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Date: 12/27/04 Item: 5. F�R.� ��' Date: �i ��i� Itan: 13. ��II� HRA Levy emo To: Roseville City Council, Neal Beets, Chris Miller From: Cathy Bennett, NRA Executive Director CC: HRA Board Members Date: 12120104 Re: Roseville HRA Levy Requested Action: Consider approval of the final HRA Levy in the amount of $234,000 to fund housing programs in the City of Roseville in 2005 Background: Why invest in housing maintenanceand preservationthrough an HRA Levy? An HRA Levy is importantto provide a dedicated and continuous source of funding to achieve the vision and goals of the City's HRA Housing Plan. The vision and goals of the HRA strive to provide the residents of Rosevillewith a high quality of I'�fe, sense of community and safe quality neighborhoods. In addition, the programs are structured to housing that is balanced in price and productfor people of all ages. The HRA housing fund is fairly stagnant, meaning that limited new dollars are dedicated to the fund each year except interest income and loan repayments. The HRA has three categories of funds —1.) Loan Funds— amount of dollars tied up in the revolving loansfunds and program income (estimated at $500,000) 2.) Restricted Funds — Federally mandatedfunds ($370,000)and 3.) UnrestrictedFunds-Annual Levy and cash —estimatedat ($200,000- $300,000 depending upon cash available). It is estimated, based upon the last 3 years that between $250,000 -$300,000 has been used to fund existing HRA/City housing programs with unrestrictedfunds — mostly single family renovation programs. Based upon current budgetestimates, itwill be very difficultto continuethe existing housing programswithoutthe requested$234,000 HRA levy. As an example,the annual fee to contractwith the Housing ResourceCenter—the single most successful program over the past 4 years — costs $35,000 -$40,000 per year. It has been estimated that the services (financial and technical assistance) of the HRC are equivalentto 2 full time city staff members. Therefore, the investment in this programwhich serves over 800 residents per year and provides over 1,000 services is cost effective. However, with a small cash balance of $80,000 expected for 2005, the HRA would not be able to afford these services for 2005.