CC_Minutes_2014_0825 - Laserfiche WebLink

Home

Regular City Council Meeting Monday,August 25, 2014 Page 29 $$741,498, a 5.4% increase from the 2014 levy in order to implement new initia- tives as previously reviewed and supported by the City Council and for ongoing programs. At the request of Councilmember Willmus, Mr. Bilotta reviewed the intent to sus- tain HRA reserves to address operational cash flow needs versus the past practice of borrowing internally to meet those needs on an interim basis. At the request of Councilmember Willmus, Finance Director Miller responded that he was not aware of any statutory issues related to internal short-term borrowing from the City if needed by the HRA; however, he noted that the City also experienced those dips in General Fund discretionary funds as well that could supply such in- terim loans, as revenue sources were periodically delayed; therefore, he opined that this may not be the best place to turn for short-term borrowing. Mr. Miller also noted this would be policy based as to whether the City Council wanted the HRA to be self-sufficient and segregated, and if so it needed to have reserves available from one year to the next. At the request of Councilmember McGehee, Mr. Bilotta reviewed HRA program #72, (multi-family initiatives), explaining that the program incorporated multiple pieces, including assembling parcels for redevelopment and another area for reha- bilitation loans as the fund was built up and became sufficient to provide gap fi- nancing for existing multi-family buildings in need of repair or maintenance for safety and overall benefit to the community, and as a direct result of the current rental licensing inspections that provided this potential funding option to owners of those buildings. Councilmember McGehee expressed concern in the HRA being in business to provide small business loans to other businesses, some of whose owners may not even live in Roseville, and if that was the case, those loan funds should be availa- ble for any other new business as well. City Manager Trudgeon clarified that the HRA never characterized the program as a small business loan, and when started in 2009/2010, it was intended to stabi- lize the multi-family initiative prior to the rental licensing program to get im- provements to those buildings for tenants living in bad situations. However, Mr. Trudgeon noted that the program never got to that point, but now was at the point where funds were possible for use to go beyond aesthetics as needed to improve quality of life, as well as being available for property purchase, similar to that for the Dale Street Fire Station project. At the request of Mayor Roe, City Manager Trudgeon advised that the HRA had put policies in place when the program was approved in 2009/2010 as to how and when those funds could be used and applicable criteria.