2004-08-17_Agenda - Laserfiche WebLink

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Review of HRA Program Budget 3.0 Sources: 3.1 There are several sources of funds associated with the HRA. The primary sources to fund HRA specific non-income restricted programs and administrative costs are the cash levy funds balance,, home & garden fees and interest. These are highlighted in the Sources section of the draft budget. I have provided two budget options (full levy and ½ levy) which affect the sources of funds by a difference of about $234,000. In addition, the cash balance is based upon what is available at the end of the year which is estimated to be approximately $85,000. Restricted Funds (CDBG/LDC) funds 3.2 – There is an estimated $350,000 in federal funds available to the HRA for housing program(s). These funds, however, can only be used if the project complies with federal guidelines. Generally this means that the program must serve people with incomes at or below 80% of median incomes. This must be proven through income verification. Unless that requirement can be substantiated, the funds are not recommended for use. I have highlighted restricted use fund program options such as - first time homebuyer, multifamily renovation and housing replacement program. These funds can not be used for any administrative costs associated with the administration of the HRA or its programs. Uses: 3.3 The HRA’s housing plan is broken up into 7 main categories. The HRA’s budget is categorized by these programs, plus administration, for ease in correlating the use of funds with programs. a.A summary of each specific program and estimated budgets for 2005 are summarized below: Home & Garden 1. – This program is self sufficient as it brings in as much revenue as expenses and provide a great return and service to the residences of Roseville. It is estimated that the fair serves between 800-1,000 area residents. In 2005, outside staffing will be provided to manage the program. This was accounted for in the budget and staff is confident that enough sponsorship revenue and exhibitor fees will be collected to pay for the staff time. Prior to 2004, the staff time was not paid directly from the program income. Estimated Final Program Expenditure 2004 $10,370 2005 Suggested Budget Amount: $10,200 Can Federal Funds be Used No 2.Housing Replacement – An example of this program is the 2012 Eldridge project that the HRA is involved in currently. This is a particular case where the HRA is being proactive in the use of eminent domain for its acquisition and replacement. That is not always the situation. The HRA could market the program more proactively on a volunteer basis to target properties that have been in disrepair and where the owners are willing to sell. In addition, the HRA could assist with the demolition costs associated with dilapidated homes. In the past, the City had targeted three properties for purchase a year under a volunteer housing replacement program. Staff is suggesting that the HRA HRA Budget Hearing & Levy Request - Page 2 of 9