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Cathy Capon2 Bennett Redevelopment SQecialist�HRA Executive Director City of Roseville\Roseville HRA 2660 Civic Center Drive Roseville, MN 55113 651-792-7072 (Please note new phone number) visit wabpag2 at http://www.cityofroseville.com/development Dear Mayor and Council Members, I would like you to consider the following points as you consider budget isssues Monday Dec 6th HRA Programs provide services to aging residents who want to stay in their homes. (55% of residents 65 years and older) Example: An elderly woman got windows replaced and they started to leak. She called the contractor and they were not responsive. We sent a Housing Resource Center representative to her house. They reviewed the contract and work and determined that they installed the windows improperly. They contacted the contractor and got them to come out and fix the problem at no additional charge. The HR.A program provide services to young families to make housing improvements (over 90 loans issued, resulting in $1.4 million in improvements) With an estimated cash balance of only $85,000 without levy funds, the HRA would not be able to fund the services of the Housing Resource Center (costs about $40,OOOper year). Their services are equivalent to 2.5 additional staff people. The $85,000 would only cover the city fiscal and staff contracts (570,000)with very little left over €or programming. There is some talk about providing the HRA with $800,000 when they were established. The $800,000 was not all cash available for programming. It included the $370,000 in restricted CDBG funds, plus $400,OOOin loan pool funds. We could borrow against these funds but can not rely on it as a source to fund the programs and administration of those programs. (such as the resource center because it is restricted) The impact on the residents of a$234,000 has been reviewed; the impact on a typical resident with an average market value of $180,000 is very minimal estimated at $1.13 per month or 513.5 per year. In addition, the FCR.a levy is eligible for the state homestead tax credit of which the general city levy is not. What this means is that a portion of the levy is covered by the state which reduced the impact on the residents even more. In 2004 with a$200,000 levy, the State credit is approximately $12,000. Therefore, the residents' portions of the levy (both commercial and residential) are reduced to $188,000. The $234,000 levy would allow the HR�. to continue to implement the City's housing programs and begin to evaluate future programs to address changing neighborhood trends such as increased single family