HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 08-06-2001SPECIAL MEETING MINUTES
PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY
August 6, 2001
PRESENT: Chair Susan Henderson, Commissioners Tim Bildsoe, Leon Michlitsch, and Steve
Ludovissie
ABSENT: Commissioner Sandy Hewitt
STAFF PRESENT: Executive Director Anne Hurlburt, Housing Program Manager Jim Barnes,
Office Services Supervisor Denise Hutt, Office Support Representative Barb Peterson
OTHERS PRESENT: None
1. CALL TO ORDER
A special meeting of the Plymouth Housing and Redevelopment Authority was called to order by
Chair Henderson on August 9, 2001, at 7:04 p.m.
2. PRELIMINARY BUDGET AND TAX LEVY
PLYMOUTH TOWNE SQUARE/HRA GENERAL FUND
Director Hurlburt gave an overview of the staff report and explained the budget process. She
spoke about the changes in the state property tax system, which will make budgeting more
difficult this year, and how this change will affect the HRA budget. The HRA has three main
budgets; the CDBG Fund, the Section 8 program and the HRA general fund budget. She
explained that the HRA has authority over the General Fund and Section 8 program budgets but
the City Council has authority for the CDBG budget and also the authority over the HRA
property tax levy.
Director Hurlburt explained the proposal for the increase in Section 8 staffing. Staff is
requesting the addition of a .6 (FTE) full time equivalent position, which would be funded
through the use of federal funds received for administering the program. The supervision duties
of the Section 8 program providing .25 FTE of support recently assigned to the Support Services
Manager would be funded through the 2002 tax levy. Staff is also requesting that 10% of the
HRA Executive Director/Community Development Director position be allocated to the HRA’s
General Fund budget. Director Hurlburt stated that these additional allocations would add
approximately $30,000 to the General Fund Budget in 2002.
Director Hurlburt spoke about the operating costs and subsidy levels for Plymouth Towne
Square. The Plymouth Towne Square subsidy is funded from the HRA General Fund. A “break-
even” budget is projected for 2002, however if tenant rents remain unchanged, the subsidy
needed in 2002 should be less than the current budget by $22,000.
Director Hurlburt talked about the amount of reserves projected for Plymouth Towne Square.
Staff is recommending a detailed study on the repair and reserve funds but at this time will
continue recommending that $500/unit/year in reserves would be the figure used for preparing
the 2002 budget.
Plymouth Housing and Redevelopment Authority
August 6, 2001
Page 2
Plymouth HRA has received ten proposals from firms interested in the management of Plymouth
Towne Square. The proposals contain a varied range for management fees, however, staff is not
expecting a big change and does not see a need to increase the levy for next year.
Commissioner Bildsoe inquired about the rental income at Plymouth Towne Square. He
inquired about the history on rate increases. Director Hurlburt said the rates were raised once but
only by a small amount. Commissioner Bildsoe also suggested we do a rent increase every so
often to keep up with the market rents. Director Hurlburt explained that there will be new fair
market rents in September which are used for the Section 8 subsidies and we can use them as a
guide to raise the rents. Implementing these fair market rents would change the rental income
amount.
Commissioner Bildsoe asked about reserves and if we could transfer working capital reserve to
the repair and replacement fund to make that a larger amount. Director Hurlburt explained the
reserve balance worksheet and discussion took place. Commissioner Bildsoe stated that his
preference would be to use the reserve funds rather than raise the HRA levy.
Commissioner Ludovissie inquired about the levy in previous years. Director Hurlburt said that
the HRA had planned to spend down reserves by $60,000 in 2001 to decrease the tax levy, but
that the levy will increase for year 2002 because of state law changes. Commissioner Ludovissie
said he understood the initial intent of the levy was to be used for Plymouth Towne Square.
Director Hurlburt stated that in the first couple of years the money was used only for Plymouth
Towne Square. Commissioner Ludovissie felt that we need to look at the rent structure but also
need to make sure there are funds available in the rent structure to subsidize the reserve and
prevent having to go back and raise the levy. Director Hurlburt explained that we need to do a
complete analysis of the rent structure, and that the final amount of the levy can go down but
cannot be raised, so it should be set high enough and then adjusted later.
Commissioner Bildsoe asked what “phasing in changes” means on top of Page 4 in the staff
report. Director Hurlburt explained that the HRA does not have to set definite subsidy levels at
this time. The numbers can be changed in the middle of the year or gradually over time.
Commissioner Ludovissie said he feels that the City Council has been very comfortable with the
HRA budget but if they are strained in terms of raising adequate revenues they would be glad to
endorse outside sources of revenue for the HRA. Commissioner Bildsoe explained that the HRA
is a very small portion of the City budget. Director Hurlburt said that it gets grouped together as
a whole with the City budget and explained that the City Council has the final approval of the
HRA levy. Chair Henderson felt we should have a sufficient balance in the HRA General Fund
to use if we need money for expenses such as we may have needed when the townhome was sold
at Bassett Creek.
MOTION by Commissioner Bildsoe, seconded by Commissioner Michlitsch, recommending that
the City Council adopt a maximum HRA property tax levy of $590,000 for 2002, that staff
prepare detailed budgets for HRA and City Council approval, and that staff continue its analysis
of the operating budget and rent subsidies of Plymouth Towne Square, as outlined in the July 13,
2001 staff report and as consistent with the HRA’s direction at its July 29 meeting.
Vote. 4 Ayes. Motion adopted unanimously.
Plymouth Housing and Redevelopment Authority
August 6, 2001
Page 3
Jim Barnes, Housing Program Manager, gave the HRA Board a brief summary of his
professional background. He stated that he will be concentrating his efforts on Plymouth Towne
Square and looking at what other programs may be beneficial for the Plymouth HRA.
Discussion was held regarding a process to follow when selecting a management company for
Plymouth Towne Square. Chair Henderson suggested preparing an outline to follow with
definite criteria, so the applying companies can be ranked evenly. Suggestions were presented
and the Board requested that staff prepare materials to use.
3. ADJOURNMENT
MOTION by Commissioner Bildsoe, seconded by Commissioner Michlitsch, to adjourn the
meeting.
Meeting adjourned at 8:20 p.m.