 6, the HRA must formulate and file a budget each year in 8accordance with the budget procedure followed by the executive departments of the City. 9To request an HRA levy, the RHRA must adopt a resolution and budget and present it to the City 10Council in September. Assuming approval, the RHRA budget will be included in the City budget 11and levy request that is submitted to Ramsey County in September. The City Council then holds 12a public hearing on all elements of the budget in December, including any proposed HRA levy. Background 13 14To prepare the 2015 RHRA budget, staff has used the Strategic Plan 2012 – 2016, the 2013 – 2016 15Implementation Plan, and held a discussion with the RHRA Finance Subcommittee. 16According to Chris Miller, City Finance Director, the maximum levy that the RHRA can impose in 172015 is $741,498, which is a 5.4% increase from the 2014 levy of $703,579 (the 2013 budget was 18$698,471, which was an increase of less than .75%). The RHRA is seeking the maximum levy in 19order accomplish the research projects and anticipated follow-up activity identified by the Council 20and HRA in the July 7, 2014, joint meeting of the RHRA and City Council. 21The impact on a median-valued home of $215,340 would be approximately $38.48 annually, which 22is approximately $4.00 more than 2014. 23The draft 2015 budget shows an estimated carryover amount of $168,367 from the 2014 budget. 24This carryover is due to the following unexpended dollars from the 2014 budget: Previous year 2013 carryover $157,097 Ongoing Marketing-Advertising $10,000 Printing of Marketing Materials $ 1,270 25Staff is proposing to add $105,264 of the carryover to the HRA cash shortfall reserve, which has 26been underfunded in past years. The City Finance Directors Chris Miller recommends the reserve be 27at least 35% of the overall HRA operating budget of $824,595, which is approximately $288,608. 28Adding $105,264 to the reserve would bring the reserve balance to $270,374.30. 2015 RHRA Budget Discussion - Page 1 of 3