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Based upon discussions with other communities, the value of an HRA and its authority is that is serves as a credit enhancement tool and source of revenue for debt service specifically for housing projects. A quality housing stock is critical to successful neighborhoods. However, the identification and improvement of the housing stock takes time to implement and is costly. In addition, there is a time lag due to the longer payback of funds through the increase in the tax base and loan repayments. Also, the Federal, State and Metro housing agencies look more favorably on applications for funds where an HRA is involved such as Villa Park, Calibre Ridge, Rice Street Pathway and other HUD/CDBG related grants received in the past. 4.0 What is the HRA Levy? Per Minnesota Statutes 469.033, Subdivision 6, an HRA has the authority to levy a special tax upon a11 taxable property within the City boundaries specifically to fund the purposes of the housing plan within that City. The maximum HRA levy is equal to .0144 percent of taxable market value (Roseville 2002 =$2.64 billion), which would equal approximately $380,000 annually using 2002 taxable market value. Using the median assessed value in Roseville of $140,500 the average City tax is $45 L If an HRA levy was initiated as part of the 2003 budget process the estimated increase in the average City tax would be $22 independent of all other factors. However, other offsetting factors can occur so that there would be a minimal impact to the average homeowner. In addition, the HRA levy would be spread across a11 property owners including commercial and industrial properties. As the county treasurer collects the tax it is accumulated and kept in a separate fund called the "City of Roseville Housing and Redevelopment Project Fund". The money in the fund is turned over to the City HRA at the same time and in the same manner that the tax collections for the city are turned over to the City. The money must be expended only for the purposes of sections 469.001 — 469.047 and only through the authority of the HRA Board and with signature of the authorize representative. 5.0 What is the process for adding an HRA Levy onto the tax bill? The levy, which is outside the City's general fund levy limits, is only permissible after passage of an HRA resolution each year. The HRA must annually submit a budget to the City Council in accordance with the budget process of the city in the same manner as required by each department of the City. The City Council is the governing body that ultimately approves an HRA levy each year.