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<br />3.3 Staff explored other options to achieve the same benefits for the housing programs in <br />Roseville. Specifically staff reviewed the existing legal authority of a City using the <br />City's Port Authority powers and the establishment of an Economic Development <br />Authority (EDA) <br /> <br />a. The City's existing legal authority, with the powers of a port authority, can <br />achieve many of the same objectives as an HRA. However, to do many of the <br />existing and future housing projects using the existing City structure <br />requires cross reference statutory authority through blighted land and <br />correction of health, safety and welfare issues. Although a Port Authority <br />has specific levy authority, the City, by having the powers of a Port <br />Authority, is unable to use the specific levy authority for housing activities. <br /> <br />b. The existing City housing fund, estimated with a current fund balance of <br />$800,000, is no longer experiencing the same revenue sources as in prior years. <br />The fund was established and used in a very limited capacity for many years. <br />Since 1998, the City has been investing between $200,000 - $300,000 in housing <br />initiatives. This program activity and investment is reducing the fund <br />balance annually. Staff estimates that the fund will be reduced or funding <br />eliminated for these programs in 3 years. <br /> <br />c. Council could choose to budget each year under the existing general fund for <br />housing programs. Long term grant programs want assurances that long <br />term matching funds are available from the city. However, the housing <br />programs will compete with other life and safety services such as Police and Fire. <br />Increasing housing program funding from the general fund would take away from <br />the existing services provided by the City. <br /> <br />d. Dedicating city funding as part of the general levy each year to housing would be <br />great. However, the Council's long-standing policy of not increasing the tax levy <br />more than the rate of inflation means that, relatively, increasing funding for <br />housing would be at the expense of some other city needs. Staff's perspective is <br />that the city's current tax levy is one of the lowest in the Metro and barely <br />adequate to address compelling non-housing needs, much less spreading the levy <br />funds even more thinly to try to address housing needs as well as other city needs. <br /> <br />e. Staff also reviewed the establishment of an Economic Development Authority <br />(ED A). . An EDA does not have the same sharp focus on housing as an HRA. An <br />EDA's focus is on broader development and redevelopment issues. An EDA does <br />have separate levy authority. However, the levy must be within the City levy <br />limits. Staff did not recommend this option since the focus was much broader <br />than housing. <br /> <br />f A board dedicated to housing issues-like the Planning Commission is dedicated <br />to land use issues or the Parks & Recreation Commission is dedicated to parks <br />issues-seems to foster the kind of sustained focus and experience that are more <br />likely to lead to success. The Council's attention is drawn toward all points of the <br />compass. If the Council wants focus on housing - staff suggests that to stay on <br />task, to sustain attention and to make progress on housing issues, an HRA is the <br /> <br />Establishment of an HRA Page 2 of 3 <br />