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Section 6. HRA Housing Fund (Budget Summary/Forecas�s� The City Council transferred the operation, maintenance and control of all the housing programs and the housing fund (the "HRA Fund") on June 16, 2003. The HRA in support of the City must adopt a budget for the continued funding of the Housing Plan annually. The City's Housing Fund was created in 1991 with $500,000 transferred from existing tax increment proceeds within Development District No. 1. The HRA Fund was expanded over the years from grants, community development revenues, service fees and the one- percent industrial development and housing revenue bond fees. I n addition, any interest earnings generated go directly back into the HRA Fund as well as proceeds from the sale of the Pl�nbook and revenue generated from the sponsor and exhibit fees of the annual Home & Garden Fair. Every effort is made to replenish the HRA Fund through revolving loans within the program. However, no new funding source has been approved by the City and/ar HRA to assure that the housing programs are funded in the future. Since 1995, the City has become more proactive in providing programs that meet the needs of the community. These programs do come at a cost but the benefits have been outstanding. I t is estimated, based upon the last 3 years, that between $250,000 -$300,000 has been used to fund City housing programs. The investment has generated significant investment in the community. ��Fie HRA wishes to continue to fund housing programs at that level and/or to achieve the high priority items, the HRA Fund will be depleted within two years. Therefore, the HRA has requested and received annual levy support from the City Council since 2003. Each year the levy must tie directly back to the housing plan goals and objectives. H RA �.evv: The HRA annually reviews the need fo r a local housing levy t o help stabilize the HRA Fund and enable it to become more actively involved in its housing decision for years to come. Per Minnesota Statutes 469.033, Subdivision 6, a HRA has the authority to request a special levy upon all taxable property within the city boundaries specifically to fund the purposes o f the Housing Plan within thcrfi ci�y. The special levy request must be approvedby the majority of the Ci�y Council as par� of the budgetand truth in taxation process. A budget for the HRA Fund is prepared and reviewed by the HRA Board of � Commissions annually based upon goals and action steps in the Housing Plan and as identified in Attachment A. Housing Plan — 2005 Page 22 Rose�ille HR�I