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Regular City Council Meeting Monday, September 8, 2014 Page 16 As HRA Executive Director Kelsey came forward, City Manager Trudgeon par- tially addressed the preliminary nature of the request at this time, with more re- fined information available at year-end as to 2014 dollars not spent and available for carryover into 2015. HRA Executive Director Jeanne Kelsey Ms. Kelsey concurred with City Manager Trudgeon, moving forward in 2014 as functions and any unspent funds were defined. In response to funding reserves for the HRA, Ms. Kelsey advised that in consultation with the HRA Attorney, while there was no law regarding comingling of City and HRA funds, it was not recommended as an ongoing action; and therefore it was recommended that the HRA be self-sufficient and not rely on cash reserves from the City Council. In reviewing the overall reserve fund for the City, Councilmember Willmus agreed with Councilmember Laliberte, that it was not necessary to duplicate or add to reserves for the HRA. Councilmember Willmus opined that, if the HRA moved forward with a zero percent levy increase, it could still accomplish all tings planned for 2015; and he would be comfortable with a flat levy for the com- ing year for the HRA. Ms. Kelsey noted that the proposed HRA budget did not bring HRA reserves up to the recommended 35%, but only up to a 32% to 33% level of its operating fund, and remained far below the City Council's reserve fund level. Councilmember Willmus admitted that he was unaware of any City Council dis- cussion as to the level for HRA reserves, since he didn't see that as their role to look at their budget, but only to set their levy. Councilmember Willmus opined that there should be some additional funds available as the Dale Street Project and Hamline Avenue project come to fruition; and questioned if there were any HRA programs or services that may be placed in jeopardy if the levy remained status quo, offering his consideration if any were identified. At the request of Mayor Roe, Ms. Kelsey identified additional budget needs of the HRA beyond reserves that were the basis of their levy increase request, including the Neighborhood Enhancement Program (NEP) not funded in 2014, but repre- senting$37,405 in the 2015 budget. With additions and subtractions to the HRA budget, including the Communica- tions position funding, Councilmember Etten opined there wasn't any one thing responsible for the requested levy increase. However, Councilmember Etten not- ed there were many strategic changes in the HRA's upcoming work plan based on joint discussions of the City Council and HRA that requires money in new areas or adding funds to allow flexibility, thus creating this proposed 2015 budget.