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Regular City Council Meeting Monday, September 8, 2014 Page 17 For the sake of consistency, Councilmember McGehee noted that between now and December's final levy, modifications would be made to probably reduce the request. Councilmember McGehee noted the popularity and success of the NEP program in the community; however, she noted there were also programs she did not support personally, such as buying homes. Councilmember McGehee opined that it was important to have an operating fund reserve for the HRA, suggesting that there was no reason why it should differ from the needs of the City, and rec- ognized that point, since it operated as a separate taxing authority, opined it seemed appropriate that the HRA had its own operating reserves. Councilmember McGehee stated that she would be happy to support the preliminary HRA levy re- quest in good faith, anticipating the HRA would return with a reduced request for their final request, similar to other preliminary budget requests. While the HRA didn't perform any essential services, Councilmember McGehee noted that they would be embarking on the new business program, which was important to the City and its tax base; and expressed her faith in the good work of the HRA and that of its Executive Director. McGehee moved, Etten seconded, adopted Resolution No. 11177 entitled, "A Resolution Submitting the Housing and Redevelopment Authority, in and for the City of Roseville, Special Property Tax Levy on Real Estate to the Ramsey Coun- ty Auditor for the Fiscal year of 2015;" in the preliminary amount of$741,498. At the request of Councilmember Etten, Finance Director Miller noted that, simi- lar to the City's cash flow, the largest revenue source for the City was the semi- annual tax levy, requiring a cash flow of six months, with only minimal other rev- enue sources available to help reduce that need. As a day to day guide, Mr. Miller advised that the HRA had operational requirements for cash flow, with only some of its housing programs dependent on one-time revenue funds, and ever-changing dynamics. Mr. Miller advised that the HRA reserve fund was intended to meet day-to-day operating needs, not long-term housing loan program needs. At the request of Councilmember Etten, Ms. Kelsey advised that the 2014 budget did not include funds to address reserves, and after working with Finance Director Miller over the last few years, the intent was to bring the HRA closer to carrying itself versus relying on the City at any time to meet cash flow and/or operating needs. Since the 2014 approved budget did not provide a specific line item to add to reserves, but the 2015 budget did so, no new money was targeted, with any ex- cess from the 2014 budget used to further reduce the 2015 reserve fund needs. Councilmember Etten spoke in support of the motion, recognizing that the HRA had some programs and property issues pending, with potential revenue coming in from those.