2009-07-27_Minutes - Laserfiche WebLink

Home

HRA Meeting Minutes – Monday, July 27, 2009 Page 3 expenses/revenues over the last few years and more accurately reflected those numbers. Mr. Masche noted that expenses had not increased to any substantial degree, and in some areas had been reduced. Mr. Trudgeon advised that staff would continue to monitor case carryovers from tax levy payments semi-annually, and deferral of various items. Mr. Trudgeon noted the variables in projecting budgets to meet the September 15, 2009 Preliminary Levy and Budget requirements, while further changes are anticipated before December’s final levy was due, and hopefully allowing reduction of preliminary requests based on more information being available at that time. Mr. Trudgeon noted that the preliminary budget could be reduced, but not increased for final adoption. Ms. Kelsey advised that it was staff’s intent to make the HRA’s various programs self- sustaining as revolving loan funds, as well as enhancing revenue sources (i.e., fees for conduit financing requests similar to that of St. Louis Park), as the HRA made those recommendations to the City Council for their approval. Member Pust arrived at this time, approximately 5:07 p.m. Further discussion included how this levy accurately represent services currently being provided by the HRA; the need for the HRA to identify program needs on the Strategic Plan that were in line with their initiatives and priorities; emphasizing the HRA theme for a “hand up, not a hand out;” recognition by the City’s external auditing firm of the HRA’s substantial strides in improving accountability in tracking expenses/revenues in its various funds through better communication with the City’s Finance Department; and difficulties in using an accrual rather than cash accounting system in providing periodic reports. Additional discussion included ways staff was pursuing to become more cost-effective (i.e., printing of marketing materials); and automatic carryover of approximately $25.000 in annual reserves. For the benefit of Member Pust, Mr. Trudgeon repeated the background information detailed in the staff report related to this year’s preliminary 2010 budget and levy request, based on the updated strategic plan. Member Pust observed that every $100,000 in expenses represented an approximate 1% levy increase; and noted that this preliminary request would indicate a 2.4% levy increase specific to the HRA. Member Pust opined that the City Council would count this against the City’s total proposed 2010 levy; and that the HRA needed to be prepared with a compelling argument to “sell” their rationale for this substantial request to the City Council, when the City Manager was considering presenting a zero percent levy. Chair Maschka, and Mr. Trudgeon, noted that this was needed discussion based on the updated strategic plan and realistic funding to accomplish those initiatives. Chair Maschka noted that a zero levy increase would remain at $258,000 as in 2009. Mr. Trudgeon anticipated parameters from the City Council in August, following results of the community meetings currently in process. Councilmember Pust further noted that, over the last six (6) months, departments had cut their collective budgets by $400,000 to address recent legislative actions or lack thereof; and recognizing another fifteen percent (15%) increase in health care costs, in addition to other employee-related expenses.