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Attachment A <br />Request for HRA Action <br /> <br />Date: 08-19-14 <br />Item No: 9.b <br />Director Approval: Agenda Section: <br /> Action <br /> <br />Description: 2015 RHRA Budget <br /> <br />1 <br />Requested Action <br />2 The RHRA needs to adopt a preliminary 2015 budget by resolution. The draft 2015 budget <br />3 included in this report has been prepared by staff and reviewed/discussed by the RHRA Finance <br />4 Subcommittee. The full RHRA needs to review and discuss the draft 2015 budget then advise <br />5 staff of any modifications to the draft budget. <br />6 <br />Budget Process <br />7 Per State Statute 469.033, subdivision 6, the HRA must formulate and file a budget each year in <br />8 accordance with the budget procedure followed by the executive departments of the City. <br />9 To request an HRA levy, the RHRA must adopt a resolution and budget and present it to the City <br />10 Council in September. Assuming approval, the RHRA budget will be included in the City budget <br />11 and levy request that is submitted to Ramsey County in September. The City Council then holds <br />12 a public hearing on all elements of the budget in December, including any proposed HRA levy. <br />13 <br />Background <br />14 To prepare the 2015 RHRA budget, staff has used the Strategic Plan 2012 – 2016, the 2013 – 2016 <br />15 Implementation Plan, and held a discussion with the RHRA Finance Subcommittee. <br />16 According to Chris Miller, City Finance Director, the maximum levy that the RHRA can impose in <br />17 2015 is $741,498, which is a 5.4% increase from the 2014 levy of $703,579 (the 2013 budget was <br />18 $698,471, which was an increase of less than .75%). The RHRA is seeking the maximum levy in <br />19 order accomplish the research projects and anticipated follow-up activity identified by the Council <br />20 and HRA in the July 7, 2014, joint meeting of the RHRA and City Council. <br />21 The impact on a median-valued home of $215,340 would be approximately $38.48 annually, which <br />22 is approximately $4.00 more than 2014. <br />23 The draft 2015 budget shows an estimated carryover amount of $168,367 from the 2014 budget. <br />24 This carryover is due to the following unexpended dollars from the 2014 budget: <br />Previous year 2013 carryover $157,097 <br />Ongoing Marketing-Advertising $10,000 <br />Printing of Marketing Materials $ 1,270 <br />25 Staff is proposing to add $105,264 of the carryover to the HRA cash shortfall reserve, which has <br />26 been underfunded in past years. The City Finance Directors Chris Miller recommends the reserve be <br /> 2015 RHRA Budget Discussion - Page 1 of 3 <br />