HomeMy WebLinkAboutCity Council - 09/06/2005 - HRA APPROVED MINUTES
HOUSING AND REDEVOPMENT AUTHORITY
TUESDAY, SEPTEMBER 6, 2005 7:00 PM, CITY CENTER
Council Chamber
8080 Mitchell Road
HRA COMMISSIONERS: Nancy Tyra-Lukens, Brad Aho, Sherry Butcher, Ron Case, and
Philip Young
CITY STAFF: City Manager Scott Neal, Parks & Recreation Director Bob Lambert, Public
Works Director Eugene Dietz, City Planner Michael Franzen, Community Development Director
Janet Jeremiah, City Attorney Amy Cralam and Council Recorder Deb Sweeney
I. ROLL CALL/CALL THE HRA MEETING TO ORDER
Mayor Tyra-Lukens called the meeting to order at 7:00 p.m.
II. PROPOSED 2006 HRA PROPERTY TAX LEVY AND PROPOSED 2006
BUDGET (HRA RESOLUTION NO. 2005-01)
Neal noted this is a new cost this year. Minnesota Law authorizes the HRA to levy a tax
with the consent of the City Council. Per Minnesota Statute, Housing and
Redevelopment Authorities can levy a tax of up to .0144 percent of taxable market value.
The proceeds may be spent on planning and implementation of redevelopment and/or
low-rent housing assistance programs with the City. The limit for the City of Eden
Prairie would be about $1.2 million. Staff is proposing a$200,000 levy this year to fund
housing and economic development costs, primarily operating and staffing costs. The
City could levy more in future years, for example for the Major Center Area project.
Tyra-Lukens asked if other cities use the HRA levy. Neal said Northfield used it, as do
many outstate communities. Jeremiah confirmed it is common in the metro area as well,
especially if a city has aging housing stock. Tyra-Lukens asked the price per household.
Jeremiah said it would be $7 per year for a median household.
Butcher asked whether, in light of the City's strategic planning and the backlog of
projects needing attention, it would make sense to levy more than $200,000.
Young clarified the Council is setting the maximum levy, not the actual levy amount.
The amount could decrease. He asked if these items would previously have been funded
from the general fund. Neal said yes. Case asked if the HRA levy would represent new
payouts for residents, in addition to the general fund and streetlight utility. Neal said yes.
Case pointed out that taken all together, this means an 8% increase in the amount levied.
He acknowledged the need for the HRA levy but proposed keeping it at$200,000 to
HRA MINUTES
September 6, 2005
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control the tax bite. The revenue stabilization fund might be an avenue to reduce the levy
increase even further.
Aho asked if the HRA levy would be an ongoing expense. Neal said since there is a
staffing impact, the Council should expect it to be ongoing. The Council retains the
power to increase or decrease the levy, or to pull it back to the general fund.
Young said he agreed the levy should begin this year and the maximum should be set at
$200,000. He asked how the levy would appear on the property tax statement. Neal said
it would appear as a separate line item.
MOTION: Case moved, seconded by Aho, to adopt H.R.A. Resolution No. 2005-01
approving the proposed 2006 net property tax levy to be $200,000, and accepting the
proposed 2006 budget of$200,000. Motion carried 5-0.
III. ADJOURNMENT
MOTION: Young moved, seconded by Butcher, to adjourn the HRA. Motion carried 5-
0.
The HRA meeting adjourned at 7:15 p.m.