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Request for HRA Action <br /> <br />Date: 06-19-07 <br />Item No: 8.a. <br />Director Approval: Agenda Section: <br /> CB Action Item <br /> <br />Description: Consider Proposals for Prepar ation of HRA 5-Year Financial Plan <br /> <br />1.0 Requested Action: <br /> <br />1.1 Discuss proposals for preparation of a 5-year financial plan as part of the 2008 budget <br />process. <br /> <br />1.2 After discussion: <br /> <br /> By motion, approve proposal prepared by to work with the <br />RHRA in the preparation of a 5-year financial plan for an amount not to exceed . <br /> <br /> By motion, direct the HRA finance subcommittee to work with the finance consultant to <br />determine the projected financial needs for review prior to adopting a budget and levy <br />request for 2008. <br /> <br />2.0 Budget Process: <br /> <br />2.1 Per State Statute 469.033, subdivision 6, the HRA must each year formulate and file a <br />budget in accordance with the budget procedure of the City in the same manner as <br />required of executive departments of the City. An HRA preliminary budget is typically <br />reviewed and discussed at a public meeting by the City Council in August. <br /> <br />2.2 To request an HRA levy, the HRA must adopt a resolution and budget and present it to <br />the City Council. Assuming that the City Council is in support of the budget and levy <br />request, it will then be included within the City budget and levy request that is submitted <br />to the County in September. The City Council holds hearings on all elements of the <br />budget including any proposed HRA levy. The final levy is set in December. The <br />maximum levy that is submitted to the County and State in September can be <br />reduced prior to the truth in taxation hearing in December but it cannot be <br />increased. <br /> <br />3.0 Proposed Budget Considerations - 5 year plan <br /> <br />3.1 The HRA has been active for the past 4 years. Each year, the levy request is based upon <br />a one year picture of projected expenditures. To more effectively plan for programs and <br />to achieve future housing goals and strategies, it is being recommended that a 5 year <br />financial plan be prepared. This will assist the HRA is projecting potential financial <br />needs so that the levy is based upon longer range goals and strategies and provides less <br /> Financial Plan Proposal - Page 1 of 2