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Regular City Council Meeting Monday,August 25, 2014 Page 33 Program (NEP), Business Retention and Expansion just being initiated, and their excellent work on the multi-family housing rental licensing program. Coun- cilmember McGehee opined that, whenever the HRA has acted as a bank, they've built up those funds to become self-sufficient in those programs. After the budget process is completed this round, Councilmember McGehee expressed her interest in setting up a program to reduce reserves, but allowing enough flexibility to be able to act on any blighted buildings that become available. As a part of this overall program, Councilmember McGehee opined that if the City was unable to act on a blighted property and purchase it at a low cost, it was probable that the City may end up with a slum lord situation, creating even more ongoing problems with that property. However, if the HRA purchased the property, demolished the existed building, and then was able to improve the property and get it back on the tax rolls, Councilmember McGehee stated it would only serve to improve the City tax base, and would work in tandem with the successes of the NEP program, as well as others. Councilmember McGehee opined that this reserve fund was dif- ferent than many of the other reserves to enable the HRA to move quickly if and when properties become available. Councilmember Laliberte stated that she appreciated a lot of what the HRA did in moving the City forward in many ways. However, Councilmember Laliberte opined she was not sure if she agreed to the HRA seeking the maximum allowable levy, and even while some things listed were important to fund, she wasn't sure if she could support that levy increase to beef up reserves to the proposed extent. Councilmember Laliberte also expressed her concern with the communications aspect, but recognized the comments of City Manager Trudgeon in assuming the function versus changing course by piecemealing them out. Specific to increasing reserves, Councilmember Etten noted there was no increase in the 2014 for reserves, and there may be carryover funds to reduce the proposed 2015 reserve needs. However, at this point, Councilmember Etten stated that he was not looking to increase the HRA levy to provide more funds in reserves. Mayor Roe noted that the HRA levy would return with other levy actions on Sep- tember 8, 2014, subject to modification by the HRA and/or City Council. Councilmember Willmus referenced Councilmember McGehee's comment on the HRA's housing replacement program; and concurred that it was absolutely correct and admirable that the HRA had the ability to purchase property and get a new structure on the tax rolls. However, Councilmember Willmus also noted the need to be aware of recouping upfront costs, and there was often a lag for newly- constructed properties reaching the tax rolls, sometimes as long as 3-4 calendar years. Councilmember Willmus noted there were carrying costs as well, each fac- toring into his concerns going forward.