2008-11-18_Agenda - Laserfiche WebLink

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Request for HRA Action Director Approval: � . Description: 2009 RHRA Budget (HF0069) 1.0 Requested Action: Date: 11-18-08 Item No: 8 a. Agenda Section: Action 1.1 The RHRA should review the information provided by staff regarding proj ected revenue on hand and make a final recommendation on the 2009 RHRA budget and levy. 2.0 Background: 2.1 On August 19, 2008, the RHRA reviewed and recommended a budget to the Roseville City Council in the amount of $386,000 with a levy of $358,000. As the budget was discussed with both the RHRA and City Council, staff indicated that they will be providing information at a later date that would identify the proj ected carry over from the 2008 budget. 2.2 Since that time, staff has been able to generate additional revenue for the RHRA General Fund (723) that were not expected at the time the preliminary budget was presented and approved. This is due to the fact that staff was able to utilize Fund 720 — Villa Park to pay for obligations in the amount of $170,000 for the SHRP program. Staff worked with Ramsey County staff to ensure that Fund 720 could be utilized, thus removing the obligation of the RHRA Fund 723 to pay for these expenses. 2.3 As of November 12, 2008, the RHIZA General Fund has a balance of $218,545.70. In the beginning of December, the RHRA shall receive a second half tax payment from Ramsey County in the amount of $176,000, raising the total amount of fund balance at the end of the year to $394,546. However there are outstanding obligations for 2008 in the amount of $137,556 that have not been incurred yet but will be by the end of 2008. This leaves a total projected fund balance of $256,990. 2.4 Staff believes this situation gives the RHRA Board an opportunity to lower the levy as well as add dollars to programs; specifically to the newly created multi-family loan program. 2.5 Staff recommends that the $150,000 of the unanticipated revenue be allocated to the new multi-family loan program, raising the funding for the program to a total of $300,000. As the RHRA has previously discussed, the upkeep of multi-family properties is an ongoing concern and a high priority of the City and the RHRA. Given the budget constraints at the time, the RHRA allocated $150,000 to the program knowing that there was a greater RHRA 2009 Budget Discussion - Page 1 of 2